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UPDATE 1-Autodesk result beats Street on strong software sales
May 15, 2014 / 8:31 PM / 4 years ago

UPDATE 1-Autodesk result beats Street on strong software sales

(Adds details, forecast)

May 15 (Reuters) - Autodesk Inc raised its full-year revenue forecast After reporting quarterly profit and revenue above analysts’ expectations, helped by higher sales of its computer-aided design software to engineering and construction companies.

The company’s shares rose 4.6 pct in extended trading.

Autodesk said on Thursday it now expects revenue growth of 4-6 percent for the year ending Jan. 31, 2015, up from the 3-5 percent it expected earlier.

The company also raised its full-year billings growth forecast to 7-9 percent from 5-8 percent.

Autodesk’s flagship AutoCAD software is used by construction, engineering and manufacturing companies to design and simulate real-world performance of their products.

The company competes against offerings from Adobe Systems Inc, Ansys Inc and Dassault Systemes SA .

Autodesk, which is moving from a license-based business to a cloud-based subscription model, said subscription revenue rose 12 percent to $276.3 million in the first quarter ended ended April 30.

Subscription models bring in less money upfront as payment is spread over the entire period of use unlike traditional packaged software, but typically ensure more predictable recurring revenue.

Several software companies, such as Adobe Systems and Nuance Communications Inc, are moving to provide their products over the cloud to attract more customers with the lesser upfront spending and faster upgrades.

Autodesk’s first-quarter net income fell to $28.3 million, or 12 cents per share, from $55.6 million, or 24 cents per share, a year earlier.

Excluding items, the company earned 32 cents per share.

Revenue rose 4 percent to $592.5 million.

Analysts on an average had expected earnings of 21 cents per share on revenue of $568.6 million, according to Thomson Reuters I/B/E/S.

The company’s shares rose to $50 in extended trading. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)

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