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PTC · PTC

50 filings

10-Q

PTC 10-Q Quarterly Reports

PTC - 50 quarterly reports

Filing record · 2016–202610-K1010-Q338-K130

PTC filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 130 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’18Feb ’18
  2. Material agreement8-K · Feb ’20Feb ’20
  3. Deal closed8-K · May ’22May ’22
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2026

    PTC Inc. reported third-quarter fiscal 2026 results (quarter ended June 30, 2026) with total revenue of $600.0 million, down from $643.9 million in the prior-year quarter, and net income of $118.8 million, or $1.03 diluted EPS, versus $141.3 million and $1.17 a year earlier. The filing attributes the revenue decline to the Q2'26 divestiture of the Kepware and ThingWorx businesses and to lower license revenue from the shortened duration of a single large contract renewal and expansion. Operating income was $166.5 million, and the company reports ARR of $2.41 billion, flat with the prior year, with ARR excluding divested businesses growing 7% (9% constant currency). Management's non-GAAP diluted EPS for the quarter was $1.58. For the nine months, net income was $876.0 million, or $7.43 diluted EPS, boosted by a $462.6 million gain on the Kepware and ThingWorx sale recorded in other income. Total revenue rose to $2.06 billion from $1.85 billion, and recurring revenue reached $1.98 billion. Cash provided by operating activities was $851.3 million and free cash flow was $835.0 million for the nine months. The company returned substantial capital to shareholders, repurchasing $1,326.2 million of common stock in the nine months, including a $375 million accelerated share repurchase funded by divestiture proceeds, and it has repurchased a further $273.7 million in July 2026. Balance sheet leverage increased over the period. Total debt rose to $1.43 billion at June 30, 2026 from $1.20 billion at September 30, 2025, with the credit facility revolver balance at $475.0 million. Shareholders' equity declined to $3.47 billion from $3.83 billion as buybacks exceeded earnings, and the company's cash balance increased to $351.5 million. Management states it was in compliance with all covenants and expects existing cash, operating cash flow and credit facility availability to meet requirements for at least the next twelve months.

    Jul 31, 2026
  2. 2026-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2026

    PTC Inc. reported fiscal second-quarter 2026 (quarter ended March 31, 2026) total revenue of $774.3 million, up 22% (15% in constant currency) from $636.4 million a year earlier. License revenue rose to $362.7 million from $254.4 million, while support and cloud services revenue reached $387.6 million. Recurring revenue was $743.4 million, and the filing states that approximately 95% of 2025 and 2026 year-to-date revenue was recurring. Annual Run Rate (ARR) was $2.36 billion, up 3% (1% in constant currency). Excluding the divested Kepware and ThingWorx businesses from the prior-year period, ARR growth was 11% (8.5% in constant currency). Operating income was $295.8 million, and GAAP diluted earnings per share were $4.98, compared with $1.35 a year earlier. The results include a $462.6 million gain on the sale of Kepware and ThingWorx, which closed on March 13, 2026, and the related $102.4 million tax expense. For the six months ended March 31, 2026, net income was $757.2 million and diluted EPS was $6.35. Net cash provided by operating activities was $590.7 million, and free cash flow was $585.7 million. The divestiture generated $523.3 million of cash proceeds in the quarter, and total consideration was $530.8 million. Management reported non-GAAP operating margin of 53.0% for the quarter, compared with 47.0% a year earlier. Operating expenses rose 19% in the quarter, driven in part by $27 million of divestiture charges within General and administrative expense. Capital returns were significant. The company repurchased $826.2 million of common stock in the first half of fiscal 2026, including a $375 million accelerated share repurchase agreement entered into in March 2026. Of that amount, $75 million is held back pending final settlement, expected in the third quarter of 2026. Total debt was unchanged at $1.20 billion, and the company was in compliance with its credit facility and senior notes covenants. Cash and cash equivalents rose to $439.1 million from $184.4 million at September 30, 2025.

    May 7, 2026
  3. 2026-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2025

    PTC Inc. reported its first-quarter fiscal 2026 results (three months ended December 31, 2025) in this Form 10-Q. Total revenue rose to $685.8 million from $565.1 million a year earlier, with license revenue of $269.7 million versus $172.8 million, and recurring revenue of $657.3 million versus $524.3 million. Operating income was $221.1 million compared with $115.5 million, and net income was $166.5 million, or $1.39 per diluted share, compared with $82.2 million, or $0.68 per diluted share. ARR was $2.49 billion, up 13% (8% in constant currency) from a year earlier. The filing states the company grew Non-GAAP operating margin to 45.1% from 33.9%. During the quarter PTC repurchased 1.1 million shares for $200 million and generated operating cash flow of $269.7 million and free cash flow of $267.4 million. Total debt was unchanged at $1.20 billion, and the company had $209.7 million of cash and cash equivalents at quarter end. Remaining repurchase authorization under the $2 billion program was $1.50 billion as of December 31, 2025. PTC entered into an agreement on November 5, 2025 to sell its Kepware and ThingWorx businesses to a TPG-affiliated buyer for $600 million in cash, subject to adjustments, plus contingent consideration of up to $125 million. The transaction is expected to close on or before April 1, 2026, and the company expects to use the after-tax proceeds to repurchase shares. Both businesses' assets and liabilities are classified as held for sale.

