Boston, MA 06/09/2014 (wallstreetpr) – Autodesk, Inc. (NASDAQ:ADSK) delivered billing growth by 10% with increasing subscription to 89,000 during its first quarter financial results for the FY2015.
Increasing subscription drive segment revenues
Total net revenue for 1Q2014 was $593 million, increase by 5% at constant currency compared to same period 2014. Backlog increased by $30 million from 1Q2014 to $32 million, but, License and other revenue remained down by 2% $316 million versus prior year period. The decline was primarily due to decreasing licenses of Media and Entertainment (M&E) segment during the quarter that decreased M&E’s revenues by 19% YoY to $38 million.
But, the subscription revenue increased by 12% to $276 million versus the prior year due to increasing revenues from maintenance subscriptions.
Revenues for the segment Platform Solutions and Emerging Business (PSEB) remained flat at $212 million. Revenues from AEC business were up by 14% YoY to $196 million with increasing demand for building design and infrastructure design suites. In addition, the YoY growth in manufacturing suites drove the Manufacturing’s revenues by 6% YoY to $147 million.
Raising operating costs squeeze margins
Non-GAAP gross margin during the period was 89%. But, the rising operating expenses (+30% YoY) reduced the non-GAAP operating margin to 17% versus 24% in 1Q2014. Consequently, it reduced the non-GAAP diluted EPS to $0.32 from $0.42 in 1Q2014.
The declining income also reduced the net cash flow from operation during 1Q2015 to $219 million (1Q2014: $224 million) with capital expenditure of $15 million (1Q2014: $26 million). The Company also used cash in acquisition and purchase of securities. As a result, net cash as of April 30, 2014 was $1.6 billion.
At the end
Based on the current business trend and economic environment,Autodesk, Inc. (NASDAQ:ADSK) expects growth in subscription at a range of 150-200K in FY2015 from licensing of enterprise and cloud based; maintenance and desktop. Accordingly, the Company expects growth in billing by 7-9% and anticipates growth in revenues at 4-6% and non-GAAP operating margin of 14-16% in FY2015.
