Comments in Short Seller Report are Inaccurate and Misleading; PTC
Stands by Its Reporting and Disclosure
NEEDHAM, Mass.--(BUSINESS WIRE)--
(Nasdaq: PTC) today addressed assertions made in a report issued on
March 23, 2017 by short-seller Spruce Point Capital Management, that, by
its own admission, stands to profit from any decline in the Company's
stock price, whether driven by its report or otherwise.
Spruce Point states that it considers the metrics PTC uses to discuss
its performance during its subscription transition to be misleading.
PTC stands by its reporting and disclosure. PTC provides such metrics
to enable investors to better understand the Company's business
performance as it transitions to a subscription business model. Use of
additional performance metrics is common among software companies
transitioning to a subscription model. PTC has been transparent about
the metrics the Company provides, the reasons we believe they are
helpful, and how they are calculated.
Spruce Point also notes that PTC provides non-GAAP measures in
addition to GAAP financial results, which is true for many software
companies. PTC clearly describes the items excluded from the non-GAAP
measures, why they are excluded, and reconciles the non-GAAP measures
to its GAAP results. PTC's financial statements are prepared in
accordance with GAAP and our financial statements are audited by
independent auditing firm PricewaterhouseCoopers LLP.
We believe PTC's stock performance over the past 12 months, both on an
absolute and relative basis, reflects the progress the Company is
making as well as the market's confidence in the Company and our
ability to continue executing on our strategy.
The Company believes it is exiting the subscription transition trough
and that its results will begin to reflect the expected benefits of
our strategic execution and business model transition, including
accelerated revenue growth, margin expansion, and earnings growth,
that we expect will translate into even greater returns for PTC
in this press release that are not historic facts, including statements
about our exit from the subscription trough and the expected benefits of
our strategic execution and business model transition, are
forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those projected.
These risks include: the macroeconomic and/or global manufacturing
climates may not improve or may deteriorate; customers may not purchase
our solutions when or at the rates we expect; our businesses, including
our Internet of Things (IoT) business, may not expand and/or generate
the revenue we expect; and sales of our solutions as subscriptions and
our execution may not have the effects on revenue, margins or earnings
that we expect. Other risks and uncertainties that could cause actual
results to differ materially from those projected are detailed from time
to time in reports we file with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q.
(NASDAQ: PTC) PTC has the most robust Internet of Things technology in
the world. In 1986 we revolutionized digital 3D design, and in 1998 were
first to market with Internet-based PLM. Now our leading IoT and AR
platform and field-proven solutions bring together the physical and
digital worlds to reinvent the way you create, operate, and service
products. With PTC, global manufacturers and an ecosystem of partners
and developers can capitalize on the promise of the IoT today and drive
the future of innovation.
PTC and the PTC logo are trademarks or registered trademarks of PTC Inc.
or its subsidiaries in the United States and other countries.
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