Autodesk (ADSK) Q4 1992 earnings summary

Executive summary

• FY92 net revenues rose 18.9% to $274.0M; net income increased 1.8% to $57.8M and EPS was $2.31. AutoCAD remained the primary growth driver.

• Q4 results disappointed on sales shortfalls in the Americas and Asia/Pacific; product-launch ramp costs also weighed on earnings.

Financial highlights

• Revenue was $284.9M, up 19.8%; after $10.9M in direct commissions, net revenue was $274.0M, up 18.9%.

• Operating income was $80.2M versus $81.0M; income before taxes was $92.3M versus $92.0M.

• Net income was $57.8M versus $56.8M; EPS was $2.31 versus $2.30.

• Cash, cash equivalents and marketable securities totaled $191.3M at Jan. 31, 1992, versus $149.7M a year earlier.

Outlook and guidance

• FY93 planned product launches and upgrades, including AutoCAD Release 12 and broader Windows offerings; delays could adversely affect revenue, earnings and share price.

• Cost of revenues as a share of net revenues expected to rise in FY93 due to AutoCAD Release 12 material costs, product mix and European production centralization.

• Marketing and sales costs as a share of net revenues expected to increase to support new products and competitive positioning; product investment was already lowering operating margins.

• Existing cash, securities, available borrowings and operating cash flow expected to cover anticipated FY93 and foreseeable cash needs.