Autodesk (ADSK) Q4 1995 earnings summary

Executive summary

• FY1995 net revenues rose 12% to $454.6M; operating income increased 19.7% to $107.4M, while reported net income fell 8.9% to $56.6M after a $25.5M litigation charge.

• Strong Q4 demand lifted revenue 27% YoY to $129.6M; adjusted FY1995 net income was $73.1M, or $1.47/share, excluding the one-time litigation charge.

• Strategy centered on AutoCAD Release 13, broader product diversification, customer-focused market groups, and measured global infrastructure investment.

Financial highlights

• FY1995 net revenues were $454.6M vs. $405.6M; operating income was $107.4M vs. $89.7M; net income was $56.6M vs. $62.2M.

• Reported diluted net income/share was $1.14 vs. $1.25; excluding the approximately $26M pretax litigation charge, FY1995 net income was $73.1M and EPS $1.47.

• Q4 FY1995 revenue was $129.6M vs. $102.1M; operating income $35.4M vs. $22.6M; net income $7.7M vs. $15.3M.

• Net cash from operations rose to $104.4M from $88.9M; year-end cash, equivalents, and marketable securities were $255.4M vs. $217.0M.

Outlook and guidance

• FY1996 AutoCAD and update revenue share was expected to rise from FY1995 levels, alongside growth in multimedia, WorkCenter, AutoCAD Designer, and planned product releases.

• FY1996 R&D expense was expected to increase with scheduled releases and localization; marketing and sales investment was expected to continue.

• Outsourced manufacturing and distribution, phased in during FY1996, was expected to improve gross margin in future periods.

• Existing liquidity, the available credit line, and anticipated operating cash flow were expected to cover FY1996 cash requirements.