Press Releases
PTC Reports Fiscal 2002 First Quarter Results
NEEDHAM, Mass., January 15, 2002 – PTC (Nasdaq: PMTC), the product development company(TM), today reported revenue totaling $198.6 million for the first quarter ended December 29, 2001, compared with $234.9 million for the same period last year. Pro forma net income, excluding non-recurring charges and the amortization of intangible assets, was $6.8 million, or $0.03 per diluted share, compared to $19.0 million and $0.07 per diluted share, for the year-ago period.
Including non-recurring charges and the amortization of intangible assets, the net loss for the first quarter was $2.9 million or $0.01 per diluted share, compared to net income of $12.3 million or $0.05 per diluted share, for the same period last year. During the quarter, the Company recorded non-recurring charges of $6.1 million related to recent actions to reduce its cost structure.
"Earnings were in line with our target for the quarter despite weaker revenue, which was below our expectations," said C. Richard Harrison, president and chief executive officer. "These earnings reflect the benefits of our previously announced cost reductions as well as strong expense management. Revenue continues to be affected by adverse macroeconomic conditions, particularly in North America and Japan. Our first quarter is our seasonally weakest selling period and revenue should improve sequentially during the fiscal year."
Operating Highlights
Total Windchill(R) revenue in the first quarter was $48.6 million, compared to $50.4 million a year ago. PTC received first quarter orders for Windchill from customers such as Marconi Communications, Lockheed Martin, NASA, Schneider Electric and Toshiba.
During the quarter, PTC expanded its suite of collaboration solutions with the launch of its third solution, PTC(R) DynamicDesignLink(TM), to enable manufacturers and their customers to interactively customize and define "designed-to-order" products. The Web-based solution provides significant value to manufacturers developing products that are engineered to a buyer's specific performance requirements or have initiatives around mass customization, product line rationalization, or design modularization. The fourth solution focused on product lifecycle management is expected to launch in the second quarter of fiscal 2002.
Additionally, the Company continued to add systems integrators, including Samsung SDS and Siemens Business Services, to deepen its enterprise consulting partner program in important geographies. These integrators complement our existing network of premier global integrators. The Company now has active relationships with 53 systems integrator partners and has over 550 premier partner consultants technically trained.
The Company's total design solutions revenue for the first quarter was $150.0 million, compared to $184.5 million a year ago. Design solutions sales included orders from ABB, Kwang Yang Motor, The Stanley Works, Toyota Racing Development and Weatherford.
"We have been working hard to capitalize on the importance of product development," continued Harrison. "This is evidenced by partnerships with market-leading software vendors like Siebel, announced yesterday, and the expansion of our network of systems integrators, value-added resellers, and hardware vendors like HP and Sun. We also launched in the first quarter our advertising campaign focused on the significance of product development as a core business initiative. We have better-positioned ourselves to endure the economic downturn and thrive in a recovery through the expansion of our product suite, the tighter integration of our software products, the deepening of our partner relationships, leveraging our base of over 33,000 customers, and our lower cost structure."
The Company will provide detailed financial information and outlook update on its first quarter results conference call and live webcast on January 15 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 January 18, 2002. To access the replay by phone, dial 402-220-2142. 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 first quarter 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 33,000 customers worldwide. Further information on PTC is available at http://www.ptc.com.
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended
December 29, December 30,
2001 2000
Revenue:
License $64,343 $101,300
Service 134,262 133,644
Total revenue 198,605 234,944
Costs and expenses:
Cost of license revenue 4,364 3,807
Cost of service revenue 50,329 60,086
Sales and marketing 84,511 92,433
Research and development 34,689 35,809
General and administrative 15,370 17,369
Amortization of goodwill and
other intangible assets 9,165 9,439
Non-recurring charges 6,089 -
Total costs and expenses 204,517 218,943
Operating income (loss) (5,912) 16,001
Other income, net 255 1,256
Income(loss) before income taxes (5,657) 17,257
Provision for (benefit from) income taxes (2,708) 5,003
Net income (loss) $(2,949) $12,254
Earnings (loss) per share:
Diluted $ (0.01) $0.05
Weighted average shares and dilutive
equivalent shares outstanding 260,353 270,416
PARAMETRIC TECHNOLOGY CORPORATION
PRO FORMA RESULTS
(in thousands, except per share data)
Excluding amortization of goodwill and other intangible assets and
non-recurring charges:
Operating income $ 9,342 $25,440
Net income $ 6,790 $18,954
Net income per share - diluted $0.03 $0.07
Weighted average shares and dilutive
equivalent shares outstanding 262,453 270,416
PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 29, September 30,
2001 2001
ASSETS
Cash and investments $227,720 $249,098
Accounts receivable, net 166,132 185,444
Other assets 376,859 363,296
Total assets $770,711 $797,838
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities $380,288 $398,136
Stockholders' equity 390,423 399,702
Total liabilities and stockholders' equity $770,711 $797,838
Investor Relations Contact:
Tom Barth
781-370-5889
tbarth@ptc.com
Media Contact:
Roberta Carlton
781-398-5479
rcarlton@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 distribution efforts; our ability to realize revenue from the larger, strategic business opportunities we are pursuing; market acceptance of the Windchill enterprise and exchange solutions, which have a longer sales cycle than our other products; our ability to compete successfully in the MCAD industry; the success of our partnering initiatives and Windchill integrated solutions strategy initiatives; 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, 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.
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