Autodesk 2001 Annual Report Download

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pursuit
realiza
Digital design data
Autodesk
Location Services
Buzzsaw
RedSpark
Annual Report 2001
Discreet

Table of contents

  • Page 1
    Discreet Location Services Autodesk Buzzsaw RedSpark Digital design data realiz Annual Report 2001 pursuit

  • Page 2
    ... Data...Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations...Item 7A. Quantitative and Qualitative Disclosure About Market Risk...Item 8. Financial Statements and Supplementary Data...Autodesk, Inc. Consolidated Statements of Operations...Autodesk, Inc...

  • Page 3
    ... 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K...Schedule II Autodesk Inc. Valuation and Qualifying Accounts...Exhibit 21.1 Subsidiaries of Autodesk, Inc...Board of Directors...Executive Officers...Corporate Headquarters...Legal Counsel...Transfer Agent...Independent Auditors...

  • Page 4
    ...in Asia/ Pacific Fiscal Year 2001 Welcome Transforming business by design What a year! Several years ago, Autodesk pioneered the creation of design data and digital content.Today, we're moving beyond automating the creation of this information to targeting how our customers manage, use, and share...

  • Page 5
    ... exactly is Autodesk leading today 's digital design data and content revolution? In a word...literally.We're making it easier for our customers to obtain, use, and benefit from our software to gain a competitive advantage. We're moving from major releases to more frequent, more manageable modular...

  • Page 6
    ... was helping our customers connect throughout their value chains in important new ways. Autodesk conceived, engineered, and delivered a new generation of software that works the way our customers think, operating behind the scenes to make their work easier. Our new products work in conjunction...

  • Page 7
    ... within Design Solutions. GIS growth is distributed across the product line from AutoCAD Map and AutoCAD Land Development Desktop to Autodesk MapGuide software. The Manufacturing division grew 20 percent with sales of $134 million. It 's exciting and encouraging to see such strong customer adoption...

  • Page 8
    ...in fiscal year 2001 include • Discreet 's best year on record • Internet-based design collaboration with the AutoCAD 2000i product line and Autodesk Point A design portal • New versions of flagship products like Autodesk Inventor and Autodesk Architectural Desktop software that provide a new...

  • Page 9
    ... the web Design Solutions Geographic Information Systems Utilities, land development companies, communications businesses, and government agencies can, for the first time, use a flexible, integrated family of Autodesk GIS desktop software products with our new enterprise Autodesk GIS Design Server...

  • Page 10
    ... our desktop software that seamlessly connects members to a world of information, product updates, services, and support.With more than 170,000 registered users, Point A far exceeds our first-year membership targets. Autodesk Location Services In addition to our goal of reaching new customers across...

  • Page 11
    .... And we're using the Internet as our central nervous system, giving our customers all the power of this limitless resource to create, use, share, and manage their creations. From the jaw-dropping Discreet special effects to the wireless world of possibilities ahead, Autodesk is using the newest...

  • Page 12
    ...111 McInnis Parkway, San Rafael, California (Address of principal executive offices) Registrant's telephone number, including area code: 94903 (Zip Code) (415) 507-5000 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which registered None Title of each class...

  • Page 13
    ... web connection or through Autodesk software products with Internet extension plug-ins, the Point A site provides a centralized online community and resources in four main areas that include content, community, collaboration and customer care. AutoCAD LT AutoCAD LT is a low-cost 2D CAD application...

  • Page 14
    ... animation, next generation game development and visual effects production. Users benefit from the unified, object-oriented platform, customizable real-time interface, multiple-processor support and 3D graphics acceleration capabilities. flame flame is an on-line, resolution-independent, non-linear...

  • Page 15
    ... available on the Product Support portion of our Internet site.There are also a number of user group forums in which customers are able to share information. While we expect the resellers and distributors to provide the majority of technical support to our customers, we have developed programs to...

  • Page 16
    ... array assembly), testing, and value added systems integration. Many of the Discreet Division's software products currently run on workstations manufactured by Silicon Graphics. Additionally, the Discreet Division is dependent on Silicon Graphics as the main source for video input/output cards used...

