PTC Reports Fiscal 2001 Second Quarter Results

- Revenue and EPS In-Line with Company Targets -



Apr 17, 2001, 01:00 ET from PTC

    NEEDHAM, Mass., April 17 /PRNewswire Interactive News Release/ --
 PTC (Nasdaq:   PMTC), the product development company(TM), today reported
 revenue totaling $245.1 million for the second quarter ended March 31, 2001,
 up 8 percent from $227.1 million for the same period last year.  Pro forma net
 income for the quarter, excluding non-recurring charges, was $17.6 million, or
 $0.07 per diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000821/NEM002LOGO )
     Pro forma net income, excluding the amortization of intangible assets and
 non-recurring charges, was $24.4 million, or $0.09 per diluted share, compared
 to $0.5 million and $0.00 per diluted share, for the year-ago period.  During
 the quarter, the Company recorded non-recurring charges of $14.8 million
 related to the write down of certain technology and investments.  Net income
 for the quarter was $7.1 million, or $0.03 per diluted share.
     "We are pleased with this quarter's financial results, especially in the
 face of difficult market conditions," said C. Richard Harrison, president and
 chief executive officer.  "Although we are not immune to the weakening economy
 in the near-term, we feel confident that the combination of our motivated
 workforce, solid infrastructure and total commitment to product development
 which is intended to deliver a high return on investment for customers,
 positions us for long-term growth."
 
     Operating Highlights
 
     Windchill
     Total Windchill revenue in the second quarter was $55.3 million, as
 compared to $39.4 million a year ago, an increase of 40 percent.  In the
 second quarter, PTC received large orders for Windchill from customers such as
 General Dynamics, NEC, Siemens AG Transportation Systems, Stratos Lightwave,
 TRW and Weatherford.  In addition, PTC announced the availability of Windchill
 ProjectLink, a Web-based workspace that advances the ability of geographically
 and organizationally dispersed project teams to collaborate on highly
 iterative design projects.  Windchill ProjectLink, which can be implemented
 within two weeks, has already been adopted by customers such as Agito,
 Exostar, infoAccelerator, and Zweave.
     During the quarter, the Company continued to expand its systems integrator
 alliances in both breadth and depth.  The Company now has active relationships
 with 29 systems integrator partners.
 
     MCAD
     The Company's mechanical computer-aided design (MCAD) revenue for the
 second quarter was $189.8 million, as compared to $187.7 million a year ago.
 MCAD sales included major deals with Case Corporation, Industria de Turbo
 Propulsores, and Knorr Bremse.  During the quarter, PTC introduced
 Pro/ENGINEER 2001, ICEM 2001 and Granite One.  Pro/ENGINEER 2001 offers new
 modules and numerous enhancements specifically designed to make the product
 development process faster and easier.  ICEM 2001, the industry's most
 advanced surfacing package, offers breakthroughs in real-time photo-realistic
 rendering and significant enhancements focused on rapid visualization and
 streamlined modeling functionality.  Granite One is an open, licensable
 technology platform that unifies CAD software developers around a common file
 format to provide associative interoperability.
     During the quarter, the Company added 32 new value-added resellers (VARs)
 for its MCAD products and now has over 128 VARs worldwide.
 
     Non-Recurring Charges
     Consistent with the Company's initiatives toward expanding the point
 solutions within Windchill, the Company has written down certain assets
 related to its content aggregation business.  Additionally, the Company has
 written down several equity investments that had been carried at original
 investment cost to reflect recent declines in valuation and an unsettled near-
 term market outlook.
     During the fiscal fourth quarter, the Company anticipates introducing
 PartsLink, an eCatalog solution, which will allow suppliers to directly
 address the publication of technical data including CAD geometry.
     "PTC is transitioning from being a content provider, such as InPart, to
 being a content enabler for the manufacturing industry, allowing engineers and
 product designers to search for appropriate components, and quickly and easily
 include components in their designs," said Harrison.  "Our research suggests
 that a 'design win' -- where a component is engineered directly into an
 overall product design -- means that a component is very likely to remain in
 the design throughout the production of that assembly.  This design win can be
 effectively translated into a sourcing win for a company and into favorable
 bottom line results for both the supplier and the manufacturer."
 
