Industrial solutions company PTC on Wednesday revealed a US $18 million restructuring charge, adding this would permit it to invest more in the Industrial Internet of Things (IIoT), augmented reality and other growth opportunities.
The company reported financial results for its fiscal fourth quarter and fiscal year ended September 30, 2018. The fourth quarter GAAP revenue was US $313 million; non-GAAP revenue was $322 million. FY’18 GAAP revenue was $1,242 million; non-GAAP revenue was $1,252 million.
The industrial software company said the $18 million charge set for fiscal year 2019, beginning October, was the result of a workforce realignment plan and “consists principally of termination benefits.”
“With the growth opportunity in front of us in the Industrial Internet of Things and Augmented Reality, other strategic initiatives we’ve undertaken, and our continued commitment to operating margin improvement, we are realigning our workforce in the beginning of FY’19 to shift investment to support these strategic, high growth opportunities. This realignment will result in a restructuring charge of approximately $18 million in FY’19, which consists principally of termination benefits, substantially all of which we expect will be paid in FY’19. As this is a realignment of resources rather than a cost-savings initiative, we don’t expect this realignment will result in significant cost savings, and the effect of the realignment is reflected in our FY’19 guidance,” PTC said in the statement.
James Heppelmann, President and CEO, said, “Fiscal 2018 was another year of great progress in our transformation to become a high-growth subscription software company and industrial IoT leader. During the year, we delivered good results in our core CAD and PLM businesses, ThingWorx continued to gain significant traction with both new and expanding customers, and interest in our augmented reality (AR) solutions accelerated. We also made important strides in extending our market reach and further differentiating our technology with new strategic partnerships entered into during the year.”
Image Credit: PTC