PTC Announces Q4 and FY'09 Results
Highlights
-
Q4 Results: Revenue of
$246.3 million and non-GAAP EPS of$0.30 - Non-GAAP operating margin of 18.4%; GAAP operating margin of 6.2%
-
GAAP EPS of
$0.13 , including$6.3 million restructuring charge to reduce operating expenses -
Relative to Q4 guidance, currency was favorable to revenue by
approximately
$1.6 million and unfavorable to expenses by approximately$0.7 million
-
FY’09 Results: Revenue of
$938.2 million and non-GAAP EPS of$0.80 - Non-GAAP operating margin of 12.9%; GAAP operating margin of 2.1%
-
GAAP EPS of
$0.27 , including$22.7 million in restructuring charges to reduce operating expenses
-
FY 2010 Targets: Revenue of approximately
$980 million and non-GAAP EPS of approximately$0.96 - Non-GAAP operating margin of approximately 15%; GAAP operating margin of approximately 7%
-
GAAP EPS of approximately
$0.43 -
Assumes
$1.46 USD / EURO
-
Q1 Guidance: Revenue of
$230 to $240 million and non-GAAP EPS of$0.12 to$0.18 -
GAAP EPS of
($0.02) to $0.04 -
Assumes
$1.46 USD / EURO
-
GAAP EPS of
The Q4 non-GAAP results exclude a
The FY’09 non-GAAP results exclude a
Results Commentary & Outlook
“Our constant currency non-GAAP FY’09 revenue was down 9% compared to
last year,” continued Harrison. “While license revenue was down 34%,
maintenance and services revenue were up 3% and 1%, respectively,
highlighting the stability of our business model and the support of a
solid customer base. We are continuing to see positive sequential data
points: 1) we again delivered license revenue growth in all of our major
geographies except
“Our pipeline for new business opportunities remains strong and lead
times to close enterprise deals seem to be shortening,” continued
Harrison. “We received major orders from leading organizations such as
“Looking forward to FY’10, we are establishing a revenue target of
“For Q1 we are initiating guidance of
The FY’10 target assumes a non-GAAP tax rate of 23%, a GAAP tax rate of
21% and 119 million diluted shares outstanding. The FY’10 non-GAAP
guidance excludes approximately
Q4 Earnings Conference Call and Webcast |
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Supplemental financial and operating metric information and prepared remarks for the conference call will be posted to the investor relations section of our website simultaneously with this press release. The prepared remarks will not be read live; the call will be primarily Q&A. | ||
When: |
Wednesday, October 28, 2009 at 8:30 a.m. Eastern Time | |
Dial-in: |
1-888-566-8560 or 1-517-623-4768 | |
Call Leader: Richard Harrison with Passcode: PTC | ||
Webcast: |
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Replay: |
The audio replay of this event will be archived for public replay until 4:00 p.m. (CT) on November 2, 2009 at 1-866-463-2193 or 1-203-369-1378. To access the replay via webcast, please visit www.ptc.com/for/investors.htm.
|
|
FY’10 Investor Day and Webcast |
||
PTC willhost its FY’10 Investor Day on Tuesday, November 3, 2009 from 10:00am to 3:00pm (ET). This event will be held at the Grand Hyatt New York Hotel, Park Ave at Grand Central. To register, please contact Sharon Feintuck at 781-370-6909 or sfeintuck@ptc.com. | ||
When: |
Tuesday, November 3, 2009, from 10:00am to 3:00pm (ET) | |
Where: |
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=116312&eventID=2492231 |
|
Replay: |
The presentation will be archived for public replay until November 6, 2009 at www.ptc.com/for/investors.htm. |
Important Information About Non-GAAP References
PTC provides non-GAAP supplemental information to its financial results.