     Financial Outlook
     "We have accomplished much in this quarter and feel our overall strategy
 for the long term is the right one," continued Harrison.  "Nevertheless, we
 feel it is prudent to remain cautious in the near term to reflect the overall
 weakening of the economy."
     The Company will provide detailed financial guidance on its second quarter
 results conference call and live webcast on April 17 at 10 a.m. EDT.  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 April 20, 2001.
 To access the replay by phone, dial 402-220-3848.  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 second 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 30,000 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 distribution efforts; our ability to realize revenue
 from the larger, strategic business opportunities we are pursuing as well as
 from our exchange and 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; the success of our
 partnering initiatives; Windchill integrated solutions strategy initiatives;
 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, 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.
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                  UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                     (in thousands, except per share data)
 
                             Three Months Ended           Six Months Ended
                           March 31,      April 1,     March 31,     April 1,
                              2001          2000          2001         2000
 
     Revenue:
       License            $ 107,420     $  87,890     $ 208,720     $ 192,764
       Service              137,710       139,215       271,354       273,378
     Total revenue          245,130       227,105       480,074       466,142
 
     Costs and expenses:
       Cost of license
        revenue               3,138         4,604         6,945         8,732
       Cost of service
        revenue              60,224        59,799       118,806       115,826
       Sales and marketing   93,156       105,384       185,589       210,324
       Research and
        development          37,265        37,611        73,074        71,678
       General and
        administrative       18,290        18,331        37,163        34,802
       Amortization of
        goodwill and other
        intangible assets     9,512         9,777        18,951        19,205
       Non-recurring charges 14,826            --        14,826            --
     Total costs and
      expenses              236,411       235,506       455,354       460,567
 
     Operating income (loss)  8,719        (8,401)       24,720         5,575
       Other income, net      1,311           393         2,567         1,036
     Income (loss) before
      income taxes           10,030        (8,008)       27,287         6,611
     Provision (benefit)
      for income taxes        2,909        (2,162)        7,912         2,076
     Net income (loss)    $   7,121     $  (5,846)    $  19,375     $   4,535
 
     Earnings (loss)
     per share:
       Basic              $    0.03     $   (0.02)    $    0.07     $    0.02
       Diluted            $    0.03     $   (0.02)    $    0.07     $    0.02
     Weighted average
      shares and
      dilutive equivalent
      shares outstanding    270,558       275,107       270,532       288,372
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                               PRO FORMA RESULTS
                     (in thousands, except per share data)
 
     Excluding non-recurring
      charges:
       Operating income (loss) $  23,545   $   (8,401)   $   39,546  $    5,575
       Net income (loss)       $  17,648   $   (5,846)   $   29,902  $    4,535
       Net income (loss)
        per share - diluted    $    0.07   $    (0.02)   $     0.11  $     0.02
     Weighted average shares
      and dilutive equivalent
      shares outstanding         270,558      275,107       270,532     288,372
 
     Excluding amortization
      and non-recurring charges:
       Operating income        $  33,057   $    1,376    $   58,497  $   24,780
       Net income              $  24,401   $      518    $   43,355  $   18,073
       Net income per share
        - diluted              $    0.09   $     0.00    $     0.16  $     0.06
     Weighted average shares
      and dilutive
      equivalent shares
      outstanding                270,558      290,038       270,532     288,372
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                    March 31,   September 30,
                                                       2001         2000
 
     ASSETS
 
     Cash and investments                         $   303,130     $  375,141
     Accounts receivable, net                         192,242        183,804
     Other assets                                     353,461        365,938
 
     Total assets                                 $   848,833     $  924,883
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Total liabilities                            $   375,111     $  396,341
     Stockholders' equity                             473,722        528,542
 
     Total liabilities and stockholders' equity   $   848,833     $  924,883
 
 
     CONTACT:  Investors, Tom Barth, 781-370-5889, or tbarth@ptc.com, or
               Media, Roberta Carlton, 781-370-5479, or rcarlton@ptc.com, both
               of PTC
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X65926365
 
