Autodesk Extends Visualization Leadership with Acquisition of Opticore AB

Autodesk, Inc. (NASDAQ: ADSK) today announced that it has signed an agreement to acquire certain assets of Opticore, a wholly-owned subsidiary of Design Communication, based in Gothenburg, Sweden that provides software for interactive and realistic 3D visualizations and presentations. The acquisition underscores Autodesk's continued drive to deliver solutions that support best-in-class designers and manufacturers and enable them to implement a complete Digital Prototyping solution.

Opticore is a premier graphics communication software provider delivering advanced technology used to produce believable, highly interactive and realistic 3D digital product visualizations and presentations. Opticore products leverage digital prototypes from computer-aided-design (CAD) and computer-aided-industrial-design (CAID) to reduce the need for physical prototypes, shorten development cycles and increase communication between designers, managers and customers.

Autodesk currently plans to continue the development of Opticore technology and supporting Opticore customers. Through the combination of Autodesk and Opticore expertise and technology, Autodesk will be able to deliver even more advanced visualization solutions by leveraging real-time ray tracing and a deep engineering knowledge base.

"The acquisition of Opticore technology is part of Autodesk's commitment to set the direction for Digital Prototyping and offer a complete solution across the Manufacturing industry," said Robert "Buzz" Kross, senior vice president, Autodesk Manufacturing Solutions. "By adding Opticore products, Autodesk intends to offer the most complete design visualization solution in the market, providing automotive and product designers the opportunity to select the most cutting edge visualization product that best meets their needs."

"Autodesk and Opticore products together will offer the market a superior visualization solution," says Stefan Hallin, Chairman of Design Communications. "Customers of both companies will benefit from this announcement."

Opticore customers include major automotive manufacturers in all continents as well as large manufacturers. Automotive clients include: AUDI AG, Ford Motor Company (with the brands Ford, Volvo, Jaguar, Land Rover), Hyundai, KIA, FAW, Brilliance Auto, Tata Motor, Mahindra Mahindra, Bajaj Auto, Honda and Nissan Mitsubishi. Consumer product and transportation customers include: Canon Inc, Philips Consumer, Nokia Mobile, Electrolux and Bombardier Trains. Opticore has almost 50 clients throughout Asia including all eight major automotive manufacturers in Japan.

Business Outlook
This transaction is expected to have no impact on targeted non-GAAP EPS for fiscal 2008. Non-GAAP EPS excludes in-process R&D expenses and the amortization of acquisition-related intangibles.


About Autodesk
Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. For additional information about Autodesk, visit http://www.autodesk.com/

ADSK: Autodesk and Renault Form Three-Year Global Strategic Alliance

Autodesk, Inc. (NASDAQ: ADSK) today announced a multi-million-dollar three-year global strategic alliance with Renault's renowned Design Department. The deal underscores Renault's commitment to Autodesk AliasStudio and Autodesk Maya software applications as the foundation for its pioneering global digital design workflow. The Renault Design Department uses complementary AliasStudio and Maya software to design every new vehicle model -- including the new Clio 3, Europe's Car of the Year for 2006 -- and at every stage of the design process. AliasStudio is used extensively for Renault's initial conceptual design and creative ideation process through to digital prototyping, Class A production surfacing and final validation, while Maya supports Renault's advanced design visualization needs.

Established in 1898, Renault is Europe's leading automotive brand, designing, developing, manufacturing and selling innovative, safe and environmentally-friendly vehicles worldwide. Producing more than 2.3 million cars and light commercial vehicles (LCV) in 2006, Renault has industrial and commercial presence in 118 countries. In 1999, Renault and Nissan signed the Renault-Nissan Alliance, uniting the two global companies through a coherent strategy, common goals and principles, results-driven synergies and shared best practices, while respecting and reinforcing their respective identities and brands.

Automotive Original Equipment Manufacturers (OEMs) worldwide now create a wider variety of models than ever before to meet the changing needs of customers in numerous niche markets. To meet this need, Renault continues to introduce an increasingly broad and diverse range of new vehicle models. This trend not only results in a heavier workload for designers but also a reduction in the development time available for each project.

