NEEDHAM, Mass., July 16 /PRNewswire-FirstCall/-- PTC (Nasdaq: PMTC), the
product development company(TM), today reported revenue totaling $165.2
million for the third quarter ended June 28, 2003, compared with $178.1
million for the same period last year. Net loss for the third quarter was
$33.8 million, or $0.13 per share, compared to net loss of $27.3 million, or
$0.10 per share, for the year-ago period. During the third quarter of 2003,
PTC recorded restructuring and other charges of $15.1 million, compared to
restructuring and other charges of $18.4 million in the year-ago period. Cash
and investments were $208 million at the end of the third quarter.
Total design solutions revenue for the third quarter was $123.6 million,
which was down 4% sequentially. Design solutions license revenue was $38.0
million, down 5% sequentially. However, the Pro/ENGINEER component of this
license revenue improved sequentially and year over year, driven by
Pro/ENGINEER Wildfire.
Total Windchill revenue in the third quarter was $41.6 million, down 2%
sequentially. Windchill license revenue was $10.6 million, compared with
$15.2 million in the second quarter. This is primarily attributable to
diminished transaction size in the quarter, as the number of transactions
remained stable sequentially. Additionally, PTC sold Windchill software to a
record 97 new customers this quarter, bringing the total Windchill customer
count to 1,005. Windchill Link solutions license revenue represented 54% of
overall Windchill license revenue.
"Although we continue to face revenue challenges, customer adoption of our
new product offerings confirms that our unique approach to product lifecycle
management drives value for our customers," said C. Richard Harrison,
president and chief executive officer of PTC. "We are focused on helping
manufacturing companies improve their competitive positions by putting product
development at the heart of their businesses. Our broad and well-architected
product offering, together with our service expertise, is well-suited to this
important process.
"Customers are validating the benefits of using a fully integrated product
development system," continued Harrison. "This is evidenced by the
significant growth in sales of our Flex 3C package that combines PTC's
solutions for digital product creation, collaboration and control. These
customers include: Asahi Matsushita Electric, Concurrent Technologies
Corporation, Harman Becker Automotive Systems, Harris Corporation, Hewlett
Packard Company, Maxtor, Reed Tool Company, Smith International and Xerox
Corporation."
"During the quarter, we began the implementation of the cost reduction
plan announced in April," said Neil Moses, PTC's new executive vice president
and chief financial officer. "The objective of this plan is to lower PTC's
quarterly operating cost structure from $180 million to $160 million entering
fiscal 2004. In addition, we have recently committed to reducing our
quarterly operating cost structure further, to $150 million by the end of
fiscal 2004. Our goal is to be profitable in 2004, while maintaining our
dedication to product quality and customer satisfaction."
Moses concluded, "For the fourth quarter of 2003, we expect revenue to be
in the range of $160 million to $170 million and net loss per share to be in
the range of $0.10 to $0.14. This guidance includes a restructuring charge of
approximately $15 million for the quarter related to the cost reduction
initiatives outlined above."
The Company will provide detailed financial information and an outlook
update on its third quarter results conference call and live webcast on July
16, 2003 at 10 a.m. ET. This earnings press release and accompanying
financial and operating statistics will be accessible prior to the conference
call and webcast on the Company's web site at http://www.ptc.com/for/investors.htm.
In addition, the live webcast may be accessed at the same Web address. To
access the live call, please dial 888-829-8668 (in the U.S.) or +1-630-395-
0019 (international). Please use passcode PTC. A replay of the call will be
available until 5:00 p.m. ET on July 21, 2003. To access the replay via
webcast, please visit http://www.ptc.com/for/investors.htm. To access the replay by
phone, please dial 402-530-7895.
The Company's unaudited consolidated statement of operations, the
unaudited condensed consolidated balance sheet, and the unaudited condensed
consolidated statement of cash flows for the third quarter are attached.
About PTC
PTC (Nasdaq: PMTC) develops, markets, and supports software solutions that
help manufacturers win with superior products. PTC is the world's largest
software company with a total commitment to product development and product
lifecycle management (PLM). The Company services more than 35,000 customers
worldwide. Further information on PTC is available at http://www.ptc.com.
