Autodesk reports second quarter results
San rafael, calif.--(business wire)--autodesk, inc. (nasdaq: adsk) today reported financial results for the second quarter of fiscal year 2013. second quarter fiscal 2013 revenue was $569 million, an increase of 4 percent compared to the second quarter of fiscal 2012. gaap operating margin was 16 percent, compared to 17 percent in the second quarter of fiscal 2012. non-gaap operating margin was 25 percent, consistent with the second quarter of fiscal 2012. a reconciliation of gaap to non-gaap results is provided in the accompanying tables. gaap diluted earnings per share were $0.28, compared to $0.30 in the second quarter of fiscal 2012. non-gaap diluted earnings per share were $0.48, compared to $0.44 in the second quarter of fiscal 2012. cash flow from operating activities was $107 million, compared to $132 million in the second quarter of fiscal 2012. "our own execution challenges, combined with an uneven global economy, resulted in disappointing revenue results for the quarter,” said carl bass, autodesk president and ceo. “organizational changes we made within the company earlier this year slowed us down during the quarter. despite our second quarter results, the changes better position autodesk to meet the needs of our customers. we are focused on working through our internal challenges as rapidly as possible." "given the uneven macroeconomic environment and the company's desire to deliver operating margin improvement, we have taken a prudent approach to spending in fiscal 2013," continued bass. "our ongoing cost management measures contributed to the delivery of non-gaap eps within our guidance range for the second quarter." second quarter operational overview emea revenue was $210 million, a decrease of 1 percent compared to the second quarter last year as reported and an increase of 1 percent on a constant currency basis. revenue in the americas was $199 million, an increase of 4 percent compared to the second quarter last year. revenue in asia pacific was a record $161 million, an increase of 12 percent compared to the second quarter last year as reported and 10 percent on a constant currency basis. revenue from emerging economies was $88 million, flat compared to the second quarter last year as reported and an increase of 2 percent on a constant currency basis. revenue from emerging economies represented 15 percent of total revenue in the second quarter. revenue from the platform solutions and emerging business segment was $218 million, an increase of 10 percent compared to the second quarter last year. revenue from the aec business segment was $161 million, an increase of 2 percent compared to the second quarter last year. revenue from the manufacturing business segment was $141 million, an increase of 4 percent compared to the second quarter last year. revenue from the media and entertainment business segment was $49 million, a decrease of 10 percent compared to the second quarter last year. revenue from flagship products was $318 million, an increase of 3 percent compared to the second quarter last year. revenue from suites was $166 million, an increase of 5 percent compared to the second quarter last year. revenue from new and adjacent products was $85 million, an increase of 5 percent compared to the second quarter last year. deferred revenue at the end of the second quarter was a record high of $752 million, an increase of 17 percent compared to the second quarter last year. restructuring as part of today's announcement, autodesk shared plans for a restructuring related to executing on the company's strategy including its continuing shift to cloud and mobile computing. while autodesk is reducing its overall staffing levels in the near-term, the company will continue to invest in key development areas. in addition, the company intends to consolidate certain leased facilities. the company anticipates taking a pre-tax charge in the range of $50 million to $60 million in connection with the restructuring. approximately $40 million to $45 million of the pre-tax charges will be taken in the third quarter of fiscal 2013. most of the remaining charge will be taken in the fourth quarter of fiscal 2013. “this restructuring is squarely focused on our continued transformation and shift to more cloud and mobile computing," continued bass. "this action allows us to continue to invest in recruiting and hiring people who can bring autodesk the skills and experience that are critical for achieving our mid and long-term goals. as part of the ongoing platform shift, it's clear to us that design and engineering software will move to cloud and mobile platforms. cloud and mobile has been a major investment area for autodesk over the past couple of years and this restructuring will accelerate our progress as we intend to further invest in employees with expertise and skill sets essential to this transition. additionally, this restructuring helps us reduce costs and streamline the organization as a continuation of the activities we began earlier this year." separately, in response to the company's second quarter performance, the uneven economic environment, and outlook for the rest of the year, autodesk is implementing further spend management measures, such as reducing non-sales related travel and the number of its contractors. the company expects the combined restructuring and cost savings initiatives, partially offset by planned investments, will result in pre-tax spend (operating expenses plus cost of goods sold) increasing in the second half of fiscal 2013 by between 7 and 11 percent compared to the second half of fiscal 2012 on a gaap basis and ranging between -2 and 2 percent on a non-gaap basis. the difference between gaap and non-gaap in the pre-tax spend range comparisons is due to the exclusion from non-gaap pre-tax spend of approximately 5 percent related to stock-based compensation