Updated from 5:14 p.m. EDTDesign software firm Autodesk ( ADSK) reported second-quarter earnings Thursday that were a penny short of analysts' estimates but within its prior guidance. However, the company lowered its earnings and revenue targets for the full year and announced plans to lay off about 7% of its workforce. On a post-close conference call, CEO Carol Bartz said the economy and business confidence have deteriorated since Autodesk last provided guidance in May. The staff cuts will result in a $10 million restructuring charge in the third quarter and $2.5 million charge in the fourth quarter, she said. "Things have pretty seriously deflated since that mid-May call," Bartz said. "As our sales force tells us, every order is a battle." The San Rafael, Calif.-based company reported net income of $11.8 million, or 10 cents a share, in the second quarter, which ended July 31. In the same period a year earlier, Autodesk earned $19.2 million, or 17 cents a share, when adjusted for a 2-for-1 stock split this past April. Net income also fell sequentially from the $17.6 million, or 15 cents a share, reported last quarter. Excluding charges, Autodesk said it earned $14.5 million, or 13 cents a share, in the second quarter, compared with pro forma net income of $29.6 million, or 27 cents a share, a year earlier. Last quarter pro forma net income came in at $18.9 million, or 16 cents a share. Autodesk, known for its AutoCAD computer-assisted design software used by architects, said revenue declined 8.4% to $211.4 million from $231.4 million a year earlier. The top line fell 7.8% from $229.3 million in the previous quarter. Wall Street analysts expected Autodesk to earn 11 cents a share, on a pro forma basis, with $216.1 million in revenue in the second quarter, according to Thomson Financial/First Call. In May, Autodesk said it expected second-quarter pro forma net income of 8 cents to 13 cents a share on revenue of $210 million to $220 million. For the third quarter, Autodesk expects revenue of $200 million to $210 million and pro forma earnings of 5 cents to 10 cents a share. That's short of the $222 million in revenue and 17 cents a share in earnings expected by analysts. Autodesk expects full-year revenue to range between $860 million and $900 million and earnings of 50 cents to 70 cents a share. That guidance scales back previous estimates provided by the company in May, when it targeted revenue in a range of $950 million to $1 billion and pro forma earnings in the range of 90 cents to $1.10 a share. Analysts are looking for full-year 2003 earnings of 79 cents a share and revenue of $930.1 million. Shares of Autodesk declined 9 cents, or 0.8%, to close regular trading at $11.58. In after-hours action, the stock was falling 10% to $10.46, but volume was on the light side. Additionally, the company said its CEO and CFO plan to certify its second-quarter 10-Q when it is filed in September, as required by new legal rules.