Autodesk Reports Second Quarter Fiscal 2010 Financial Results Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2010. -- Revenue was $415 million, a decrease of three percent sequentially and 33 percent compared to the second quarter of fiscal 2009. -- GAAP diluted earnings per share were $0.05, compared to a GAAP diluted loss per share of $0.14 in … - Printer friendly" >
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Autodesk Reports Second Quarter Fiscal 2010 Financial Results

SAN RAFAEL, Calif., Aug. 13 /PRNewswire-FirstCall/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2010.

    --  Revenue was $415 million, a decrease of three percent sequentially and
        33 percent compared to the second quarter of fiscal 2009.
    --  GAAP diluted earnings per share were $0.05, compared to a GAAP diluted
        loss per share of $0.14 in the first quarter of fiscal 2010 and GAAP
        diluted earnings per share of $0.39 in the second quarter of fiscal
        2009.
    --  Non-GAAP diluted earnings per share were $0.24, compared to $0.18 per
        diluted share in the first quarter of fiscal 2010 and $0.56 per diluted
        share in the second quarter of fiscal 2009.  A reconciliation of the
        GAAP and non-GAAP results is provided in the tables within this press
        release.

"Revenue results for the quarter were in-line with our expectations and continue to reflect a challenging global business environment," said Carl Bass, Autodesk president and CEO. "We are pleased with the progress we've made to increase our efficiency and reduce our overall cost structure and as a result, we increased our profitability on a sequential basis."

Operational Overview

By geography, revenue in the Americas decreased 21 percent compared to the second quarter of fiscal 2009, to $159 million. Americas revenue declined two percent sequentially. EMEA revenue was $157 million, a decrease of 41 percent over the second quarter of fiscal 2009 as reported, and 32 percent on a constant currency basis. EMEA revenue declined six percent sequentially as reported. Revenue in Asia Pacific was $99 million, a decrease of 34 percent over the second quarter of fiscal 2009 as reported and 35 percent on a constant currency basis. Revenue from Asia Pacific increased three percent sequentially as reported. Revenue from emerging economies was $63 million, a decrease of 45 percent compared to the second quarter of fiscal 2009, and a six percent sequential increase as reported. Revenue from emerging economies represented 15 percent of total revenue.

Combined revenue from Autodesk's model-based 3D design solutions was $124 million, a decrease of 25 percent compared to the second quarter of fiscal 2009 and a two percent sequential increase. Revenue from 2D horizontal and vertical products was $194 million, a decrease of 38 percent compared to the second quarter of fiscal 2009 and six percent sequentially. Combined revenue from AutoCAD and AutoCAD LT declined 39 percent compared to the second quarter last year and seven percent sequentially.

Autodesk posted quarterly sequential revenue growth in several areas including emerging economies, revenue from our manufacturing business segment, revenue in Asia Pacific, revenue from our model-based 3D design solutions and revenue from 3D animation software. Autodesk has more than $1 billion in cash and investments and no debt.

"The current business environment and general business visibility remain challenging," continued Bass. "However, we are encouraged by sequential revenue growth we posted in several areas and are beginning to see some positive indicators in our business."

Business Outlook

The following statements are forward-looking statements that are based on current expectations and which involve risks and uncertainties some of which are set forth below.

Third Quarter Fiscal 2010

Net revenue for the third quarter of fiscal 2010 is expected to be in the range of $400 million and $420 million. GAAP earnings per diluted share are expected to be in the range of $0.04 and $0.09. Non-GAAP earnings per diluted share are expected to be in the range of $0.18 and $0.23 and exclude $0.07 related to stock-based compensation expense, $0.05 for the amortization of acquisition related intangibles, and restructuring related charges of $0.02.

Update on Spend Reduction Initiatives

Based on the progress the company made in the first half of fiscal 2010 with its expense reduction initiatives, Autodesk now anticipates nearly $300 million in pre-tax cost savings in fiscal 2010 as compared to fiscal 2009.

Earnings Conference Call and Webcast

Autodesk will host its second 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 and economic trends, cost savings, timing of certain charges and other statements regarding our expected strategies, market position, performance and results. Other factors that could cause actual results to differ materially include the following: general market, economic 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, 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, 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, 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 any unanticipated impact of accounting for acquisitions.

Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's reports on Form 10-K for the year ended January 31, 2009 and Form 10-Q for the quarter ended April 30, 2009, 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 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, AutoCAD and AutoCAD LT, 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  Six Months Ended
                                             July 31,         July 31,
                                             --------         --------
                                           2009    2008    2009     2008
                                           ----    ----    ----     ----
                                            (Unaudited)     (Unaudited)
    Net revenue:
       License and other                  $231.0  $440.2  $474.6   $872.4

       Maintenance                         183.9   179.3   366.1    345.9
                                           -----   -----   -----    -----

          Total net revenue                414.9   619.5   840.7  1,218.3
                                           -----   -----   -----  -------

    Cost of license and other revenue       47.1    57.6    96.6    113.6

    Cost of maintenance revenue              3.0     2.1     5.8      4.1
                                             ---     ---     ---      ---

       Total cost of revenue                50.1    59.7   102.4    117.7

       Gross profit                        364.8   559.8   738.3  1,100.6

    Operating Expenses:

       Marketing and sales                 176.4   230.2   360.3    455.7

       Research and development            109.8   154.8   231.4    300.4

       General and administrative           49.5    56.0    99.5    105.8

       Impairment of goodwill                  -       -    21.0        -

       Restructuring charges                26.4       -    42.9        -
                                            ----     ---    ----      ---

          Total operating expenses         362.1   441.0   755.1    861.9
                                           -----   -----   -----    -----

    Income (loss) from operations            2.7   118.8   (16.8)   238.7

    Interest and other income, net          10.7     6.3    10.7     13.2
                                            ----     ---    ----     ----

    Income (loss) before income taxes       13.4   125.1    (6.1)   251.9

    Provision for income taxes              (2.9)  (35.3)  (15.6)   (67.5)
                                            ----   -----   -----    -----

    Net income (loss)                      $10.5   $89.8  $(21.7)  $184.4
                                           =====   =====  ======   ======

    Basic net income (loss) per share      $0.05   $0.40  $(0.09)   $0.82
                                           =====   =====  ======    =====

    Diluted net income (loss) per share    $0.05   $0.39  $(0.09)   $0.80
                                           =====   =====  ======    =====

    Shares used in computing basic
     net income (loss) per share           228.9   224.2   228.0    225.2
                                           =====   =====   =====    =====

    Shares used in computing diluted
     net income (loss) per share           232.3   231.1   228.0    232.1
                                           =====   =====   =====    =====



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

                                                       July 31,   January 31,
                                                         2009         2009
                                                         ----         ----
                                                    (Unaudited)

    ASSETS:

    Current assets:
      Cash and cash equivalents                         $668.5       $917.6
      Marketable securities                              267.9         63.5
      Accounts receivable, net                           223.9        316.5
      Deferred income taxes                               48.3         31.1
      Prepaid expenses and other current assets           58.7         59.3
                                                          ----         ----
    Total current assets                               1,267.3      1,388.0
                                                       -------      -------

    Marketable securities                                 92.3          7.6
    Computer equipment, software, furniture and
     leasehold improvements, net                         118.3        120.6
    Purchased technologies, net                           96.7        113.3
    Goodwill                                             525.5        542.5
    Long term deferred income taxes, net                  92.7        125.7
    Other assets                                         118.3        123.0
                                                         -----        -----
                                                      $2,311.1     $2,420.7
                                                      ========     ========


    LIABILITIES AND STOCKHOLDERS' EQUITY:

    Current liabilities:
      Accounts payable                                   $56.7        $62.4
      Accrued compensation                                88.4        124.3
      Accrued income taxes                                17.9         16.7
      Deferred revenue                                   424.4        438.8
      Borrowings under line of credit                        -         52.1
      Other accrued liabilities                           74.3        105.8
                                                          ----        -----
    Total current liabilities                            661.7        800.1
                                                         -----        -----

    Deferred revenue                                      77.5        113.3
    Long term income taxes payable                       122.5        116.9
    Long term deferred income taxes                          -         22.7
    Other liabilities                                     64.3         57.0

    Commitments and contingencies

    Stockholders' equity:
      Preferred stock                                        -            -
      Common stock and additional paid-in capital      1,166.6      1,080.4
      Accumulated other comprehensive loss                (1.4)       (11.2)
      Retained earnings                                  219.9        241.5
                                                         -----        -----
    Total stockholders' equity                         1,385.1      1,310.7
                                                       -------      -------
                                                      $2,311.1     $2,420.7
                                                      ========     ========



    Autodesk, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In millions)
                                                             Six Months Ended
                                                                 July 31,
                                                                 --------
                                                               2009    2008
                                                               ----    ----
                                                                (Unaudited)

