3D engineering and architecture software firm’s action follows weak Q2 results
Autodesk, Inc. on Monday said it is restructuring its business, cutting staff, and consolidating “certain leased facilities.”
[Editor’s note: Check out Autodesk’s acquisition and financial news today here.] The San Rafael, Calif.-based 3D engineering and architecture software maker did not disclose how many jobs will be affected, but said it expects to record pre-tax, restructuring charges of $15 million to $20 million, about 80 percent of which is for one-time employee termination benefits.
Autodesk said Monday in a securities filing it is “taking these actions to re-balance staffing levels to better align them with the evolving needs of the business.”
The moves comes on the heels of weaker-than-expected second quarter results, which Autodesk reported in August. The job cuts could impact Autodesk’s Media & Entertainment and Platform Solutions and Emerging Business segments after they posted quarterly sales declines of 11 percent and 9 percent, respectively. Sales of its flagship AutoCAD software used by designers, engineers and architects, suffered an 11 percent drop in the quarter.
“The challenging dynamics within some of the end-markets that we serve has led us to adjust our growth assumptions,” Autodesk CFO Mark Hawkins said of the second quarter results.
The company said it expects to substantially complete the restructuring by the end of April.
Shares of Autodesk rallied Monday despite the news, closing at $41.17, down from its 52-week high of $42.41 reached last Thursday. Autodesk’s market cap is $9.2 billion and P/E ratio is 42.66.
Investors are still bullish on Autodesk, especially since it reported an 18 percent jump in second quarter revenue from its Suites segment, which provides software platforms combining desktop and cloud-based services. Revenue from its AEC business segment increased 9 percent in the second quarter.
Autodesk forecast adjusted earnings of $0.36 to $0.40 per share for the third quarter on revenue of $540 million to $555 million, that’s less than analysts’ estimates of $0.50 and $581 million, according to Thomson Reuters. For the year, Autodesk projects revenue to reach nearly $2.4 billion, up about 3 percent.