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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Autodesk shares dive premarket after company announces layoffs, third quarter results

"This is not a cost reduction activity," Chief Executive Andrew Anagnost insisted

Autodesk Inc.(NASDAQ:ADSK) saw its shares take a dive, extending losses from late yesterday, after the company unveiled its third quarter numbers and told the market that it was slashing about 13% of its workforce.

The layoffs are part of its restructuring plan, which the software company said is aimed at streamlining the organisation and re-balancing resources “to better align with the company's priorities."

Not a cost reduction exercise

Around 1,150 workers will be out of jobs, the company said.

“We're taking this restructuring action from a position of strength," said Chief Executive Andrew Anagnost, adding that the move aims to change the focus of investments during a "growth phase" of the transition to cloud delivery.

"This is not a cost reduction activity," he maintained.

Q3 numbers beat expectations

For the fiscal third quarter, the company reported a net loss of US$119.8mln or 55 US cents a share, on revenue of US$515.3mln, up from the US$490mln recorded a year ago.

After adjusting for stock-based compensation and other expenses, the company said net loss stood at 12 US cents a share, from an adjusted loss of 18 US cents a share a year ago.

The numbers were slightly better than what the market had been expecting. Analysts’ consensus was for an adjusted loss of 13 US cents a share on sales of US$514mln.

In premarket trade, its shares were off 12.27% at US$114.00.

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