    Operating Activities
      Net income (loss)                                       $(21.7) $184.4
      Adjustments to reconcile net income (loss) to net
       cash provided by operating activities:
           Depreciation and amortization                        55.5    39.1
           Stock-based compensation expense                     44.4    48.4
           Impairment of goodwill                               21.0       -
           Restructuring related charges, net                   42.9       -
           Gain on disposition of assets                        (2.3)      -
           Charge for acquired in-process research and
            development                                            -    16.8
           Changes in operating assets and liabilities,
            net of business combinations                       (65.3)  111.6
                                                               -----   -----
    Net cash provided by operating activities                   74.5   400.3
                                                                ----   -----

    Investing Activities
      Purchases of marketable securities                      (298.2)   (5.6)
      Sales of marketable securities                             1.4     4.7
      Maturities of marketable securities                       14.3       -
      Capital expenditures                                     (24.3)  (39.9)
      Purchase of equity investment                            (10.0)      -
      Business combinations, net of cash acquired                  -  (263.9)
                                                                 ---  ------
    Net cash used in investing activities                     (316.8) (304.7)
                                                              ------  ------

    Financing activities
      Draws on line of credit                                    2.2   690.0
      Repayments of line of credit                             (54.3) (570.0)
      Proceeds from issuance of common stock, net of
       issuance costs                                           44.1    50.1
      Repurchases of common stock                                  -  (256.6)
                                                                 ---  ------
    Net cash used in financing activities                       (8.0)  (86.5)
                                                                ----   -----

    Effect of exchange rate changes on cash and cash
     equivalents                                                 1.2     2.6
                                                                 ---     ---

    Net increase (decrease) in cash and cash equivalents      (249.1)   11.7
    Cash and cash equivalents at beginning of fiscal year      917.6   917.9
                                                               -----   -----
    Cash and cash equivalents at end of period                $668.5  $929.6
                                                              ======  ======



    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, in-process research and development expenses,
    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  Six Months Ended
                                                 July 31,         July 31,
                                                 --------         --------
                                               2009    2008    2009      2008
                                               ----    ----    ----      ----
                                                (Unaudited)      (Unaudited)

    GAAP cost of license and other revenue    $47.1   $57.6   $96.6    $113.6
    SFAS 123R stock-based compensation
     expense                                   (0.7)   (1.1)   (1.3)     (2.1)
    Amortization of developed technology       (8.3)   (5.3)  (16.6)     (8.8)
                                               ----    ----   -----      ----
    Non-GAAP cost of license and other
     revenue                                  $38.1   $51.2   $78.7    $102.7
                                              =====   =====   =====    ======

    GAAP gross margin                        $364.8  $559.8  $738.3  $1,100.6
    SFAS 123R stock-based compensation
     expense                                    0.7     1.1     1.3       2.1
    Amortization of developed technology        8.3     5.3    16.6       8.8
                                                ---     ---    ----       ---
    Non-GAAP gross margin                    $373.8  $566.2  $756.2  $1,111.5
                                             ======  ======  ======  ========

    GAAP marketing and sales                 $176.4  $230.2  $360.3    $455.7
    SFAS 123R stock-based compensation
     expense                                   (9.5)  (10.0)  (19.0)    (20.5)
                                               ----   -----   -----     -----
    Non-GAAP marketing and sales             $166.9  $220.2  $341.3    $435.2
                                             ======  ======  ======    ======

    GAAP research and development            $109.8  $154.8  $231.4    $300.4
    SFAS 123R stock-based compensation
     expense                                   (7.0)   (7.7)  (14.2)    (16.1)
    In-process research and development           -   (16.8)      -     (16.8)
                                                ---   -----     ---     -----
    Non-GAAP research and development        $102.8  $130.3  $217.2    $267.5
                                             ======  ======  ======    ======

    GAAP general and administrative           $49.5   $56.0   $99.5    $105.8
    SFAS 123R stock-based compensation
     expense                                   (4.0)   (4.4)   (9.9)     (9.7)
    Amortization of customer relationships
     and trademarks                            (6.7)   (6.4)  (13.1)     (9.3)
                                               ----    ----   -----      ----
    Non-GAAP general and administrative       $38.8   $45.2   $76.5     $86.8
                                              =====   =====   =====     =====

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

    GAAP restructuring charges                $26.4      $-   $42.9        $-
    Restructuring charges                     (26.4)      -   (42.9)        -
                                              -----     ---   -----       ---
    Non-GAAP restructuring charges               $-      $-      $-        $-
                                                ===     ===     ===       ===

