Autodesk Reports Q1 Fiscal 2010 Financial Results Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the first quarter of fiscal 2010. -- Revenue was $426 million, a decrease of 29 percent compared to the first quarter of fiscal 2009. -- GAAP diluted loss per share was $0.14, compared to earnings of $0.41 per diluted … - Printer friendly" >
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Autodesk Reports Q1 Fiscal 2010 Financial Results

Implements Previously Announced Plan To Further Reduce Expenses

SAN RAFAEL, Calif., May 21 /PRNewswire-FirstCall/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the first quarter of fiscal 2010.

    --  Revenue was $426 million, a decrease of 29 percent compared to the first
        quarter of fiscal 2009.
    --  GAAP diluted loss per share was $0.14, compared to earnings of $0.41 per
        diluted share in the first quarter last year.
    --  Non-GAAP diluted earnings per share in the first quarter was $0.18,
        compared to $0.50 per diluted share in the first quarter last year.  A
        reconciliation of the GAAP and non-GAAP results is provided in the
        tables within this press release.
    --  Autodesk began implementing a previously announced expense reduction
        plan, which is anticipated to result in pre-tax cost savings of
        approximately $120 million in fiscal 2010.

"Our revenue results for the quarter continue to reflect the global economic downturn, which is impacting our business on almost every front," said Carl Bass, Autodesk president and CEO. "We made significant progress in our continued effort to improve our cost structure and ongoing efficiencies, which resulted in lower than expected operating costs for the quarter and greater than expected earnings per share and cash flow."

Operational Overview

By geography, EMEA revenue was $167 million, a decrease of 35 percent over the first quarter of fiscal 2009 as reported, and a decrease of 24 percent on a constant currency basis. Revenue in the Americas decreased 15 percent compared to the first quarter of fiscal 2009, to $164 million. Revenue in Asia Pacific was $95 million, a decrease of 36 percent as reported and on a constant currency basis year-over-year. Revenue from emerging economies decreased 42 percent, compared to the first quarter of fiscal 2009 to $59 million and represented 14 percent of total revenue.

Combined revenue from Autodesk's model-based 3D design solutions decreased 16 percent compared to the first quarter of fiscal 2009 to $122 million and comprised 29 percent of total revenue for the quarter. Revenue from 2D horizontal and vertical products decreased 39 percent to $208 million as compared to the first quarter of fiscal 2009. Combined revenue from AutoCAD and AutoCAD LT, two of our important 2D horizontal products, declined 42 percent.

Further Reducing Expenses

Autodesk began implementing its new expense reduction plan, which was announced in April. The plan is anticipated to result in pre-tax cost savings of approximately $120 million in fiscal 2010. Combined with the expense reduction initiatives announced in January, Autodesk anticipates achieving approximately $250 million in total cost savings in fiscal 2010, as compared to fiscal 2009.

The new expense reduction initiatives will be achieved by reducing discretionary spending and contingent labor, and through a restructuring plan. The restructuring plan will result in a staff reduction of approximately 430 and the closure of certain facilities. The staff reduction will be partially offset by the hiring of approximately 100 key positions in select areas.

The company anticipates taking a pre-tax restructuring charge in the range of $33 million to $40 million. Approximately $29 million to $35 million in pre-tax charges will be taken in the second quarter of fiscal 2010. Most of the remaining charge will be taken in the third quarter of fiscal 2010.

"While we have already achieved significant cost savings, it was clear that additional measures had to be taken in order to better align our cost structure with current revenue expectations," Bass continued. "The ultimate goal of these measures is to reduce our near-term expenses as well as further improve our operational efficiencies over the long-term. We will continue to balance these cost reduction actions with strategic investments as we navigate the current economic cycle and position Autodesk for long-term success."

Business Outlook

The following statements are forward-looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. Autodesk is only providing revenue and earnings per share guidance for its fiscal second quarter of 2010 at this time.

Second Quarter Fiscal 2010

Net revenue for the second quarter of fiscal 2010 is expected to be in the range of $395 million and $420 million. GAAP loss per diluted share is expected to be in the range of $0.09 and $0.03. Non-GAAP earnings per diluted share are expected to be in the range of $0.15 and $0.20 and exclude restructuring related charges of between $0.10 and $0.11, $0.08 related to stock-based compensation expense and $0.05 for the amortization of acquisition related intangibles.

