Shares dropped by c4% in after hours trading for Autodesk following the release of disappointing Q2 results and a below par Q3 forecast.
For the quarter ending July 31 2013 revenue was down 1% yoy to $562m (up 2% cc) against street expectations of $560m but net profit dropped 4% to $61.7m. The operating margin also moved a percentage point downwards, to 15%. The outlook for Q3 is not inspiring as revenue guidance is $540m - $555m, against street expectations of $580m.
Strength in its Architecture, Engineering and Construction (AEC) business (up 9%) and growth in sales of suites (up 18%) could not offset “mixed contributions” from other parts of the business. Of particular concern was the 9% decrease from the Platform Solutions and Emerging Business segment. As the name suggests this is where Autodesk is looking for growth. The restructuring and job cuts that have been part of its story over the past year or so and have negatively effected its results (see here), have been about changing to better address the mobile and cloud markets. As we have previously said, revenue from these areas remains comparatively low despite high growth rates. Revenue from Autodesk’s flagship products also dropped 11%. Some of overall revenue dip can be attributed to more cloud and rental licences, but it shows once again how hard it is for large multi-nationals to make the change. 3D printing and additive manufacturing may provide a boost but it will not help in the short term.
