Design software and services provider Autodesk Inc. (ADSK) is due to release fourth quarter results after market close on Thursday, February 26, with the conference call scheduled at 5:00 pm ET.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share on revenues of $484.45 million for the quarter. Analysts' estimates typically exclude special items. In the year-ago period, the company reported net income of $96.5 million or $0.40 per share on revenues of $599.1 million.
The San Rafael, California-based company in mid-January said it slashed its earnings and revenue outlook for the fourth quarter once again and said it currently anticipates reporting a loss rather than a profit for the quarter, due to continued impact of global economic conditions on end-user demand.
The company now expects to incur a loss in range of $0.12 - $0.05 per share for the fourth quarter, compared to the previously communicated outlook for earnings of $0.13 - $0.19 per share.
Non-GAAP earnings are currently projected to range between $0.18 and $0.24 per share, excluding restructuring charges, compensation expense and acquisition related charges. Earlier, the company had expected non-GAAP earnings in the range of $0.28 - $0.34 per share for the fourth quarter.
The company also cut its net revenue outlook for the fourth quarter to a range of $475 million - $500 million, from the prior outlook of between $525 million and $550 million.
Autodesk, famous for its AutoCAD software, also expects to take a pre-tax charge in a range of $65 million - $75 million ensuing the current restructuring measures. Out of which, about $45 million - $50 million charge would be taken in the fourth quarter of fiscal 2009 and most of the remaining charge will be taken in the first quarter of fiscal 2010.
As a part of its restructuring plans, the company agreed to spin-off its Location Services business to private equity firm Hale Capital Partners for undisclosed terms. This consolidation would also allow Autodesk to focus on its core business. In a move to reduce its annual operating expenses further, the company has also announced its plan to reduce its workforce by about 750 employees, representing about 10% of its global workforce.
For the third quarter, the company posted net income for the third quarter was $104.5 million or $0.45 per share, compared $84.8 million or $0.35 per share in the year-ago quarter. Total net revenue rose 13% to $607.1 million from $538.4 million in the same quarter of last year.
Among Autodesk's rivals, Parametric Technology Corp. (PMTC) on January 27, said it expects to report a loss in range of $0.10 - $0.19 per share, and non-GAAP earnings of between $0.04 and $0.10 per share for the second quarter. Revenue is projected to be in the range of $220 million - $230 million for the quarter.
Parametric also lowered its forecast for fiscal 2009, currently expecting earnings in the range of $0.43 - $0.49 per share, non-GAAP earnings of $0.90 per share, and revenues of $960 million. This compares to the prior earnings outlook range of $0.85 - $0.90 per share, non-GAAP earnings of $1.35 - $1.40 per share, and revenues of $1.10 billion for 2009.
In an effort to cope up with the severity of the global economic situation, Parametric Technology said it began to take actions in the first quarter to reduce operating expenses, including reducing its rate of hiring, postponing annual merit increases and reducing travel expenses. Further, it expects to incur $15 million - $20 million restructuring charge in the second quarter, due to these actions.
Autodesk shares, which have been trading between $12.45 and $41.68 in the past 52 weeks, closed Wednesday's trading session at $14.30, down 30 cents or 2.05%.
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