    Feb 5, 2026
  4. 2025-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2025

    PTC Inc. reported third-quarter fiscal 2025 total revenue of $643.9 million, up from $518.6 million a year earlier, and net income of $141.3 million, compared with $69.0 million. Diluted earnings per share were $1.17, versus $0.57. Gross margin rose to $533.9 million from $406.7 million, and operating income increased to $209.8 million from $95.8 million. Recurring revenue reached $613.6 million, and ARR grew 14% (9% in constant currency) to $2.42 billion. Management attributed software revenue growth to higher total value and longer average duration of contracts that renewed in the period, and noted that under ASC 606 revenue timing can vary significantly. For the nine months ended June 30, 2025, net cash provided by operating activities was $763.7 million, and free cash flow was $756.2 million. During the quarter, PTC repaid $157 million of debt and repurchased $75 million of common stock. In the second quarter it redeemed its $500 million 3.625% senior notes due 2025 using a draw on its revolving credit facility and cash on hand. Total debt stood at $1,236.3 million at June 30, 2025, down from $1,752.6 million at September 30, 2024. Management intends to repurchase approximately $300 million of common stock in fiscal 2025. The filing also flags risks, including a pending IRS consent request for an accounting method change. If consent is not received, the filing states this would have a material adverse impact on cash flow in the year of denial. The company was in compliance with its debt covenants at June 30, 2025. The One Big Beautiful Bill Act, enacted July 4, 2025, is expected to provide material positive cash impact in fiscal 2026 and 2027, although the company's review is not yet complete.

    Jul 31, 2025
  5. 2025-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2025

    PTC Inc. reported second-quarter fiscal 2025 results (three months ended March 31, 2025) with total revenue of $636.4 million, up from $603.1 million a year earlier, and net income of $162.6 million, or $1.35 per diluted share, compared with $114.4 million, or $0.95 per diluted share, in the prior-year quarter. Operating income rose to $223.5 million from $179.6 million, and operating margin was 35.1% versus 29.8%. ARR grew 10% to $2.29 billion. Cash provided by operating activities for the six months was $519.7 million, compared with $438.1 million a year earlier. Balance sheet activity was dominated by debt reduction and share repurchases. Total debt fell to $1.39 billion from $1.75 billion at September 30, 2024, as the company redeemed its $500 million 3.625% senior notes due 2025 using a draw on its revolving credit facility and cash on hand. The company repurchased $150.0 million of common stock in the first six months, and it states that it intends to repurchase approximately $300 million of common stock in fiscal 2025. Cash and cash equivalents were $235.2 million at March 31, 2025. Remaining performance obligations totaled $2.28 billion, of which the company expects to recognize approximately 59% over the next 12 months. The filing also notes a $4.2 million impairment and other charge in the quarter related to the sublease of part of the company's Boston office. Management attributes the decline in operating expenses in the quarter largely to temporary cost reductions from its go-to-market realignment, and it cites macroeconomic uncertainty related to global trade tensions and tariffs. Management states that it believes existing cash and credit facility availability will be sufficient to meet its requirements for at least the next twelve months.

    May 1, 2025
  6. 2025-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2024

    PTC Inc. reported first-quarter fiscal 2025 results (three months ended December 31, 2024) in this Form 10-Q. Total revenue rose to $565.1 million from $550.2 million, and net income was $82.2 million, or $0.68 diluted EPS, compared with $66.4 million, or $0.55, a year earlier. Operating income was $115.5 million versus $118.7 million, with management attributing the decline mainly to costs tied to its go-to-market realignment. Interest expense fell to $22.0 million from $35.3 million on lower aggregate debt. Cash provided by operating activities was $238.4 million, up from $187.3 million, and free cash flow was $235.7 million versus $182.8 million. ARR grew 7% (11% in constant currency) to $2.21 billion. Recurring revenue was $524.3 million, and support and cloud services revenue increased to $361.0 million, while license revenue declined to $172.8 million from $184.0 million, reflecting the timing and value of large contract renewals. The balance sheet shows total debt of $1.55 billion, down from $1.75 billion at September 30, 2024. The company repurchased 0.4 million shares for $75 million during the quarter, and $524.9 million of debt is classified as current, including $499.9 million of 3.625% senior notes due February 2025, which the company intends to redeem using cash on hand and a revolver draw. The filing also discloses an Executive Agreement with Robert Dahdah, Executive Vice President and Chief Revenue Officer, that includes change-in-control and termination protections. Non-GAAP operating margin was 33.9% compared with 36.2% in the prior-year quarter.

    Feb 6, 2025
  7. 2024-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2024

    PTC Inc. reported results for its fiscal third quarter and first nine months of fiscal 2024 (ended June 30, 2024) in this Form 10-Q. Total revenue for the quarter was $518.6 million, down from $542.3 million a year earlier, driven by lower on-premises subscription license revenue due to shorter contract durations and a higher proportion of ratably recognized SaaS contracts. Diluted EPS rose to $0.57 from $0.51, primarily because of a non-cash tax benefit tied to IRS procedural guidance issued in May 2024 and lower total expenses. Operating income for the quarter was $95.8 million versus $109.9 million, and net income was $69.0 million versus $61.4 million. For the nine months, total revenue was $1,671.9 million compared with $1,550.4 million, and operating income was $394.1 million compared with $337.3 million. Management reported ARR of $2,126.1 million, up 10% (12% in constant currency) from a year earlier. Cash provided by operating activities for the nine months was $651.9 million, and free cash flow was $642.0 million, based on the company's non-GAAP reconciliation. On the balance sheet, total debt stood at $1,815.8 million at June 30, 2024, with $518.1 million classified as current, including $499.3 million tied to the 2025 senior notes that become due in February 2025. The company used $620.0 million in cash during the period to settle the deferred ServiceMax acquisition payment, funded partly through net revolver borrowings. Management expects to use substantially all operating cash flow for the rest of fiscal 2024 to repay revolver debt.

