AUTODESK INC. $28 (Nasdaq symbol ADSK; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 229.7 million; Market cap: $6.4 billion; Price-to-sales ratio: 3.8; No dividends paid; WSSF Rating: Average) makes computer-assisted design software that lets engineers and architects analyze their products’ performance early in the design process. That saves time and money, and improves the quality of the final product.

In Autodesk’s 2010 fiscal year, which ended January 31, 2010, its revenue fell 26.0%, to $1.7 billion from $2.3 billion in the prior year. That’s mainly because several of Autodesk’s customers put off upgrading their computer-aided design software because of the weak economy.

In response to the lower revenue, Autodesk cut over 10% of its workforce and consolidated certain facilities. These moves lowered its expenses by at least $250 million in the latest year.

If you exclude restructuring costs and other unusual items, Autodesk earned $231.7 million, or $0.99 a share, in fiscal 2010. That’s down 48.3% from $447.8 million, or $1.95 a share, in fiscal 2009.

Autodesk’s research costs fell 20.6%, to $457.5 million (or 26.7% of revenue) from $576.1 million (or 24.9% of revenue) in the prior year. That’s mainly because the company laid off computer programmers as part of its restructuring. Still, Autodesk’s research spending is nearly twice its earnings. Products that grow out of this spending will help it remain a leader in its niche markets, and quickly increase sales as the economy recovers.

The company should be able to maintain its high research spending: it is still debt free, and it holds cash of $1.0 billion, or $4.37 a share.

Autodesk’s earnings will likely fall to $0.76 a share this year, and the stock trades at 36.8 times this depressed figure. However, we feel the company’s earnings will snap back over the next few years due to its leading market share and lower operating costs.

Autodesk is a buy.