After hinting as much last week,
announced a round of layoffs Tuesday that will result in a restructuring charge and lower earnings on a generally accepted accounting principles basis.
The design and special-effects software maker said it will lay off between 550 and 650 employees, or about 16% to 19% of the company's workforce, and close facilities. The cuts will result in a restructuring charge of about $37 million to be recognized over the next four quarters.
San Rafael, Calif.-based Autodesk hinted that more cuts would be on the way last week in its
third-quarter earnings report. The company has been working toward raising its operating margins to 18% to 20% vs. 12% in the just-reported quarter. Autodesk shares soared last Friday after the company beat analysts' third-quarter estimates and its guidance also exceeded expectations.
On Tuesday, Autodesk issued new guidance for GAAP earnings to reflect the restructuring charges. The company's revenue guidance, provided last week, remained unchanged. Excluding the restructuring charges, Autodesk's earnings guidance also remained the same as that provided last week.
For its current quarter, which ends Jan. 31, Autodesk expects GAAP earnings to range from 24 cents to 30 cents a share, including restructuring charges. Without such charges, Autodesk is expecting earnings to range from 27 cents to 32 cents a share -- the same guidance provided by the company last week when it reported third-quarter results.
For its fiscal first-quarter 2005, which ends April 30, Autodesk forecast restructuring charges would lower earnings on a GAAP basis to 4 cents to 10 cents a share, vs. pro forma results expected to range from 8 cents to 13 cents a share.
For full fiscal-year 2005, Autodesk expects GAAP results to range from 68 cents to 88 cents a share, while pro forma results, excluding restructuring charges, should range from 90 cents to $1.10 a share.
Shares of Autodesk were up 48 cents, or 2.1%, to $23.39 early Tuesday afternoon.