    Aug 2, 2024
  8. 2024-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2024

    PTC Inc.'s second-quarter fiscal 2024 results (quarter ended March 31, 2024) showed revenue of $603.1 million, up 11% (11% in constant currency) from $542.2 million a year earlier. Net income was $114.4 million, or $0.95 per diluted share, compared with $63.5 million, or $0.53, in the prior-year quarter. Operating income was $179.6 million, and operating margin rose to 29.8% from 22.6%, which the company attributes to higher revenue, continued operating discipline, and lower acquisition- and transaction-related costs. Annual Run Rate (ARR) reached $2.09 billion, up 11% (12% in constant currency), with growth in both the CAD and PLM product groups across all regions. Cash flow was strong. Cash provided by operating activities grew 19% to $251 million in the quarter, and free cash flow grew 19% to $247 million. For the first six months, operating cash flow was $438.1 million, versus $391.9 million a year earlier. The company settled the $620.0 million ServiceMax deferred acquisition payment in the period and acquired pure-systems GmbH for $93.5 million, net of cash acquired. These outlays were funded largely by net borrowings on the revolving credit facility. Total debt was $2,010.9 million at March 31, 2024, against cash and cash equivalents of $249.0 million. The company expects to use substantially all operating cash flow over the rest of fiscal 2024 to repay revolver borrowings. Of $514.7 million of debt classified as current, $499.1 million relates to the 3.625% senior notes due in 2025. The company also reported a $2.0 million impairment on a Level 3 convertible note, a non-cash $3.6 million tax reserve charge in a foreign jurisdiction, and the first phase of a new corporate ERP implementation during the quarter. Management stated that its disclosure controls were effective as of March 31, 2024. Remaining performance obligations totaled $2,053.5 million, with approximately 60% expected to be recognized over the next 12 months.

    May 3, 2024
  9. 2024-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2023

    PTC Inc. filed its Form 10-Q for the quarter ended December 31, 2023 (first quarter of fiscal 2024). Total revenue rose to $550.2 million from $465.9 million in the prior-year quarter, with total recurring revenue of $506.0 million and ARR of $2,057.2 million, up 24% (23% in constant currency). Management attributes ARR growth largely to the ServiceMax acquisition, which closed in Q2 2023, alongside organic growth in both the CAD and PLM product groups. Organic ARR grew 13% year over year to $1.88 billion. Profitability was mixed. Operating income increased to $118.7 million from $104.9 million, but net income declined to $66.4 million from $75.0 million, and diluted EPS fell to $0.55 from $0.63. Interest and debt premium expense more than doubled to $35.3 million from $16.4 million, reflecting higher debt balances and interest rates. The effective tax rate rose to 22% from 13%, including a $3.6 million non-cash tax reserve charge in a foreign jurisdiction. Non-GAAP diluted EPS was $1.11 versus $0.99. Cash from operations was $187.3 million, and free cash flow was $182.8 million. Balance sheet leverage increased substantially. Total debt rose to $2,266.5 million from $1,702.0 million, driven by borrowings under the revolving credit facility used to settle the $650.0 million ServiceMax deferred acquisition payment and to fund the $93.5 million pure-systems acquisition completed in October 2023. Management expects to use substantially all operating cash flow over the rest of fiscal 2024 to repay revolver borrowings.

    Feb 2, 2024
  10. 2023-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2023

    PTC Inc. reported results for the third quarter and first nine months of fiscal 2023 (quarter ended June 30, 2023). Total revenue for the quarter was $542.3 million, up from $462.5 million a year earlier, and net income was $61.4 million, or $0.51 per diluted share, compared with $70.5 million, or $0.60 per diluted share, in the prior-year quarter. Management attributed revenue growth primarily to the ServiceMax acquisition, which closed on January 3, 2023 for a purchase price of $1,448.2 million net of cash acquired. ARR reached $1,928.7 million, up 25% year over year, with organic ARR growing 14% to $1.76 billion. Cash flow from operations was $169.2 million in the quarter and $561.1 million for the nine months. The company's balance sheet shifted materially with the acquisition. Total debt was $1,745.0 million at June 30, 2023, compared with $1,359.0 million at September 30, 2022, and PTC recorded a $620.0 million liability for the deferred ServiceMax payment of $650.0 million due October 2, 2023. Management stated it expects to use a substantial portion of operating cash flow to repay the credit facility revolver and make the deferred payment, and that it does not expect to repurchase shares during the remainder of fiscal 2023 or in fiscal 2024. Interest and debt premium expense rose to $35.8 million in the quarter from $13.8 million a year earlier. Operating income increased to $109.9 million from $80.0 million, while the prior-year quarter included a $29.8 million gain on the sale of a portion of the PLM services business. Non-GAAP operating income was $185.0 million, and non-GAAP diluted EPS was $0.99 versus $0.97. Management noted that professional services revenue is expected to continue trending down as the company shifts delivery to partners.

