Autodesk (ADSK) saw its loss widen to $142.80 million, or $0.64 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $43.80 million, or $0.19 a share. On adjusted basis, net loss for the quarter stood at $39 million, or $0.18 a share compared with a net profit of $33.10 million, or $0.14 a share in the last year period.
Revenue during the quarter dropped 18.37 percent to $489.60 million from $599.80 million in the previous year period. Gross margin for the quarter contracted 147 basis points over the previous year period to 83.35 percent. Operating margin for the quarter stood at negative 24.49 percent as compared to a negative 2.47 percent for the previous year period.
Operating loss for the quarter was $119.90 million, compared with an operating loss of $14.80 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $42.90 million compared to operating profit of $55.10 million in prior year period.
"We are pleased with our results for the quarter, which were driven by strong growth in product subscription," said Carl Bass, Autodesk president and chief executive officer. "This was the first quarter of selling only subscriptions, a significant milestone in our business model transition. We also had a record-breaking quarter for cloud subscription additions, driven by continued momentum of BIM 360 and Fusion 360. Coupled with diligent cost control, we continue to progress steadily to our fiscal year 2020 goals."
For the fourth-quarter, Autodesk projects revenue to be in the range of $460 million to $480 million. The company forecasts diluted loss per share to be in the range of $0.94 to $0.84. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.39 to $0.32.
For financial year 2017, Autodesk projects revenue to be in the range of $2,012 million to $2,032 million, the company forecasts diluted loss per share to be in the range of $2.77 to $2.67. The company forecasts diluted loss per share to be in the range of $0.61 to $0.54 on adjusted basis.
Operating cash flow drops significantlyAutodesk has generated cash of $154.10 million from operating activities during the nine month period, down 36.87 percent or $90 million, when compared with the last year period. Cash flow from investing activities was $285.80 million for the nine month period as against cash outgo of $756.10 million in the last year period.
The company has spent $354.30 million cash to carry out financing activities during the nine month period as against cash inflow of $441.30 million in the last year period.
Cash and cash equivalents stood at $1,436.50 million as on Oct. 31, 2016, up 7.40 percent or $99 million from $1,337.50 million on Oct. 31, 2015.
Working capital drops significantly
Autodesk has witnessed a decline in the working capital over the last year. It stood at $734.50 million as at Oct. 31, 2016, down 48.86 percent or $701.80 million from $1,436.30 million on Oct. 31, 2015. Current ratio was at 1.46 as on Oct. 31, 2016, down from 2.10 on Oct. 31, 2015.
Days sales outstanding went up to 61 days for the quarter compared with 58 days for the same period last year.
At the same time, days payable outstanding went up to 109 days for the quarter from 99 for the same period last year.
Debt remains almost stableTotal debt of Autodesk remained almost stable for the quarter at $1,489.90 million, when compared with the last year period. Long-term debt of Autodesk remained almost stable for the quarter at $1,489.90 million, when compared with the last year period. Total debt was 30.85 percent of total assets as on Oct. 31, 2016, compared with 28.48 percent on Oct. 31, 2015. Debt to equity ratio was at 1.40 as on Oct. 31, 2016, up from 0.86 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
