Autodesk (ADSK) Q4 1994 earnings summary

Executive summary

• FY1994 net revenues rose 14.8% to $405.6M; net income increased 41.7% to $62.2M and EPS rose 42.0% to $2.50.

• AutoCAD unit growth, new products, broader sales coverage and diversification supported results; revenue growth exceeded the 2.4% worldwide CAD supplier market increase.

Financial highlights

• Revenues were $418.7M before $13.1M in dealer commissions; net revenues were $405.6M, versus $353.2M in FY1993.

• Operating income was $89.7M, compared with $58.2M in FY1993; net income was $62.2M versus $43.9M.

• Gross margin improved to just over 84%, aided by cost controls and lower sales of lower-margin AutoCAD updates.

• Cash from operations was $88.9M; cash, cash equivalents and marketable securities totaled $217.0M at Jan. 31, 1994.

Outlook and guidance

• FY1995 H1 net revenues expected to be affected by slower AutoCAD and update sales as Release 12 nears the end of its product life cycle.

• New FY1994 products and planned H1 FY1995 releases were expected to offset lower AutoCAD revenues; delays or weaker-than-expected demand could hurt results.

• Release 13 was expected to raise AutoCAD's share of consolidated revenue; delays, poor acceptance, currency movements or global economic uncertainty posed downside risks.

• Existing liquidity, operating cash generation and the available credit line were expected to cover anticipated FY1995 cash needs.