Except for the historical information contained herein, matters discussed
in this news release may constitute forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially
from those projected. These include: the growth of the PLM market and our
ability to facilitate our customer's understanding of the benefits of our PLM
solutions, including return on investment and value creation; the acceptance
of Pro/ENGINEER Wildfire and our Windchill Link Solutions, both as stand-alone
products and as an integrated product development system; the effective
execution of our cost reduction initiatives while minimizing organization
disruption; and the effects of a weak IT spending environment which has
impacted the overall demand for software and related services; as well as
other risks and uncertainties detailed from time to time in reports filed by
PTC with the Securities and Exchange Commission, including the Company's most
recent reports on Form 10-K and 10-Q.
PTC, the product development company, Pro/ENGINEER, Wildfire, Windchill,
and all PTC product names and logos are trademarks or registered trademarks of
Parametric Technology Corporation or its subsidiaries in the United States and
in other countries. All other companies and products referenced herein have
trademarks or registered trademarks of their respective holders.
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
Restated Restated
Note 1 Note 1
Revenue:
License $ 48,621 $ 56,215 $155,382 $177,565
Service 116,623 121,850 352,855 375,832
Total revenue 165,244 178,065 508,237 553,397
Costs and expenses:
Cost of license
revenue 2,875 4,197 7,498 12,608
Cost of service
revenue 52,420 48,615 151,744 152,081
Sales and marketing 72,329 83,321 231,401 252,420
Research and
development 31,880 33,464 95,722 103,725
General and
administrative 17,931 17,302 50,108 49,505
Amortization of
goodwill and other
intangible assets 1,459 8,820 4,400 27,019
Restructuring and
other charges 15,134 18,392 15,134 24,481
Total costs and
expenses 194,028 214,111 556,007 621,839
Operating loss (28,784) (36,046) (47,770) (68,442)
Other expense, net (10) (1,230) (1,462) (1,927)
Loss before
income taxes (28,794) (37,276) (49,232) (70,369)
Provision for
(benefit from)
income taxes 4,968 (9,936) 11,089 (18,521)
Net loss $(33,762) $(27,340) $(60,321) $(51,848)
Loss per share:
Basic $(0.13) $(0.10) $(0.23) $(0.20)
Diluted $(0.13) $(0.10) $(0.23) $(0.20)
Weighted average
shares
outstanding 264,487 260,825 263,625 260,581
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 28, September 30,
2003 2002
ASSETS
Cash and investments $ 208,262 $ 210,414
Accounts receivable, net 162,146 157,522
Property and equipment, net 78,808 86,535
Goodwill and other intangibles, net 51,524 54,303
Other assets 112,328 166,185
Total assets $ 613,068 $ 674,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities $ 189,445 $ 187,728
Deferred revenue 190,122 197,303
Stockholders' equity 233,501 289,928
Total liabilities and stockholders' equity $ 613,068 $ 674,959
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Three Months Ended Nine Months Ended
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
Restated Restated
Note 1 Note 1
Cash flows from operating activities:
Net loss $(33,762) $(27,340) $(60,321) $(51,848)
Depreciation and
amortization 9,931 18,045 31,166 54,688
Changes in assets
and liabilities 34,046 17,661 45,278 (25,398)
Net cash provided
(used) by operating
activities 10,215 8,366 16,123 (22,558)
Capital expenditures (5,815) (7,112) (19,100) (27,365)
Other investing and
financing activities (1,122) 4 2,783 (79)
Foreign exchange
and other (553) 6,342 (1,958) 4,759
Net change in cash
and investments 2,725 7,600 (2,152) (45,243)
Cash and investments,
beginning of period 205,537 196,255 210,414 249,098
Cash and investments,
end of period $208,262 $203,855 $208,262 $203,855
Note 1: These unaudited consolidated financial statements for the three
and nine months ended June 29, 2002 reflect the restatement of
maintenance revenues as previously reported in our 2002 Annual
Report on Form 10-K filed with the Securities and Exchange
Commission on January 28, 2003.
Investor Relations Contact: Public Relations Contact:
Meredith Mendola Joe Gavaghan
781-370-6151 781-370-5074
mmendola@ptc.com jgavaghan@ptc.com
SOURCE PTC
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Related links:
http://www.ptc.com
CONTACT:
Investor Relations, Meredith Mendola,
+1-781-370-6151, mmendola@ptc.com, or Public Relations, Joe
Gavaghan, +1-781-370-5074, jgavaghan@ptc.com, both of PTC
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