expense, approximately 2 percent for the amortization of acquisition related intangibles, and approximately 2 percent related to restructuring charges, which are included in total gaap pre-tax spend. "although the economic environment is challenging, our market opportunity and prospects remain strong and we remain committed to achieving our long-term growth targets by the end of fiscal 2015," concluded bass. business outlook the following statements are forward-looking statements that are based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below. autodesk's business outlook for the third quarter and full year fiscal 2013 assumes a continuation of the current economic environment and foreign exchange currency rate environment. third quarter fiscal 2013 non-gaap earnings per diluted share exclude $0.18 related to stock-based compensation expense, $0.12 related to restructuring charges, and $0.08 for the amortization of acquisition related intangibles, net of tax. full year fiscal 2013 net revenue for fiscal 2013 is now expected to increase by 4 percent to 6 percent compared to fiscal 2012. autodesk now anticipates fiscal 2013 gaap operating margin to decrease by approximately 210 basis points and non-gaap operating margin to increase by approximately 150 basis points compared to fiscal 2012. a reconciliation between the gaap and non-gaap estimates for fiscal 2013 is provided in the tables following this press release. both third quarter fiscal 2013 and full year fiscal 2013 outlooks assume annual effective tax rates of approximately 25 percent and 25.5 percent for gaap and non-gaap results, respectively. these rate do not include the federal r&d tax credit benefit, which expired on december 31, 2011, or one-time discrete items. the assumed effective tax rate will be adjusted if or when there is a renewal of the tax credit. earnings conference call and webcast autodesk will host its second quarter conference call today at 5:00 p.m. et. the live broadcast can be accessed at http://www.autodesk.com/investors. supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of autodesk's website simultaneously with this press release. note: the prepared remarks will not be read on the conference call. the conference call will include only brief remarks followed by questions and answers. a replay of the broadcast will be available at 7:00 pm et at http://www.autodesk.com/investors. this replay will be maintained on autodesk's website for at least 12 months. safe harbor statement this press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our long term revenue and non-gaap operating margin targets, the effectiveness of efforts to reduce our operating expenses, statements in the paragraphs under “restructuring” and “business outlook” above, and other statements regarding our expected strategies, market and products positions, performance, and results. there are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: general market, political, economic and business conditions; failure to maintain our revenue growth and profitability; failure to maintain cost reductions and productivity increases or otherwise control our expenses; the success of our internal reorganization and restructuring activities; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; failure to successfully incorporate sales of licenses of products suites into our overall sales strategy; weak or negative growth in the industries we serve; failure to successfully expand adoption of our products; slowing momentum in maintenance billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; failure of key new applications to achieve anticipated levels of customer acceptance; failure to achieve continued success in technology advancements, interruptions or terminations in the business of autodesk consultants; the expense and impact of legal or regulatory proceedings; and any unanticipated accounting charges. further information on potential factors that could affect the financial results of autodesk are included in autodesk's report on form 10-k for the year ended january 31, 2012 and form 10-q for the quarter ended april 30, 2012, which are on file with the u.s. securities and exchange commission. autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. about autodesk autodesk, inc., is a leader in 3d design, engineering and entertainment software. customers across the manufacturing, architecture, building, construction, and media and entertainment industries - including the last 17 academy award winners for best visual effects - use autodesk software to design, visualize, and simulate their ideas. since its introduction of autocad software in 1982, autodesk continues to develop the broadest portfolio of state-of-the-art software for global markets. for additional information about autodesk, visit www.autodesk.com. autodesk and autocad are registered trademarks or trademarks of autodesk, inc., and/or its subsidiaries and/or affiliates in the usa and/or other countries. academy award is a registered trademark of the academy of motion picture arts and sciences. all other brand names, product names, or trademarks belong to their respective holders. autodesk reserves the right to alter product and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document. © 2012 autodesk, inc. all rights reserved. three months ended july 31, july 31, six months ended july 31, gaap restructuring benefits restructuring benefits non-gaap restructuring benefits restructuring benefits restructuring benefits (gain) loss on strategic investments (1) restructuring benefits (gain) loss on strategic investments (1) restructuring benefits (gain) loss on strategic investments (1) autodesk non-gaap net income (1)(5)(c) non-gaap diluted net income per share (1)(6)(b)(c) (c) prior amounts have been conformed to align with the current period presentation. (gain) loss on strategic investments (7)