    GAAP operating expenses                  $362.1  $441.0  $755.1    $861.9
    SFAS 123R stock-based compensation
     expense                                  (20.5)  (22.1)  (43.1)    (46.3)
    Amortization of customer relationships
     and trademarks                            (6.7)   (6.4)  (13.1)     (9.3)
    In-process research and development           -   (16.8)      -     (16.8)
    Impairment of goodwill                        -       -   (21.0)        -
    Restructuring charges                     (26.4)      -   (42.9)        -
                                              -----     ---   -----       ---
    Non-GAAP operating expenses              $308.5  $395.7  $635.0    $789.5
                                             ======  ======  ======    ======

    GAAP income (loss) from operations         $2.7  $118.8  $(16.8)   $238.7
    SFAS 123R stock-based compensation
     expense                                   21.2    23.2    44.4      48.4
    Amortization of developed technology        8.3     5.3    16.6       8.8
    Amortization of customer relationships
     and trademarks                             6.7     6.4    13.1       9.3
    In-process research and development           -    16.8       -      16.8
    Impairment of goodwill                        -       -    21.0         -
    Restructuring charges                      26.4       -    42.9         -
                                               ----     ---    ----       ---
    Non-GAAP income from operations           $65.3  $170.5  $121.2    $322.0
                                              =====  ======  ======    ======

    GAAP provision for income taxes           $(2.9) $(35.3) $(15.6)   $(67.5)
    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            (16.4)  (11.2)  (38.7)    (20.3)
                                              -----   -----   -----     -----
    Non-GAAP provision for income tax        $(19.3) $(46.5) $(33.3)   $(87.8)
                                             ======  ======  ======    ======

    GAAP net income (loss)                    $10.5   $89.8  $(21.7)   $184.4
    SFAS 123R stock-based compensation
     expense                                   21.2    23.2    44.4      48.4
    Amortization of developed technology        8.3     5.3    16.6       8.8
    Amortization of customer relationships
     and trademarks                             6.7     6.4    13.1       9.3
    In-process research and development           -    16.8       -      16.8
    Impairment of goodwill                        -       -    21.0         -
    Restructuring charges                      26.4       -    42.9         -
    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            (16.4)  (11.2)  (38.7)    (20.3)
                                              -----   -----   -----     -----
    Non-GAAP net income                       $56.7  $130.3   $98.6    $247.4
                                              =====  ======   =====    ======

    GAAP diluted net income (loss) per share  $0.05   $0.39  $(0.09)    $0.80
    SFAS 123R stock-based compensation
     expense                                   0.09    0.10    0.19      0.21
    Amortization of developed technology       0.03    0.02    0.07      0.03
    Amortization of customer relationships
     and trademarks                            0.03    0.03    0.06      0.04
    In-process research and development           -    0.07       -      0.07
    Impairment of goodwill                        -       -    0.09         -
    Restructuring charges                      0.11       -    0.18         -
    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            (0.07)  (0.05)  (0.17)    (0.09)
                                              -----   -----   -----     -----
    Non-GAAP diluted net income per share     $0.24   $0.56   $0.42     $1.06
                                              =====   =====   =====     =====

    GAAP diluted shares used in per share
     calculation                              232.3   231.1   228.0     232.1
    Impact of SFAS 123R on diluted shares       0.8     0.8     0.5       0.5
    Shares included in non-GAAP net income
     per share, but excluded from GAAP net
     loss per share as they would have been
     anti-dilutive                                -       -     3.1         -
                                                ---     ---     ---       ---
    Non-GAAP diluted shares used in per
     share calculation                        233.1   231.9   231.6     232.6
                                              =====   =====   =====     =====



                   Other Supplemental Financial Information (1)
                                      QTR          QTR     QTR    QTR    YTD
    Fiscal Year 2010                   1            2       3      4     2010
    Financial Statistics
     ($ in millions, except
     per share data):
    Total net revenue                $426         $415                   $841
         License and other
          revenue                    $244         $231                   $475
         Maintenance revenue         $182         $184                   $366

    GAAP Gross Margin                  88%          88%                    88%
    Non-GAAP Gross Margin (2)(3)       90%          90%                    90%

    GAAP Operating Expenses          $393         $362                   $755
    GAAP Operating Margin              -5%           1%                    -2%
    GAAP Net Income (Loss)           $(32)         $10                   $(22)
    GAAP Diluted Net Income
     (Loss) Per Share              $(0.14)       $0.05                 $(0.09)

    Non-GAAP Operating
     Expenses  (2)(4)                $327         $308                   $635
    Non-GAAP Operating
     Margin  (2)(5)                    13%          16%                    14%
    Non-GAAP Net Income (2)(6)        $42          $57                    $99
    Non-GAAP Diluted Net
     Income Per Share  (2)(7)       $0.18        $0.24                  $0.42

