60% increase in windchill qtr on qtr.... excellent
WALTHAM, Mass.--(BUSINESS WIRE)--Oct. 19, 1999--
Record Software Revenue Quarter Highlights Strong Performance Of
Pro/ENGINEER and Windchill Product Lines
Parametric Technology Corporation (NASDAQ:PMTC.O) today reported
revenue totaling $280.1 million for the fourth quarter ended September
30, 1999, compared to $250.0 million for the same period last year.
Pro forma net income for the quarter, which excludes both the impact
of nonrecurring charges and the amortization of intangible assets
related to acquisitions, was $50.7 million, or $0.18 per share,
compared to $45.9 million, or $0.17 per share, for the year-ago
period. Net income was $43.3 million, or $0.16 per diluted share,
compared to $45.3 million, or $0.17 per share, for the same period in
fiscal 1998.
For the fiscal year, revenue totaled $1,057.6 million, compared
to $1,018.0 million for fiscal 1998. Pro forma net income was $184.4
million, or $0.67 per share, compared to $199.4 million, or $0.72 per
share, last fiscal year. Net income was $119.3 million, or $0.43 per
diluted share, compared to $86.7 million, or $0.31 per share, last
year.
Steven C. Walske, chairman and chief executive officer,
commented: "This was a solid, well-executed quarter for PTC. We
achieved the highest quarterly software revenue in the company's
history and, in the process, our sales force delivered a significant
number of orders exceeding the million-dollar threshold. Total license
revenue in Q4 showed good growth over the third fiscal quarter, with
sequential increases in both Pro/ENGINEER and Windchill license
revenue. Total service revenue in Q4 showed good growth over the same
quarter a year ago, increasing 25%. Of particular note, total
Windchill revenue (license and services combined) grew impressively to
$40 million - a 60% sequential increase in Q4 over the prior quarter."
Walske added, "As the revenue growth of Windchill suggests, PTC
has successfully tapped into an emerging marketfor product and
process lifecycle management solutions which has vast potential. We
have aggressively pursued this opportunity over the last 12 months,
both in terms of internal development efforts and strategic
acquisitions. We are very pleased with our progress to date, as total
Windchill revenue exceeded $80 million in its first full year in the
marketplace.
"On October 26th, we'll raise the bar again with our introduction
of Windchill release 4.0 which, from a feature/function standpoint,
adds as much application content as all of the prior releases of
Windchill combined. With the launch of 4.0, Windchill will provide a
comprehensive suite of integrated solutions that leverage the Internet
for product collaboration and competitive advantage. This application
suite will span product planning (engineer-to-order), product
engineering, sourcing (component and supplier management), product
information management, manufacturing planning and release to
production."
Walske noted that PTC received significant orders for Windchill
technology in the fourth quarter from EMC Corp., Lockheed Martin
Government Electronic Systems, Lucent Technologies, Caterpillar, ADC
Telecommunications, Ingalls Shipbuilding, Hutchinson Technology and
two Marconi business divisions of The General Electric Company plc.
(GEC), among others.
PTC also received a substantial order from Hughes Electronics
that included both Windchill technology and Pro/ENGINEER product
development software. Additional large orders for PTC's product
development software solutions were received from Intel, Motorola,
Lockheed Martin Michoud Space Systems, Sandia National Laboratories,
AMP, Silicon Graphics and AGCO Corp.
"As evidenced by the million-dollar-plus contracts we received in
Q4, our comprehensive mechanical product development offerings
continue to garner strong customer acceptance," Walske noted. "In
fiscal 1999, we broadened, deepened and more tightly integrated all
aspects of the product family, which spans conceptual and mechanical
design, design optimization and simulation, styling and surfacing, and
manufacturing and production. Total revenue from our mechanical
product development offerings exceeded $975 million in fiscal 1999,
and the product development software market will continue to be an
important element of our business strategy going forward."
In all, PTC shipped over 8,600 new seats of product development
software during the quarter, increasing the total number of seats
installed to more than 230,000. The company also added more than 1,000
new customers worldwide, bringing PTC's total customer base to over
27,000.
Walske concluded: "Fiscal 1999 was marked by a tremendous
development effort benefiting both our Pro/ENGINEER and Windchill
product lines. This effort was accompanied by the transformation of
our sales organization from one that was geography-based and
represented a single product line to one that is focused on strategic
partnerships with customers to provide them a complete set of
solutions for product and process lifecycle management. As this
transition progresses, there will continue to be some uncertainty with
respect to our near-term results. Our results for the fourth quarter,
however, indicate that we are headed in the right direction."
The unaudited consolidated statement of income and condensed
consolidated balance sheet for the fourth quarter and fiscal year are
attached.
PTC's conference call to discuss the fourth quarter results will
be webcast live on October 19th at 10 a.m. Eastern on the company's
website, located at ptc.com. The call will also be webcast
live via streetevents.com, streetfusion.com, and
vcall.com.
About the Company
Parametric Technology Corporation, founded in 1985 and
headquartered in Waltham, Mass., develops, markets and supports
comprehensive, integrated product development and lifecycle management
solutions that help companies spur innovation and achieve sustained
competitive advantage. PTC's solutions are complemented by the
strength and experience of its professional services organization,
which provides training, consulting and support to customers around
the globe. In its fiscal year ended September 30, 1999, the company
achieved more than $1 billion in revenue. PTC can be reached at
781-398-5000, or via the Web at 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: our ability to realize revenue from the larger, strategic
business opportunities we are pursuing; market acceptance of the
Windchill family of products, which have a longer sales cycle than our
other products; the success of our sales force transition initiatives;
the success of our third-party distributor's sales to smaller
customers; market reaction to the pricing and packaging of the
Pro/ENGINEER product line; 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. |
