Autodesk Announces Restructuring Plan to Accelerate Transition to Cloud and Subscription Business
February 03 2016 - 9:00AM
Business Wire
Company Expects to Exceed Q4 FY2016 Non-GAAP Business
Outlook
Autodesk, 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 transition.”
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, 2016.
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 months.
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:
http://investors.autodesk.com/phoenix.zhtml?c=117861&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9pcGFnZT0xMDU4OTc4NCYmZXhwPSUyNGNpayUyODc2OTM5NyUyOSthbmQrJTI4Rm9ybSs4LUslMjkmc3Vic2lkPTU3&ListAll=1
About Autodesk
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 follow @autodesk.
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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version on businesswire.com: http://www.businesswire.com/news/home/20160203005633/en/
AutodeskPress Contact:Noah Cole,
+1-415-580-3535noah.cole@autodesk.comInvestor Contact:David
Gennarelli, +1-415-507-6033david.gennarelli@autodesk.com
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