Non-GAAP revenue excludes the effect of purchase accounting on the fair
value of the acquired deferred revenue of
Forward-Looking Statements
Statements in this press release that are not historic facts,
including statements about our fiscal 2010 and other future financial
expectations, anticipated tax rates, the expected impact of our planned
strategic investments on our future success, the stability of our
maintenance and services businesses, and the long-term prospects for PTC
are forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those projected.
These risks include the possibility that our customers may not resume
purchases of our solutions when we expect or that they may further
reduce, defer or forego investment in our solutions in the current
economic climate, the possibility that our customers may not renew
maintenance or enter into services engagements at historic rates, the
possibility that strategic customer wins may not generate the revenue we
expect, the possibility that our strategic investments may not have the
effects we expect, the possibility that we will experience a shortfall
in revenue that causes us to decrease or eliminate planned strategic
investments in our business, the possibility that our efforts to reduce
our operating expenses may not have the effects we expect and could harm
our operations, the possibility that we may be unable to attain or
maintain a technology leadership position or that any such leadership
position may not generate the revenue we expect, and the possibility
that we may be unable to draw from our revolving credit facility when or
to the extent we decide to do so. In addition, our assumptions
concerning our future GAAP and non-GAAP effective income tax rates are
based on estimates and other factors that could change, including the
geographic mix of our revenue, expenses (including restructuring
charges) and profits and loans and cash repatriations from foreign
subsidiaries. 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
PTC,
About PTC (www.ptc.com)
PTC (Nasdaq: PMTC) provides discrete manufacturers with software and services to meet the globalization, time-to-market and operational efficiency objectives of product development. Using the company’s PLM and CAD solutions, organizations in the Industrial, High-Tech, Aerospace and Defense, Automotive, Consumer and Medical industries are able to support key business objectives and create innovative products that meet customer needs and comply with industry regulations.
(continues)
PARAMETRIC TECHNOLOGY CORPORATION |
||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||
Revenue: | ||||||||||||||||||
License | $ | 70,688 | $ | 103,632 | $ 212,710 | $ | 332,380 | |||||||||||
Service | 175,655 | 195,915 | 725,475 | 737,950 | ||||||||||||||
Total revenue | 246,343 | 299,547 | 938,185 | 1,070,330 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of license revenue(1) | 7,758 | 9,560 | 29,962 | 30,123 | ||||||||||||||
Cost of service revenue(1) | 65,592 | 79,226 | 279,797 | 300,663 | ||||||||||||||
Sales and marketing(1) | 76,297 | 83,731 | 301,369 | 306,880 | ||||||||||||||
Research and development(1) | 48,826 | 47,366 | 188,501 | 182,022 | ||||||||||||||
General and administrative(1) | 22,295 | 23,176 | 80,670 | 87,829 | ||||||||||||||
Amortization of acquired intangible assets | 4,110 | 4,327 | 15,620 | 15,579 | ||||||||||||||
In-process research and development | -- | -- | 300 | 1,887 | ||||||||||||||
Restructuring charges | 6,274 | 4,735 | 22,671 | 20,102 | ||||||||||||||
Total costs and expenses | 231,152 | 252,121 | 918,890 | 945,085 | ||||||||||||||
Operating income | 15,191 | 47,426 | 19,295 | 125,245 | ||||||||||||||
Other expense, net | (312 | ) | (500 | ) | (2,124 | ) | (6,359 | ) | ||||||||||
Income before income taxes | 14,879 | 46,926 | 17,171 | 118,886 | ||||||||||||||
