SAN RAFAEL (dpa-AFX) - Design software maker Autodesk Inc. (ADSK), said Thursday its profit for the third quarter slipped, hurt by sagging sales in the emerging markets as well as one-time restructuring charges. However, Autodesk's quarterly earnings topped Street estimates, but sales came in short of expectations owing to the weak demand environment.
The company detailed a weak outlook for fiscal year 2013. However, in the long run, Autodestk remains committed to growing adjusted operating margin and expects to achieve a 30+ percent run rate as it exits fiscal 2015.
Autodesk shares initially lost 3 percent in after-hours trade, but later recovered and is now up 2 percent.
'While we experienced pockets of relative strength in the U.S., northern Europe, and Russia, most other markets around the world slowed during the quarter, most notably emerging markets,' said Autodesk CEO Carl Bass.
Autodesk, which makes 3D design, engineering and entertainment software, reported almost flat revenues for the quarter. Results were along expected lines, as it earlier warned of weak sales and had announced restructuring plans to accelerate its transition to cloud and mobile computing.
Autodesk's revenues from the Americas grew 4 percent from last year, while EMEA was down 3 percent, partly impacted by currency losses. Revenues from Asia Pacific also fell 3 percent, but most impact was in emerging economies where sales slid 9 percent.
Revenue from Platform Solutions and Emerging Business edged down 2 percent from last year, and Media and Entertainment business sank 9 percent. The lone segment that saw growth was Architecture, Engineering and Construction business that gained 7 percent.
Overall, Autodesk posted third-quarter revenues of $548 million, compared with $548.6 million last year. Sixteen analysts had a consensus revenue estimate of $559.90 million for the quarter.
Operating margin for the quarter shrunk to 6 percent from 16 percent a year ago, while adjusted margin was up 190 basis points at 26 percent.
The company reported third-quarter net income of $29 million or $0.13 per share, sharply down from $73 million or $0.32 per share a year ago.
Results for the reporting quarter included restructuring charges of $35 million.
Excluding items, adjusted earnings for the quarter totaled $108 million or $0.47 per share, compared with $102 million or $0.44 per share in the prior year.
On average, 18 analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.
Deferred revenue for the quarter was up 15 percent to $714 million.
Autodesk expects fourth-quarter net earnings of $0.18 to $0.26 per share and adjusted earnings of $0.43 and $0.51 per share. Revenues are expected in the range of $570 million to $600 million.
Analysts currently expect earnings of $0.54 per share on revenues of $603.95 million for the period.
For fiscal year 2013, the company expects net earnings of $0.92 to $1.00 per share and adjusted earnings of $1.84 to $1.92 per share. Revenues are expected to be between $$2.275 billion and $2.305 billion.
Analysts currently estimate earnings of $1.92 per share on revenues of $2.32 billion for 2013.
Autodesk stock closed Thursday at $30.50, up 0.20%, on a volume of about 4 million shares on the Nasdaq. In after hours, the stock slid $0.90 or 2.95%. In the past year, the stock traded in a range of $27.70 - $42.69.
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