this should bring out the usual suspects....
Article from Cadalyst Magazine.
Marc
CAD Giants Make it Big in 2005, Part 3
Autodesk revenue tops $1.5 billion -- 23% above past year
Mar 22, 2006
By: Sara Ferris
Cadalyst
Over the past month we've been reviewing the year-end earnings reports of
CAD heavyweights. Previously, we reported on the revenues of UGS (US$1.15
billion for 2005) and revenues of Dassault Systemes (approximately US$1.12
billion). Today, we'll look at the details of Autodesk's recent earnings
report.
At the end of February, Autodesk reported fiscal year 2006 revenue of
$1.523 billion, a 23% increase over the previous year. GAAP net income for
2006 was $329 million, up 48% from $222 million in 2005. For the fourth
quarter of 2006, which ended January 31, net revenues were $417 million,
and net income was $83 million.
Autodesk attributes the revenue increases to strong growth in new seats and
subscriptions, as well as increasing interest in its vertical and 3D
products. Fourth-quarter revenues from new commercial seats increased 16%
over the fourth quarter of the prior year. Subscription revenues, also
called maintenance, increased 53% over the fourth quarter of last year and
exceeded upgrade revenue for the first time for 2006. Combined revenues
from subscription and upgrades represent about one-third of total Autodesk
revenue, the company reports.
"Autodesk had an excellent finish to another outstanding year," says Carol
Bartz, Autodesk chair and CEO. "Customer demand for our products continues
to be very strong. Through solid execution, we significantly increased
revenues and profitability for the third year in a row."
The company predicts that net revenue will increase by 18%-20% in fiscal
year 2007. Its acquisitions of Alias and Constructware will account for
about 6% of that growth, it reports. Once Autodesk releases its 2007
upgrades, it will "begin the retirement of the AutoCAD 2004-based family of
products," Bartz says. In addition, Autodesk is expected to raise the
suggested retail price of its products when the 2007 upgrades launch on
March 23, though the company has not yet confirmed this. Reseller Microsol
Resources notes on its Web site that a stand-alone license of AutoCAD will
go up by $250, and the network license will increase by $495.
Though Autodesk's 2D business remains robust, Bartz notes that 3D is "now
the single biggest driver of new seats." However, 3D penetration of
Autodesk's installed base remains very low, presenting a "tremendous growth
opportunity," according to Bartz. The AutoCAD 2007 release is a
"tantalizer," she says, designed to get users excited and comfortable with
3D.
Regarding future acquisitions, incoming CEO Carl Bass said, "Expect to see
a continuation of the acquisition strategy in place. We continue to like
the small, tuck-in acquisitions that are complementary to our business. I
think you'll continue to see us do relatively small and adjacent -- ones
that fit our business model, that complement what we have. You won't see
us, generally speaking, with far-reaching acquisitions."
Autodesk's Manufacturing Solutions Division posted $74 million revenue in
the fourth quarter, a 23% increase over the previous year. Total
manufacturing revenue for 2006 was $257 million. Bartz reports strong
growth for Autodesk's 2D products, AutoCAD Mechanical and AutoCAD
Electrical, and notes that revenue from Inventor increased by 45% in 2006.
A sea change is taking place in the market, she says: "Customers are
increasingly choosing high-value mainstream solutions."
The Building Solutions Division also recorded an "outstanding" quarter,
according to Bartz: Revenue was $52 million for the fourth quarter and $178
million for the full year 2006. The company shipped 13,700 seats of Revit
in the fourth quarter.
The Infrastructure Solutions Division brought in $53 million in fourth-
quarter revenue and $178 million for the year. Civil 3D continues to
surpass Autodesk expectations, Bartz says.
![Autodesk Design & Make Report](https://forums.autodesk.com/t5/image/serverpage/image-id/1350519iCB55845EBFC43016/image-size/large?v=v2&px=999" "Autodesk Design & Make Report")