Earnings Conference Call and Webcast

Autodesk will host its first quarter conference call today at 5:00 p.m. EDT. 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 our 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 EDT at http://www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above, statements regarding anticipated market trends, cost savings, timing of certain charges and other statements regarding our expected strategies, performance and results. Other factors that could cause actual results to differ materially include the following: general market and business conditions, our performance in particular geographies, including emerging economies, the financial and business condition of our reseller and distribution channels, fluctuation in foreign currency exchange rates, failure to achieve planned cost reductions and productivity increases, difficulties encountered in integrating new or acquired businesses and technologies, the inability to identify and realize the anticipated benefits of acquisitions, unexpected fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance revenues, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, failure to achieve continued migration from 2D products to 3D products, 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, and unanticipated impact of accounting for technology acquisitions.

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, 2009, which is 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 world leader in 2D and 3D design software for the manufacturing, construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art Digital Prototyping solutions to help customers experience their ideas before they are built. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. 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. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product offerings and specifications at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.

(C) 2009 Autodesk, Inc. All rights reserved.

    Autodesk, Inc.
    Consolidated Statements of Operations
    (In millions, except per share data)

                                              Three Months Ended
                                                  April 30,
                                                  ---------
                                              2009          2008
                                              ----          ----
                                                  (Unaudited)
    Net revenue:
       License and other                     $243.6        $432.2

       Maintenance                            182.2         166.6
                                              -----         -----

          Total net revenue                   425.8         598.8
                                              -----         -----

    Cost of license and other revenue          49.5          56.0

    Cost of maintenance revenue                 2.8           2.0
                                                ---           ---

       Total cost of revenue                   52.3          58.0

       Gross margin                           373.5         540.8

    Operating Expenses:

       Marketing and sales                    185.8         225.5

       Research and development               124.1         145.6

       General and administrative              45.5          49.8

       Impairment of goodwill                  21.0             -

       Restructuring charges                   16.5             -
                                               ----           ---

          Total operating expenses            392.9         420.9
                                              -----         -----

    Income (loss) from operations             (19.4)        119.9

    Interest and other income (expense), net      -           6.9
                                                ---           ---

    Income (loss) before income taxes         (19.4)        126.8

    Income tax (provision) benefit            (12.7)        (32.2)
                                               -----        -----

    Net income (loss)                        $(32.1)        $94.6
                                             ======         =====

    Basic net income (loss) per share        $(0.14)        $0.42
                                             ======         =====

    Diluted net income (loss) per share      $(0.14)        $0.41
                                             ======         =====

    Shares used in computing basic
        net income (loss) per share           227.1         226.2
                                              =====         =====

    Shares used in computing diluted
        net income (loss) per share           227.1         232.6
                                              =====         =====



    Autodesk, Inc.
    Condensed Consolidated Balance Sheets
    (In millions)

                                                        April 30,  January 31,
                                                           2009       2009
                                                           ----       ----
                                                        (Unaudited)

    ASSETS:

    Current assets:
      Cash and cash equivalents                           $880.5       $917.6
      Marketable securities                                 78.4         63.5
      Accounts receivable, net                             228.6        316.5
      Deferred income taxes                                 47.0         31.1
      Prepaid expenses and other current assets             67.7         59.3
                                                            ----         ----
    Total current assets                                 1,302.2      1,388.0
                                                         -------      -------

    Marketable securities                                    7.6          7.6
    Computer equipment, software, furniture and
     leasehold improvements, net                           120.7        120.6
    Purchased technologies, net                            105.0        113.3
    Goodwill                                               520.7        542.5
    Deferred income taxes, net                              88.3        125.7
    Other assets                                           125.0        123.0
                                                           -----        -----
                                                        $2,269.5     $2,420.7
                                                        ========     ========

    LIABILITIES AND STOCKHOLDERS' EQUITY:

    Current liabilities:
      Accounts payable                                     $65.0        $62.4
      Accrued compensation                                  83.9        124.3
      Accrued income taxes                                  19.1         16.7
      Deferred revenue                                     453.1        438.8
      Borrowings under line of credit                        2.1         52.1
      Other accrued liabilities                             58.6        105.8
                                                            ----        -----
    Total current liabilities                              681.8        800.1
                                                           -----        -----

    Deferred revenue                                        80.9        113.3
    Long term income taxes payable                         120.5        116.9
    Long term deferred income taxes                            -         22.7
    Other liabilities                                       57.8         57.0