As a result of this trend, Renault depends on an efficient digital workflow to maximize time by making improvements early in the design process to enable better design innovation and quality. Largely dependent upon Autodesk software, Renault's fully integrated digital workflow encompasses modeling, digital prototyping, visualization and presentation processes, and supports the need to evaluate a greater number of design themes and make faster decisions. In addition, digital prototypes have made it easier for Renault's Design Department to collaborate with other members of the extended design team including Renault's Vehicle Engineering team, encouraging greater communication, collaboration and faster design evaluation. With Autodesk software, the Renault Design Department has developed automated processes for creating ultra-high-quality stills and animated images, addressing the challenge of reducing production time and the need to make rendering expertise available for Digital Modelers. Renault's designers and decision-makers are now able to actively visualize a virtual 3D model as it evolves within the context of a 'real' environment -- all within a few hours of calculation.

Autodesk's strategic alliance with the Renault Design Department, which originated with Alias before it was acquired by Autodesk in January 2006, has also helped to drive the development of Alias' design products, influencing industry-critical enhancements such as Class A modeling. In the future, the successful execution of Renault's digital design processes will continue to rely heavily on Autodesk software solutions. By forming this alliance, Renault Design Department is demonstrating both the trust it has in Autodesk as a solutions partner and the importance it places on its software as a critical element in its overall workflow vision and design strategy.

"Autodesk is pleased to partner with an industry leader such as Renault -- an innovator that is taking automobile design to the next level," said Carl Bass, Autodesk president and chief executive officer. "Renault Design Department's world-class digital workflow process is recognized as a benchmark throughout the automotive industry and we are committed to ensuring Renault's continued success in pursuing design innovation."

ADSK: Autodesk Reports Record Revenues of $497 Million

Autodesk, Inc. (NASDAQ: ADSK) today reported record quarterly revenues of $497 million, an increase of 19 percent over the fourth quarter of fiscal 2006.

"We are pleased to finish another year of outstanding execution and revenue growth," said Carl Bass, Autodesk president and CEO. "In fiscal 2007, we delivered revenues of $1.84 billion, nearly double the level of three years ago. Our fourth quarter growth was driven by strong performance from emerging economies, our subscription program and, most significantly, record revenues from our model-based 3D products. Looking to fiscal 2008, we expect Autodesk to continue to focus on delivering industry-leading 3D design software solutions that help our customers be more productive, improve quality and foster greater innovation."

Operational Highlights

Autodesk's performance was driven by robust increases in revenue from model-based 3D products, maintenance revenue from subscription, and revenue in the emerging economies. In addition, revenues from crossgrades -- customers moving from one product to another -- and new seats showed strong growth.

The Company's model-based 3D products, Inventor, Revit and Civil 3D, continue to increase their market penetration. Combined revenues from these model-based design products increased 40 percent over the fourth quarter of fiscal 2006 to a record $121 million or 24 percent of total revenues in the quarter. In total, Autodesk shipped more than 47,000 commercial seats of 3D in the quarter including 23,000 seats of Revit, over 15,000 seats of Inventor and nearly 9,000 seats of Civil 3D.

Once again, emerging economies contributed robust growth in revenues. Revenues from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 44 percent over the fourth quarter of fiscal 2006 to $75 million and represented 15 percent of total revenues in the fourth quarter.

Maintenance revenues from subscription increased 53 percent compared to the fourth quarter of fiscal 2006 to $123 million or 25 percent of total revenues. Continued strength in subscription attach rates and renewal rates drove a $53 million sequential increase in deferred maintenance revenue from subscription. Total upgrade revenues increased slightly compared to the fourth quarter of fiscal 2006 driven by a 45 percent increase in crossgrade revenue.

Revenues from new seats increased by 15 percent compared to the fourth quarter of last year. Revenues from new seats of Revit and Civil 3D increased 95 percent and 26 percent, respectively, compared to the fourth quarter of fiscal 2006. Revenues from new seats of AutoCAD Mechanical and Inventor Professional increased by 68 percent and 62 percent, respectively, compared to the fourth quarter of last year. Revenues from new seats of flame increased by over 100 percent compared to the fourth quarter of fiscal 2006.

