Press Releases
PTC Reports Fiscal 2001 Fourth Quarter and Year End Results
NEEDHAM, Mass., October 16, 2001 - PTC (Nasdaq: PMTC), the product development companyTM, today reported revenue totaling $225.4 million for the fourth quarter ended September 30, 2001, compared with $235.0 million for the same period last year. Pro forma net income, excluding non-recurring charges and the amortization of intangible assets, was $7.0 million, or $0.03 per diluted share, compared to $13.7 million and $0.05 per diluted share, for the year-ago period.
Including non-recurring charges and the amortization of intangible assets, the net loss for the fourth quarter was $24.9 million or $0.10 per diluted share, compared to net income of $6.9 million or $0.03 per diluted share, for the same period last year. During the quarter, the Company recorded non-recurring charges of $34.3 million related to recent actions to reduce its cost structure and the write down of certain investments.
For the fiscal year, revenue totaled $934.6 million, compared to $928.4 million for fiscal 2000. Pro forma net income, excluding non-recurring charges and the amortization of intangible assets, was $57.1 million or $0.21 per diluted share, compared to $38.9 million, or $0.14 per diluted share, last fiscal year. Including non-recurring charges and the amortization of intangible assets, the net loss was $8.2 million, or $0.03 per diluted share, compared to a net loss of $4.0 million, or $0.01 per diluted share, last year.
"We executed well this quarter in an extremely challenging sales environment," said C. Richard Harrison, president and chief executive officer. "We believe that our strategic efforts in this past year in developing software solutions, expanding distribution and improving customer satisfaction are helping us to expand our leadership position as the product development company.
"We're providing our customers the ability to differentiate their product development processes and improve the competitiveness of their products. Although we believe the recession is likely to continue to impact PTC's revenue, we expect product development initiatives will be among our customers' most important spending priorities. As previously announced, PTC reduced its workforce and related facilities in the fourth quarter, in an effort to minimize the impact of the economic slowdown on our bottom line. These actions should improve operating margins in 2002 and result in year-over-year earnings growth."
Operating Highlights
Windchill
Total Windchill revenue in the fourth quarter was $52.6 million, compared to $51.6 million a year ago. For the year, Windchill revenue grew 22% to $213.9 million. In the fourth quarter, PTC received orders for Windchill from customers such as Boeing, EMC, Pitney Bowes, and TRW.
During the quarter, PTC launched its second solution, Windchill PartsLink, a fully integrated interactive product catalog software solution that allows mechanical and electronic suppliers to publish and distribute rich technical product data, including 3D geometry, via a fast, easy to use, Net-native interface. PTC expects to launch its third collaboration solution targeted for design-to-order products in the first quarter of fiscal 2002.
Additionally, the Company continued to expand its systems integrator alliances by adding eight new enterprise consulting partners, including Andersen. The Company now has active relationships with 47 systems integrator partners and has over 500 premiere partner consultants technically trained and deployed. In the first year of PTC's Enterprise Consulting Partner program, systems integrators have booked over $60 million in services revenue for Windchill implementations.
MCAD
The Company's total mechanical computer-aided design (MCAD) revenue for the fourth quarter was $172.8 million, compared to $183.4 million a year ago. MCAD license revenue grew slightly sequentially, despite the challenging environment. MCAD sales included deals with Honeywell, Lockheed Martin, Tetra Pak and Toshiba.
During the quarter, PTC introduced Pro/COLLABORATE, a free service which offers Pro/ENGINEER customers the ability to share information and collaborate across the design chain in a hosted environment. Since the product was introduced to the Pro/ENGINEER customer base in August, over 2,500 participants at 1,300 organizations have already used the service. Pro/COLLABORATE is representative of PTC's strategy to gain market share and differentiate its MCAD offerings by infusing them with collaboration technology. This service helps bring PTC's MCAD and Windchill offerings together into a full software solution suite that clearly spans the entire design chain throughout the product development and deployment process.