    Aug 4, 2023
  11. 2023-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2023

    PTC Inc. reported results for the second quarter and first six months of fiscal 2023 (ended March 31, 2023). Total revenue for the quarter was $542.2 million compared with $505.2 million a year earlier, and operating income was $122.5 million versus $159.2 million. Net income was $63.5 million, or $0.53 per diluted share, compared with $89.7 million, or $0.76 per diluted share, in the prior-year quarter. The filing attributes the decline in operating income mainly to higher costs tied to the ServiceMax acquisition, including stock-based compensation, intangibles amortization, and acquisition and transaction-related charges. Interest and debt premium expense rose to $41.5 million from $12.2 million, reflecting the financing of the acquisition. PTC closed its acquisition of ServiceMax, Inc. on January 3, 2023 for a purchase price of $1,448.2 million, net of cash acquired. The company paid a first installment of $828.2 million at closing, and a remaining $650.0 million installment (recorded at a $620.0 million fair value) is payable on October 2, 2023. Total debt rose to $1.925 billion at March 31, 2023 from $1.359 billion at September 30, 2022, and the filing states that the company expects to use a substantial portion of operating cash flow to repay its revolving credit line and make the deferred ServiceMax payment, and that it does not expect to repurchase shares in the remainder of fiscal 2023 or in fiscal 2024. Operating cash flow for the first six months was $391.9 million versus $280.1 million a year earlier, and the company reported ARR of $1.88 billion at the end of the quarter, up 23% (26% in constant currency) from a year earlier, including contributions from ServiceMax. The filing notes that organic constant currency ARR growth was 13% year over year. Non-GAAP diluted earnings per share for the quarter was $1.16, compared with $1.39 in the prior-year quarter.

    May 3, 2023
  12. 2023-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2022

    PTC Inc. reported first-quarter fiscal 2023 results (quarter ended December 31, 2022) with total revenue of $465.9 million, up from $457.7 million a year earlier, and GAAP net income of $75.0 million, or $0.63 per diluted share, versus $46.1 million, or $0.39 per diluted share, in the prior-year quarter. GAAP operating income rose to $104.9 million from $62.2 million, helped by a $34 million decrease in restructuring charges. ARR reached $1,662.6 million, up 11% on an actual basis and 15% in constant currency. Cash flow from operations was $180.9 million and free cash flow was $171.7 million, compared with $137.7 million and $134.4 million a year earlier. Non-GAAP diluted EPS was $0.99 versus $0.95. The balance sheet and financing picture changed sharply after quarter-end. On January 3, 2023, PTC acquired ServiceMax, Inc. for a preliminary purchase price of $1,478 million, net of cash acquired, paid in two installments: $835 million at closing and $650 million due October 2, 2023. To fund this, PTC entered into a new credit agreement with a $1,250 million revolver and a $500 million term loan, and borrowed $630 million on the revolver and $500 million on the term loan. The filing states total indebtedness rose to approximately $2,130 million, compared with $1,359 million of total debt at December 31, 2022. Management expects to reduce revolver borrowings to about $450 million by the end of Q2 2023 and does not expect to repurchase shares during fiscal 2023 and 2024 while it reduces debt. At December 31, 2022, PTC held $387.6 million of cash and cash equivalents. Management also noted softening in the economy, with new bookings below its expectations, and expects interest expense to rise over the remainder of the year because of the ServiceMax-related borrowings and higher variable rates.

    Feb 9, 2023
  13. 2022-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2022

    PTC Inc. reported third-quarter fiscal 2022 results for the quarter ended June 30, 2022. Total revenue was $462.5 million, up from $435.7 million a year earlier, and GAAP operating income was $80.0 million versus $73.6 million. GAAP diluted EPS rose to $0.60 from $0.43, and net income was $70.5 million compared with $51.2 million. The filing states that Q3'22 ARR was $1.54 billion, or $1.63 billion on a constant currency basis, with growth of 9% and 16% respectively versus Q3'21. Management attributed the results to new bookings across all segments and regions, and to expense discipline. GAAP EPS also benefited from a $29.8 million gain on the sale of a portion of the PLM services business to ITC Infotech. For the nine months ended June 30, 2022, revenue was $1.43 billion and net income was $206.2 million. Operating cash flow was $396.8 million, and free cash flow was $386.8 million, according to the filing's non-GAAP reconciliation. The company acquired Intland Software (Codebeamer) on April 29, 2022 for a preliminary purchase price of $277.2 million, funded in part with $264 million borrowed under its credit facility. It repurchased 1,046 thousand shares for $125 million during the nine months and recorded restructuring charges of $36.9 million, primarily tied to a workforce restructuring that the filing says is intended to accelerate customer moves to the cloud. Balance sheet highlights include cash and cash equivalents of $322.3 million and total debt of $1.43 billion at June 30, 2022. The filing reports compliance with all credit facility covenants, including a total leverage ratio of 1.97 to 1.00. Its equity investment in Matterport, Inc. was fully sold during the period, with a realized loss of $34.8 million recognized in other income (expense) in the first half of fiscal 2022 and an aggregate realized gain of $34.0 million from the original investment.

    Aug 5, 2022
  14. 2022-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2022

    PTC Inc. reported its second-quarter fiscal 2022 results (quarter ended March 31, 2022). Total revenue was $505.2 million, up from $461.8 million a year earlier, and operating income rose to $159.2 million from $101.7 million. Net income was $89.7 million, compared with $109.3 million a year earlier, and diluted EPS was $0.76 versus $0.92. The decline in earnings was driven mainly by a $44.6 million loss on the company's equity investment in Matterport, which it sold during the quarter, recorded in other expense, net. ARR reached $1.53 billion, up 11% (13% in constant currency) from the prior-year quarter, and the company cited strength in new bookings. Cash flow from operations for the six months was $280.1 million, compared with $235.5 million a year earlier. The company repurchased 1,046 thousand shares for $125.0 million in the first six months and repaid $175 million on its revolving credit facility. Total debt was $1.275 billion at March 31, 2022. A restructuring plan launched in the first quarter of 2022 produced $33.6 million in charges for the six months, and the company anticipates total charges of $35 to $40 million for that plan. After the quarter ended, PTC acquired Intland Software on April 29, 2022 for approximately $280 million net of cash acquired, funded in part by $264 million of borrowings under its credit facility. The company also agreed to transition a portion of its PLM services business to ITC Infotech, with that transaction expected to close in the third quarter of fiscal 2022.