    Commitments and contingencies

    Stockholders' equity:
      Preferred stock                                          -            -
      Common stock and additional paid-in capital        1,128.8      1,080.4
      Accumulated other comprehensive income (loss)         (9.7)       (11.2)
      Retained earnings                                    209.4        241.5
                                                           -----        -----
    Total stockholders' equity                           1,328.5      1,310.7
                                                         -------      -------
                                                        $2,269.5     $2,420.7
                                                        ========     ========



    Autodesk, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In millions)
                                                    Three Months Ended
                                                         April 30,
                                                         ---------
                                                  2009                2008
                                                  ----                ----
                                                        (Unaudited)

    Operating Activities
      Net income (loss)                         $(32.1)              $94.6
      Adjustments to reconcile net income to
       net cash provided by operating
       activities:
           Depreciation and amortization          27.0                16.9
           Stock-based compensation expense       23.0                25.2
           Impairment of goodwill                 21.0                   -
           Loss on disposition of assets           1.1                   -
           Restructuring related charges, net     16.5                   -
           Changes in operating assets and
            liabilities, net of business
            combinations                         (29.3)               48.6
                                                 -----                ----
    Net cash provided by operating activities     27.2               185.3
                                                  ----               -----

    Investing Activities
      Purchases of marketable securities         (26.6)               (2.1)
      Sales of marketable securities              11.7                 0.8
      Acquisition of equity investment           (10.0)                0.2
      Business combinations, net of cash
       acquired                                      -                (1.0)
      Capital and other expenditures             (13.6)              (13.4)
                                                 -----               -----
    Net cash used in investing activities        (38.5)              (15.5)
                                                 -----               -----

    Financing activities
      Proceeds from borrowings on line of
       credit                                      2.2                40.0
      Repayments of borrowings on line of
       credit                                    (52.2)                  -
      Proceeds from issuance of common stock,
       net of issuance costs                      25.4                35.3
      Repurchases of common stock                    -              (256.6)
                                                   ---              ------
    Net cash used in financing activities        (24.6)             (181.3)
                                                 -----              ------

    Effect of exchange rate changes on cash
     and cash equivalents                         (1.2)                2.7
                                                  ----                 ---

    Net decrease in cash and cash equivalents    (37.1)               (8.8)
    Cash and cash equivalents at beginning of
     fiscal year                                 917.6               917.9
                                                 -----               -----
    Cash and cash equivalents at end of period  $880.5              $909.1
                                                ======              ======



    Autodesk, Inc.
    Reconciliation of GAAP financial measures to non-GAAP financial measures
    (In millions, except per share data)

    To supplement our consolidated financial statements presented on a GAAP
    basis, Autodesk provides investors with certain non-GAAP measures
    including non-GAAP net income, non-GAAP net income per share, non-GAAP
    cost of license and other revenue, non-GAAP gross margin, non-GAAP
    operating expenses, non-GAAP income from operations, non-GAAP interest and
    other income, net and non-GAAP provision for income taxes.  These non-
    GAAP financial measures are adjusted to exclude certain costs, expenses,
    gains and losses, including stock-based compensation expense,
    amortization of purchased intangibles, restructuring charges,
    goodwill impairment, establishment of a valuation allowance on certain
    deferred tax assets and related income tax expenses.  See our
    reconciliation of GAAP financial measures to non-GAAP
    financial measures herein.  We believe these exclusions are appropriate
    to enhance an overall understanding of our past financial performance and
    also our prospects for the future, as well as to facilitate comparisons
    with our historical operating results.  These adjustments to our GAAP
    results are made with the intent of providing both management and
    investors a more complete understanding of Autodesk's underlying
    operational results and trends and our marketplace performance.  For
    example, the non-GAAP results are an indication of our baseline
    performance before gains, losses or other charges that are considered
    by management to be outside our core operating results.  In addition,
    these non-GAAP financial measures are among the primary indicators
    management uses as a basis for our planning and forecasting of future
    periods.

    There are limitations in using non-GAAP financial measures because the
    non-GAAP financial measures are not prepared in accordance with generally
    accepted accounting principles and may be different from non-GAAP
    financial measures used by other companies.  The non-GAAP financial
    measures are limited in value because they exclude certain items that may
    have a material impact upon our reported financial results.  The
    presentation of this additional information is not meant to be considered
    in isolation or as a substitute for the directly comparable financial
    measures prepared in accordance with generally accepted accounting
    principles in the United States.  Investors should review the
    reconciliation of the non-GAAP financial measures to their most directly
    comparable GAAP financial measures as provided in the tables accompanying
    this press release.