OTHER FINANCIAL HIGHLIGHTS

* Cash, cash equivalents and marketable securities increased by
$181 million sequentially to $778 million as of January 31, 2007.
* Total backlog was $415 million as of January 31, 2007, including
$398 million of deferred revenues. Deferred maintenance revenues from
subscription increased $53 million sequentially to $328 million. In
addition, there was $17 million of unshipped product orders, or
shippable backlog, at quarter end.
* Channel inventory decreased sequentially and was below the normal range
of three to four weeks.
* As a result of strong subscription bookings in the quarter, DSO's
increased to 55 days.
* Capital expenditures were $10 million.
* As a result of the voluntary review of the Company's historical stock
option granting practices and the related accounting, the Company did
not issue or repurchase any shares during the quarter.
* There were approximately 231 million total shares outstanding and
244 million diluted shares outstanding in the fourth quarter.
* Revenues in the Americas increased 15 percent over the fourth quarter of
fiscal 2006 to $203 million.
* Revenues in EMEA increased 26 percent over the fourth quarter of fiscal
2006 to $189 million.
* Revenues in Asia Pacific increased 18 percent over the fourth quarter of
fiscal 2006 to $105 million. Revenues in Japan decreased three percent
compared to last year. Excluding Japan, revenues in Asia Pacific
increased 34 percent compared to last year.
* In the fourth quarter of fiscal 2007, spending on total costs and
expenses -- which include cost of license and other revenue, cost of
maintenance revenues, marketing and sales, research and development, and
general and administrative -- increased by $5 million sequentially.
* Spending related to the voluntary stock option review included
$3 million in legal, tax and accounting fees.
* Interest and other income decreased by $2 million sequentially to
$4 million.

Fiscal 2007 Full Year ReviewRevenues for fiscal 2007 increased 21 percent over fiscal 2006 to $1.84 billion, driven by strength in revenues from model-based 3D products, new seat revenue, maintenance revenue from subscription, and revenue in the emerging economies. Combined revenues from the Company's model-based 3D products increased 41 percent over fiscal 2006 to a record $399 million. In total, Autodesk shipped nearly 150,000 commercial seats of 3D including nearly 70,000 seats of Revit, nearly 48,000 seats of Inventor and nearly 31,000 seats of Civil 3D.

Revenue from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 39 percent over fiscal 2006 to $258 million.

Revenue from new seats increased 19 percent over fiscal 2006. Maintenance revenue from subscription increased 53 percent in fiscal 2007 to $424 million.

Because Autodesk has not yet filed its second and third quarter fiscal 2007 financial statements, several adjustments have been made to the financial results of the second and third quarters of fiscal 2007. Events that occurred subsequent to these quarters provided additional information which differed from the estimates that were originally provided. The changes result in a decrease in our after-tax GAAP expenses for the second quarter of $13.6 million and an increase in our GAAP expenses for the third quarter of $2.6 million. On a Non-GAAP basis, these adjustments decreased our after-tax spending for the second and third quarters of fiscal 2007 by $2.9 million and $0.7 million, respectively. Please refer to the table below for a reconciliation of the Non-GAAP to GAAP results.

Reconciliation of GAAP Subsequent Event Adjustments to Non-GAAP Subsequent
Event Adjustments

Amounts in millions, net of tax Q2 Q3

GAAP adjustments $13.6 $(2.6)

Settlement-based reversal of legal accrual (9.9) (2.3)

Tax benefit and rate true-up (0.8) (0.4)

SFAS 123R termination-related
modifications -- 6.0

Non-GAAP adjustments $2.9 $0.7


Business OutlookThe following statements are forward-looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. As a result of the voluntary stock option review, the Company is not providing EPS guidance at this time. Additionally, because accounting related to the restatement of its financial statements is being finalized as a result of the voluntary stock option review, as described below, the Company is not able to provide GAAP operating margins for fiscal 2008 at this time.

First Quarter Fiscal 2008

Net revenues for the first quarter of fiscal 2008 are expected to be in the range of $490 million to $500 million. Non-GAAP operating margins for the first quarter of fiscal 2008 are expected to be in the range of 25.5 to 26.3 percent. Non-GAAP operating margins do not include SFAS 123R stock-based compensation expenses, which the Company is currently unable to determine but believes will be significant, amortization of acquisition related intangibles of approximately $4 million, and reimbursement to employees for tax issues arising from the stock option review, which the Company is currently unable to estimate but believes to be significant. Company estimates include approximately $4 million in the first quarter of fiscal 2008 for legal, tax and accounting fees related to the voluntary stock option review period.

