PTC provides non-GAAP supplemental information to its financial results. Non-GAAP revenue excludes the effect of purchase accounting on the fair value of the acquired deferred maintenance revenue balance of CoCreate Software GmbH. Non-GAAP operating margin and EPS exclude stock-based compensation expense, amortization of intangible assets and acquired in-process research and development expenses, restructuring expenses, and any one-time tax items, such as valuation allowance reversals. PTC provides this non-GAAP information to facilitate period-to-period comparisons of its operational performance by adjusting for episodic expenses. We believe that providing non-GAAP measures affords investors a view of our operating results that may be more easily compared to peer companies. PTC management also uses this and other non-GAAP financial information to evaluate, manage and plan our business because the information provides additional insight into ongoing financial performance. In addition, compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. However, non-GAAP information should not be construed as alternative to GAAP information as the items excluded from the non-GAAP measures often have a material impact on PTC’s financial results. Therefore, management uses, and investors should use, non-GAAP measures in conjunction with our reported GAAP results. Please refer to the attached tables for a reconciliation between GAAP results and the non-GAAP supplemental information.
PTC (Nasdaq: PMTC - News) provides leading product lifecycle management (PLM), content management and dynamic publishing solutions to more than 50,000 companies worldwide. PTC customers include the world's most innovative companies in manufacturing, publishing, services, government and life sciences industries. PTC is included in the S&P Midcap 400 and Russell 2000 indices. For more information on PTC, please visit http://www.ptc.com.
Statements in this news release that are not historical facts, including statements about our confidence that we will achieve our fiscal 2008 financial targets, our expected revenue growth rates and projected revenue and earnings, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that our customers may not continue to spend at recent levels or may elect to defer or forego investment in our solutions in the current economic climate. In addition, our purchase price allocations associated with our first quarter acquisitions, including CoCreate, are preliminary and may change. Likewise, our assumptions concerning our future GAAP and non-GAAP effective income tax rates are based on estimates and other factors that could change, including geographic mix of our revenue and profits and loans and cash repatriations from foreign subsidiaries. Other risks and uncertainties that could cause actual results to differ materially from those projected are detailed from time to time in reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.
PTC, The Product Development Company, Windchill and all other PTC product names and logos are trademarks or registered trademarks of Parametric Technology Corporation or its subsidiaries in the United States and in other countries. All other companies referenced herein are trademarks or registered trademarks of their respective holders.
|PARAMETRIC TECHNOLOGY CORPORATION|
|UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share data)|
|Three Months Ended||Six Months Ended|
|March 29,||March 31,||March 29,||March 31,|
|Costs and expenses:|
|Cost of license revenue (1)||6,599||4,211||11,346||7,771|
|Cost of service revenue (1)||74,054||68,614||145,092||137,182|
|Sales and marketing (1)||73,359||71,560||144,387||141,121|
|Research and development (1)||45,734||40,153||87,282||78,137|
|General and administrative (1)||20,808||20,711||44,359||39,634|
|Amortization of acquired intangible assets||4,315||1,588||7,208||3,676|
|In-process research and development||--||--||1,887||--|
|Total costs and expenses||226,761||206,837||453,138||407,521|
|Other (expense) income, net||(355)||1,348||1,251||2,128|
|Income before income taxes||30,677||22,607||47,148||44,370|
|Provision for income taxes||11,829||5,208||18,420||11,818|
|Earnings per share:|
|Weighted average shares outstanding||113,811||112,845||113,746||112,337|
|Weighted average shares outstanding||117,247||117,486||117,667||117,384|