    Total Cash and Marketable
     Securities                      $966       $1,029                 $1,029
    Days Sales Outstanding             49           49                     49
    Capital Expenditures              $14          $11                    $24
    Cash from Operations              $27          $47                    $74
    GAAP Depreciation and
     Amortization                     $27          $28                    $55

    Deferred Maintenance
     Revenue Balance                 $458         $453                   $453

    Revenue by Geography
     (in millions):
    Americas                         $163         $159                   $323
    Europe                           $167         $157                   $324
    Asia/Pacific                      $96          $99                   $194

    Revenue by Segment (in
     millions):
    Platform Solutions and
     Emerging Business               $156         $145                   $301
    Architecture, Engineering
     and Construction                $128         $125                   $253
    Manufacturing                     $94          $98                   $192
    Media and Entertainment           $48          $47                    $95
    Other                              $-           $-                     $-

    Other Revenue Statistics:
    % of Total Rev from
     AutoCAD and AutoCAD LT            33%          32%                    32%
    % of Total Rev from 3D
     design products                   29%          30%                    29%
    % of Total Rev from
     Emerging Economies               14%          15%                    15%
    Upgrade Revenue (in millions)     $43          $26                    $70

    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)        $(24)                  $(55)
    FX Impact on Total
     Operating Expenses               $22          $14                    $35
    FX Impact on Total Net
     Income (Loss)                    $(9)        $(10)                  $(20)

    Gross Margin by Segment
     (in millions):
    Platform Solutions and
     Emerging Business               $146         $136                   $282
    Architecture, Engineering
     and Construction                $116         $113                   $229
    Manufacturing                     $86          $89                   $175
    Media and Entertainment           $34          $36                    $70
    Unallocated amounts               $(9)         $(9)                  $(18)

    Common Stock Statistics:
    GAAP Shares Outstanding   228,219,000  229,666,000            229,666,000
    GAAP Diluted Weighted
     Average Shares
     Outstanding              227,080,000  232,286,000            227,990,000
    Shares Repurchased                  -            -                      -

    Maintenance Installed
     Base*                      1,719,000    2,299,000              2,299,000

    *The second quarter of fiscal 2010 maintenance installed base includes a
    one-time adjustment of 581,000 educational seats for users migrated to a
    standard educational maintenance plan.  These users were not previously
    captured in our maintenance installed base.


    (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.

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

    (3) GAAP Gross Margin              88%          88%                    88%
         Stock-based compensation
          expense                       0%           0%                     0%
         Amortization of developed
          technology                    2%           2%                     2%
                                      ---          ---                    ---
         Non-GAAP Gross Margin         90%          90%                    90%

    (4) GAAP Operating Expenses      $393         $362                   $755
         Stock-based compensation
          expense                     (22)         (21)                   (43)
         Amortization of customer
          relationships and
          trademarks                   (6)          (7)                   (13)
         Restructuring charges        (17)         (26)                   (43)
         Impairment of goodwill       (21)           -                    (21)
                                      ---          ---                    ---
         Non-GAAP Operating
          Expenses                   $327         $308                   $635

    (5) GAAP Operating Margin          -5%           1%                    -2%
         Stock-based compensation
          expense                       5%           5%                     5%
         Amortization of developed
          technology                    2%           2%                     2%
         Amortization of customer
          relationships and
          trademarks                    2%           2%                     2%
         Restructuring charges          4%           6%                     5%
         Impairment of goodwill         5%           0%                     2%
                                      ---          ---                    ---
         Non-GAAP Operating
          Margin                       13%          16%                    14%

    (6) GAAP Net Income (Loss)       $(32)         $10                   $(22)
         Stock-based compensation
          expense                      23           21                     44
         Amortization of developed
          technology                    8            8                     16
         Amortization of customer
          relationships and
          trademarks                    6            7                     13
         Impairment of goodwill        21            -                     21
         Restructuring charges         17           26                     43
         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)         (16)                   (38)
                                      ---          ---                    ---
         Non-GAAP Net Income          $42          $56                    $98

    (7) GAAP Diluted Net Income
     (Loss) Per Share              $(0.14)       $0.05                 $(0.09)
         Stock-based compensation
          expense                    0.10         0.09                   0.19
         Amortization of developed
          technology                 0.04         0.03                   0.07
         Amortization of customer
          relationships and
          trademarks                 0.03         0.03                   0.06
         Impairment of goodwill      0.09            -                   0.09
         Restructuring charges       0.07         0.11                   0.18
         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)       (0.07)                 (0.17)
                                    -----        -----                  -----
         Non-GAAP Diluted Net
          Income Per Share          $0.18        $0.24                  $0.42

SOURCE Autodesk, Inc.

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