Second Quarter Fiscal 2008

Net revenues for the second quarter of fiscal 2008 are expected to be in the range of $505 million to $515 million. Non-GAAP operating margins for the second quarter of fiscal 2008 are expected to be in the range of 25.5 to 26.3 percent. Non-GAAP operating margins do not include SFAS 123R stock-based compensation expenses, which the Company is currently unable to determine but believes will be significant, amortization of acquisition related intangibles of approximately $4 million, and reimbursement to employees for tax issues arising from the stock option review, which the Company is currently unable to estimate but believes to be significant.

Full Year Fiscal 2008

For fiscal year 2008, net revenues are expected to be between $2.075 billion and $2.125 billion.

Not taking into account SFAS 123R stock-based compensation expenses, which the Company is currently unable to determine but believes will be significant, amortization of acquisition related intangibles of approximately $16 million, and reimbursement to employees for tax issues arising from the stock option review, which the Company is currently unable to estimate but believe to be significant, non-GAAP operating margins for fiscal year 2008 are expected to be in the range of 27 to 27.5 percent. In addition, the Company now expects its fiscal 2008 tax rate to be between 25 and 26 percent.

Stock Option Review

In a separate announcement, the Company today announced that the Audit Committee of Autodesk's Board of Directors has completed its voluntary review of the Company's stock option grant practices. As a result of the findings of the voluntary review, the Board of Directors has concluded that the consolidated balance sheets as of January 31, 2002, 2003, 2004, 2005 and 2006, and the related consolidated statements of income, stockholders' equity, and cash flows for each of the fiscal years ended January 31, 2003, 2004, 2005 and 2006 should no longer be relied upon. As a result, the Company expects to restate its previously-issued financial statements for fiscal years 2003 through 2006, to make adjustments related to accounting for stock-based compensation expense. The Company currently estimates that the pre-tax, non-cash charges to be incurred are in the range of $38 million to $45 million for stock-based compensation expense over the 18 year period of the review. Approximately $23 million to $26 million of the restated amounts will apply to income statement for fiscal years 2003 through 2006, and the remainder, which is applicable to prior fiscal years, will be recorded as a charge to be retained earnings as of January 31, 2002. The adjustment for the first quarter of fiscal 2007 will be recorded in the second quarter of fiscal 2007 due to its insignificance. Ernst & Young, LLP has not yet completed its procedures with regard to the Company's restated financial statements. More information is available in the press release and Form 8-K filed today, February 27, 2007.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above, statements in the paragraphs under "Stock Option Review" above, statements regarding anticipated market trends and other statements regarding our expected performance. Factors relating to the voluntary stock option review described above that could cause actual results to differ materially include, but are not limited to: the discovery of additional information relevant to the review, any additional conclusions of the Audit Committee (and the timing of such conclusions) concerning matters relating to the Company's stock option grants and the impact of the review on the amount and timing of previously awarded stock-based compensation and other additional expenses to be recorded, the timing of review and conclusions of the Company's independent registered public accounting firm regarding the Company's stock option grants and related accounting adjustments to the Company's financial statements for certain periods, the application of accounting or tax principles in an unanticipated manner, an unanticipated delay in the preparation and filing of the Company's required reports with the SEC or an inability to meet the requirements of the NASDAQ Global Select Market for continued listing of its shares. The stock option grant practices under review and related matters have led and could also lead to potential claims and proceedings relating to such matters, including shareholder or employee litigation and action by the SEC and/or other regulatory agencies, and negative tax or other implications for the Company resulting from any accounting adjustments or other factors.

Other factors that could cause actual results to differ materially include the following: general market and business conditions, expenses, resulting from the voluntary stock option review, our performance in particular geographies, fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance or subscription revenues, changes in the timing of product releases and retirements, failure of key new applications to achieve anticipated levels of customer acceptance, difficulties encountered in integrating new or acquired businesses and technologies, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, fluctuation in foreign currency exchange rates, failure to achieve continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, failure to achieve continued success in technology advancements, the financial and business condition of our reseller and distribution channels, interruptions or terminations in the business of the Company's consultants or third party developers, and unanticipated impact of accounting for technology acquisitions.

Further information on potential factors that could affect the financial results of Autodesk are included in the Company's reports on Form 10-K for the year ended January 31, 2006 and Form 10-Q for the quarter ended April 30, 2006 which are on file with the Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Earnings Conference Call and Webcast

Autodesk will host its fourth quarter conference call today at 5:00 p.m. EST. The live announcement may be accessed at http://www.autodesk.com/investors or by dialing 866-203-2528 or 617-213-8847 (passcode: 10432828). An audio webcast or podcast of the call will be available at 7:00 pm EST at http://www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months. An audio replay will also be available for one month beginning at 7:00 pm EST by dialing 888-286-8010 or 617-801-6888 (passcode: 43703753).

