Parametric Technology Corp. Reports Fiscal 2000 First Quarter Results; Windchill Revenue Increases Sharply Year Over Year; Company Experiences Lower MCAD Revenue
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 18, 2000--Parametric
Technology Corporation (NASDAQ: PMTC) today reported revenue totaling
$239.0 million for the first quarter ended January 1, 2000, compared
to $250.1 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 $17.6 million, or $0.06 per share, compared to $44.9
million, or $0.16 per share, for the year-ago period. Net income was
$10.4 million, or $0.04 per share, compared to $30.0 million, or $0.11
per share, for the same period in fiscal 1999.
Steven C. Walske, chairman and chief executive officer,
commented: "As noted in our announcement of preliminary Q1 results on
January 3rd, PTC is involved in fundamentally transforming itself from
an MCAD-only (mechanical computer-aided design) company to one that is
strategically positioned for Internet-based collaborative product
commerce (CPC). While this transition has affected all areas of our
company, it has had the largest impact on our sales organization."
He added, "We are encouraged with our Windchill results for the
quarter. Focusing on the business-to-business e-commerce opportunities
presented by this technology, our sales force delivered total
Windchill revenue (license and services combined) of $38.3 million -
more than a 700% increase over the same quarter a year ago. During Q1,
we also saw Windchill's market acceptance and the opportunities for
future Windchill business continue to expand."
Walske continued: "Total Windchill revenue over the past four
quarters exceeded $115 million, and there are now more than 400
Windchill customers worldwide." In Q1 specifically, PTC received
significant orders for Windchill products from Siemens, Boeing, GKN
Automotive, ITT Aerospace and E.I. Dupont.
He noted that total MCAD revenue for Q1, at $200.7 million, fell
short of the company's expectations. "The first quarter is seasonally
our most challenging and this year was obviously no exception. We
closed fewer large MCAD deals than expected and experienced some
weakness with existing customers, particularly in Japan and Europe."
PTC shipped 6,000 new seats of product development software during the
quarter, bringing the total number of seats installed to approximately
236,000 and bringing PTC's total customer base to approximately
28,000.
"The CPC opportunity has presented us with the challenge of
balancing our sales capacity between Pro/ENGINEER(R) and Windchill -
profitably managing and maintaining leadership in our traditional core
MCAD business while investing aggressively in an exciting new product
area," said Walske. "This capacity shift has in turn made predicting
the quarter-to-quarter Pro/ENGINEER license business more difficult.
We believe the CPC opportunity is an enormous one in and of itself,
and remain convinced that our emphasis on this new opportunity will
further differentiate our MCAD products and ultimately invigorate our
MCAD business."
He added, "In October, in support of the CPC business
opportunity, we shipped Windchill 4.0, a comprehensive set of
solutions that delivers value across the product lifecycle spectrum.
This major release of software broadened the Windchill suite of
applications to encompass product planning (engineer-to-order),
product engineering, sourcing (component and supplier management),
product information management, manufacturing planning and release to
production. In December, our Pro/ENGINEER Behavioral Modeling software
received a "Technology of the Year" award from Industry Week magazine.
Behavioral Modeling was honored for its unique ability to solve
engineering problems within a CAD environment, and it's a key
technology being deployed by our customers as part of their
engineering knowledge-management strategies."
Walske concluded: "As we have stated previously, our transition
to a solutions-oriented, two-product business model is not yet
complete, and we face unfavorable year-over-year revenue comparisons
in our MCAD business and therefore uncertainty with respect to our
overall near-term results. Nonetheless, as evidenced by Windchill's
success, we are increasingly confident about Windchill's business
prospects both near- and long-term."
The unaudited consolidated statement of income and condensed
consolidated balance sheet for the first quarter are attached.
PTC's conference call to discuss the first quarter results will
be webcast live on January 18th at 10 a.m. Eastern on the company's
website, located at ptc.com. The call will also be webcast
live via Streetevents (www.streetevents.com), Vcall (www.vcall.com)
and Bestcalls (www.bestcalls.com). An archived version of the
conference call will be available for replay on all these sites until
January 28th. |