 

SOURCE PTC
    NEEDHAM, Mass., April 17 /PRNewswire Interactive News Release/ --
 PTC (Nasdaq:   PMTC), the product development company(TM), today reported
 revenue totaling $245.1 million for the second quarter ended March 31, 2001,
 up 8 percent from $227.1 million for the same period last year.  Pro forma net
 income for the quarter, excluding non-recurring charges, was $17.6 million, or
 $0.07 per diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000821/NEM002LOGO )
     Pro forma net income, excluding the amortization of intangible assets and
 non-recurring charges, was $24.4 million, or $0.09 per diluted share, compared
 to $0.5 million and $0.00 per diluted share, for the year-ago period.  During
 the quarter, the Company recorded non-recurring charges of $14.8 million
 related to the write down of certain technology and investments.  Net income
 for the quarter was $7.1 million, or $0.03 per diluted share.
     "We are pleased with this quarter's financial results, especially in the
 face of difficult market conditions," said C. Richard Harrison, president and
 chief executive officer.  "Although we are not immune to the weakening economy
 in the near-term, we feel confident that the combination of our motivated
 workforce, solid infrastructure and total commitment to product development
 which is intended to deliver a high return on investment for customers,
 positions us for long-term growth."
 
     Operating Highlights
 
     Windchill
     Total Windchill revenue in the second quarter was $55.3 million, as
 compared to $39.4 million a year ago, an increase of 40 percent.  In the
 second quarter, PTC received large orders for Windchill from customers such as
 General Dynamics, NEC, Siemens AG Transportation Systems, Stratos Lightwave,
 TRW and Weatherford.  In addition, PTC announced the availability of Windchill
 ProjectLink, a Web-based workspace that advances the ability of geographically
 and organizationally dispersed project teams to collaborate on highly
 iterative design projects.  Windchill ProjectLink, which can be implemented
 within two weeks, has already been adopted by customers such as Agito,
 Exostar, infoAccelerator, and Zweave.
     During the quarter, the Company continued to expand its systems integrator
 alliances in both breadth and depth.  The Company now has active relationships
 with 29 systems integrator partners.
 
     MCAD
     The Company's mechanical computer-aided design (MCAD) revenue for the
 second quarter was $189.8 million, as compared to $187.7 million a year ago.
 MCAD sales included major deals with Case Corporation, Industria de Turbo
 Propulsores, and Knorr Bremse.  During the quarter, PTC introduced
 Pro/ENGINEER 2001, ICEM 2001 and Granite One.  Pro/ENGINEER 2001 offers new
 modules and numerous enhancements specifically designed to make the product
 development process faster and easier.  ICEM 2001, the industry's most
 advanced surfacing package, offers breakthroughs in real-time photo-realistic
 rendering and significant enhancements focused on rapid visualization and
 streamlined modeling functionality.  Granite One is an open, licensable
 technology platform that unifies CAD software developers around a common file
 format to provide associative interoperability.
     During the quarter, the Company added 32 new value-added resellers (VARs)
 for its MCAD products and now has over 128 VARs worldwide.
 
     Non-Recurring Charges
     Consistent with the Company's initiatives toward expanding the point
 solutions within Windchill, the Company has written down certain assets
 related to its content aggregation business.  Additionally, the Company has
 written down several equity investments that had been carried at original
 investment cost to reflect recent declines in valuation and an unsettled near-
 term market outlook.
     During the fiscal fourth quarter, the Company anticipates introducing
 PartsLink, an eCatalog solution, which will allow suppliers to directly
 address the publication of technical data including CAD geometry.
     "PTC is transitioning from being a content provider, such as InPart, to
 being a content enabler for the manufacturing industry, allowing engineers and
 product designers to search for appropriate components, and quickly and easily
 include components in their designs," said Harrison.  "Our research suggests
 that a 'design win' -- where a component is engineered directly into an
 overall product design -- means that a component is very likely to remain in
 the design throughout the production of that assembly.  This design win can be
 effectively translated into a sourcing win for a company and into favorable
 bottom line results for both the supplier and the manufacturer."
 
