According to Autodesk, the SketchBook Mobile uses the same engine as Autodesk SketchBook Pro painting and drawing software, delivering much of the power and functionality as the desktop application. Content created in SketchBook Mobile can be saved in the Photo Library or emailed directly as PNG or PSD format for further refinement in SketchBook Pro.

More Information:

http://www.autodesk.com/sketchbookmobile

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Citius combined Knowledge Based Engineering (http://en.wikipedia.org/wiki/Knowledge-based_engineering)and Configurator (http://en.wikipedia.org/wiki/configurator) applications to develop KBMax. This hybrid Knowledge Based Configurator (KBC) software automates all phases of the product design quote cycle. Repetitive manual tasks in design, production, and sales are all eliminated. The result lowers operational expenses while adding valuable time for companywide innovation.

Simple inputs into KBMax inputs automatically build product specific drawings and models in AutoCAD 2010. Those same inputs automatically link to the company knowledge base to produce instant bills of materials and price quotes. Engineering and sales departments use a seamless platform to meet customer requirements. Trial users integrating KBMax and AutoCAD 2010 software noticed reductions of 90% in engineer to order design and quote times.

"For 27 years, Autodesk has continued to bring new features and functionality to the AutoCAD platform, and together with partners like Citius, we're helping drive engineering innovation," said Jim Quanci, director, Autodesk Developer Network. "We hope the integration of KBMax with AutoCAD 2010 will help our users spend less time on current product customization and more time on new product development."

"Our KBMax configurator provides tremendous efficiency benefits to the AutoCAD community." said Citius Chief Technical Officer Kevin Bennett. "A few clicks and data inputs into KBMax will design complex 2D models in minutes as opposed to days. Citius also made sure that KBMax enhances the new AutoCAD 2010 features, especially the parametric functionality."

KBMax is a recognized Autodesk Partner Product (http://partnerproducts.autodesk.com/popups/product.asp?rdid=DEVR3976&prodid=P09094&id=22371) and will be exhibiting at the 2009 Autodesk University in Las Vegas. Citius plans to integrate KBMax with Autodesk Inventor by the end of 2009. Please visit www.citiuscorporation.com for more information and a guided demo of KBMax.

About Citius Corporation

Citius Corporation is a design and engineering productivity software company based in Austin, TX that is engaged in the development and sales of Knowledge Based Engineering software products and services.

Autodesk and AutoCAD are registered trademarks or trademarks of Autodesk, Inc., in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.

###

Read the full story at http://www.prweb.com/releases/2009/11/prweb3234054.htm.

PRWeb.com

Here are highlights from Wednesday's Analyst Blog:

California May Ban High-Watt TVs

In California, an average residential customer's 10% electrical consumption goes to television sets. However the regulatory apprehension is that with upgrade to larger television sets the consumption pattern for television sets will spike by as much as 8% annually. This is a worrisome trend for the power hungry state which has to import around 15% of its requirements from outside the state to meet its huge requirement.

The regulators are dreading a return to the gory days of the California electricity crisis at the beginning of the century. The crisis was aggravated as the then government kept the price of electricity artificially low, encouraging wastage.

An energy-efficient TV would save a household roughly $30 a year per set in lowered electricity costs. If all 35 million television sets in the state were replaced with more efficient sets, Californians would save $8.1 billion over 10 years, according to the Energy Commission report. The standard also could help California meet the goals of its 2006 global warming law, which calls for the state to cut greenhouse gases 25% by 2020.

To reduce greenhouse gas emissions, utilities operating in California are spending big money. California's renewable portfolio standard requires utilities to generate 33% of power from renewable sources by fiscal 2020. PG&E Corporation (NYSE: PCG) plans to invest around $13 billion in the period 2009 - 2011. Another utility, Edison International's (NYSE: EIX) subsidiary Southern California Edison, is projecting capital expenditures for the period 2009 - 2013 in the range of $16.8 billion - $19.8 billion.