    The following table shows Autodesk's non-GAAP results reconciled to GAAP
    results included in this release.

                                                           Three Months Ended
                                                                April 30,
                                                                ---------
                                                             2009       2008
                                                             ----       ----
                                                               (Unaudited)

    GAAP cost of license and other revenue                   $49.5     $56.1
    SFAS 123R stock-based compensation expense                (0.6)     (1.0)
    Amortization of developed technology                      (8.3)     (3.6)
                                                              ----      ----
    Non-GAAP cost of license and other revenue               $40.6     $51.5
                                                             =====     =====

    GAAP gross margin                                       $373.5    $540.7
    SFAS 123R stock-based compensation expense                 0.6       1.0
    Amortization of developed technology                       8.3       3.6
                                                               ---       ---
    Non-GAAP gross margin                                   $382.4    $545.3
                                                            ======    ======

    GAAP marketing and sales                                $185.8    $225.4
    SFAS 123R stock-based compensation expense                (9.5)    (10.5)
                                                              ----     -----
    Non-GAAP marketing and sales                            $176.3    $214.9
                                                            ======    ======

    GAAP research and development                           $124.1    $145.6
    SFAS 123R stock-based compensation expense                (7.0)     (8.4)
                                                              ----      ----
    Non-GAAP research and development                       $117.1    $137.2
                                                            ======    ======

    GAAP general and administrative                          $45.5     $49.8
    SFAS 123R stock-based compensation expense                (5.9)     (5.3)
    Amortization of customer relationships and
      trademarks                                              (6.4)     (2.9)
                                                              ----      ----
    Non-GAAP general and administrative                      $33.2     $41.6
                                                             =====     =====

    GAAP Impairment of goodwill                              $21.0        $-
    Impairment of goodwill                                   (21.0)        -
                                                             -----       ---
    Non-GAAP Impairment of goodwill                             $-        $-
                                                                ==        ==

    GAAP Restructuring charges                               $16.5        $-
    Restructuring charges                                    (16.5)        -
                                                             -----       ---
    Non-GAAP Restructuring charges                              $-        $-
                                                                ==        ==

    GAAP operating expenses                                 $392.9    $420.8
    SFAS 123R stock-based compensation expense               (22.4)    (24.2)
    Amortization of customer relationships and
      trademarks                                              (6.4)     (2.9)
    Impairment of goodwill                                   (21.0)        -
    Restructuring charges                                    (16.5)        -
                                                             -----         -
    Non-GAAP operating expenses                             $326.6    $393.7
                                                            ======    ======

    GAAP income (loss) from operations                      $(19.4)   $119.9
    SFAS 123R stock-based compensation expense                23.0      25.2
    Amortization of developed technology                       8.3       3.6
    Amortization of customer relationships and
     trademarks                                                6.4       2.9
    Impairment of goodwill                                    21.0         -
    Restructuring charges                                     16.5         -
                                                              ----       ---
    Non-GAAP income from operations                          $55.8    $151.6
                                                             =====    ======

    GAAP income tax (provision) benefit                     $(12.7)   $(32.2)
    Establishment of valuation allowance on
     deferred tax assets                                      21.0         -
    Income tax effect on difference between GAAP and non-
     GAAP total costs and expenses at a normalized rate      (22.2)     (9.1)
                                                             -----      ----
    Non-GAAP income tax provision                           $(13.9)   $(41.3)
                                                             ======    ======

    GAAP net income (loss)                                  $(32.1)    $94.6
    SFAS 123R stock-based compensation expense                23.0      25.2
    Amortization of developed technology                       8.3       3.6
    Amortization of customer relationships and
      trademarks                                               6.4       2.9
    Impairment of goodwill                                    21.0         -
    Restructuring charges                                     16.5         -
    Establishment of valuation allowance on
     deferred tax assets                                      21.0         -
    Income tax effect on difference between GAAP and non-
     GAAP total costs and expenses at a normalized rate      (22.2)     (9.1)
                                                             -----      ----
    Non-GAAP net income                                      $41.9    $117.2
                                                             =====    ======

