Revenue from its flagship AutoCAD software line drops 11%
Shares of Autodesk Inc. soared 15 percent in heavy trading early Friday morning to a 52-week high of $41.72, despite posting a 4.5 percent drop in second quarter profit to $61.7 million, or 27 cents a share, as sales of its flagship AutoCAD software used by designers, engineers and architects, suffered an 11 percent drop.
The San Rafael, Calif.-based company said overall second quarter revenue was down 1.2 percent to $561.7 million, compared to the second quarter of fiscal 2013. Revenue from its flagship AutoCAD software fell to $289 million but saw increased demand for design software Suites and from its AEC segment.
Shares of Autodesk closed Thursday at $36.13, up 51 cents, then fell as much as 5 percent in after hours trading after the release of financial results and the company’s forecast of weaker-than-expected third-quarter results. The stock’s 52-week stock range is $27.70-$41.72. Autodesk’s market cap is $8.1 billion and P/E ratio is 37.13.
Autodesk forecast adjusted earnings of $0.36 to $0.40 per share for the third quarter on revenue of $540 million to $555 million, that’s less than analysts’ estimates of $0.50 and $581 million, according to Thomson Reuters.
“The challenging dynamics within some of the end-markets that we serve has led us to adjust our growth assumptions,” said Mark Hawkins, Autodesk CFO, in a statement.
License and other revenue fell 6.2 percent to $313.2 million, while subscription revenue was up 5.9 percent to $248.5 million. For the year, Autodesk projects revenue to reach nearly $2.4 billion, up about 3 percent. The stock was up Friday morning nearly 6 percent in pre-market trading.
AEC software sales up
Revenue from the company’s AEC business segment increased 9 percent to $177 million, building on a 4 percent increase in first quarter revenue for AEC and an 18 percent increase for the segment in FY2013. Revenue from its Suites segment, which provide software platforms combining desktop and cloud-based services, increased 18 percent to $193 million.
Earlier this month, Autodesk released its much-anticipated Recap Pro, an advanced version of the free Recap “reality capture” software for workflow on the desktop that creates 3D models from laser scans and captured photos.
Elmer Bol, Autodesk’s director of product management, Reality Capture, IPG, told SPAR Recap is “wrapped around BIM (building information modeling) workflow and bringing BIM into the real world. That is our target for this capability, the indoor space. It’s not for every single work job.”
Recap Pro uses an advanced, scan data registration capability that Autodesk got its hands on in January when it purchased Allpoint Systems, a Pittsburgh, Pa.-based software firm that specialized in automatic point cloud registration and working with massive point cloud datasets on the desktop for the transportation and building sectors.
“Our second quarter was marked by strength in our Architecture, Engineering and Construction (AEC) business segment and continued growth in suites,” said Carl Bass , Autodesk president and CEO.
Revenue from New and Adjacent products was $80 million, down 1 percent, while sales from the Media and Entertainment business segment fell 11 percent to $43 million. The Media and Entertainment business segment was down 16 percent for fiscal 2013.
Revenue from the Platform Solutions and Emerging Business segment dropped 9 percent to $197 million. Revenue from the Manufacturing business segment increased 2 percent to $144 million.
“With the recent introduction of more flexible license and service offerings that have ratable revenue streams, such as cloud-based and rental license offerings, Autodesk’s business model is evolving,” said Hawkins. “We are currently refining our plans around the pace and time frame for this business model transition.”
Revenue by region
- EMEA revenue fell 4 percent to $202 million, compared to the second quarter last year
- Revenue in the Americas inched up 2 percent to $202 million
- Revenue in Asia Pacific decreased 1 percent to $158 million
- Revenue from emerging economies, which represented 15 percent of total revenue in the second quarter, dropped 2 percent to $86 million