Autodesk Beats, Guidance Mixed

Autodesk Inc. (Nasdaq: ADSK) revenues of $416.9 million were down 31.3% year over year, mainly due to a decrease of 43.9% year over year in Licenses revenues and partially due to a 2.8% decrease in Maintenance revenues. However, revenues were flat sequentially.

By geography, revenue from the Americas increased 2% sequentially but decreased 25% from the year-ago period. EMEA revenues declined 3% sequentially and 35% year over year on a constant currency basis. Revenue from the Asia Pacific decreased 7% sequentially and 33% year over year on a constant currency basis. Revenues from emerging economies represented 15% of total revenue and decreased 3% sequentially and 45% year over year on a constant currency basis.

Moreover, revenues from 3D design solutions were down 25% from the year-ago period but were flat sequentially. Revenues from 2D horizontal and vertical products declined 37% year over year and decreased marginally from the last quarter. We are positive on Autodesk's migration from 2D products to 3D products, which have a higher margin.

Combined revenue from AutoCAD and AutoCAD LT declined 39% year over year. Although the company has a strong market position in the "mainstream" CAD market, it faces competition from Dassault Systemes. Moreover, the company competes against Adobe Systems Inc. (Nasdaq: ADBE) and Apple Inc. (Nasdaq: AAPL), among others.

Autodesk has a strong balance sheet with cash, investments and securities totaling $1.05 billion at the end of quarter and no long-term debt.

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-- GAAP diluted earnings per share were $0.13, compared to GAAP diluted earnings per share of $0.05 in the second quarter of fiscal 2010, and $0.45 in the third quarter of fiscal 2009.

-- Non-GAAP diluted earnings per share were $0.27, compared to non-GAAP diluted earnings per share of $0.24 in the second quarter of fiscal 2010, and non-GAAP diluted earnings per share of $0.56 in the third quarter of fiscal 2009. A reconciliation of the GAAP and non-GAAP results is provided in the accompanying tables.

"Our business appears to be increasingly stable," said Carl Bass, Autodesk president and CEO. "We posted sequential increases in a number of important metrics including revenue from commercial new seat licenses, revenue from our Americas and EMEA geographies, revenue from our 2D horizontal solutions, and revenue from our 3D animation solutions. These results reflect the business environment that began stabilizing in the second quarter of this fiscal year.

"In addition, our efforts to reduce operating expenses resulted in a sequential increase in profitability for the second consecutive quarter," continued Bass. "While there are several data points in our business that are encouraging and represent positive indicators for our business, the health of the global economic environment remains mixed and the continued job losses in our core markets represent ongoing challenges to a swift recovery in our business."

Operational Overview

Revenue in the Americas increased 2 percent sequentially to $164 million and decreased 25 percent compared to the third quarter of fiscal 2009. EMEA revenue increased 1 percent sequentially as reported, to $159 million, and declined 3 percent on a constant currency basis. EMEA revenue decreased 38 percent compared to the third quarter of fiscal 2009 as reported, and 35 percent on a constant currency basis. Revenue in Asia Pacific was $94 million, a decrease of 4 percent sequentially as reported, and 7 percent on a constant currency basis. Revenue in Asia Pacific decreased 29 percent compared to the third quarter of fiscal 2009 as reported, and 33 percent on a constant currency basis.

Revenue from emerging economies was $62 million, a decline of 2 percent sequentially as reported and 3 percent on a constant currency basis. Revenue from emerging economies decreased 46 percent compared to the third quarter of fiscal 2009 as reported and 45 percent on a constant currency basis. Revenue from emerging economies represented 15 percent of total revenue in the quarter.

