Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the third quarter of fiscal year 2013.

Third Quarter Fiscal 2013

• Revenue was $548 million, compared to $549 million in the third quarter of fiscal 2012.

• GAAP operating margin was 6 percent, compared to 16 percent in the third quarter of fiscal 2012.

• Non-GAAP operating margin increased 190 basis points to 26 percent, compared to 25 percent in the third quarter of fiscal 2012. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.

• GAAP diluted earnings per share were $0.13, compared to $0.32 in the third quarter of fiscal 2012.

• Non-GAAP diluted earnings per share were $0.47, compared to $0.44 in the third quarter of fiscal 2012.

• Cash flow from operating activities was $157 million, compared to $138 million in the third quarter of fiscal 2012.

"Our revenue results were disappointing and were primarily caused by a weakening demand environment," said Carl Bass, Autodesk president and CEO. "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. Despite our overall revenue shortfall, our ongoing focus on cost management delivered meaningful margin expansion and EPS above our guidance range."

Third Quarter Operational Overview

EMEA revenue decreased 3 percent to $196 million, compared to the third
quarter last year as reported and increased 3 percent on a constant
currency basis. Revenue in the Americas increased 4 percent to $209
million, compared to the third quarter last year. Revenue in Asia
Pacific (APAC) decreased 3 percent to $142 million, compared to the
third quarter last year as reported and decreased 3 percent on a
constant currency basis. Revenue from emerging economies decreased 9
percent to $80 million, compared to the third quarter last year as
reported and 5 percent on a constant currency basis. Revenue from
emerging economies represented 15 percent of total revenue in the third
quarter.

Revenue from the Platform Solutions and Emerging Business (PSEB) segment
decreased 2 percent to $205 million, compared to the third quarter last
year. Revenue from the Architecture, Engineering and Construction (AEC)
business segment increased 7 percent to $163 million, compared to the
third quarter last year. Revenue from the Manufacturing business segment
decreased 1 percent to $132 million, compared to the third quarter last
year. Revenue from the Media and Entertainment business segment
decreased 9 percent to $48 million, compared to the third quarter last
year.

Revenue from Flagship products decreased 4 percent to $298 million,
compared to the third quarter last year. Revenue from Suites increased
10 percent to $166 million, compared to the third quarter last year.
Revenue from New and Adjacent products decreased 3 percent to $84
million, compared to the third quarter last year.

In the third quarter last year, Autodesk recognized a $10 million,
one-time transaction, related to license compliance. This transaction
impacted revenue growth rates for license and other, APAC, PSEB, and
Flagship. In addition, Superstorm Sandy negatively impacted our business
during the last few days of the quarter.

Deferred revenue increased 15 percent to $714 million, compared to the
third quarter last year.

"We achieved strong growth in non-GAAP operating margin, better than
expected EPS, strong cash flow from operations, and growth in deferred
revenue," said Mark Hawkins, Autodesk executive vice president, chief
financial officer. "While our revenue growth target for fiscal 2013 is
below our original target, we believe we can still achieve
year-over-year non-GAAP operating margin expansion of between 80 and 140
basis points. With over $1.7 billion in cash and marketable securities,
our balance sheet remains solid.

"Looking forward, due to the increasing uncertainty in the macroeconomic
environment and our slower than planned revenue growth in fiscal 2013,
we are reassessing our long-term financial model (through fiscal 2015)
and are not providing revenue targets at this time," continued Hawkins.
"While revenue growth will be a key determining factor in the years to
come, we remain committed to growing our non-GAAP operating margin and
believe we can achieve a 30+ percent run rate as we exit our fiscal
2015."

