PTC Reports Fiscal 2000 Third Quarter Results
WALTHAM, Mass.--(BUSINESS WIRE)--July 18, 2000--
Revenue and Earnings on Target; New Business Units Starting to
Deliver Improved Product Line Focus
PTC (NASDAQ: PMTC) today reported revenue totaling $227.3 million
for the third quarter ended July 1, 2000, compared to $264.1 million
for the same period last year. Pro forma net income for the quarter,
which excludes both the impact of a nonrecurring charge in the current
quarter and the amortization of intangible assets related to
acquisitions, was $7.1 million, or $0.03 per share compared to $42.9
million and $0.16 for the year-ago period. In the current quarter, the
company recorded a nonrecurring charge of $21.5 million related to
actions taken to reduce its cost structure to improve profitability.
Including the nonrecurring charge and the amortization of intangible
assets, the net loss for the quarter was $15.4 million or $0.06 per
share.
C. Richard Harrison, president and chief executive officer, said:
"We are encouraged by our performance this quarter. Our results show
that the actions taken to create separate business units within the
company and to strengthen the product line focus of the sales
organization are starting to have a positive impact. We are committed
to consistent profitability and to product leadership for both our
traditional mechanical computer-aided engineering (MCAD) products and
Windchill, our Internet-based collaborative product commerce (CPC)
solution. We are also committed to working more closely with partners
and system integrators in both our product lines. We made good
progress on all these fronts this quarter and expect to continue
improving upon these areas in upcoming quarters."
The company made substantial progress in the Windchill business
unit. Total Windchill revenue in the quarter was $45.5 million as
compared to $25.2 million a year ago. Windchill revenue over the past
four quarters exceeded $163 million and there are now more than 640
Windchill customers worldwide. In Q3 specifically, PTC received
significant orders for Windchill from Airbus, Hyundai Electronics and
Nike Incorporated. The Company also shipped Windchill Release 5.0,
delivering significant customer-driven enhancements and new
capabilities that enable organizations to achieve higher levels of
Internet-based product development. "Windchill and the CPC market
represent a significant opportunity for future growth for PTC,"
commented Harrison. "The new business unit devoted to Windchill allows
us to focus on the CPC market, capture market share and maintain our
leadership position."
During the quarter, the new Windchill Netmarkets business unit
announced its first strategic engagement with Buyplastics.com, the
first design collaboration marketplace for the plastics industry. "The
Windchill Netmarkets initiative is already proving effective," said
Harrison. "It is allowing us to be involved in an emerging market
which we anticipate will provide us with additional growth
opportunities."
Total MCAD revenue for Q3 was $181.8 million, including major
deals with AGFA Gevaert NV, BMW Services Limited, Maytag Corporation,
Sharp Corporation, and Tyco International. Pro/User, the annual
gathering of Pro/ENGINEER users, occurred in June. With more than 1750
attendees, it was the largest gathering in the history of Pro/User.
The company also shipped major updates to its PTC i-Series of flexible
engineering solutions, including: ICEM 2000i(2) and Pro/MECHANICA
2000i(2). "We have the best products in the MCAD market but we need to
improve our revenue performance," noted Harrison. "The shift to a
business unit structure allows us to focus on re-invigorating our
Pro/ENGINEER license business.
"This quarter has been a pivotal one for PTC. While there is more
to accomplish, we believe that the actions we have taken will result
in improved and more consistent performance," concluded Harrison.
The unaudited consolidated statement of income and condensed
consolidated balance sheet for the third quarter are attached.
PTC's conference call to discuss the third quarter results will be
webcast live on July 18th at 10 a.m. Eastern via CCBN on the company's
website, located at ptc.com. The call will also be webcast
live via Nasdaq (www.nasdaq.com), 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 July 28th. |
