Autodesk Inc (ADSK.O), the maker of computer-aided design (CAD) software, reported lower-than-expected quarterly revenue as its licensing revenue declined because of the company’s shift to a cloud-based subscription model.
Shares of Autodesk, which also cut its current-year profit forecast for the second time, fell 5.5 percent to $47.24 in after-market trading on Thursday.
The company forecast an adjusted profit of 60-72 cents per share for the year ending Jan. 31, well below the average analyst forecast of $1.04.
Autodesk, whose rivals include Adobe Systems Inc (ADBE.O), Ansys Inc (ANSS.O) and Dassault Systemes SA (DAST.PA), said it expects revenue of $2.47 billion-$2.50 billion for the year.
Analysts on average were expecting revenue of $2.59 billion, according to Thomson Reuters I/B/E/S.
However, the company maintained its full-year forecast for billing growth and net subscription additions.
The company’s licensing and subscription revenue, which accounts for nearly half of its total revenue, fell 17 percent in the second quarter ended July 31, from a year earlier.
Subscriptions bring in less money upfront as payment is spread over the entire period of use unlike traditional packaged software, but typically ensure more predictable recurring revenue.
Autodesk is known for its AutoCAD software used by construction companies, engineers and manufacturers to design products and simulate real-world performance.
The company also said it would acquire SeeControl, a developer of an enterprise Internet of Things cloud service platform.
Autodesk reported a net loss of $235.5 million, or $1.04 per share, for the second quarter, compared with a profit of $31.3 million, or 13 cents per share, a year earlier.
Excluding items, the company earned 19 cents per share, 2 cents above analysts’ average estimate.
Revenue fell 4.3 percent to $609.5 million, missing the average analyst estimate of $612.4 million.
Up to Thursday’s close, the company’s shares had fallen 16.7 percent this year.
(Reporting by Arathy S Nair in Bengaluru; Editing by Kirti Pandey and Maju Samuel)
This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