Combined revenue from Autodesk's model-based 3D design solutions was $122 million, flat sequentially and a decline of 25 percent compared to the third quarter of fiscal 2009. Revenue from 2D horizontal and vertical products was $189 million, a slight decrease sequentially and a decline of 37 percent compared to the third quarter of fiscal 2009. Combined revenue from our AutoCAD and AutoCAD LT products increased 2 percent sequentially and decreased 39 percent compared to the third quarter last year.

"With more than $1 billion in cash and investments, no debt, and positive cash flows, Autodesk remains in solid financial condition," continued Bass. "We are on track to deliver more than $300 million in pre-tax cost savings in fiscal 2010 compared to fiscal 2009. We will continue to strive to increase our efficiencies and profitability while making essential investments for the future."

During the current quarter, Autodesk determined that the way in which its third-party software application accounted for estimated forfeitures in stock-based compensation calculations was incorrect. As a result, fiscal third quarter 2010 GAAP results include a one-time adjustment to increase stock-based compensation expense by $7.9 million net of tax, or approximately $0.03 per diluted share. This is a cumulative adjustment from prior periods. For the nine month period ended October 31, 2009 the cumulative adjustment from prior periods was $6.8 million net of tax or $0.03 per diluted share.

Business Outlook

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

Fourth Quarter Fiscal 2010

For the fourth quarter, Autodesk expects revenue to be in the range of $420 million to $440 million. GAAP earnings per diluted share are expected to be in the range of $0.07 and $0.12. Non-GAAP earnings per diluted share are expected to be in the range of $0.19 and $0.24, excluding $0.06 related to stock-based compensation expense and $0.06 for amortization of acquisition related intangibles.

Full Year Fiscal 2010

Net revenue for fiscal 2010 is expected to be in the range of $1.68 billion and $1.7 billion. GAAP earnings per diluted share are expected to be in the range of $0.11 and $0.16. Non-GAAP earnings per diluted share are expected to be in the range of $0.88 and $0.93 and exclude $0.29 related to stock-based compensation expense, $0.18 for the amortization of acquisition related intangibles, $0.15 for restructuring charges, $0.06 related to goodwill impairment, and $0.09 related to the establishment of a valuation allowance on deferred tax assets.

In addition, Autodesk anticipates total GAAP pre-tax spend (operating expenses plus cost of goods sold) for fiscal 2010 to range between $1.65 billion and $1.66 billion, which is lower than fiscal 2009 by between $407 and $417 million. The company anticipates total non-GAAP pre-tax spend (operating expenses plus cost of goods sold) for fiscal 2010 to range between $1.42 billion and $1.43 billion, which is lower than fiscal 2009 by between $300 and $310 million. Total non-GAAP pre-tax spend excludes approximately $95 million of stock-based compensation expense, $60 million of amortization of acquisition related intangibles, $50 million of restructuring charges and $20 million of goodwill impairment charges, which are included in total GAAP pre-tax spend.

First Quarter 2011 and Full Year Fiscal 2011

Autodesk is not providing specific revenue or EPS guidance for fiscal 2011 at this time. However, in the first quarter of fiscal 2011, GAAP operating margin is expected to increase year-over-year as the company recorded significant impairment charges in the first quarter of fiscal 2010 that it does not anticipate recording in fiscal 2011. Non-GAAP operating margin in the first quarter of fiscal 2011 is anticipated to be flat to slightly down compared to the first quarter of fiscal 2010, as a result of normal seasonality and the return of some costs that were suppressed in the first quarter of fiscal 2010.

GAAP operating margin for the full year fiscal 2011 is expected to increase as the company recorded significant impairment charges in fiscal 2010 that it does not anticipate recording in fiscal 2011. Autodesk anticipates modest improvement in non-GAAP operating margin for full year fiscal 2011 compared to fiscal 2010.

Non-GAAP operating margin excludes stock-based compensation expense, amortization of acquisition related intangibles, restructuring charges and goodwill impairments.

Earnings Conference Call and Webcast

Autodesk will host its third quarter conference call today at 5:00 p.m. EST. 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 EST 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, economic and revenue 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 and maintain 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 accounting charges.