  • Page 17
    ...for local sales, development and technical support personnel. Our foreign subsidiaries lease office space for their operations. We believe that our existing facilities and offices are adequate to meet our requirements for the foreseeable future. alleging violations of the Securities Exchange Act of...

  • Page 18
    ..., Human Resources and Corporate Real Estate since June 2000. Steve Cakebread joined Autodesk in April 1997 and serves as Senior Vice President and Chief Financial Officer. From April 1993 through March 1997 he served as Vice President, Finance, World Trade Corporation at Silicon Graphics. Paul...

  • Page 19
    ... of Unregistered Securities On January 12, 2001, we issued approximately 78,000 unregistered shares of Autodesk common stock, which were valued at $2.8 million, to effect an acquisition. The unregistered shares are subject to Rule 144. Stockholders As of January 31, 2001 the number of common...

  • Page 20
    ... reduction. 3Proforma net income per share is an alternative measure of performance and is not in accordance with U.S. generally accepted accounting prin- ciples. Proforma net income per share excludes the effect of amortization of goodwill and purchased intangibles, nonrecurring (credits) charges...

  • Page 21
    ... compact discs, cost of hardware sold (mainly workstations manufactured by Silicon Graphics), costs associated withtransferring Autodesk's software to electronic media, printing of user manuals and packaging materials, shipping and handling costs, royalties, amortization of purchased technology and...

  • Page 22
    ... for our marketing, sales, dealer training and support personnel. These expenses also include programs aimed at increasing revenues, such as advertising, trade shows and expositions, as well as various sales and promotional programs designed for specific sales channels and end users. Marketing and...

  • Page 23
    ... Microsystems litigation matter, and a $1.3 million gain associated with the sale of various technical programs and RedSpark, Inc. During the second quarter of fiscal 2001, we formed RedSpark, Inc. Autodesk currently maintains a majority interest in RedSpark, and as such the financial position and...

  • Page 24
    ... Desktop. The research and development projects were in varying stages of completion, ranging from 20 percent to VISION On April 22, 1999, we acquired VISION, a vendor of enterprise automated mapping/facilities management/ geographic information systems (AM/FM/GIS) solutions. At the time, Autodesk...

  • Page 25
    ... requirements. Long-term cash requirements, other than normal operating expenses, are anticipated for the development of new software products and incremental product offerings resulting from the enhancement of existing products; financing anticipated growth; dividend payments; the share repurchase...

  • Page 26
    ... our competitors, changes in marketing or operating expenses, changes in product pricing or product mix, platform changes, delays in product releases, competitive factors, distribution channel management, changes in compensation practices, the timing of systems sales and general economic conditions...

  • Page 27
    ...future. While no single customer accounted for more than 10 percent of our consolidated net revenues in fiscal 2001, the loss of or a significant reduction in business with any one of our major international distributors or large U.S. resellers could harm our business. Product returns by VARs could...

  • Page 28
    ... internally developed software and used in our products to perform key functions. These third-party software licenses may not continue to be available on commercially reasonable terms, and the software may not be appropriately supported, maintained or enhanced by the licensors. The loss Autodesk...

  • Page 29
    ... variations in our or our competitors' results of operations; developments in our industry; and general market conditions and other factors, including factors unrelated to our o p e rat i n g performance or the operating performance of our competitors. In addition, stock prices for many companies in...

  • Page 30
    ...for these minority equity investments using the cost method of accounting. These investments are inherently risky because the markets for the technologies or products they have under development are typically in the early stages and may never develop into commercially viable businesses. We may incur...

  • Page 31
    ... Data Autodesk, Inc. Consolidated Statements of Operations (in thousands, except per share data) Fiscal year ended January 31, Net revenues Costs and expenses: Cost of revenues Marketing and sales Research and development General and administrative Amortization of goodwill and purchased intangibles...

  • Page 32
    .... Consolidated Balance Sheets (in thousands, except per share data) January 31, Assets Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net of allowance for doubtful accounts of $11,611 ($10,652 in 2000) Inventories Deferred income taxes Prepaid expenses and other...

