PTC Inc. (NASDAQ: PTC) announced recently that the company’s initial bookings for Q4 ended September 30, 2016 are likely to be between $139 million to $142 million, higher above the company’s anticipated guidance of $111 million to $121 million. There are two huge deals of over $5 million in bookings this quarter, including a competitive PLM displacement within one of the top Tier 1 global automotive suppliers, and a worldwide cloud implementation of PTC’s service parts management solution – both a testament to PTC’s leading technology position in these markets.
PTC also now expects its Q4’16 bookings subscription mix to be roughly 70%, significantly exceeding its prior guidance of 46%. Due primarily to the higher than expected subscription mix, and also the incremental commission expense associated with bookings and subscription outperformance, we expect GAAP and non-GAAP revenue, and GAAP and non-GAAP EPS to be below the low end of our prior guidance.
Furthermore, in support of continued realignment of resources toward higher growth opportunities and driving long-term margin expansion, PTC now expects FY’16 restructuring charges of approximately $75 to $80 million, above the $50 million to $70 million range included in the company’s Q3’16 form 10-Q filed on August 11, 2016, and the $40 million to $50 million range included in our Q4’16 guidance on July 20, 2016.
PTC Inc. develops and delivers technology solutions, which consists of software and services that transform the way the customers create, operate and service their products. The Company has two segments: Software Products and Services.