"Strategically, PTC made excellent progress this year," concluded Harrison. "We have fortified our position with partners, refined our solutions strategy, expanded our suite of products, and enhanced our ability to deliver both a collaborative product development vision and ROI for customers. We are confident in our competitive positioning and are poised to gain further strategic ground in 2002."
The Company will provide detailed financial information on its fourth quarter and year end results conference call and live webcast on October 16 at 10 a.m. ET. To access the live webcast, please visit www.ptc.com/for/investors.htm. A replay of the call will be available until 5:00 p.m. EDT on October 19, 2001. To access the replay by phone, dial 402-220-4724. To access the replay via Webcast, please visit www.ptc.com/for/investors.htm.
The unaudited consolidated statement of income and condensed consolidated balance sheet for the fourth quarter and fiscal year are attached.
About PTC
PTC (Nasdaq: PMTC) develops, markets, and supports software solutions that help manufacturers get superior products to market before their competitors. PTC is the world's largest software company with a total commitment to product development. The company services more than 32,000 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 success of our new organizational model in improving our product development, integration and distribution efforts; our ability to realize revenue from the larger, strategic business opportunities we are pursuing as well as from our point solutions; market acceptance of the Windchill enterprise solutions, which have a longer sales cycle than our other products; our ability to compete successfully in the MCAD industry and stabilize our MCAD license revenue; the success of our partnering and customer satisfaction initiatives; the success of our Windchill integrated solutions strategy initiatives and our efforts to differentiate our MCAD offerings by targeting synergies with Windchill; the success of our cost reduction initiatives in improving operating margins in 2002; and the effects of a weakening economy which may impact 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, Pro/COLLABORATE, Windchill, Windchill ProjectLink, Windchill PartsLink 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
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Revenue:
License $86,660 $97,638 $381,882 $378,618
Service 138,779 137,380 552,724 549,796
Total revenue 225,439 235,018 934,606 928,414
Costs and expenses:
Cost of license
revenue 4,068 4,265 15,734 16,718
Cost of service
revenue 58,564 56,507 236,837 228,266
Sales and marketing 96,432 101,867 380,902 416,665
Research and
development 37,374 35,820 148,942 143,763
General and
administrative 19,026 18,676 74,683 71,263
Amortization of
goodwill and other
intangible assets 9,541 9,573 37,942 38,432
Non-recurring
charges 32,607 - 42,568 21,534
Total costs and
expenses 257,612 226,708 937,608 936,641
Operating income
(loss) (32,173) 8,310 (3,002) (8,227)
Write down of
investments (1,673) - (10,354) -
Other income
(expense), net (520) 1,425 2,495 3,160
Income (loss) before
income taxes (34,366) 9,735 (10,861) (5,067)
Provision for
(benefit from)
income taxes (9,462) 2,823 (2,647) (1,087)
Net income (loss) $(24,904) $6,912 $(8,214) $(3,980)
Earnings (loss) per share:
Diluted $(0.10) $0.03 $(0.03) $(0.01)
Weighted average
shares and dilutive
equivalent shares
outstanding 261,971 273,933 264,441 273,081
PARAMETRIC TECHNOLOGY CORPORATION
PRO FORMA RESULTS
(in thousands, except per share data)
Excluding amortization, non-recurring charges and write down of investments:
Operating income $9,975 $17,883 $77,508 $51,739
Net income $7,035 $13,709 $57,124 $38,907
Net income per share
- diluted $0.03 $0.05 $ 0.21 $ 0.14
Weighted average shares
and dilutive equivalent
shares outstanding 262,583 273,933 266,944 281,588
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
2001 2000
ASSETS
Cash and investments $249,098 $375,141
Accounts receivable, net 185,444 183,804
Other assets 363,296 365,938
Total assets $797,838 $924,883
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities $398,136 $396,341
Stockholders' equity 399,702 528,542
Total liabilities and stockholders' equity $797,838 $924,883
Investor Relations Contact: Public Relations Contact:
Tom Barth Roberta Carlton
781-370-5889 781-370-5479
tbarth@ptc.com rcarlton@ptc.com
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