    May 5, 2022
  15. 2022-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2021

    PTC Inc. reported first-quarter fiscal 2022 results (three months ended December 31, 2021) with total revenue of $457.7 million, up from $429.1 million a year earlier, and net income of $46.1 million, or $0.39 per diluted share, compared with $23.5 million, or $0.20 per diluted share, in the prior-year quarter. Operating income fell to $62.2 million from $90.3 million, reflected in the filing as an operating margin of 13.6% versus 21.1%, primarily due to $34.0 million of restructuring and other charges tied to a new workforce and facility consolidation plan. The company stated that non-GAAP operating margin was 34.5% versus 35.8% a year earlier. Ending ARR was $1,496.3 million, up 12% (16% in constant currency), and cash from operations was $137.7 million compared with $113.8 million. Free cash flow was $134.4 million. The company repurchased $119.7 million of common stock in the quarter, and as of December 31, 2021 it had $1,450.0 million of total debt, including a $450.0 million credit facility balance. Cash and cash equivalents were $296.1 million. Shareholders' equity declined to $1,953.8 million from $2,038.5 million at September 30, 2021, largely due to the repurchases and payments of withholding taxes on stock awards. Management expects roughly $40 million to $45 million in total restructuring charges for the 2022 plan, with an additional $6 million to $11 million expected in the rest of fiscal 2022. Subsequent to quarter-end, PTC sold its 4,316,301 Matterport, Inc. shares for $39.1 million in January 2022, which the filing says will result in a $48.2 million loss in the second quarter of fiscal 2022. The company also paid $40 million on its revolving credit facility on February 2, 2022. Management noted that Q1 license revenue declined 5% due to contract duration and mix, while support and cloud services revenue rose 13%, and Arena contributed to growth in the Americas.

    Feb 7, 2022
  16. 2021-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2021

    PTC Inc. filed this Form 10-Q for the third quarter of fiscal 2021, ended June 30, 2021. Total revenue was $435.7 million for the quarter, up from $351.7 million, and $1,326.5 million for the nine months, up from $1,067.4 million. Net income was $51.2 million for the quarter (diluted EPS $0.43) and $184.0 million for the nine months (diluted EPS $1.56). Operating income for the nine months rose to $265.6 million from $143.9 million, and the nine-month results include a $37.3 million charge related to a non-U.S. tax matter. Cash from operations for the nine months was $323.5 million, and free cash flow was $311.8 million. The company completed the acquisition of Arena in January 2021 for approximately $715 million net of cash acquired, financed with cash on hand and $600 million borrowed under its credit facility. Goodwill rose to $2,197.3 million at June 30, 2021, from $1,625.8 million at September 30, 2020. Total debt was $1,490.0 million, including $490.0 million drawn on the credit facility revolver, and cash and cash equivalents were $365.8 million. The company stated it expects ARR, revenue and operating margin growth in fiscal 2021, and it plans to resume share repurchases in the fourth quarter of 2021. Annual Recurring Revenue (ARR) was $1.42 billion, up 18% (15% constant currency) from the prior year, with organic ARR growth of 14%. Growth Products ARR rose 60%, including a $57 million contribution from Arena. The filing also reports a subsequent event: Matterport completed a business combination on July 22, 2021, and PTC's preferred equity investment, carried at about $8.7 million, is expected to produce an unrealized gain of approximately $54 million.

    Aug 3, 2021
  17. 2021-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2021

    PTC Inc. reported fiscal second-quarter 2021 results (quarter ended March 31, 2021) with total revenue of $461.8 million, up from $359.6 million in the prior-year quarter, and net income of $109.3 million, compared with $7.2 million a year earlier. Diluted EPS was $0.92 versus $0.06. Operating income rose to $101.7 million from $50.0 million. For the six months, total revenue was $890.8 million and net income was $132.8 million. The filing states that Q2 results were helped by up-front license revenue recognition under ASC 606, a modest contribution from Arena, and a $42.3 million tax benefit from releasing part of the U.S. valuation allowance tied to the Arena acquisition. Management reported ARR of $1.39 billion, up 18% (15% constant currency), and said it expects ARR, revenue, and operating margin growth in fiscal 2021. The acquisition of Arena Solutions, completed January 15, 2021 for approximately $715 million net of cash acquired, was funded with cash on hand and $600 million drawn on the credit facility. Total debt was $1.52 billion at March 31, 2021, including $520 million on the revolver, and cash and cash equivalents were $326.1 million. Cash from operations for the six months was $235.5 million. Goodwill rose to $2.19 billion, largely from the Arena purchase. Risk items disclosed include a $36.1 million charge related to a South Korean tax assessment now under appeal at the Supreme Court of the Republic of Korea, and a putative ERISA class action over the 401(k) plan, for which the company said it cannot yet reasonably estimate the outcome.

    May 4, 2021
  18. 2021-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2020

    PTC Inc. reported first-quarter fiscal 2021 results (three months ended December 31, 2020) with total revenue of $429.1 million, up from $356.1 million a year earlier, and operating income of $90.3 million versus $30.4 million. Recurring revenue rose to $385.0 million from $305.4 million, and subscription license revenue grew 47% on a constant currency basis of 43%. Annual Run Rate (ARR) reached $1.34 billion, up 16% (12% constant currency). Net income was $23.5 million, or $0.20 per diluted share, compared with $35.5 million, or $0.31 per diluted share, a year earlier. The decline in earnings reflects a $35.3 million charge tied to a South Korean tax assessment that the company is appealing, which pushed the effective tax rate to 70%. Cash generation was strong, with operating cash flow of $113.8 million versus $7.5 million in the prior-year quarter, and cash and cash equivalents ended the quarter at $398.7 million. The company sold all its marketable securities in December 2020 to help fund the Arena Solutions acquisition, which closed on January 15, 2021 for approximately $715 million net of cash acquired. Funding included $600 million borrowed under the company's credit facility, bringing total outstanding indebtedness to approximately $1.6 billion after the borrowing. Management stated it plans to use operating cash flow to pay down that borrowing and to reevaluate share repurchases once leverage (Debt/EBITDA) falls below 3x. Management expects ARR, revenue and operating income growth in fiscal 2021 but flagged COVID-19 as a continuing source of uncertainty for large-deal closings and customer renewals. The filing also discloses an ERISA class action over the company's 401(k) plan, for which the company cannot yet estimate a financial effect.