  • Page 33
    ... costs Repurchase of common stock Dividends paid (Decrease) increase in credit line (Repayments) notes payable borrowings Minority interest Net cash (used in) provided by financing activities Effect of exchange rate changes on cash and cash equivalents Adjustment to conform fiscal year of Discreet...

  • Page 34
    ... to conform fiscal year of Discreet Logic Dividends paid Repurchase of common shares Balances, January 31, 1999 Common shares issued under stock option and stock purchase plans Tax effect of stock options Shares issued Compensation expense related to stock options Comprehensive income: Net income...

  • Page 35
    Autodesk, Inc. Consolidated Statements of Stockholders' Equity (continued) (in thousands) Common stock and additional paid-in capital Shares Amount Balances, January 31, 2000 Common shares issued under stock option and stock purchase plans Tax effect of stock options Shares issued in connection with...

  • Page 36
    ... from sales to a large number of direct customers, resellers and distributors in the Americas, Europe and the Asia Pacific region. Autodesk performs ongoing evaluations of its customers' financial condition and limits the amount of credit extended when deemed necessary, but generally requires no...

  • Page 37
    ...customer support and other related services ratably as the obligations are fulfilled, or when the related services are performed. With the exception of certain distributors, agreements with Autodesk's value-added resellers ("VARs") do not contain specific product-return privileges. However, Autodesk...

  • Page 38
    ... periods of product transition and during update cycles. Autodesk establishes allowances for product returns, including allowances for stock balancing and product rotation, based on estimated future returns of product and after taking into consideration channel inventory levels at its resellers, the...

  • Page 39
    ..., 2001 Cost Cash and cash equivalents Marketable securities Forward foreign currency contracts Foreign currency option contracts $ 116,391 302,761 8 218 Fair value $ 116,391 306,109 8 218 January 31, 2000 Cost $108,641 434,296 8 - Fair value $108,641 432,282 8 - Forwards Autodesk utilizes forwards...

  • Page 40
    ... of the securities may have the right to prepay or call obligations without prepayment penalties. Realized gains and losses on available-for-sale securities were immaterial in fiscal 2001, 2000 and 1999. The cost of securities sold is based on the specific identification method. Autodesk, Inc. FY...

  • Page 41
    ...-exempt interest Acquired in-process research and development Goodwill amortization Effect of not benefiting foreign subsidiaries tax losses Utilization of net operating losses not previously benefited Research and development tax credit benefit Non-deductible acquisition costs Other $ 2001 56,372...

  • Page 42
    ...Autodesk's deferred tax assets and liabilities are as follows: (in thousands) January 31, Purchased technology and capitalized software Reserves for product returns and bad debts Tax loss carryforwards Accrued compensation and benefits Fixed assets Accrued state income taxes Research and development...

  • Page 43
    ... of December 31, 2000 Current assets Non-current assets Current liabilities Non-current liabilities Redeemable convertible preferred stock Net assets $ 30,791 19,123 9,141 2,268 98,560 38,505 Fiscal year ended December 31, 2000 Net revenues Cost of sales Loss from operations Net loss attributable to...

  • Page 44
    ... equity collar contracts. The number of shares acquired and the timing of the purchases are based on several factors, including general market conditions and the trading price of Autodesk common stock. In fiscal 2000 Autodesk repurchased its common stock through open market purchases, and in fiscal...

  • Page 45
    ... 2001, 0.9% for fiscal 2000 and 0.7% for fiscal 1999. Pretax Savings Plan Autodesk has a 401(k) plan that covers nearly all U.S. employees. Eligible employees may contribute up to 20 percent of their pretax salary, subject to limitations mandated by the Internal Revenue Service. Autodesk makes...

  • Page 46
    ..., 1999, Autodesk acquired Discreet by issuing approximately 10.0 million shares of Autodesk common stock in exchange for Discreet's outstanding common stock. Discreet develops, assembles, markets, sells and supports nonlinear digital systems and software for creating, editing and compositing imagery...

  • Page 47
    The value assigned to purchased technology ($12.7 million) was determined based on the expected future cash flows of the existing developed technologies, discounted for the characteristics and applications of the product, the size of existing markets, growth rates of existing and future markets, as ...

