NEEDHAM, Mass. — (BUSINESS WIRE) — April 6, 2015 — PTC (Nasdaq: PTC) today announced that it expects revenue for the second quarter FY15 ended April 4, 2015 to be slightly above the mid-point of the $305 million to $320 million guidance range. License & Subscription Solutions (L&SS) revenue is expected to be slightly below the mid-point of the $80 million to $95 million guidance range. The Company expects Subscription Solutions bookings, as a percentage of L&SS bookings, to be slightly below 15% for the second quarter FY15 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 U.S. dollar and a more cautious outlook on potential global macroeconomic conditions. The Company expects to reduce its annualized operating expense run-rate by approximately $30 million, 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 $45 million, the majority of which is attributable to termination benefits. Approximately $41 million of the restructuring charge will be recorded in PTCs 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 PTCs 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 4:30 pm 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 Q215 Conference Call and Webcast|
|When:||Wednesday, April 29, 2015 at 4:30 pm (ET)|
1-800-857-5592 or 1-773-799-3757
Call Leader: James Heppelmann
The audio replay of this event will be archived for public replay until 5:00 pm (CT) on May 9, 2015.
Dial-in: 888-566-0674 Passcode: 1308
To access the replay via webcast, www.ptc.com/for/investors.htm