    Feb 4, 2021
  19. 2020-Q3

    PTC Quarterly Report for Q3 Ended Jun 27, 2020

    PTC Inc. reported solid third-quarter fiscal 2020 results for the quarter ended June 27, 2020. Total revenue was $351.7 million, up from $295.5 million a year earlier, and GAAP net income was $34.7 million, or $0.30 per diluted share, compared with a net loss of $14.8 million in the prior-year quarter. Management described ARR growth of 9% (10% constant currency), supported by renewal sales, while new license sales declined roughly 20% amid the COVID-19 pandemic. Operating income rose to $63.4 million from $9.3 million, and non-GAAP operating margin was 29.4% versus 12.8% a year earlier. Recurring revenue grew 27% to $310.6 million, and the company noted that upfront recognition of multi-year on-premise subscription license revenue, following the discontinuation of annual cancellation rights, contributed to results. The balance sheet and capital structure changed meaningfully. In February 2020 PTC issued $500 million of 4.000% senior notes due 2028 and $500 million of 3.625% senior notes due 2025, and it redeemed its $500 million 6.000% senior notes due 2024 in the third quarter, paying a $15 million early redemption premium. Total debt was $1.138 billion at June 27, 2020, including $138 million on the credit facility revolver. Cash and cash equivalents were $377.4 million, and total cash and marketable securities were $435.7 million. The Onshape acquisition, completed November 1, 2019 for approximately $469 million net of cash acquired, increased goodwill to $1.605 billion. For the nine months, revenue was $1.067 billion and net income was $77.3 million, or $0.67 per diluted share. Operating cash flow was $199.8 million, down from $229.9 million, which the company attributed partly to higher restructuring and tax payments. Management expects fiscal 2020 new bookings to decline about 15% year over year (about 25% in the second half), anticipates ARR growth of 11% to 12% and revenue growth of 13% to 14%, and has suspended its share repurchase program for fiscal 2020.

    Aug 5, 2020
  20. 2020-Q2

    PTC Quarterly Report for Q2 Ended Mar 28, 2020

    PTC Inc. reported results for the second quarter of fiscal 2020 (ended March 28, 2020) in this Form 10-Q. Total revenue for the quarter was $359.6 million, up from $290.5 million a year earlier, and net income was $7.2 million, or $0.06 per diluted share, compared with a net loss of $43.5 million in the prior-year quarter. Operating income was $50.0 million, against an operating loss of $22.9 million a year earlier. Total recurring revenue rose to $315.9 million from $239.2 million. Interest and debt premium expense increased to $32.6 million, including a $15.0 million early redemption fee tied to the planned May 2020 redemption of the 6.000% Senior Notes due 2024. The balance sheet changed significantly during the period. In February 2020 PTC issued $500 million of 4.000% Senior Notes due 2028 and $500 million of 3.625% Senior Notes due 2025, and used $460 million of the net proceeds to repay part of its revolving credit facility. The company completed the acquisition of Onshape, paying approximately $469 million net of cash acquired, funded through its credit facility. Cash and cash equivalents rose to $826.8 million, while total debt was $1,648.1 million. Net cash provided by operating activities was $95.3 million for the six months, compared with $162.3 million a year earlier, and the company has suspended its share repurchase program for fiscal 2020. Management stated that COVID-19 pressured new bookings late in the quarter, with new license bookings down mid-teens versus the prior year, while renewals were essentially unaffected. Management expects new bookings to be down approximately 30% year over year in the second half of fiscal 2020, anticipates churn of approximately 8% for the year, and projects fiscal 2020 ARR growth of approximately 11% and revenue growth of approximately 12%.

    May 6, 2020
  21. 2020-Q1

    PTC Quarterly Report for Q1 Ended Dec 28, 2019

    PTC Inc. reported first-quarter fiscal 2020 results for the three months ended December 28, 2019. Total revenue was $356.1 million, up from $334.7 million a year earlier, while net income rose to $35.5 million from $21.0 million. Diluted EPS was $0.31 versus $0.18. GAAP operating income was $30.4 million, roughly flat with $30.0 million in the prior-year quarter, and the filing attributes the operating result to $7.1 million of acquisition-related charges tied to the Onshape acquisition. The company describes non-GAAP operating margin of 26% and non-GAAP diluted EPS of $0.57, versus $0.56 a year earlier. Total recurring revenue was $305.4 million compared with $251.4 million, while perpetual license revenue fell to $9.0 million from $41.8 million after perpetual license sales ceased. The most significant balance sheet event was the acquisition of Onshape on November 1, 2019 for approximately $468 million net of cash acquired, funded by borrowings under the credit facility. Goodwill rose to $1,606.1 million from $1,238.2 million, and total debt increased to $1,128.1 million from $673.1 million at September 30, 2019. The revolving loan commitment was raised from $700 million to $1 billion in November 2019. Cash from operations was $7.5 million, compared with $21.2 million a year earlier, and the filing cites lower accounts receivable collections as a primary driver. Annualized recurring revenue (ARR) was $1,158 million, up 11% year over year. The filing also discloses a voluntary restructuring program initiated in the quarter tied to Onshape synergies, with $13.6 million of charges incurred and an estimated $30 million of total restructuring charges expected in 2020. Income tax results were a $16.4 million benefit, largely reflecting a $21.0 million reduction in the U.S. valuation allowance from the Onshape acquisition, and the company continues to carry a full valuation allowance against its U.S. net deferred tax assets.