Business Outlook

The following statements are forward-looking statements that are based
on current expectations and assumptions, and involve risks and
uncertainties some of which are set forth below. Autodesk's business
outlook for the fourth quarter and full year fiscal 2013 assumes a
continuation of the current economic environment and foreign exchange
currency rate environment.

ourth Quarter Fiscal 2013

Non-GAAP earnings per diluted share exclude $0.13 related to stock-based
compensation expense, $0.03 related to restructuring charges, and $0.09
for the amortization of acquisition related intangibles, net of tax.

Full Year Fiscal 2013

Non-GAAP earnings per diluted share exclude $0.50 related to stock-based
compensation expense, $0.14 related to restructuring charges, $0.26 for
the amortization of acquisition related intangibles and $0.02 for loss
on strategic investments, net of tax.

A reconciliation between the GAAP and non-GAAP estimates for fiscal 2013
is provided in the tables following this press release.

Both fourth quarter fiscal 2013 and full year fiscal 2013 outlooks
assume annual effective tax rates of approximately 24.5 percent and 25.5
percent for GAAP and non-GAAP results, respectively. These rates do not
include the federal R&D tax credit benefit, which expired on December
31, 2011, or one-time discrete items. The assumed effective tax rate
will be adjusted if or when there is a renewal of the tax credit.

Earnings Conference Call and Webcast

Autodesk will host its third quarter conference call today at 5:00 p.m.
ET. The live broadcast can be accessed at http://www.autodesk.com/investors.
Supplemental financial information and prepared remarks for the
conference call will be posted to the investor relations section of
Autodesk's website simultaneously with this press release.

NOTE: The prepared remarks will not be read on the conference
call. The conference call will include only brief remarks followed by
questions and answers.

A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors.
This replay will be maintained on Autodesk's website for at least 12
months.

Safe Harbor Statement

This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding our long-term
financial model; statements in the paragraphs under "Business Outlook"
above, and other statements regarding our expected financial,
strategies, market and products positions, performance, and results.
There are a significant number of factors that could cause actual
results to differ materially from statements made in this press release,
including: general market, political, economic and business conditions;
failure to maintain our revenue growth and profitability; failure to
maintain cost reductions and productivity increases or otherwise control
our expenses; the success of our internal reorganization and
restructuring activities; our performance in particular geographies,
including emerging economies; the ability of governments around the
world to meet their financial and debt obligations, and finance
infrastructure projects; failure to successfully incorporate sales of
licenses of products suites into our overall sales strategy; weak or
negative growth in the industries we serve; failure to successfully
expand adoption of our products; slowing momentum in maintenance
billings or revenues; difficulties encountered in integrating new or
acquired businesses and technologies; the inability to identify and
realize the anticipated benefits of acquisitions; the financial and
business condition of our reseller and distribution channels; dependence
on and the timing of large transactions; fluctuation in foreign currency
exchange rates; the success of our foreign currency hedging program;
failure to achieve sufficient sell-through in our channels for new or
existing products; pricing pressure; unexpected fluctuations in our tax
rate; the timing and degree of expected investments in growth and
efficiency opportunities; changes in the timing of product releases and
retirements; failure of key new applications to achieve anticipated
levels of customer acceptance; failure to achieve continued success in
technology advancements, interruptions or terminations in the business
of Autodesk consultants; the expense and impact of legal or regulatory
proceedings; and any unanticipated accounting charges.

Further information on potential factors that could affect the financial
results of Autodesk are included in Autodesk's report on Form 10-K for
the year ended January 31, 2012 and Forms 10-Q for the quarters ended
April 30 and July 31, 2012, which are on file with the U.S. 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.

About Autodesk

Autodesk, Inc., is a leader in 3D
design, engineering and entertainment software. Customers
across the manufacturing, architecture, building, construction, and
media and entertainment industries - including the last 17 Academy Award
winners for Best Visual Effects - use Autodesk software to design,
visualize, and simulate their ideas. Since its introduction of AutoCAD
software in 1982, Autodesk continues to develop the broadest portfolio
of state-of-the-art software for global markets. For additional
information about Autodesk, visit www.autodesk.com.