STOCKREPORTS

Autodesk, Inc.

Nasdaq Symbol ADSK In S&P 500

Recent Price 39.97 52 Wk Range 41.38 - 21.38

Yield 0.6% 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 1- Fair Value 36.10 Risk MEDIUM Earn/Div Rank B+
Technical Evaluation: NA since NA Rel. Strength Rank (1 Lowest - 99 Highest) 62 Insider Activity Neutral

Overview 03-JUL-97

Revenues are expected to advance about 15% in FY 98 (Jan.). Revenues were lower in the first quarter, due to the aging product cycle for the company's flagship AutoCAD Release 13 software program; however, revenues should accelerate upon the shipment of an upgraded version of AutoCAD, Release 14, which took place in May 1997. Margins narrowed in the first quarter of FY 98, on the lower volume and continued expansion costs and other investments, but should widen for the final three quarters and for the full fiscal year, on volume-related efficiencies. Earnings will benefit from the higher sales and wider margins; however, results in the FY 98 first quarter were penalized by a $1.26-a-share charge associated with the acquisition of Softdesk and for purchased technology. A stock repurchase program should aid per-share results.

Valuation 03-JUL-97

The shares have risen nicely from their 1996 lows in anticipation of favorable results from the recently released new version of the company's flagship AutoCAD software product. The new version, AutoCAD Release 14, was introduced early in the FY 98 second quarter and should spur a revenue and earnings rebound. The company continues to diversify its revenue base away from its flagship AutoCAD product as well. However, continued sales weakness for the current version of AutoCAD, as well as uncertainty regarding users' ultimate reception to Release 14, tempers our bullishness on the shares. In light of the uncertainties surrounding near-term revenue and earnings growth, we expect the stock to perform only in line with the market in coming months.

Key Stock Statistics

Fiscal Year Ending Jan. 31

Business Summary 03-JUL-97

Autodesk designs, develops, markets and supports design automation and multimedia software products for use on personal computers and workstations.

The company's principal product is AutoCAD, a general-purpose design and drafting tool. AutoCAD, which accounted for about 70% of revenues in FY 97 (Jan.) and 80% in FY 96, automates the design and drafting process by enabling users to interactively create, store and edit a wide variety of drawings. The drawing data may be exchanged with other applications software, databases and larger computer-based CAD systems. AutoCAD runs in most PC and workstation operating environments, including MS-DOS, Windows, UNIX and the Apple Macintosh operating system and supports hundreds of peripheral devices. The software provides users with many of the capabilities of more expensive mainframe or minicomputer-based CAD systems, but at a substantially lower cost. The company also offers add-on and support software packages for AutoCAD.

Other design products include AutoCAD LT, a low-cost CAD package offering 2-D and basic 3-D drafting capabilities; AutoSketch, a low-cost, entry-level 2D drafting package; AutoCAD OEM, for creating solutions with scaled feature sets; AutoCAD Map, a CAD-based automated mapping product; AutoCAD Data Extension, an add-on program that incorporates AutoCAD drawings and database records and other documents into one integrated environment; and Mechanical Desktop, a mechanical design program.

The company's Kinetix division develops multimedia products including visualization, animation and simulation software. Products include: 3D Studio and 3D Studio MAX, 3D modeling and animation software for the PC; and AutoVision, which helps users create photorealistic still renderings.

International sales accounted for 65% of net revenues in FY 97 (64% in FY 96).

In March 1997, the company acquired Softdesk, Inc., a supplier of AutoCAD-based application software for the architecture, engineering and construction markets. ADSK exchanged approximately 2.9 million shares of its common stock for the outstanding shares of Softdesk. Autodesk also purchased other technology in the first quarter of FY 98. As a result of these transactions, the company recorded a $58.1 million charge in the first quarter, or about $1.26 a share.

In the second quarter of FY 97, ADSK acquired Teleos Research and recorded a $3.2 million ($0.08 a share) charge related to the acquisition.

Capitalization

Long Term Debt: None (4/97).

Curr. Ratio	2.1	2.4	2.4	2.7	3.0	4.3	4.3	4.7	7.2	12.8
% LT Debt of Cap.	Nil	Nil	Nil	Nil	Nil	Nil	0.1	0.2	0.2	0.1
% Net Inc.of Revs.	8.2	16.1	12.2	14.8	11.9	20.3	23.9	26.0	27.9	25.9
% Ret. on Assets	8.3	17.6	12.8	16.4	12.9	19.4	24.6	25.3	22.1	23.9
% Ret. on Equity	14.2	26.4	18.3	22.1	16.6	23.7	30.0	30.1	24.8	26.7

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--111 McInnis Parkway, San Rafael, CA 94903. Tel--(415) 507-5000. Website--http://www.autodesk.com Chrmn & CEO--C. A. Bartz. Pres & COO--E. B. Herr. VP & CFO--S. Cakebread. VP, Treas & Investor Contact--Christine Tsingos (415) 507-6704. Dirs--C. Bartz, M. A. Bertelsen, C. W. Beveridge, S. Cakebread, J. E. Calonico, J. H. Dawson, M. A. Taylor, M. Topfer. Transfer Agent--Harris Trust & Savings Bank, Chicago. Incorporated--in California in 1982. Empl-- 2,044. S&P Analyst: Brian Goodstadt

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997