Company Expects to Exceed Q4 FY2016 Non-GAAP Business Outlook
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Feb. 3, 2016--
Inc. (Nasdaq: ADSK) today announced a restructuring plan that will
accelerate the move to the cloud and its transition to a
subscription-based business model. Through the restructuring, Autodesk
seeks to reduce expenses, streamline the organization, and reallocate
resources to align more closely with the company’s needs going forward.
“As we progress through our business model transition, we continue to
take a comprehensive look at our company to see where we can be more
effective and efficient. To realize maximum value for both our customers
and shareholders, and as a follow-on to previously discussed cost
reduction actions, we are restructuring so we can focus resources on
areas that will accelerate the move to the cloud and transition to a
subscription-based business,” said Carl Bass, Autodesk President and CEO.
Autodesk plans to reduce staffing levels in the near-term by
approximately 10%, or approximately 925 positions, and to consolidate
certain leased facilities. Autodesk expects these actions will result in
additional cost savings in fiscal 2017 and beyond, while reinvesting a
portion of the savings in areas critical to its platform and business
model transition. The company anticipates taking pre-tax charges of $85
million to $95 million in connection with the restructuring.
Autodesk also expects to be at the high end or exceed its guidance
ranges for billings, revenue, non-GAAP EPS, and net subscription
additions for the fourth quarter of fiscal 2016.
Bass continued, “To be clear, the restructuring announced today is not
related to anything we are seeing in the macro-economic environment. We
ended fiscal 2016 on a high note with very strong fourth-quarter
billings growth and continued demand for our subscription offerings.
Solid revenues, coupled with continued cost-controls, led to better than
expected non-GAAP EPS during the quarter. I’m pleased we were able to
deliver these results at such a critical moment in Autodesk’s
Additional details regarding the company’s fourth quarter financial
results and restructuring plan will be provided on the company’s
regularly scheduled earnings conference call to be held on February 25,
Earnings Conference Call and Webcast
Autodesk will host its fourth quarter conference call on February 25th
at 5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investors.
Supplemental financial information and prepared remarks for the
conference call will be posted to the investor relations section of
Autodesk's website simultaneously with this press release.
A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors.
This replay will be maintained on Autodesk's website for at least 12
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding current
expectations for the Company’s fourth fiscal quarter financial results,
future operations and performance, including restructuring charges,
related cash expenditures and the timing to recognize these charges,
cost savings, future hiring, the impacts and results of our business
model transition, expectations regarding the transition of product
offerings to subscription, and other statements regarding our
strategies, market and products positions, performance, and results.
While fourth quarter guidance estimates are based on a completed
financial period, the Company has not completed its financial close
process and, as a result, amounts are subject to accounting adjustments
and may vary. There are a significant number of other factors that could
cause actual results to differ materially from statements made in this
press release, including: estimates and assumptions underlying the
Company’s restructuring plan, estimated charges may not be realized;
failure to maintain cost reductions or otherwise control our expenses;
failure to successfully manage transitions to new business models and
markets, including the introduction of additional ratable revenue
streams and our continuing efforts to attract customers to our
cloud-based offerings; the impact of non-cash charges on our financial
results; fluctuation in foreign currency exchange rates; the success of
our foreign currency hedging program; unexpected fluctuations in our tax
rate; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial
results of Autodesk are included in Autodesk's Annual Report on Form
10-K for the year ended January 31, 2015 and Form 10-Q for the quarter
ended October 31, 2015, which are on file with the U.S. Securities and
Exchange Commission. Autodesk disclaims any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made.
The Company’s guidance for the fourth quarter of 2016 and a
reconciliation of the non-GAAP financial measures that were specified
therein may be found in the press release included with the Current
Report on Form 8-K filed by the Company on November 19, 2015 and on the
Company’s website at:
Autodesk helps people imagine, design and create a better world.
Everyone—from design professionals, engineers and architects to digital
artists, students and hobbyists—uses Autodesk software to unlock their
creativity and solve important challenges. For more information visit autodesk.com or
Autodesk and the Autodesk logo are registered trademarks or
trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates
in the USA and/or other countries. All other brand names, product names
or trademarks belong to their respective holders. Autodesk reserves the
right to alter product and services offerings, and specifications and
pricing at any time without notice, and is not responsible for
typographical or graphical errors that may appear in this document.
© 2016 Autodesk, Inc. All rights reserved.
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Source: Autodesk, Inc.
Noah Cole, +1-415-580-3535
David Gennarelli, +1-415-507-6033