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 Forms 10-Q for the quarters ended April 30, 2009 and July 31, 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, engineering and entertainment software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art software to help customers experience their ideas digitally before they are built. Fortune 100 companies -- as well as the last 14 Academy Award winners for Best Visual Effects -- use Autodesk software tools to design, visualize and simulate their ideas to save time and money, enhance quality, and foster innovation for competitive advantage. For additional information about Autodesk, visit www.autodesk.com.

Autodesk, AutoCAD, AutoCAD LT 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 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.

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

Autodesk, Inc.
Consolidated Statements of Operations
(In millions, except per share data)
                                                       Three Months Ended        Nine Months Ended
                                                       October 31,               October 31,
                                                       2009         2008         2009           2008
                                                       (Unaudited)               (Unaudited)
Net revenue:
License and other                                      $  236.1     $  421.0     $  710.7       $  1,293.4
Maintenance                                               180.8        186.1        546.9          532.0
Total net revenue                                         416.9        607.1        1,257.6        1,825.4
Cost of revenue:
Cost of license and other revenue                         42.0         50.5         138.6          164.1
Cost of maintenance revenue                               3.0          2.4          8.8            6.5
Total cost of revenue                                     45.0         52.9         147.4          170.6
Gross profit                                              371.9        554.2        1,110.2        1,654.8
Operating Expenses:
Marketing and sales                                       180.3        227.0        540.6          682.7
Research and development                                  109.3        137.0        340.7          437.4
General and administrative                                51.1         50.6         150.6          156.4
Impairment of goodwill                                    -            -            21.0           -
Restructuring charges                                     4.9          -            47.8           -
Total operating expenses                                  345.6        414.6        1,100.7        1,276.5
Income from operations                                    26.3         139.6        9.5            378.3
Interest and other income (expense), net                  5.7          (3.4  )      16.5           9.9
Income before income taxes                                32.0         136.2        26.0           388.2
Provision for income taxes                                (2.5  )      (31.7 )      (18.1   )      (99.2   )
Net income                                             $  29.5      $  104.5     $  7.9         $  289.0
Basic net income per share                             $  0.13      $  0.46      $  0.03        $  1.28
Diluted net income per share                           $  0.13      $  0.45      $  0.03        $  1.25
Shares used in computing basic net income per share       229.6        225.3        228.5          225.2
Shares used in computing diluted net income per share     232.9        230.4        231.1          231.2

Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)
                                                                     October 31,    January 31,
                                                                     2009           2009
                                                                     (Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents                                            $     698.5    $    917.6
Marketable securities                                                      263.1         63.5
Accounts receivable, net                                                   215.7         316.5
Deferred income taxes                                                      49.8          31.1
Prepaid expenses and other current assets                                  60.0          59.3
Total current assets                                                       1,287.1       1,388.0
Marketable securities                                                      92.0          7.6
Computer equipment, software, furniture and leasehold improvements,        111.9         120.6
net
Purchased technologies, net                                                88.9          113.3
Goodwill                                                                   530.5         542.5
Long term deferred income taxes, net                                       92.7          125.7
Other assets                                                               112.3         123.0
                                                                     $     2,315.4  $    2,420.7
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable                                                     $     60.0     $    62.4
Accrued compensation                                                       98.9          124.3
Accrued income taxes                                                       9.8           16.7
Deferred revenue                                                           401.2         438.8
Borrowings under line of credit                                            -             52.1
Other accrued liabilities                                                  57.4          105.8
Total current liabilities                                                  627.3         800.1
Deferred revenue                                                           68.3          113.3
Long term income taxes payable                                             123.2         116.9
Long term deferred income taxes                                            -             22.7
Other liabilities                                                          64.9          57.0
Commitments and contingencies
Stockholders' equity:
Preferred stock                                                            -             -
Common stock and additional paid-in capital                                1,194.2       1,080.4
Accumulated other comprehensive income (loss)                              3.7           (11.2   )
Retained earnings                                                          233.8         241.5
Total stockholders' equity                                                 1,431.7       1,310.7
                                                                     $     2,315.4  $    2,420.7

Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
                                                               Nine Months Ended
                                                               October 31,
                                                               2009            2008
                                                               (Unaudited)
Operating Activities
Net income                                                     $     7.9       $     289.0
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization                                        84.4            64.5
Stock-based compensation expense                                     74.7            70.9
Impairment of goodwill                                               21.0            -
Restructuring charges, net                                           47.8            -
Gain on disposition of assets                                        (2.3   )        -
Charge for acquired in-process research and development              -               18.0
Changes in operating assets and liabilities, net of business         (112.3 )        65.1
combinations
Net cash provided by operating activities                            121.2           507.5
Investing Activities
Purchases of marketable securities                                   (409.9 )        (111.2 )
Sales of marketable securities                                       8.1             5.2
Maturities of marketable securities                                  126.5           -
Capital expenditures                                                 (30.2  )        (59.1  )
Purchase of equity investment                                        (10.0  )        -
Business combinations, net of cash acquired                          (3.6   )        (297.3 )
Net cash used in investing activities                                (319.1 )        (462.4 )
Financing activities
Draws on line of credit                                              2.2             800.0
Repayments of line of credit                                         (54.3  )        (796.0 )
Proceeds from issuance of common stock, net of issuance costs        67.5            89.1
Repurchases of common stock                                          (39.4  )        (256.6 )
Net cash used in financing activities                                (24.0  )        (163.5 )
Effect of exchange rate changes on cash and cash equivalents         2.8             (3.1   )
Net decrease in cash and cash equivalents                            (219.1 )        (121.5 )
Cash and cash equivalents at beginning of fiscal year                917.6           917.9
Cash and cash equivalents at end of period                     $     698.5     $     796.4