Provision for (benefit from) income taxes | (1,021 | ) | 10,422 | (14,351 | ) | 39,184 | ||||||||||||
Net income | $ | 15,900 | $ | 36,504 | $ 31,522 | $ | 79,702 | |||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 0.14 | $ | 0.32 | $ 0.27 | $ | 0.70 | |||||||||||
Weighted average shares outstanding | 115,288 | 113,829 | 114,950 | 113,703 | ||||||||||||||
Diluted | $ | 0.13 | $ | 0.31 | $ 0.27 | $ | 0.68 | |||||||||||
Weighted average shares outstanding | 119,379 | 118,780 | 117,359 | 117,870 | ||||||||||||||
(1) The amounts in the tables above include stock-based compensation as follows: |
||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||
Cost of license revenue | $ | 22 | $ | 12 | $ | 50 | $ 38 | |||||||||||
Cost of service revenue | 2,562 | 2,305 | 8,163 | 9,172 | ||||||||||||||
Sales and marketing | 4,205 | 3,296 | 12,797 | 12,229 | ||||||||||||||
Research and development | 2,404 | 2,500 | 8,214 | 9,429 | ||||||||||||||
General and administrative | 5,362 | 3,602 | 14,104 | 13,528 | ||||||||||||||
Total stock-based compensation | $ | 14,555 | $ | 11,715 | $ | 43,328 | $ 44,396 |
PARAMETRIC TECHNOLOGY CORPORATION | ||||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
GAAP revenue | $ | 246,343 | $ | 299,547 | $ | 938,185 | $ | 1,070,330 | ||||||||
Fair value adjustment of acquired CoCreate deferred maintenance revenue | -- | 668 | -- | 4,588 | ||||||||||||
Non-GAAP revenue | $ | 246,343 | $ | 300,215 | $ | 938,185 | $ | 1,074,918 | ||||||||
GAAP operating income | $ | 15,191 | $ | 47,426 | $ | 19,295 | $ | 125,245 | ||||||||
Fair value adjustment of acquired CoCreate deferred maintenance revenue | -- | 668 | -- | 4,588 | ||||||||||||
Stock-based compensation | 14,555 | 11,715 | 43,328 | 44,396 | ||||||||||||
Amortization of acquired intangible assets
included in cost of license revenue |
5,082 | 5,991 | 19,674 | 19,841 | ||||||||||||
Amortization of acquired intangible assets
included in cost of service revenue |
-- |
16 |
8 | 67 | ||||||||||||
Amortization of acquired intangible assets | 4,110 | 4,327 | 15,620 | 15,579 | ||||||||||||
In-process research and development | -- | -- | 300 | 1,887 | ||||||||||||
Restructuring charges | 6,274 | 4,735 | 22,671 | 20,102 | ||||||||||||
Non-GAAP operating income | $ | 45,212 | $ | 74,878 | $ | 120,896 | $ | 231,705 | ||||||||
GAAP net income | $ | 15,900 | $ | 36,504 | $ | 31,522 | $ | 79,702 | ||||||||
Fair value adjustment of acquired CoCreate deferred maintenance revenue |
-- |
668 |
-- |
4,588 |
||||||||||||
Stock-based compensation | 14,555 | 11,715 | 43,328 | 44,396 | ||||||||||||
Amortization of acquired intangible assets included in cost of license revenue |
5,082 |
5,991 |
19,674 |
19,841 |
||||||||||||
Amortization of acquired intangible assets included in cost of service revenue |
-- |
16 |
8 |
67 |
||||||||||||
Amortization of acquired intangible assets | 4,110 | 4,327 | 15,620 | 15,579 | ||||||||||||
In-process research and development | -- | -- | 300 | 1,887 | ||||||||||||
Restructuring charges | 6,274 | 4,735 | 22,671 | 20,102 | ||||||||||||
One-time non-cash loss included in other expense, net (2) | -- | -- | -- | 6,206 | ||||||||||||
Income tax adjustments (3) | (10,308 | ) | (9,984 | ) | (39,552 | ) | (32,355 | ) | ||||||||
Non-GAAP net income | $ | 35,613 | $ | 53,972 | $ | 93,571 | $ | 160,013 | ||||||||
GAAP diluted earnings per share | $ | 0.13 | $ | 0.31 | $ | 0.27 | $ | 0.68 | ||||||||
Stock-based compensation | 0.12 | 0.10 | 0.37 | 0.38 | ||||||||||||
All other items identified above | 0.05 | 0.04 | 0.16 | 0.30 | ||||||||||||
Non-GAAP diluted earnings per share | $ | 0.30 | $ | 0.45 | $ | 0.80 | $ | 1.36 | ||||||||
Weighted average shares outstanding – diluted | 119,379 | 118,780 | 117,359 | 117,870 |
(2) Reflects a one-time non-cash loss from the liquidation of certain legal entities related to previous acquisitions.