  • Page 48
    ..., television programs, commercials, music and corporate videos, interactive game production, live broadcasting and Web design. The Design Solutions Segment derives revenues from the sale of design software products for professionals, occasional users, or consumers who design, draft and diagram, and...

  • Page 49
    Information regarding Autodesk's operations by geographic area is as follows: (in millions) Fiscal year ended January 31, Net revenues: United States customers Other Americas Total Americas Europe Asia Pacific Total net revenues $ 2001 $ 374.9 57.8 432.7 296.0 207.6 936.3 $ $ 2000 317.7 63.3 381.0 ...

  • Page 50
    ...sale securities, net of tax Foreign currency translation adjustment Total accumulated other comprehensive loss 2001 2,357 (18,461) (16,104) 2000 $ (1,370) (13,452) $ (14,822) $ $ The related income tax effects...) $ (1,282) Income tax (expense) benefit Amount net of taxes Autodesk, Inc. FY 01 47

  • Page 51
    ... pronouncements that were effective during the fourth quarter of fiscal 2001, Autodesk reclassified dealer commissions to marketing and sales expenses and customer-paid shipping and handling fees to net revenues (see Note 1 for further discussion). Previously, dealer commission costs were reflected...

  • Page 52
    ... it relates to data included for Discreet Logic Inc., is based solely on the report of the other auditors. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance...

  • Page 53
    ... the Compensation Committee Report or the Performance Graph included in the Proxy Statement. Item 10. Directors and Executive Officers of the Registrant The information concerning Autodesk's directors and compliance with Section 16 of the Securities and Exchange Act of 1934 required by this Item...

  • Page 54
    ... and Exchange Trust Agreement dated March 16, 1999 among Autodesk, Inc., Discreet Logic Inc., Autodesk Development B.V., and Montreal Trust Company of Canada 10.2(5)* Registrant's 1998 Employee Qualified Stock Purchase Plan and form of Subscription Agreement, as amended 10.3(2)* Registrant's 2000...

  • Page 55
    ... requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Autodesk, Inc. By:/s/ Carol A. Bartz Carol A. Bartz Chairman of the Board Dated: April 27, 2001 Signature...

  • Page 56
    .... 1995 Employee Stock Purchase Plan, Discreet Logic, Inc. 1995 NonEmployee Director Stock Option Plan, and Discreet Logic, Inc. 1997 Special Limited Non-Employee Director Stock Plan, of our report dated February 9, 2001, with respect to the consolidated financial statements and schedule of Autodesk...

  • Page 57
    ... B.V. Autodesk Development Canada Inc. Autodesk Development S.a.r.l. Autodesk (EMEA) S.A. Autodesk Far East Ltd. Autodesk GesmbH Autodesk GmbH Autodesk India Pte. Ltd. Autodesk International Holding Co. Jurisdiction of incorporation Switzerland Sweden Switzerland Argentina Singapore Australia Brazil...

  • Page 58
    ... Development, General Counsel, and Secretary Michael E. Sutton Executive Vice President, Worldwide Field Organization Annual Meeting Autodesk's Annual Meeting of Stockholders will be held at 2:00 p.m. on June 21, 2001, at Embassy Suites Hotel, 101 McInnis Parkway, San Rafael, California. Autodesk...

  • Page 59
    Corporate Headquarters Autodesk, Inc. 111 McInnis Parkway San Rafael, CA 94903 USA The Americas Autodesk, Inc. 20400 Stevens Creek Boulevard Cupertino, CA 95014-2217 Asia Pacific Autodesk Asia PTE Ltd. 391B Orchard Road #12-06 Ngee Ann City, Tower B 238874 Singapore Europe Autodesk (Europe) SA 20, ...

  • Page 60
    ...Intelligent software and Internet-enabled solutions Value in digit al design innovation Aut odesk, Inc. 111 McInnis Parkw ay San Rafael, California 94903 USA Aut odesk, Aut oCAD, Aut oCAD LT, Aut oCAD Map, Aut odesk Map Guide, Mechanical Deskt op, and VISION are regist ered t radem arks, and 3ds...