     Financial Outlook
     "We have accomplished much in this quarter and feel our overall strategy
 for the long term is the right one," continued Harrison.  "Nevertheless, we
 feel it is prudent to remain cautious in the near term to reflect the overall
 weakening of the economy."
     The Company will provide detailed financial guidance on its second quarter
 results conference call and live webcast on April 17 at 10 a.m. EDT.  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 April 20, 2001.
 To access the replay by phone, dial 402-220-3848.  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 second 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 30,000 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 distribution efforts; our ability to realize revenue
 from the larger, strategic business opportunities we are pursuing as well as
 from our exchange and 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; the success of our
 partnering initiatives; Windchill integrated solutions strategy initiatives;
 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, 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.
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                  UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                     (in thousands, except per share data)
 
                             Three Months Ended           Six Months Ended
                           March 31,      April 1,     March 31,     April 1,
                              2001          2000          2001         2000
 
     Revenue:
       License            $ 107,420     $  87,890     $ 208,720     $ 192,764
       Service              137,710       139,215       271,354       273,378
     Total revenue          245,130       227,105       480,074       466,142
 
     Costs and expenses:
       Cost of license
        revenue               3,138         4,604         6,945         8,732
       Cost of service
        revenue              60,224        59,799       118,806       115,826
       Sales and marketing   93,156       105,384       185,589       210,324
       Research and
        development          37,265        37,611        73,074        71,678
       General and
        administrative       18,290        18,331        37,163        34,802
       Amortization of
        goodwill and other
        intangible assets     9,512         9,777        18,951        19,205
       Non-recurring charges 14,826            --        14,826            --
     Total costs and
      expenses              236,411       235,506       455,354       460,567
 
     Operating income (loss)  8,719        (8,401)       24,720         5,575
       Other income, net      1,311           393         2,567         1,036
     Income (loss) before
      income taxes           10,030        (8,008)       27,287         6,611
     Provision (benefit)
      for income taxes        2,909        (2,162)        7,912         2,076
     Net income (loss)    $   7,121     $  (5,846)    $  19,375     $   4,535
 
     Earnings (loss)
     per share:
       Basic              $    0.03     $   (0.02)    $    0.07     $    0.02
       Diluted            $    0.03     $   (0.02)    $    0.07     $    0.02
     Weighted average
      shares and
      dilutive equivalent
      shares outstanding    270,558       275,107       270,532       288,372
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                               PRO FORMA RESULTS
                     (in thousands, except per share data)
 
     Excluding non-recurring
      charges:
       Operating income (loss) $  23,545   $   (8,401)   $   39,546  $    5,575
       Net income (loss)       $  17,648   $   (5,846)   $   29,902  $    4,535
       Net income (loss)
        per share - diluted    $    0.07   $    (0.02)   $     0.11  $     0.02
     Weighted average shares
      and dilutive equivalent
      shares outstanding         270,558      275,107       270,532     288,372
 
     Excluding amortization
      and non-recurring charges:
       Operating income        $  33,057   $    1,376    $   58,497  $   24,780
       Net income              $  24,401   $      518    $   43,355  $   18,073
       Net income per share
        - diluted              $    0.09   $     0.00    $     0.16  $     0.06
     Weighted average shares
      and dilutive
      equivalent shares
      outstanding                270,558      290,038       270,532     288,372
 
 
                       PARAMETRIC TECHNOLOGY CORPORATION
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                    March 31,   September 30,
                                                       2001         2000
 
     ASSETS
 
     Cash and investments                         $   303,130     $  375,141
     Accounts receivable, net                         192,242        183,804
     Other assets                                     353,461        365,938
 
     Total assets                                 $   848,833     $  924,883
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Total liabilities                            $   375,111     $  396,341
     Stockholders' equity                             473,722        528,542
 
     Total liabilities and stockholders' equity   $   848,833     $  924,883
 
 
     CONTACT:  Investors, Tom Barth, 781-370-5889, or tbarth@ptc.com, or
               Media, Roberta Carlton, 781-370-5479, or rcarlton@ptc.com, both
               of PTC
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X65926365
 
 SOURCE  PTC