    GAAP diluted net income (loss) per share                $(0.14)    $0.41
    SFAS 123R stock-based compensation expense                0.10      0.11
    Amortization of developed technology                      0.04      0.01
    Amortization of customer relationships and
      trademarks                                              0.03      0.01
    Impairment of goodwill                                    0.09         -
    Restructuring charges                                     0.07         -
    Establishment of valuation allowance on
     deferred tax assets                                      0.09         -
    Income tax effect on difference between GAAP and non-
     GAAP total costs and expenses at a normalized rate      (0.10)    (0.04)
                                                             -----     -----
    Non-GAAP diluted net income per share                    $0.18     $0.50
                                                             =====     =====

    GAAP diluted shares used in per share
     calculation                                             227.1     232.6
    Impact of SFAS 123R on diluted shares                     (0.1)      0.3
    Shares included in non-GAAP net income per share, but
     excluded from GAAP net loss per share as they would
     have been anti-dilutive                                   2.2         -
                                                               ---       ---
    Non-GAAP diluted shares used in per share
     calculation                                             229.2     232.9
                                                             =====     =====



                  Other Supplemental Financial Information (1)

    Fiscal Year 2010                QTR 1     QTR 2  QTR 3  QTR 4    YTD 2010
    Financial Statistics
     ($ in millions, except per
     share data):
    Total net revenue                $426                              $426
         License and other
          revenue                    $244                              $244
         Maintenance revenue         $182                              $182

    Gross Margin - GAAP                88%                               88%
    Gross Margin - Non-GAAP            90%                               90%

    GAAP Operating Expenses          $393                              $393
    GAAP Operating Margin              -5%                               -5%
    GAAP Net Income (Loss)           $(32)                             $(32)
    GAAP Diluted Net Income
     (Loss) Per Share              $(0.14)                           $(0.14)

    Non-GAAP Operating
     Expenses  (2)(3)                $327                              $327
    Non-GAAP Operating
     Margin  (2)(4)                    13%                               13%
    Non-GAAP Net Income
     (2)(5)                           $42                               $42
    Non-GAAP Diluted Net
     Income Per Share  (2)(6)       $0.18                             $0.18

    Total Cash and
     Marketable Securities           $966                              $966
    Days Sales Outstanding             49                                49
    Capital Expenditures              $14                               $14
    Cash from Operations              $27                               $27
    GAAP Depreciation and
     Amortization                     $27                               $27

    Deferred Maintenance
     Revenue Balance                 $458                              $458

    Revenue by Geography
     (in millions):
    Americas                         $164                              $164
    Europe                           $167                              $167
    Asia/Pacific                      $95                               $95

    Revenue by Segment (in millions):
    Platform Solutions and
     Emerging Business               $156                              $156
    Architecture,
     Engineering and
     Construction                    $128                              $128
    Manufacturing                     $94                               $94
    Media and Entertainment           $48                               $48
    Other                              $-                                $-

    Other Revenue Statistics:
    % of Total Rev from
     AutoCAD and AutoCAD LT            34%                               34%
    % of Total Rev from 3D
     design products                   29%                               29%
    % of Total Rev from
     Emerging Economies                14%                               14%
    Upgrade Revenue (in
     millions)                        $43                               $43

    Favorable (Unfavorable) Impact
     of U.S. Dollar Translation
     Relative to Foreign
         Currencies Compared to
          Comparable Prior Year
          Period (in millions):
    FX Impact on Total Net Revenue   $(31)                             $(31)
    FX Impact on Total
     Operating Expenses               $22                               $22
    FX Impact on Total Net
     Income (Loss)                    $(9)                              $(9)

    Gross Margin by Segment
     (in millions):
    Platform Solutions and
     Emerging Business               $142                              $142
    Architecture, Engineering and
     Construction                    $119                              $119
    Manufacturing                     $86                               $86
    Media and Entertainment           $35                               $35
    Unallocated amounts               $(9)                              $(9)

    Common Stock Statistics:
    GAAP Shares Outstanding   228,219,000                       228,219,000
    GAAP Diluted Weighted
     Average Shares
     Outstanding              227,080,000                       227,080,000
    Shares Repurchased                  -                                 -

    Maintenance Installed
     Base                       1,719,000                         1,719,000


