Autodesk (ADSK) Q4 1991 earnings summary

Executive summary

• FY1991 revenue rose 33% to $237.9m; net income increased 22% to $56.8m and diluted EPS reached $2.30.

• AutoCAD remained the core growth engine, accounting for 88% of sales; international markets contributed 56% of revenue.

• Growth initiatives included new multimedia products, broader international operations and development of science-oriented software.

Financial highlights

• Net revenue was $237.850m, up 33.2%; operating income was $80.954m and income before taxes was $91.977m.

• Net income was $56.755m, up 22.4%; EPS was $2.30, up 20.4%.

• Cost of revenues rose 23% to $27.6m; cost of revenues fell to 12% of sales from 13%, mainly due to fewer lower-margin AutoCAD update sales.

• Marketing and sales expense increased 61% to $75.4m; R&D rose 15% to $24.4m and G&A increased 41% to $29.4m.

• Operating cash flow was $58.446m; year-end cash, cash equivalents and marketable securities totaled $149.732m.

Outlook and guidance

• European expansion and foreign-language AutoCAD Release 11 work reduced Q4 operating margins; European expansion was expected to pressure margins in the short term.

• FY1992 plans included a European R&D center, another Japan sales office and continued hiring of software developers.

• Existing liquidity and operating cash generation were expected to cover FY1992 and foreseeable cash requirements.

• R&D priorities included 2-D and 3-D CAD, molecular modeling, hypertext retrieval and virtual-reality exploration.