Autodesk 2000 Annual Report Download

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the internet is transforming the economy, the business world, and Autodesk.
Transforming Business by Design annual report

Table of contents

  • Page 1
    Transforming Business by Design the internet is transforming the economy, the business world, and Autodesk. annual report

  • Page 2
    ...employees, partners, and customers, for your continued support through an unexpectedly difficult year. I believe your confidence in Autodesk is justified. The year's mixed financial results were disappointing. But we know what caused the problems, and we've worked through them and moved our business...

  • Page 3
    ...: AutoCAD Architectural Desktop™, AutoCAD® Land Development Desktop, AutoCAD Map®, AutoCAD® Mechanical, and Mechanical Desktop® software. Market-Specific Applications: A Matter of Timing We're pleased that customers were so interested in our market-specific products. We've been working for...

  • Page 4
    ...TV and film, shipping major new releases of fire* and smoke*, its industry-leading online noncompressed editing solutions; edit*, the award-winning nonlinear Windows NT editing system; and frost*, for on-air, resolution-independent graphics production. We also acquired VISION Solutions, whose server...

  • Page 5
    ... database on the fly. Such point-of-work solutions are essential for utility field crews, construction or shop-floor workers, and others who increasingly rely on handheld digital assistants, laptops, tablets, and cell phones. Portals and marketplaces: We're building design portals, such as Autodesk...

  • Page 6
    ... other web-based collaboration. We can tie together the value chain. We're doing it with a new business model that has as its center Autodesk and our assets-our global customers, our world-class technologies, our industry-leading partners, our sales and service channels, and our brand.We're adding...

  • Page 7

  • Page 8
    ...organization) 94-2819853 (I.R.S. employer Identification No.) 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...

  • Page 9
    ... productivity, including: 3D visualization and geometry creation tools, Internet integration and in-place reference file editing. AutoCAD 2000 also introduced key new design technology including: a new environment for working with multiple design files, an object property manager, the AutoCAD...

  • Page 10
    ...line removal. Other features include a Start-Up dialog box and Drawing Set-Up wizards to help the user create or open a drawing quickly; real-time pan and zoom; the AutoCAD Design Center featuring thousands of industry-standard symbols; and Integrated Internet Tools to open or save drawings directly...

  • Page 11
    ...film work. The system also features tools for grain management, wire and scratch removal and color calibration. A complete inferno* system includes the inferno* software, an SGI Onyx2 workstation, discreet storage and various I/O devices. Product Development and Enhancement The majority of Autodesk...

  • Page 12
    ... field operations). This organization develops and manages overall marketing and sales programs and works closely with a network of domestic and foreign offices. Autodesk sells its software products primarily through distributors and value-added resellers, or VARs, who distribute Autodesk's products...

  • Page 13
    ...to its sales and training channels to maintain a professional level of technical expertise. Learning Assistance programs, which provide lessons related to design projects through an interactive multimedia tool, are provided with select products. Developer Programs One of Autodesk's key strategies is...

  • Page 14
    ... in its markets are product reliability, performance, ease of use, range of useful features, continuing product enhancements, reputation, price and training. In addition, the availability of third-party application software is a competitive factor within the CAD market. Autodesk believes that it...

  • Page 15
    ...all of the hardware components used in its systems. Manufacturing consists of assembly (including disk array assembly), testing, and value added systems integration. The Discreet Division's flame*, effect*, inferno*, fire*, smoke* and frost* software currently run on workstations manufactured by SGI...

  • Page 16
    ...Dr. Astroth held various positions with Graphic Data Systems Corporation including Director, Environmental Market Group, from January 1993 to June 1994, and Vice President of Product Management, Engineering, from June 1994 to December 1995. Steve Cakebread joined Autodesk in April 1997 and serves as...

  • Page 17
    ...'s Common Equity and Related Stockholder Matters Autodesk's common stock is traded on the Nasdaq National Market under the symbol ADSK.The following table lists the high and low sales prices for each quarter in the last two fiscal years: Fiscal 2000 First Quarter Second Quarter Third Quarter Fourth...

  • Page 18
    .... As such, any factor adversely affecting sales of AutoCAD and AutoCAD upgrades, including such factors as product life cycle, market acceptance, product performance and reliability, reputation, price, competition and the availability of third-party applications, could harm Autodesk, Inc. FY 00 17

  • Page 19
    ...for Autodesk's 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...

  • Page 20
    ... these development centers and the elimination of 87 positions in Asia Pacific.The savings resulting from these activities were offset by costs associated with new businesses. Nonrecurring charges in fiscal 1998 ($26.8 million) consisted primarily of Softdesk, Inc. ("Softdesk"), D-Vision Systems,Inc...