    (1) Totals may not agree with the sum of the components due to rounding.
    (2) To supplement our consolidated financial statements presented on a
    GAAP basis, Autodesk provides investors with certain non-GAAP measures
    including non-GAAP net income, non-GAAP net income per share, non-GAAP
    cost of license and other revenue, non-GAAP gross margin, non-GAAP
    operating expenses, non-GAAP income from operations, non-GAAP interest and
    other income, net and non-GAAP provision for income taxes.  These non-GAAP
    financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, amortization of
    purchased intangibles, goodwill impairment, restructuring charges,
    establishment of a valuation allowance on certain deferred tax assets and
    related income tax expenses.  See our reconciliation of GAAP financial
    measures to non-GAAP financial measures herein.  We believe these
    exclusions are appropriate to enhance an overall understanding of our past
    financial performance and also our prospects for the future, as well as
    to facilitate comparisons with our historical operating results.  These
    adjustments to our GAAP results are made with the intent of providing both
    management and investors a more complete understanding of Autodesk's
    underlying operational results and trends and our marketplace
    performance.  For example, the non-GAAP results are an indication of our
    baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results.  In
    addition, these non-GAAP financial measures are among the primary
    indicators management uses as a basis for our planning and forecasting
    of future periods.

    There are limitations in using non-GAAP financial measures because the
    non-GAAP financial measures are not
    prepared in accordance with generally accepted accounting principles and
    may be different from non-GAAP financial measures used by other companies.
    The non-GAAP financial measures are limited in value because they exclude
    certain items that may have a material impact upon our reported financial
    results.  The presentation of this additional information is not meant to
    be considered in isolation or as a substitute for the directly comparable
    financial measures prepared in accordance with generally accepted
    accounting principles in the United States.  Investors should review the
    reconciliation of the non-GAAP financial measures to their most directly
    comparable GAAP financial measures as provided in the tables accompanying
    this press release.




    Fiscal Year 2010                QTR 1     QTR 2  QTR 3  QTR 4     YTD 2010

    (3) GAAP Operating Expenses      $393                                $393
        Stock-based compensation
         expense                      (22)                                (22)
        Amortization of customer
         relationships and
         trademarks                    (6)                                 (6)
        Restructuring charges         (17)                                (17)
        Impairment of
         goodwill                     (21)                                (21)
                                      ---                                 ---
        Non-GAAP Operating
         Expenses                    $327                                $327

    (4) GAAP Operating Margin          -5%                                 -5%
        Stock-based compensation
         expense                        5%                                  5%
        Amortization of
         developed
         technology                     2%                                  2%
        Amortization of customer
         relationships and
         trademarks                     2%                                  2%
        Restructuring charges           4%                                  4%
        Impairment of
         goodwill                       5%                                  5%
                                      ---                                  ---
        Non-GAAP Operating
         Margin                        13%                                 13%

    (5) GAAP Net Income (Loss)       $(32)                               $(32)
        Stock-based compensation
         expense                       23                                  23
        Amortization of
         developed
         technology                     8                                   8
        Amortization of customer
         relationships and
         trademarks                     6                                   6
        Impairment of goodwill         21                                  21
        Restructuring charges          17                                  17
        Establishment of valuation
         allowance on
         deferred tax assets           21                                  21
        Income tax effect on
         difference between GAAP
         and non-GAAP total costs
         and expenses at a
         normalized rate              (22)                                (22)
                                      ---                                 ---
        Non-GAAP Net Income           $42                                 $42

    (6) GAAP Diluted Net Income
         (Loss) Per Share          $(0.14)                             $(0.14)
        Stock-based compensation
         expense                     0.10                                0.10
        Amortization of
         developed
         technology                  0.04                                0.04
        Amortization of customer
         relationships and
         trademarks                  0.03                                0.03
        Impairment of
         goodwill                    0.09                                0.09
        Restructuring charges        0.07                                0.07
        Establishment of
         valuation allowance on
         deferred
         tax assets                  0.09                                0.09
        Income tax effect on
         difference between GAAP
         and non-GAAP total costs
         and expenses at a
         normalized rate            (0.10)                              (0.10)
                                    -----                                -----
        Non-GAAP Diluted Net
         Income Per Share           $0.18                                $0.18

    Investors: David Gennarelli, david.gennarelli@autodesk.com, 415-507-6033
    Press:     Pam Pollace, pam.pollace@autodesk.com, 415-547-2441
               Colleen Rubart, colleen.rubart@autodesk.com, 415-547-2368

Web site: http://www.autodesk.com/