Autodesk, the San Rafael, California-based provider of electronic design software, has reported third-quarter net income down 921% at $1.4m on revenue down 1.2% at $202.1m. Earnings per share for the quarter fell to $0.02 from $0.31 in the year-ago quarter. Excluding $22.5m in one-time charges and amortization of goodwill, pro forma net income for the quarter amounted to $0.27 per share, down from $0.42 a year ago but well ahead of the $0.13 that analysts surveyed by First Call were expecting. The bottom line was helped by workforce reductions and other recent cost- cutting moves, even as gross margins for the quarter slipped to 82.6% from 84.8% in the year-ago quarter.
Sales of the flagship AutoCad product were disappointing but Credit Suisse First Boston points out that pilot programs and initial sales of newly-announced products are tracking well. The bank also notes that other vertical product releases appear to be poised to contribute to a solid fiscal year 2001. CSFB upgraded the stock from hold to buy while Goldman Sachs upgraded it from market perform to market outperform. For the nine-month period, the company posted a net loss of $15.4m on revenue that slipped 8.3% to $600m, compared to net income of $73.9m, or $1.25 per share, last year. Excluding $59.3m in one-time items, pro forma earnings per share were $0.51, down from $1.63 last year. Autodesk shares rose 9.56% to close at $27.94 Wednesday. á