  • Page 21
    ... VISION, a vendor of enterprise automated mapping/facilities management/geographic information systems (AM/FM/GIS) solutions. Of the $26.0 million purchase price, which was paid in cash, $3.3 million represented the value of in-process research and development ("IPR&D") that had not yet reached...

  • Page 22
    ...reduced demand for AutoCAD-related products in fiscal 2000. Softdesk On March 31, 1997, Autodesk exchanged 2.9 million shares of its common stock for all of the outstanding stock of Softdesk, a supplier of AutoCAD-based applications software for the architecture, engineering, and construction market...

  • Page 23
    ... The development project was later completed and the product was released in fiscal 2000 at an aggregate amount approximately equal to the original estimated costs to complete. In valuing the acquired D-Vision ONLINE and PRO software products and the in-process technology, Discreet used a discounted...

  • Page 24
    ... of $1.0 million. The project was later completed and the product was released in fiscal 2000 at an aggregate amount approximately equal to the original estimated costs to complete. In valuing the developed and in-process technologies, Discreet used a discounted cash flow analysis based on projected...

  • Page 25
    ...relating to the introduction of AutoCAD 2000 before introduction of current versions of products such as Mechanical Desktop 4 and AutoCAD LT 2000, and to general concerns about Year 2000 problems, in particular diversion of software budgets to Year 2000 testing. In addition, Autodesk has in the past...

  • Page 26
    ... adversely affecting sales of AutoCAD and AutoCAD upgrades, including product life cycle, market acceptance, product performance and reliability, reputation, price, competition and the availability of third-party applications, would likely harm Autodesk's business. Competition The software industry...

  • Page 27
    ... channels, technical requirements, and levels and bases of competition in other markets are different than those in Discreet's current market, so Discreet may not be able to compete favorably in those markets. Some of Autodesk's historical product development activities have been performed...

  • Page 28
    ...if required, may not be available on acceptable terms, if at all, which would likely harm Autodesk's business. Autodesk also relies on certain software that it licenses from third parties,including software that is integrated with internally developed software and used in its products to perform key...

  • Page 29
    ... and video industries and Internet-related businesses and develop or acquire new products for use in related markets. Autodesk may not be successful in marketing its existing or new or enhanced products. In addition, as Autodesk enters new markets, distribution channels,technical requirements and...

  • Page 30
    ...Supplementary Data Autodesk, Inc. Consolidated Statement 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...

  • Page 31
    ... Other accrued liabilities Total current liabilities Deferred income taxes Other liabilities Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value; 250,000 shares authorized; 59,241 and 57,221 shares outstanding at January 31, 2000 and 1999, respectively Accumulated...

  • Page 32
    ... of business unit Proceeds from sale of investment Purchases of software technologies and capitalization of software development costs Acquisition of other assets Net cash used in investing activities Financing activities Proceeds from issuance of common stock, net of issuance costs Repurchase of...

  • Page 33
    ... Common shares issued under stock option and stock purchase plans Tax effect of stock options Grant of compensatory stock options Compensation expense related to stock options Reclassification of put warrants Shares issued in connection with acquisitions Shares issued to Intel, net-Discreet Logic...

  • Page 34
    ... on available-for-sale securities, net of reclassification adjustments Foreign currency translation adjustment Other comprehensive income Comprehensive income Adjustment to conform fiscal year of Discreet Logic Dividends paid Repurchase of common shares Balances, January 31, 2000 See accompanying...

  • Page 35
    ...web design software and digital content creation tools. On March 16, 1999, Autodesk acquired Discreet Logic Inc. ("Discreet") by issuing approximately 10.0 million shares of Autodesk common stock in exchange for Discreet's outstanding common stock. Discreet develops, assembles, markets and supports...

  • Page 36
    ... from software sales to a large number of 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 collateral...

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

  • Page 38
    ... 2. Net Income Per Share Basic net income per share is calculated using the weighted average number of common shares outstanding. Diluted net income per share is computed using the weighted average number of common shares outstanding and the dilutive common stock equivalents outstanding during the...

  • Page 39
    ...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 2000, 1999 and 1998. The cost of securities sold is based on the specific identification method. 38 FY 00 Autodesk...

  • Page 40
    ...in thousands) Fiscal year ended January 31, Federal: Current Deferred State: Current Deferred Foreign: Current Deferred 2000 $ 17,059 (13,027) 2,068 (1,393) ... losses not previously benefited Research and development tax credit benefit Non-deductible acquisition costs Other $ 2000 8,372 (2,679) 576...