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            Nine Months Ended
                                                       October 31,                   October 31,
                                                       2009           2008           2009             2008
                                                       (Unaudited)                   (Unaudited)
GAAP cost of license and other revenue                 $   42.0       $   50.5       $   138.6        $   164.1
Stock-based compensation expense                           (1.1  )        (1.0  )        (2.4    )        (3.1    )
Amortization of developed technology                       (8.7  )        (6.4  )        (25.3   )        (15.2   )
Non-GAAP cost of license and other revenue             $   32.2       $   43.1       $   110.9        $   145.8
GAAP gross profit                                      $   371.9      $   554.2      $   1,110.2      $   1,654.8
Stock-based compensation expense                           1.1            1.0            2.4              3.1
Amortization of developed technology                       8.7            6.4            25.3             15.2
Non-GAAP gross profit                                  $   381.7      $   561.6      $   1,137.9      $   1,673.1
GAAP marketing and sales                               $   180.3      $   227.0      $   540.6        $   682.7
Stock-based compensation expense                           (13.5 )        (10.1 )        (32.5   )        (30.6   )
Non-GAAP marketing and sales                           $   166.8      $   216.9      $   508.1        $   652.1
GAAP research and development                          $   109.3      $   137.0      $   340.7        $   437.4
Stock-based compensation expense                           (9.5  )        (7.2  )        (23.7   )        (23.3   )
In-process research and development                        -              (1.2  )        -                (18.0   )
Non-GAAP research and development                      $   99.8       $   128.6      $   317.0        $   396.1
GAAP general and administrative                        $   51.1       $   50.6       $   150.6        $   156.4
Stock-based compensation expense                           (6.2  )        (4.2  )        (16.1   )        (13.9   )
Amortization of customer relationships and trademarks      (6.4  )        (7.2  )        (19.5   )        (16.5   )
Non-GAAP general and administrative                    $   38.5       $   39.2       $   115.0        $   126.0
GAAP impairment of goodwill                            $   -          $   -          $   21.0         $   -
Impairment of goodwill                                     -              -              (21.0   )        -
Non-GAAP impairment of goodwill                        $   -          $   -          $   -            $   -
GAAP restructuring charges                             $   4.9        $   -          $   47.8         $   -
Restructuring charges                                      (4.9  )        -              (47.8   )        -
Non-GAAP restructuring charges                         $   -          $   -          $   -            $   -
GAAP operating expenses                                $   345.6      $   414.6      $   1,100.7      $   1,276.5
Stock-based compensation expense                           (29.2 )        (21.5 )        (72.3   )        (67.8   )
Amortization of customer relationships and trademarks      (6.4  )        (7.2  )        (19.5   )        (16.5   )
In-process research and development                        -              (1.2  )        -                (18.0   )
Impairment of goodwill                                     -              -              (21.0   )        -
Restructuring charges                                      (4.9  )        -              (47.8   )        -
Non-GAAP operating expenses                            $   305.1      $   384.7      $   940.1        $   1,174.2
GAAP income from operations                            $   26.3       $   139.6      $   9.5          $   378.3
Stock-based compensation expense                           30.3           22.5           74.7             70.9
Amortization of developed technology                       8.7            6.4            25.3             15.2
Amortization of customer relationships and trademarks      6.4            7.2            19.5             16.5
In-process research and development                        -              1.2            -                18.0
Impairment of goodwill                                     -              -              21.0             -
Restructuring charges                                      4.9            -              47.8             -
Non-GAAP income from operations                                  $ 76.6     $ 176.9    $ 197.8    $ 498.9
GAAP provision for income taxes                                  $ (2.5  )  $ (31.7 )  $ (18.1 )  $ (99.2  )
Establishment of valuation allowance on deferred tax assets        -          -          21.0       -
Income tax effect on difference between GAAP and non-GAAP total    (16.7 )    (11.8 )    (55.4 )    (32.1  )
costs and expenses at a normalized rate
Non-GAAP provision for income tax                                $ (19.2 )  $ (43.5 )  $ (52.5 )  $ (131.3 )
GAAP net income                                                  $ 29.5     $ 104.5    $ 7.9      $ 289.0
Stock-based compensation expense                                   30.3       22.5       74.7       70.9
Amortization of developed technology                               8.7        6.4        25.3       15.2
Amortization of customer relationships and trademarks              6.4        7.2        19.5       16.5
In-process research and development                                -          1.2        -          18.0
Impairment of goodwill                                             -          -          21.0       -
Restructuring charges                                              4.9        -          47.8       -
Establishment of valuation allowance on deferred tax assets        -          -          21.0       -
Income tax effect on difference between GAAP and non-GAAP total    (16.7 )    (11.8 )    (55.4 )    (32.1  )
costs and expenses at a normalized rate
Non-GAAP net income                                              $ 63.1     $ 130.0    $ 161.8    $ 377.5
GAAP diluted net income per share                                $ 0.13     $ 0.45     $ 0.03     $ 1.25
Stock-based compensation expense                                   0.13       0.10       0.33       0.31
Amortization of developed technology                               0.04       0.03       0.11       0.06
Amortization of customer relationships and trademarks              0.02       0.03       0.08       0.07
In-process research and development                                -          -          -          0.07
Impairment of goodwill                                             -          -          0.09       -
Restructuring charges                                              0.02       -          0.21       -
Establishment of valuation allowance on deferred tax assets        -          -          0.09       -
Income tax effect on difference between GAAP and non-GAAP total    (0.07 )    (0.05 )    (0.24 )    (0.14  )
costs and expenses at a normalized rate
Non-GAAP diluted net income per share                            $ 0.27     $ 0.56     $ 0.70     $ 1.62
GAAP diluted shares used in per share calculation                  232.9      230.4      231.1      231.2
Impact of stock-based compensation on diluted shares               0.9        -          0.8        0.3
Non-GAAP diluted shares used in per share calculation              233.8      230.4      231.9      231.5

