Autodesk's Sales Hit by Economic Crunch

SAN FRANCISCO - The credit squeeze and global economic crisis prevented Autodesk(ADSK Quote) from hitting third-quarter revenue estimates, the company announced Tuesday.

The San Rafael, Calif., software maker said revenue for the quarter ending in October will range from $604 million to $607 million, compared to $538.4 million for the same quarter of last year.

Analysts were expecting $623.8 million, according to Thomson Reuters.

The company expects to earn 53 cents to 55 cents a share, excluding charges. Analysts were expecting 55 cents.

The developer of computer-aided engineering software will announce full results on Nov. 20.

"The sharp downturn of the global economy is substantially impacting our business," CEO Carl Bass said in a statement. "Demand for our products fell dramatically in October in all geographies as the financial crisis worsened." Customers were unable to obtain credit, delaying projects.

While a currency hedge yielded a net benefit, the strengthening dollar and low level of backlog at the end of the quarter will create a headwind for the next few quarters, Bass said.

Autodesk has begun to reduce expenses, "which we believe will position the company to emerge from this downturn in a stronger financial and competitive position," Bass said.

Engineering software firm Parametric Technology(PMTC Quote) topped estimates for its most recent quarter, which ended in September.

Shares of Autodesk rose 63 cents, or 2.8%, in recent trading to $23.51, as the broader market rallied strongly.