PTC just announced that revenue for the quarter ended April 4 will be slightly above the midpoint of prior guidance of $305 million to $320 million, with license and subscription revenue slightly below the mid-point of the $80 million to $95 million range while subscription bookings slowed slightly in the quarter.
That doesn’t sound bad. But even so, PTC says it wants to reduce its cost structure because it sees a slowdown in the global economic (or at least the parts it sells into right now), and that saving $30 million per year or so will, in CEO Jim Heppelmann’s words, “better position PTC to sharpen our strategic focus, optimize investments and deliver on long-term growth and profitability objectives.”
Part of this: realigning its workforce so that it can increase investment in its Internet of Things businesses because of the potential the company see there. The company expects to that something like 7% of its worldwide workforce (approximately 450 people) will be repurposed or eliminated. That, and closing some offices, will result in a restructuring charge of about $45 million, the majority of which is attributable to termination benefits. Approximately $41 million of this charge will be recorded in PTC’s second quarter –just ended, which means it’s already happened– with the remainder expected to be recorded in the third quarter ending July 4, 2015.
That’s all for now. PTC will release its Q2 results on Wednesday, April 29, when we should learn a lot more about this. Investors were initially skeptical, sending the share price down a bit this morning, but now it’s up about 1%.