  • Page 41
    ... employee stock plans reduced taxes currently payable for fiscal 2000,...Internal Revenue Service ("IRS"). On August 27, 1997, the IRS issued a Notice for Deficiency proposing increases to the amount of Autodesk's federal income taxes for fiscal years 1992 and 1993. On November 25, 1997, Autodesk filed...

  • Page 42
    ..., Autodesk announced a plan to repurchase up to 8.0 million shares of Autodesk's common stock. 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. By January 31, 2000, Autodesk...

  • Page 43
    ...1998, in connection with the acquisition of Discreet, the Board of Directors rescinded its authorization and terminated Autodesk's repurchase plans that existed at the time. Dividends During fiscal 2000, 1999 and 1998, Autodesk paid annual dividends of $0.24, $0.20 and $0.20 per share, respectively...

  • Page 44
    ... at specific dates ranging from February 2000 to January 2010. A total of 18.6 million shares of Autodesk's common stock have been reserved for future issuance under existing stock option programs. Employee Stock Purchase Plan Under Autodesk's employee stock purchase plan, eligible employees may...

  • Page 45
    ...past and anticipated product-life cycles. Softdesk, Inc. ("Softdesk") On March 31, 1997, Autodesk exchanged 2.9 million shares of its common stock for all of the outstanding stock of Softdesk, a supplier of AutoCAD-based applications software for the architecture, engineering and construction market...

  • Page 46
    ... Agreement and Plan of Merger and Reorganization with Lightscape, a Delaware corporation.The merger closed on December 30, 1997. As a result of the merger, Discreet acquired, among other products, the Lightscape product,a software application which integrates radiosity and raytracing with physically...

  • Page 47
    ... drafters. The Discreet Segment derives revenues from the sale of its products to creative professionals for a variety of applications, including feature films, television programs, commercials, music and corporate videos, interactive game production, live broadcasting and Web design. Both segments...

  • Page 48
    ...Autodesk's reportable segments was as follows: (in millions) Fiscal year ended January 31, Net revenues: Design Solutions Discreet $ $ Income (loss) from operations: Design Solutions Discreet Unallocated amounts1 $ 2000... managed... Asia Pacific Consolidating eliminations Total long-lived assets $ $ 2000...

  • Page 49
    ...for-sale securities, net of tax Foreign currency translation adjustment Total accumulated other comprehensive loss $ 2000 (1,... taxes Fiscal 2000: Unrealized losses on available-for-sale securities Less: reclassification...sale securities... on available-for-sale securities Foreign currency translation ...

  • Page 50
    ...share data) 1st quarter Fiscal 2000 Net revenues Gross margin Income (loss) from operations Net income (loss) Basic net income (loss) per share Diluted net income (loss) per share...million and $3.0 million, related to the Softdesk, D-Vision and 3D/Eye acquisitions, respectively. Results for the second...

  • Page 51
    ... insofar as 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...

  • Page 52
    ... 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 are incorporated...

  • Page 53
    ... 10.7(2) Support Agreement dated March 16, 1999 among Autodesk, Inc., Autodesk Development B.V. and Discreet Logic Inc. 10.8* Form of Restricted Stock Purchase Agreement of Buzzsaw.com, Inc. 21.1 List of Subsidiaries 23.1 Consent of Ernst & Young LLP, Independent Auditors 24.1 Power of Attorney 27...

  • Page 54
    ...Purchase Plan of Autodesk, Inc., the Teleos Research 1996 Stock Plan and the Softdesk,Inc.1992 Stock Option Plan,Softdesk, Inc. 1993 Director Stock Option Plan and Softdesk, Inc. 1993 Equity Incentive Plan, and the Discreet Logic Inc. Amended and Restated 1994 Restricted Stock and Stock Option Plan...

  • Page 55
    ... Asia Pte. Ltd. Autodesk Australia Pty. Ltd. Autodesk do Brazil Ltda Autodesk B.V. Autodesk Canada Inc. Autodesk Development Africa (Pty) Ltd. Autodesk Development B.V. Autodesk Development Canada Inc. Autodesk Development S.a.r.l. Autodesk (EMEA) S.A. Autodesk Far East Ltd. Autodesk GesmbH Autodesk...

  • Page 56
    ... R. Sullivan Executive Vice President, Discreet Division 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 22, 2000, at Embassy Suites Hotel, 101 McInnis Parkway, San Rafael, California...

  • Page 57
    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 58
    ... circuit board layout Scientific or technical research GENERAL DESIGN GIS AND MAPPING LAND DEVELOPMENT MANUFACTURING 3D VISUAL EFFECTS Autodesk, Inc. 111 McInnis Parkway San Rafael, California 94903 USA Autodesk, the Autodesk logo, 3D Studio MAX, ATC, AutoCAD, AutoCAD Map, Autodesk MapGuide...