-- Fourth Quarter Revenue and EPS in line with Company Targets --
NEEDHAM, Mass., Oct. 22 /PRNewswire-FirstCall/ -- PTC (Nasdaq: PMTC), the
product development company(TM), today reported revenue totaling $163.7
million for the fourth quarter ended September 30, 2003, compared with $188.6
million for the same period last year. Net loss was $38.0 million, or $0.14
per share, compared to a net loss of $41.8 million, or $0.16 per share, for
the year-ago period. During the fourth quarter of 2003, PTC recorded
restructuring and other charges of $15.8 million, compared to restructuring
and other charges of $6.7 million in the year-ago period. Cash and
investments were $205 million at the end of the fourth quarter.
For the fiscal year, revenue totaled $671.9 million, compared to $742.0
million for fiscal 2002. Net loss was $98.3 million, or $0.37 per share,
compared to net loss of $93.6 million, or $0.36 per share, in fiscal 2002.
"We were pleased with our execution this quarter, as we met our revenue
targets while implementing an aggressive cost reduction program," said C.
Richard Harrison, president and chief executive officer. "In the fourth
quarter, we achieved a sequential improvement in total license revenue, strong
Windchill sales, and continued success in the adoption of Pro/ENGINEER
Wildfire by our installed base. In addition, we closed transactions in the
fourth quarter with key customers such as AVL List, BMW AG, Ingersoll-Rand,
Knorr-Bremse, Manitowoc Cranes, Matsushita Electric Works, Siemens
Transportation Systems, Toyota Motor Corporation, and the U.S. Department of
Energy's Nuclear Weapons Complex."
Total Windchill revenue in the fourth quarter was $45.7 million, up 10%
sequentially. Windchill license revenue was $16.2 million, up 53%
sequentially, with stronger sales across both Windchill Link solutions and
foundation software. Windchill Link solutions license revenue grew 50%
sequentially and represented 53% of overall Windchill license revenue.
Total design solutions revenue for the fourth quarter was $118.0 million,
which was down 4% sequentially. Design solutions license revenue was $33.7
million, compared with $38.1 million in the third quarter. Although high-end
new seat revenue was soft in the fourth quarter, PTC saw sequential
improvements in both design solutions upgrade revenue and revenue from low-end
seats.
"In fiscal 2003, we delivered excellent results in key areas of our
strategy with new, easy-to-use, interoperable products, our diversified
reseller channel, and strategic customer wins such as Boeing and Toyota,"
continued Harrison. "And with much of the investment in our business
transformation behind us, we announced a new cost reduction program that will
remove $120 million of annualized expense throughout fiscal 2004.
"All of these efforts strongly position us for fiscal 2004," concluded
Harrison. "We have never had a stronger product line-up, clearer value
proposition, sharper focus on our target market, or more consistent
methodology to help our customers succeed. Our entire organization is aligned
behind our strategic goals to improve both customer and shareholder value, and
we intend to deliver an operating profit in fiscal 2004, excluding
restructuring charges."
First Quarter 2004 Financial Outlook
PTC's revenue forecast for the first quarter of fiscal 2004 is between
$150 million and $160 million. Additionally, PTC's cost reduction program is
on track, and we expect to incur a restructuring charge of $20 million to $25
million in the first quarter. Net loss per share is expected to be between
$0.09 and $0.13.
The Company will provide detailed financial information and an outlook
update on its fourth quarter and fiscal year results conference call and live
webcast on October 22, 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 888-889-1956
(in the U.S.) or +1-630-395-0027 (international). Please use passcode PTC. A
replay of the call will be available until 5:00 p.m. ET on October 27, 2003.
To access the replay via webcast, please visit http://www.ptc.com/for/investors.htm.
To access the replay by phone, please dial 402-220-3138.
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 fourth quarter and fiscal year
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 customers' understanding of the benefits of our PLM
solutions, including return on investment, ease of use, 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; our
ability to efficiently manage our sales channels, including utilizing a
diverse group of geographically dispersed resellers by effectively
coordinating joint activities (including sales, marketing, implementation,
support and customer service); 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 STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Year Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
Revenue:
License $49,919 $65,341 $205,301 $242,906
Service 113,784 123,219 466,639 499,051
Total revenue 163,703 188,560 671,940 741,957
Costs and expenses:
Cost of license revenue 3,492 4,106 10,990 16,714
Cost of service revenue 55,752 48,163 207,496 200,244
Sales and marketing 67,078 80,829 298,479 333,249
Research and
development 32,703 32,348 128,425 136,073
General and
administrative 19,310 17,751 69,418 67,256
Amortization of goodwill
and other intangible
assets 1,461 8,738 5,861 35,757
Restructuring and
other charges 15,762 6,669 30,896 31,150
Total costs and expenses 195,558 198,604 751,565 820,443
Operating loss (31,855) (10,044) (79,625) (78,486)
Writedown of investments - (1,014) (393) (1,014)
Gain on sale of business - 8,688 - 8,688
Other expense, net (1,342) (1,600) (2,411) (3,527)
Loss before income taxes (33,197) (3,970) (82,429) (74,339)
Provision for income taxes 4,762 37,803 15,851 19,282
Net loss $(37,959) $(41,773) $(98,280) $(93,621)
Loss per share:
Basic $(0.14) $(0.16) $(0.37) $(0.36)
Diluted $(0.14) $(0.16) $(0.37) $(0.36)
Weighted average shares
outstanding 265,660 262,129 264,149 260,901
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
2003 2002
ASSETS
Cash and investments $ 205,312 $ 210,414
Accounts receivable, net 140,151 157,522
Property and equipment, net 73,563 86,535
Goodwill and other intangibles,
net 51,851 54,303
Other assets 106,813 166,185
Total assets $ 577,690 $ 674,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue $ 173,015 $ 197,303
Other liabilities 209,517 187,728
Stockholders' equity 195,158 289,928
Total liabilities and
stockholders' equity $ 577,690 $ 674,959
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(in thousands)
Three Months Ended Year Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
Cash flows from
operating activities:
Net loss $ (37,959) $ (41,773) $ (98,280) $ (93,621)
Depreciation and
amortization 10,925 17,937 42,091 72,625
Other 26,180 20,975 69,652 221
Net operating cash flow
and foreign exchange impact
on cash (854) (2,861) 13,463 (20,775)
Capital expenditures (5,832) (4,308) (24,932) (31,673)
Sale of a business - 10,200 - 10,200
Other investing and
financing activities 3,736 3,528 6,367 3,564
Net change in cash and
investments (2,950) 6,559 (5,102) (38,684)
Cash and investments,
beginning of period 208,262 203,855 210,414 249,098
Cash and investments,
end of period 205,312 210,414 205,312 210,414
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 Contact: Meredith
Mendola, +1-781-370-6151, mmendola@ptc.com, or Public Relations
Contact: Joe Gavaghan, +1-781-370-5074, jgavaghan@ptc.com, both
of PTC
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