Autodesk, Brocade deliver mixed quarters as revenue slips
Autodesk and Brocade both reported mixed financial results Thursday after the bell.
As for Autodesk's Q1, the design software maker reported a net loss of $173 million, or 77 cents per share, compared to a positive net gain of $19.1 million a year earlier.
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Non-GAAP earnings were a loss of 10 cents per share on revenue of $512 million, down 21 percent year-over-year.
Wall Street was bracing for a loss of 14 cents per share with $513 million in revenue.
On the plus side, the Bay Area-based company added 132,000 subscriptions during the quarter.
Autodesk CEO Carl Bass said the quarter overall was a transitional one, as customers acclimate to the company's subscription-based business model and cloud-based software.
"We continue to diligently control our costs while investing in the transition," Bass said. "We're striking a healthy balance in achieving both short-term and long-term goals."
For the current quarter, Wall Street is looking for revenue of $542 million with an earnings loss of seven cents a share.
Autodesk responded well below estimates with revenue guidance between $500 million and $520 million with an earnings loss between 18 cents and 11 cents.
Brocade Communication Systems also reported financial results Thursday that missed the mark. For its fiscal second quarter, the networking solutions provider reported a net income of $43 million, or 11 cents per share.
Non-GAAP earnings were 22 cents per share on a revenue of $523 million, down 4 percent year-over-year and down 9 percent quarter-over-quarter
Wall Street was looking for earnings of at least 22 cents per share with $530.5 million in revenue.
Brocade CEO Lloyd Carney acknowledged the "challenging environment for both SAN and IP networking" and the impact it had on Brocade's second quarter, but he highlighted the company's "strategic evolution" into "a pure-play networking provider" as signs for brighter days ahead.
For Brocade's Q3, Wall Street is looking for earnings of 24 cents a share on revenue of $547 million.