NEEDHAM, MA, Apr 7, 2015 – PTC announced that it expects revenue for the second quarter FY’15 ended April 4, 2015 to be slightly above the mid-point of the $305M to $320M guidance range. License & Subscription Solutions (L&SS) revenue is expected to be slightly below the mid-point of the $80M to $95M guidance range. The company expects Subscription Solutions bookings, as a percentage of L&SS bookings, to be slightly below 15% for the second quarter FY’15 and above 15% on a year-to-date basis.
In addition, PTC announced that it is realigning its global workforce to increase investment in its Internet of Things business to capitalize on the substantial growth opportunity in that market and to reduce its cost structure through organizational efficiencies in the face of significant foreign currency depreciation relative to the US dollar and a more cautious outlook on potential global macroeconomic conditions. The company expects to reduce its annualized operating expense run-rate by approximately $30M, with the full impact being achieved as it exits the third quarter of fiscal 2015. In addition, PTC continues to assess its overall pricing structure within the broader scope of its pricing, packaging, and licensing strategy.
James Heppelmann, president and CEO, said, “This realignment better-positions PTC to sharpen our strategic focus, optimize investments and deliver on long-term growth and profitability objectives.”
Management expects approximately 7% of worldwide positions (approximately 450) to be repurposed or eliminated, and to consolidate select facilities. These actions will result in a restructuring charge of approximately $45M, the majority of which is attributable to termination benefits. Approximately $41M of the restructuring charge will be recorded in PTC’s second quarter ended April 4, 2015, with the remainder expected to be recorded in the third quarter ending July 4, 2015, and paid primarily in PTC’s 2015 fiscal year ending September 30, 2015.
PTC will release its fiscal 2015 second quarter results on Wednesday, April 29 after the stock market closes. Senior management will host a live webcast and conference call to review the results on Wednesday, April 29 at 4:30PM Eastern Time. The earnings press release and accompanying prepared remarks will be accessible prior to the conference call and webcast on the Investor Relations section of the company’s website at www.ptc.com.
What: PTC Fiscal Q2’15 Conference Call and Webcast
When: Wednesday, April 29, 2015 at 4:30 pm (ET)
Dial-in: 1-800-857-5592 or 1-773-799-3757
Call Leader: James Heppelmann
Passcode: PTC
Webcast: www.ptc.com/for/investors.htm
Replay
The audio replay of this event will be archived for public replay until 5:00PM (CT) on May 9, 2015.
Dial-in: 888-566-0674 Passcode: 1308
To access the replay via webcast, www.ptc.com/for/investors.htm
About PTC
PTC (Nasdaq:PTC) enables manufacturers to achieve sustained product and service advantage. PTC’s technology solutions help customers transform the way they create, operate and service products for a smart, connected, world. Founded in 1985, PTC employs approximately 6,000 professionals serving more than 28,000 businesses in rapidly-evolving, globally distributed manufacturing industries worldwide. Get more information at www.ptc.com.