Autodesk
Other Supplemental Financial Information (*)
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       $  415       $  417              $  1,258
License and other revenue                                         $  244       $  231       $  236              $  711
Maintenance revenue                                               $  182       $  184       $  181              $  547
GAAP Gross Margin                                                    88    %      88    %      89    %             88    %
Non-GAAP Gross Margin (1)(2)                                         90    %      90    %      92    %             90    %
GAAP Operating Expenses                                           $  393       $  362       $  346              $  1,101
GAAP Operating Margin                                                -5    %      1     %      6     %             1     %
GAAP Net Income (Loss)                                            $  (32   )   $  10        $  30               $  8
GAAP Diluted Net Income (Loss) Per Share                          $  (0.14 )   $  0.05      $  0.13             $  0.03
Non-GAAP Operating Expenses (1)(3)                                $  327       $  308       $  305              $  940
Non-GAAP Operating Margin (1)(4)                                     13    %      16    %      18    %             16    %
Non-GAAP Net Income (1)(5)                                        $  42        $  57        $  63               $  162
Non-GAAP Diluted Net Income Per Share (1)(6)                      $  0.18      $  0.24      $  0.27             $  0.70
Total Cash and Marketable Securities                              $  966       $  1,029     $  1,054            $  1,054
Days Sales Outstanding                                               49           49           47                  47
Capital Expenditures                                              $  14        $  11        $  6                $  30
Cash from Operations                                              $  27        $  47        $  47               $  121
GAAP Depreciation and Amortization                                $  27        $  28        $  29               $  84
Deferred Maintenance Revenue Balance                              $  469       $  444       $  420              $  420
Revenue by Geography (in millions):
Americas                                                          $  163       $  159       $  164              $  486
Europe                                                            $  167       $  157       $  159              $  484
Asia/Pacific                                                      $  96        $  99        $  94               $  288
Revenue by Segment (in millions):***
Platform Solutions and Emerging Business                          $  156       $  150       $  154              $  460
Architecture, Engineering and Construction                        $  128       $  123       $  125              $  376
Manufacturing                                                     $  94        $  95        $  90               $  279
Media and Entertainment                                           $  48        $  47        $  48               $  143
Other                                                             $  -         $  -         $  -                $  -
Other Revenue Statistics:
% of Total Rev from AutoCAD and AutoCAD LT***                        33    %      31    %      32    %             32    %
% of Total Rev from 3D design products                               29    %      29    %      29    %             29    %
% of Total Rev from Emerging Economies                               14    %      15    %      15    %             15    %
Upgrade Revenue (in millions)                                     $  43        $  26        $  26               $  96
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   )   $  (4    )          $  (59   )
FX Impact on Total Operating Expenses                             $  22        $  14        $  2                $  37
FX Impact on Total Net Income (Loss)                              $  (9    )   $  (10   )   $  (2    )          $  (22   )
Gross Margin by Segment (in millions):***
Platform Solutions and Emerging Business                          $  146       $  140       $  147              $  433
Architecture, Engineering and Construction                        $  116       $  110       $  113              $  340
Manufacturing                                                     $  86        $  88        $  84               $  257
Media and Entertainment                                           $  34        $  36        $  38               $  108
Unallocated amounts                                               $  (9    )   $  (9    )   $  (10   )          $  (28   )
Common Stock Statistics:
GAAP Shares Outstanding                                              228,219,000          229,666,000          229,665,000                 229,665,000
GAAP Fully Diluted Weighted Average Shares Outstanding               227,080,000          232,286,000          232,947,000                 231,140,000
Shares Repurchased                                                   -                    -                    1,673,000                   1,673,000
Installed Base Statistics:
Maintenance Installed Base **                                        1,719,000            2,299,000            2,236,000                   2,236,000
* Totals may not agree with the sum of the components due to
rounding.
** 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.
*** In the third quarter of fiscal 2010, Autodesk changed its
methodology for allocating certain revenue transactions, including
gains and losses from foreign currency. The second quarter of
fiscal 2010 amounts have been reclassified to conform to the
current presentation. The change of methodology did not have a
