-- Company Drives Significant Growth in Net Income and Cash Position --
NEEDHAM, Mass., July 21 /PRNewswire-FirstCall/ -- PTC (Nasdaq: PMTC), the
product development company(TM), today reported revenue totaling $168.4
million for the third quarter ended July 3, 2004, up 2% from $165.2 million
for the same period last year. Revenue also grew 2% sequentially, from $164.7
million in the second quarter of fiscal 2004.
Net income for the third quarter was $16.1 million, or $0.06 per diluted
share, compared with a net loss of $33.8 million, or a loss of $0.13 per
share, in the year-ago period. On a sequential basis, net income improved
from $3.2 million, or $0.01 per diluted share, in the second quarter of 2004.
The third quarter net income includes restructuring charges of $3.5 million,
compared with restructuring and other charges of $15.1 million in the year-ago
period, and restructuring and other charges of $16.7 million in the second
quarter of 2004. Cash and investments grew 16% sequentially to $257.7 million
at the end of the third quarter, from $221.7 million at the end of the second
quarter.
"Solid execution has resulted in significant earnings improvement and a
return to year-over-year revenue growth," said C. Richard Harrison, president
and chief executive officer. "The work we've done to bring exciting new
products to market, combined with significant restructuring of our
distribution and services delivery models, has enabled us to improve our third
quarter net income by nearly $50 million year-over-year. We are proud of this
performance and of the dedication of PTC employees who helped achieve these
results."
Total design solutions revenue for the third quarter was $121.6 million,
compared to $123.0 million in the second quarter. Design solutions license
revenue was $35.9 million, down from $38.0 million in the second quarter due
to fewer large transactions. Design solutions maintenance revenue continued to
grow, a positive indicator of the success of Pro/ENGINEER Wildfire in the
existing customer base.
Total Windchill revenue in the third quarter grew 12% sequentially to
$46.8 million, from $41.7 million in the second quarter. Windchill license
revenue was $16.5 million, up 27% from $12.9 million in the prior quarter.
Windchill Link solutions license revenue represented 44% of overall Windchill
license revenue. Improved revenue performance from consulting services and
maintenance contracts also contributed to the total Windchill growth during
the quarter.
In the third quarter, PTC received orders from leading manufacturing
organizations such as Air France Industries, Boeing Company, Chrysler
Corporation, DBT GmbH, Eni S.p.A., Fraunhofer Gesellschaft, Hino Motors,
Komatsu, LG Electronics, Otis Elevator Company, Tenneco Automotive, Toyota
Motor Corporation and the United States Army. Additionally, orders from our
reseller channel resulted in $13.4 million in license revenue during the
quarter, a 6% sequential decline, but a 39% year-over-year increase.
"We have shown steady improvements in our financial and operating results
and have performed well in each quarter of Fiscal 2004 to date," continued
Harrison. "We are on track to achieve our longer-term goal of operating
margins in excess of 20%. I am confident in our ability to grow our revenue
to reach this goal by leveraging our industry-leading solutions in the growing
PLM market, and by focusing on strategic corporate development opportunities."
Fourth Quarter 2004 Financial Outlook
PTC's revenue forecast for the fourth quarter of fiscal 2004 is between
$165 million and $172 million. Total operating expense is expected to be
approximately $145 million. The Company expects earnings per share on a GAAP
basis to be between $0.05 and $0.08.
The Company will provide detailed financial information and an outlook
update on its third quarter results conference call and live webcast on July
21, 2004 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
888-970-4169 (in the U.S.) or +1-312-470-7002 (international). Please use
passcode PTC. A replay of the call will be available until 5:00 p.m. ET on
July 26, 2004. To access the replay via webcast, please visit
http://www.ptc.com/for/investors.htm. To access the replay by phone, please
dial 203-369-1778.