    Jan 27, 2020
  22. 2019-Q3

    PTC Quarterly Report for Q3 Ended Jun 29, 2019

    PTC Inc. reported a GAAP net loss of $14.8 million for the third quarter of fiscal 2019 (quarter ended June 29, 2019), with total revenue of $295.5 million under ASC 606 (as reported) and $322.4 million under ASC 605. Under ASC 605, total revenue grew 2% year over year (6% constant currency), and subscription license and support revenue grew as the company transitions to subscriptions. Bookings declined in the quarter: license and subscription bookings were $109 million, down 3%. The company reduced its fourth-quarter and full-year bookings and revenue guidance on July 24, 2019 and issued a new fiscal 2024 cash flow target that supersedes prior long-range targets. For the first nine months of 2019, GAAP net loss was $37.3 million, compared with net income of $38.8 million a year earlier. Results were affected by $45.5 million of restructuring and other charges, including a $27.1 million charge tied to exiting the prior Needham headquarters and a $16 million workforce realignment. Operating cash flow was $229.9 million, and cash and cash equivalents were $267.9 million at June 29, 2019. Total debt was $703.1 million, including $500 million of 6.00% senior notes due 2024 and $203.1 million drawn on the revolving credit facility. The adoption of ASC 606 on October 1, 2018 materially changed reported results, accelerating license revenue on subscription contracts. It reduced accumulated deficit by $431.9 million, or $367.4 million net of tax, and makes quarterly revenue more volatile. Remaining performance obligations were $862.7 million, about 90% of which are expected to be recognized over the next 24 months.

    Aug 8, 2019
  23. 2019-Q2

    PTC Quarterly Report for Q2 Ended Mar 30, 2019

    PTC Inc. reported a GAAP net loss of $43.5 million, or $(0.37) per diluted share, for the second quarter ended March 30, 2019, compared with net income of $7.9 million, or $0.07 per diluted share, in the year-ago quarter. Total revenue was $290.5 million under ASC 606, versus $307.9 million in the prior-year quarter; the filing also presents comparable ASC 605 figures of $315.5 million. The GAAP operating loss of $22.9 million reflects a $27.0 million restructuring and other charge, which includes a $26.7 million (approximately $27 million) charge tied to the relocation of worldwide headquarters to the Boston Seaport District, along with stock-based compensation of $27.0 million. Non-GAAP diluted earnings per share were $0.22 under ASC 606 and $0.38 under ASC 605. For the first six months, GAAP net loss was $22.5 million, or $(0.19) per diluted share, against net income of $21.8 million a year earlier. Cash provided by operating activities rose to $162.3 million from $136.6 million, though that figure includes $18 million of restructuring payments. Total cash, cash equivalents, restricted cash and marketable securities were $351.8 million at March 30, 2019. Total debt was $743.1 million, including $243.1 million drawn on the credit facility and $500 million of 6.000% senior notes due 2024. The company repurchased $65.0 million of stock in the quarter and six months, and adopted ASC 606 on October 1, 2018 using the modified retrospective method, which reduced accumulated deficit by $431.9 million ($367.4 million net of tax). Management's strategic goals for 2019 are sustainable growth, expanding subscription licensing, and expanding margins. New software licenses for core and ThingWorx solutions became available only by subscription effective January 1, 2019. Remaining performance obligations totaled $883.7 million, of which about 90% is expected to be recognized over the next 24 months. Subscription bookings and ARR are presented as operating measures, with ASC 605 ARR of approximately $1,065 million, up 11% year over year. The company also announced Kristian Talvitie as CFO effective May 15, 2019, succeeding Andrew Miller.

    May 9, 2019
  24. 2019-Q1

    PTC Quarterly Report for Q1 Ended Dec 29, 2018

    PTC Inc. reported its first quarter of fiscal 2019 (ended December 29, 2018) with total revenue of $334.7 million under ASC 606, compared with $306.6 million in the prior-year quarter, and net income of $21.0 million, or $0.18 per diluted share. Operating income was $30.0 million, versus $17.3 million a year earlier. The company also presented ASC 605 comparisons, under which revenue was $338.8 million and diluted EPS was $0.16. Non-GAAP operating margin was 27.2% under ASC 606 and 27.8% under ASC 605. Restructuring and other charges rose to $18.5 million, tied to a workforce realignment toward Industrial IoT and Augmented Reality, plus a planned headquarters move to the Boston Seaport District. The filing shows the transition to subscription licensing is changing the reported figures. Under ASC 606, license revenue was $105.3 million and support and cloud services revenue was $187.9 million, and deferred revenue fell to $325.1 million from $487.6 million at September 30, 2018. Accounts receivable rose to $385.7 million. Management said license and subscription bookings were $101 million, down 3% year over year, citing final perpetual license purchases in Asia Pacific and execution issues including a sales force realignment. Subscription ACV was $29 million, down from $34 million. ARR was approximately $1,045 million, up 13%. Operating cash flow was $21.2 million, and cash, cash equivalents and marketable securities totaled $333 million. Balance sheet and capital allocation items include long-term debt of $778.5 million, a credit facility balance of $283.1 million and $500 million of 6.0% senior notes due 2024. The company acquired Frustum Inc. for $69.6 million net of cash acquired, and it stated it expects to resume share repurchases in the second quarter of fiscal 2019, with about $65 million planned for that quarter. The filing also discloses that Chief Financial Officer Andy Miller will retire in 2019, with the effective date not yet known.