material effect on any other period.
(1) 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, restructuring charges,
amortization of purchased intangibles, 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
Autodesk's press release.
Fiscal Year 2010                                                 QTR 1                QTR 2                QTR 3                QTR 4  YTD 2010
(2) GAAP Gross Margin                                                88          %        88          %        89          %               88          %
Stock-based compensation expense                                     0           %        0           %        0           %               0           %
Amortization of developed technology                                 2           %        2           %        3           %               2           %
Non-GAAP Gross Margin                                                90          %        90          %        92          %               90          %
(3) GAAP Operating Expenses                                      $   393              $   362              $   346                     $   1,101
Stock-based compensation expense                                     (22         )        (21         )        (30         )               (73         )
Amortization of customer relationships and trademarks                (6          )        (7          )        (6          )               (19         )
Restructuring charges                                                (17         )        (26         )        (5          )               (48         )
Impairment of goodwill                                               (21         )        -                    -                           (21         )
Non-GAAP Operating Expenses                                      $   327              $   308              $   305                     $   940
(4) GAAP Operating Margin                                            -5          %        1           %        6           %               1           %
Stock-based compensation expense                                     5           %        5           %        7           %               6           %
Amortization of developed technology                                 2           %        2           %        2           %               2           %
Amortization of customer relationships and trademarks                2           %        2           %        2           %               1           %
Restructuring charges                                                4           %        6           %        1           %               4           %
Impairment of goodwill                                               5           %        0           %        0           %               2           %
Non-GAAP Operating Margin                                            13          %        16          %        18          %               16          %
(5) GAAP Net Income (Loss)                                       $   (32         )    $   10               $   30                      $   8
Stock-based compensation expense                                     23                   21                   30                          75
Amortization of developed technology                                 8                    8                    9                           25
Amortization of customer relationships and trademarks                6                    7                    6                           19
Establishment of valuation allowance on deferred tax assets          21                   -                    -                           21
Impairment of goodwill                                               21                   -                    -                           21
Restructuring charges                                                17                   26                   5                           48
Income tax effect on difference between GAAP and non-GAAP total      (22         )        (16         )        (17         )               (55         )
costs and expenses at a normalized rate
Non-GAAP Net Income                                              $   42               $   56               $   63                      $   162
(6) GAAP Diluted Net Income (Loss) Per Share                     $   (0.14       )    $   0.05             $   0.13                    $   0.03
Stock-based compensation expense                                     0.10                 0.09                 0.13                        0.33
Amortization of developed technology                                 0.04                 0.03                 0.04                        0.11
Amortization of customer relationships and trademarks                0.03                 0.03                 0.02                        0.08
Establishment of valuation allowance on deferred tax assets          0.09                 -                    -                           0.09
Impairment of goodwill                                               0.09                 -                    -                           0.09
Restructuring charges                                                0.07                 0.11                 0.02                        0.21
Income tax effect on difference between GAAP and non-GAAP total      (0.10       )        (0.07       )        (0.07       )               (0.24       )
costs and expenses at a normalized rate
Non-GAAP Diluted Net Income Per Share                            $   0.18             $   0.24             $   0.27                    $   0.70

SOURCE: Autodesk, Inc.

Autodesk, Inc. 
Investors: 
David Gennarelli, 415-507-6033 
david.gennarelli@autodesk.com 
Press: 
Pam Pollace, 415-547-2441 
pam.pollace@autodesk.com 
Michael Cabot, 415-547-2439 
michael.cabot@autodesk.com