The Company's unaudited consolidated statements of operations, the
unaudited condensed consolidated balance sheets, and the unaudited condensed
consolidated statements 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. With a total commitment to
product development and product lifecycle management (PLM), the Company
services more than 35,000 customers worldwide. PTC is included in the S&P 500
and Russell 2000 indices. 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 customers' understanding of the benefits of our PLM
solutions and differentiated product development system offering, including
return on investment, ease of use, and value creation in order to create the
foundation for future revenue growth; the success of our efforts to leverage
our distribution model (including effectively coordinating our indirect
channel sales activities), our customer relationships, our new reduced cost
structure, and strategic corporate development opportunities to achieve our
longer term revenue growth and operating margin goals; our ability to achieve
financial and operating goals (including our fourth quarter revenue and
earnings targets) with our significantly reduced cost structure; and
continued improvement in the IT spending environment which until recently has
been weak and 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 STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Nine Months Ended
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
Revenue:
License $52,405 $48,621 $146,893 $155,382
Service 115,972 116,623 343,002 352,855
Total revenue 168,377 165,244 489,895 508,237
Costs and expenses:
Cost of license revenue 2,260 2,875 6,301 7,498
Cost of service revenue 43,764 52,420 132,440 151,744
Sales and marketing 55,237 72,329 170,554 231,401
Research and
development 26,250 31,880 82,609 95,722
General and
administrative 13,369 17,931 42,693 50,108
Amortization of other
intangible assets 1,227 1,459 3,972 4,400
Restructuring and
other charges 3,548 15,134 41,848 15,134
Total costs and
expenses 145,655 194,028 480,417 556,007
Operating income (loss) 22,722 (28,784) 9,478 (47,770)
Other income (expense),
net (300) (10) (613) (1,462)
Income (loss) before
income taxes 22,422 (28,794) 8,865 (49,232)
Provision for income
taxes 6,287 4,968 16,096 11,089
Net income (loss) $16,135 $(33,762) $(7,231) $(60,321)
Net income (loss) per share:
Basic $0.06 $(0.13) $(0.03) $(0.23)
Weighted average
shares outstanding 268,104 264,487 267,292 263,625
Diluted $0.06 $(0.13) $(0.03) $(0.23)
Weighted average
shares outstanding 274,983 264,487 267,292 263,625
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 3, September 30,
2004 2003
ASSETS
Cash and investments $257,741 $205,312
Accounts receivable, net 144,126 140,151
Property and equipment, net 57,354 73,563
Goodwill and other intangibles, net 58,536 51,851
Other assets 95,399 106,813
Total assets $613,156 $577,690
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue $202,165 $173,015
Total liabilities 216,072 209,517
Stockholders' equity 194,919 195,158
Total liabilities and stockholders' equity $613,156 $577,690
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Three Months Ended Nine Months Ended
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
Cash flows from operating activities:
Net income (loss) $16,135 $(33,762) $(7,231) $(60,321)
Depreciation and
amortization 8,776 9,931 27,518 31,166
Other 21,633 30,766 41,429 39,184
Net cash provided
by operating
activities 46,544 6,935 61,716 10,029
Capital expenditures (1,917) (6,815) (7,609) (20,100)
Acquisition of
a business (9,822) - (9,822) -
Other investing
and financing activities 446 (242) 5,217 3,631
Foreign exchange
impact on cash 825 2,847 2,927 4,288
Net change in cash
and investments 36,076 2,725 52,429 (2,152)
Cash and investments,
beginning of period 221,665 205,537 205,312 210,414
Cash and investments,
end of period $257,741 $208,262 $257,741 $208,262
Investor Relations Contact: Public Relations Contact:
Meredith Mendola Maria Battaglia
781-370-6151 781-370-5245
mmendola@ptc.com mbattaglia@ptc.com
SOURCE PTC
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Related links:
http://www.ptc.com
CONTACT:
Investor Relations Contact: Meredith
Mendola, +1-781-370-6151, mmendola@ptc.com, or Public Relations
Contact: Maria Battaglia, +1-781-370-5245, mbattaglia@ptc.com,
both of PTC
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