(3) Reflects the tax effect of non-GAAP adjustments above, as well as
the effect of a
PARAMETRIC TECHNOLOGY CORPORATION | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
September 30, | September 30, | |||||
2009 | 2008 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ | 235,122 | $ | 256,941 | ||
Accounts receivable, net | 166,591 | 201,509 | ||||
Property and equipment, net | 58,105 | 55,253 | ||||
Goodwill and acquired intangibles, net | 596,517 | 587,537 | ||||
Other assets | 293,877 | 248,333 | ||||
Total assets | $ | 1,350,212 | $ | 1,349,573 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Deferred revenue | $ | 234,270 | $ | 258,295 | ||
Borrowings under revolving credit facility | 57,880 | 88,505 | ||||
Other liabilities | 296,481 | 300,248 | ||||
Stockholders' equity | 761,581 | 702,525 | ||||
Total liabilities and stockholders' equity | $ | 1,350,212 | $ | 1,349,573 |
PARAMETRIC TECHNOLOGY CORPORATION | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 15,900 | $ | 36,504 | $ | 31,522 | $ | 79,702 | ||||||||
Stock-based compensation | 14,555 | 11,715 | 43,328 | 44,396 | ||||||||||||
Depreciation and amortization | 16,052 | 16,537 | 61,610 | 60,021 | ||||||||||||
Accounts receivable | (10,566 | ) | (27,813 | ) | 56,889 | 42,006 | ||||||||||
Accounts payable and accruals(4) | 10,705 | 15,915 | (19,281 | ) | (13,240 | ) | ||||||||||
Deferred revenue | (24,556 | ) | (14,228 | ) | (27,256 | ) | 2,077 | |||||||||
In-process research and development | -- | -- | 300 | 1,887 | ||||||||||||
Income taxes | (13,329 | ) | 2,933 | (66,700 | ) | 4,578 | ||||||||||
Other | (3,288 | ) | (429 | ) | 2,358 | 813 | ||||||||||
Net cash provided by operating activities | 5,473 | 41,134 | 82,770 | 222,240 | ||||||||||||
Capital expenditures | (6,278 | ) | (4,947 | ) | (30,087 | ) | (25,439 | ) | ||||||||
Acquisitions of businesses, net of cash acquired (5) | -- | -- | (32,790 | ) | (261,592 | ) | ||||||||||
Proceeds from (payments on) debt, net | -- | (10,860 | ) | (31,951 | ) | 88,139 | ||||||||||
Repurchases of common stock | (4,576 | ) | -- | (14,157 | ) | (27,297 | ) | |||||||||
Other investing and financing activities | 2,256 | 4,928 | 562 | 1,615 | ||||||||||||
Foreign exchange impact on cash | 6,902 | (15,334 | ) | 3,834 | (3,996 | ) | ||||||||||
Net change in cash and cash equivalents | 3,777 | 14,921 | (21,819 | ) | (6,330 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 231,345 | 242,020 | 256,941 | 263,271 | ||||||||||||
Cash and cash equivalents, end of period | $ | 235,122 | $ | 256,941 | $ | 235,122 | $ | 256,941 |
(4) Includes accounts payable, accrued expenses, and accrued compensation and benefits.
(5) Acquisitions of businesses:
a. The third quarter of 2009 includes
b. The first quarter of 2009 includes
c. The first quarter of 2008 includes
Source: PTC
PTC
Kristian P. Talvitie, 781-370-6151
ktalvitie@ptc.com