Software developer Autodesk ( ADSK) was down Friday afternoon, on the heels of Thursday night's weak earnings report and news that the SARS outbreak has hamstrung the company's operations in China.

In recent trading, shares were off 63 cents, or 4.1%, at $14.91. Autodesk closed at $15.54 cents on Thursday and began losing ground in after-hours trading. The losses would have been greater, but analysts said that traders were expecting the news and had already priced it into the stock.

In the first fiscal quarter ended April 30, net income for the maker of design and special effects software was $7.5 million, or 7 cents per share, compared with $17.6 million, or 15 cents per diluted share, in the year-earlier period, according to generally accepted accounting principles. Revenue was $211 million, down 8% on the year.

However, revenue grew by 8% sequentially, and EPS rose a penny compared with the fourth quarter. And the results were better than expected by analysts, who had projected income of 5 cents on revenue of $205.9 million. About $4.9 million of the $5.8 million upside was due to positive currency impact.

But looking to the second quarter, the company expects revenue to range from $207 million to $212 million, well below expectations. Net income will range from 7 cents to 10 cents a share. Analysts polled by Thomson First Call had expected the company to earn a net profit of 13 cents in the July quarter on sales of $217.6 million.

During a call with analysts, CEO Carol Bartz said the SARS outbreak will cost the company as much as $7 million in the quarter, a number factored into the guidance. She said Autodesk had stopped rollout events and client meetings in China because of the disease.

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