ADSK: Autodesk Updates Technology Preview to Make Illustrative Graphics a Snap

Incorporating the experiences of more than 10,000 users, Autodesk, Inc. (NASDAQ: ADSK) today unveiled the latest preview of Autodesk Impression software that gives architects and other CAD users a helping hand with creating illustrative presentation graphics from DWG and DWF files. The technology preview found on Autodesk Labs improves teams' productivity, and ultimately client satisfaction, by virtually eliminating the manual labor previously required to develop compelling images from CAD drawings.

Autodesk Impression now makes it easier than ever to create great-looking presentation graphics, equipping users with the tools necessary to help their clients experience ideas in the early stages, explore alternatives and arrive at solutions with minimal time and expense. From customer interviews, comments e-mailed directly to Autodesk Labs, hundreds of discussion forum exchanges, and other feedback mechanisms, Autodesk has improved features and added new ones.

"Participation in the Autodesk Labs program has been instrumental in the evolution of Autodesk Impression," said Mark Strassman, vice president of Marketing, Autodesk Platform Technology Division. "Thanks to plenty of dialog between our users and our development team, we've been able deliver a greater number of powerful features, while improving usability."

Enhancements Help Extract More Value from AutoCAD Drawings

In response to user comments and designers' needs, the latest preview of Autodesk Impression reflects new features, updated user interface elements and overall performance enhancements.

-- Redesigned user interface elements. Product developers have redesigned
the layers, style and style-editing palettes for a dashboard-like
display of content on navigation panes instead of on tabs. In addition,
the Autodesk Impression toolbar now looks and feels more like the
toolbar in other Autodesk products.
-- Workflow improvements. New in the latest preview of Autodesk
Impression, the CAD Update feature lets users refresh their
presentation graphics when they modify the originating CAD drawing, so
that illustrations evolve in sync with projects. Block and style-
scaling capabilities let users adjust the scale of applied styles and
blocks in order to easily take advantage of pre-built content for
drawings of all scales.
-- Overall performance enhancements. In addition to more stable and robust
performance, Autodesk Impression is more responsive to users working
with drop-shadow effects, overshoot properties and other tools and
commands."Autodesk Impression has saved my company countless hours in the production of great quality presentation drawings," said Mark Northcott, CAD Technician, Aboud and Associates, Inc. "The program is simple to use and learn, and amazingly effective. I know the quality of the output will give our company the leading edge when it comes to scoring the big contract."

Added Northcott, "I've seen Autodesk Impression go through many changes, and every time there are changes, it gets simpler, more efficient and more effective to use. This is an amazing product that I would recommend to anyone."

Availability

Autodesk Impression is available immediately for download at Autodesk Labs. To learn more about the application and download the software, visit http://www.autodesk.com/impression .

ADSK: New Autodesk Maya 8.5 3D Software Supports Intel-based Macintosh Computers

Autodesk, Inc. (NASDAQ: ADSK) today launched Autodesk Maya 8.5 (announced separately), the latest version of its Maya 3D modeling, rendering and animation software. Now shipping, Maya 8.5 is available for Intel-based Macintosh computers. The software enables faster completion of complex animation and simulation tasks, giving artists enhanced creative control on multiple platforms.


"Our goal is to give digital artists choice and flexibility in their 3D tools and platforms," said Marc Petit, Autodesk's Media & Entertainment vice president. "Autodesk Maya 8.5 is our first Universal application of Maya. This multi-threaded software leverages the latest multi-core workstations from Apple. Maya 8.5 equips digital artists with innovative new technologies such as Maya Nucleus, a unified simulation framework, as well as greater productivity." Universal applications are designed for Intel- and PowerPC-based Mac computers, efficiently running on both architectures.

"Mac OS X is an outstanding 3D graphics platform, with legendary power and stability," said Ron Okamoto, Apple's vice president of Worldwide Developer Relations. "The combination of our blazing fast Intel-based Macs and new Maya 8.5 functionality, such as Maya Nucleus and Maya nCloth, makes it easier than ever for digital artists to realize their most creative ideas."

For a complete list of new features in Maya 8.5, please visit http://www.autodesk.com/maya