Autodesk, Inc. (ADSK
Q3 2009 Earnings Call Transcript
November 20, 2008 5:00 p.m. ET
David Gennarelli - Director of Investor Relations
Carl Bass - President, Chief Executive Officer, Director
Sue Pirri - Vice President of Finance
Steven M. Ashley - Robert W. Baird & Co.
Philip Winslow - Credit Suisse
Jay Vleeschhouwer - Merrill Lynch
Richard Davis - Needham & Company, LLC
Michael Olson - Piper Jaffray
Ross MacMillan – Jefferies & Co.
Heather Bellini - UBS
Donovan Gow - American Technology Research
Sterling Auty - J.P. Morgan
Sunil Daptada - Sentinel Asset Management
Atul Bagga - ThinkEquity
Daniel Cummins – Lime Rock Research
Richard Sanders - Clovis Capital
Good day ladies and gentlemen, and welcome to the third quarter 2009 Autodesk Incorporated earnings call. My name is Eric and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We’ll facilitate the question-and-answer session towards the end of the presentation. If at any time during the call you require assistance, press “*” followed by “0” and a coordinator will be there to assist you. I would now like to turn the presentation over to Dave Gennarelli, Director of Investor Relations. Please proceed.
Thanks Operator. Good afternoon. Thank you for joining our conference call to discuss our third quarter of fiscal 2009. With me today is Carl Bass, our Chief Executive Officer; and Sue Pirri, Vice President of Finance.
Today’s conference call is being broadcast live via webcast. In addition, a replay of the call will be available by webcast at www.autodesk.com/investor.
During the course of this conference call, we will make forward-looking statements regarding future events and the future performance of the company, our guidance for the fourth quarter of fiscal 2009, the factors we used to estimate our guidance, our future business prospects and financial results, our market opportunities and strategies, trends for our products and trends in various geographies and anticipated benefits of acquisitions. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially. Please refer to documents we file from time to time with the SEC, specifically our Form 10-K for the fiscal 2008 and our 10-Qs for the first and second quarters of fiscal 2009, and our periodic 8-K filings, including the 8-K filed with today’s press release. These documents contain and identify important risks and other factors that may cause our actual results to differ from those contained in our forward-looking statements.
Forward-looking statements made during the call are being made as of today. If the call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Autodesk disclaims any obligation to update or revise any forward-looking statements.
We will provide guidance on today’s call but will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum.
During the call we will discuss non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the GAAP to non-GAAP results is provided in today’s press release and on our website.
In addition, we will quote a number of percentage increases as we discuss our financial performance. Unless otherwise noted, each percentage represents a year-over-year growth rate showing the third quarter of fiscal 2009 as compared to the third quarter of fiscal 2008.
And now I would like to turn the call over to Carl Bass.
Good afternoon everyone and thank you for joining us. Today we reported the financial results for our third quarter of fiscal 2009. Revenue for the quarter increased 13% over last year to $607 million. As we previously stated, the sharp downturn in the global economy had a substantial impact on our results for the quarter. The economy is impacting our customers in various ways. Many are unable to secure credit financing. Construction and media and entertainment projects of all sizes are being delayed or cancelled. Lack of credit for small and medium sized manufacturing firms is making it difficult for them to invest in their businesses. Even large manufacturers are cutting spending significantly in response to lower end user demand and their inability to secure financing or issue debt.
As we discuss the details of our results this quarter, I will talk about some of the actions we are taking in an effort to stimulate demand in this environment. I will also go over the actions we are taking to better align our cost structure, with the reality of this difficult operating environment.
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