WALTHAM, Mass., April 3, 2000 — PTC (NASDAQ: PMTC) today announced that for the second quarter ended April 1, 2000, it expects revenue to be approximately 15% below the Wall Street consensus estimate of $268 million. The company expects that its earnings per share for the second quarter will be either break-even or perhaps a small loss, including amortization charges associated with acquisitions. This compares to a Wall Street consensus estimate of $0.09 per share including amortization charges.
C. Richard Harrison, president and chief executive officer, commented: "PTC has brought to market a comprehensive set of solutions for Web-based collaboration and flexible engineering; however, our distribution efforts have not fully realized the opportunities available to us. We continue to find that transitioning our sales efforts to a solutions-oriented, multi-product business model is extremely challenging. Balancing our sales 'capacity' between Pro/ENGINEER and Windchill -- sustaining the traditional core of our business while building up an exciting new product area -- has created a situation where predicting the quarter-to-quarter license business has become difficult.
"Preliminary information indicates that license revenue from our MCAD (mechanical computer-aided design) product line fell short of our expectations as our sales force focused on the business-to-business e-commerce opportunities presented by Windchill. Windchill revenue for the second quarter will be approximately $40 million, up dramatically from $12 million a year ago, but below our own expectations of about $55 million due to the inability to close some large deals by quarter end."
"We are clearly disappointed with these preliminary results and continue to face uncertainty with respect to our overall near-term prospects. However, we are encouraged by the continued acceptance of Windchill in the marketplace and believe that the overall collaborative product commerce (CPC) market represents a vast opportunity."
PTC expects to announce final results for the second quarter on Tuesday, April 18, before the market opens. On that day, the company will hold a conference call to discuss its results at 10 a.m. Eastern.
About PTC
PTC (Parametric Technology Corporation), founded in 1985 and headquartered in Waltham, Mass., USA, develops, markets, and supports collaborative product commerce (CPC) solutions that help manufacturing companies shape innovation and achieve sustainable competitive advantage in the Internet age. These B2B e-commerce solutions employ powerful Web-based collaboration and flexible engineering technologies to streamline product development and delivery processes. PTC's software solutions are complemented by the strength and experience of PTC Global Services, which provides training, consulting, support and e-commerce services to customers worldwide. With PTC's CPC solutions, manufacturers can take advantage of the Internet to improve product quality, reduce costs and shorten time-to-market cycles. In its fiscal year ended September 30, 1999, the company achieved more than $1 billion in revenue. PTC can be reached at 781-398-5000, or via the Web 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: final results for the quarter; our assumptions about growth in the MCAD industry and our success in competing in that industry; our ability to differentiate our MCAD products and invigorate our MCAD business via emphasis on collaborative product commerce opportunities; our ability to realize revenue from the larger, strategic business opportunities we are pursuing; market acceptance of the Windchill family of products, which have a longer sales cycle than our other products; the success of our sales force transition initiatives and the transformation to a solutions-oriented, multi-product business model; the success of our third-party distributor's sales to smaller customers; 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.
Parametric Technology Corporation, Pro/ENGINEER and Windchill are registered trademarks and all names in the PTC product family as well as the PTC logo are 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.