Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Magazine

How Autodesk Weathers the Crash


Even in the depths of the tech crash, Autodesk (ADSK) wasn't among the many that warned of earnings shortfalls or missed estimates. And its stock, trading at 47 a year ago, has suffered only a relatively mild setback and is now at 30. At the company's annual meeting with analysts in early April, CEO Carol Bartz was upbeat: The first quarter is on track, demand has stayed constant, and revenue growth will range from 10% to 20%. Autodesk surpassed estimates and earned a record $109 million, up 82%, in fiscal 2001 on sales of $1 billion--incredible in the current tech world. Jay Vleeschhouwer of Merrill Lynch has raised his rating on the stock to "accumulate" from neutral. He expects earnings of $2.20 a share in 2002 and $2.70 in 2003, vs. $1.87 in 2001.

What's Autodesk's secret? Countless architects, engineers, and others use Autodesk's software to design products, buildings, and infrastructure projects, such as roads, bridges, and utilities. Autodesk's business, in a way, is resistant to downturns: "Our customers tend to buy our products to improve productivity and profitability," says Bartz. Autodesk, which makes software for visual effects and 3-D animation used in creating digital pictures for films, video, and the Web, has teamed up with Microsoft to use its 3-D tools to develop prototype games for Microsoft's Xbox video-game system. By Gene G. Marcial


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus