Someone knew that earnings were disappointing, and hence dumped PMTC today! I am not worried for the long term health of PMTC, however!
Monday January 3, 7:29 pm Eastern Time
Company Press Release
Parametric Technology Corp. Announces Preliminary First Quarter Results
Company Anticipates Shortfall in MCAD Revenue; Windchill Revenue Expected to be On Target
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 3, 2000-- Parametric Technology Corporation (NASDAQ:PMTC - news) today announced that for the first quarter ended January 1, 2000, it expects revenue to be approximately 12% below the Wall Street consensus estimate of $274 million. The company expects earnings per share for the first quarter to be approximately $0.04 - $0.06 including amortization charges associated with acquisitions ($0.06 - $0.08 excluding amortization charges).
Steven C. Walske, chairman and chief executive officer, commented: ''Over the past six quarters, we have been involved in fundamentally transforming PTC from an MCAD-only (mechanical computer-aided design) company to one that is strategically positioned for Internet-based Collaborative Product Commerce. Last October, when we announced our results for the fourth quarter of fiscal 1999, we stated our belief that while we were headed in the right direction, our transition was not yet complete and there would continue to be some uncertainty with respect to our near-term results.
''Preliminary information indicates that we achieved total Windchill revenue in Q1 of approximately $38 million. This is in line with our expectations and compares to $4.9 million in the same quarter a year ago. However, preliminary information also indicates that MCAD license revenue in Q1 fell short of our expectations as our sales force focused on the business-to-business e-commerce opportunities presented by Windchill.''
He added, ''The first quarter is seasonally our most challenging and this year is obviously no exception. In addition, as we continue to complete the transition from a territory-based sales coverage model to a more customer account-focused model, it continues to be difficult to forecast the quarterly timing of large deals in the sales pipeline.''
Walske concluded: ''We are clearly disappointed with our MCAD sales this quarter and we are looking hard at measures designed to improve our focus on the MCAD business. At the same time, we are encouraged by our Windchill results and are increasingly optimistic about its business prospects for the full fiscal year.''
Parametric Technology expects to announce final results for the first quarter on Tuesday, January 18, before the market opens. On that day, the company will hold a conference call to discuss its results at 10 a.m. Eastern.
About the Company
Parametric Technology Corporation, founded in 1985 and headquartered in Waltham, Mass., develops, markets and supports flexible engineering and collaborative product commerce (CPC) solutions that help companies spur innovation and achieve sustained competitive advantage. These solutions leverage PTC's leadership in providing manufacturing software that streamlines design and engineering processes, improves product quality and reduces cost and time-to-market cycles. PTC's software solutions are complemented by the strength and experience of its professional services organization, which provides training, consulting and support to customers worldwide. 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: final results for the quarter; our assumptions about growth in the MCAD industry and our success in competing in that industry; 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; 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.
Parametric Technology Corporation, 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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Contact:
Parametric Technology Corporation
Investor Relations Contact:
John W. Hudson
781/398-5561
jhudson@ptc.com
or
Parametric Technology Corporation
Public Relations Contact:
Wayne George
781/398-5336
wgeorge@ptc.com
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