    Feb 7, 2019
  25. 2018-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2018

    PTC Inc. reported third-quarter fiscal 2018 results (quarter ended June 30, 2018) in this Form 10-Q, with total revenue of $314.8 million, up from $291.3 million a year earlier, and GAAP net income of $17.0 million, or $0.14 per diluted share, versus a net loss of $0.9 million a year earlier. Nine-month revenue was $929.3 million and net income was $38.8 million. Subscription revenue more than doubled in the nine-month period to $339.7 million from $195.0 million, while support revenue fell to $379.0 million from $433.6 million and perpetual license revenue declined to $82.6 million from $94.1 million, reflecting the company's transition to subscription licensing. License and subscription bookings were $113 million in the quarter, up 26%, and ARR was approximately $994 million, up 15% year over year. Non-GAAP operating margin was 17.9% for the quarter, compared with 15.4% a year earlier. The balance sheet shows cash, cash equivalents and marketable securities of $321 million and total debt, net of issuance costs, of $693 million, including $500 million of 6.00% senior notes due 2024 and $198.1 million drawn on the credit facility. Operating cash flow for the first nine months was $185.3 million, compared with $102.5 million a year earlier. During the nine months, the company repurchased $100 million of common stock through an accelerated share repurchase agreement. Subsequent to quarter end, Rockwell Automation made a $1,000 million equity investment in PTC on July 19, 2018, and PTC entered into a new $1,000 million accelerated share repurchase agreement on July 20, 2018, with final settlement expected 7.5 to 10 months after execution. The filing also flags several items for investors: a disputed receivable under a multi-year contract with a write-down that could range from $0 to $17.3 million, a Korean tax assessment of approximately $12 million that the company is appealing, and a new headquarters lease in Boston beginning in January 2019 with potential overlapping rent obligations on the current headquarters through November 2022. The company also adopted ASU 2016-09 in fiscal 2018 and expects to adopt ASU 2014-09 (revenue recognition) in fiscal 2019 using the modified retrospective method, which the filing says will shift a material portion of deferred revenue to retained earnings and accelerate subscription revenue recognition at the start of each annual contract period.

    Aug 1, 2018
  26. 2018-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2018

    PTC Inc. reported results for the second quarter of fiscal 2018 (three months ended March 31, 2018) in this Form 10-Q. Total revenue rose to $307.9 million from $280.0 million a year earlier, and GAAP operating income was $22.4 million versus $7.5 million. Net income for the quarter was $7.9 million ($0.07 per diluted share), compared with a net loss of $1.1 million a year earlier. For the first six months, revenue was $614.5 million, net income was $21.8 million, and net cash provided by operating activities was $136.3 million, up from $28.6 million. Subscription revenue more than doubled in the six-month period to $212.9 million from $120.1 million, while support revenue declined to $257.9 million from $293.2 million, reflecting the company's transition to subscription licensing. Management reported total recurring revenue growth of 15% in the quarter and non-GAAP operating margin of 17.6% for the quarter. The balance sheet shows cash, cash equivalents and marketable securities of $355.0 million at March 31, 2018, and long-term debt, net of issuance costs, of $642.8 million, including $500 million of 6.000% senior notes due 2024 and $148.1 million drawn on the credit facility. Deferred revenue (billed) was $498 million and unbilled deferred revenue was $765 million. Management expects the Tax Act and the subscription transition to continue affecting reported results, and the company anticipates adopting ASU 2014-09 (revenue recognition) in fiscal 2019 under the modified retrospective method, which it says will likely produce a material retained earnings adjustment. After the quarter end, PTC borrowed $150 million, repaid $50 million under its credit facility, and entered into a $100 million accelerated share repurchase agreement on April 20, 2018, with an initial delivery of 951,814 shares at $84.05 per share. Final settlement is expected no later than June 26, 2018. The filing also discloses a potential write-down of up to $17.3 million related to a disputed receivable and a $12 million Korean tax assessment under appeal.

    May 2, 2018
  27. 2018-Q1

    PTC Quarterly Report for Q1 Ended Dec 30, 2017

    PTC Inc. reported first-quarter fiscal 2018 results for the three months ended December 30, 2017, with total revenue of $306.6 million, up from $286.3 million in the prior-year quarter, and net income of $13.9 million compared with a net loss of $9.1 million a year earlier. Subscription revenue rose to $100.0 million from $54.4 million, while support revenue declined to $131.2 million from $151.5 million, reflecting the company's managed transition to subscription licensing. Operating income was $17.5 million versus $4.6 million, and diluted EPS was $0.12. License and subscription bookings were $104 million, and annualized recurring revenue (ARR) was approximately $928 million. Net tax benefits from the Tax Cuts and Jobs Act were recorded in the quarter, with a deferred tax benefit of $14.2 million and state tax on deemed repatriation of $7.1 million. The balance sheet shows cash and cash equivalents of $291.7 million and total debt of $748.1 million, including $500 million of 6.0% senior notes due 2024 and $248.1 million drawn on the credit facility. The company reported operating cash flow of $25.1 million, compared with cash used of $47.9 million a year earlier, and total debt of $743 million net of issuance costs. Deferred revenue, including unbilled amounts, totaled $1.17 billion. The filing reports that the company will move new software licenses to subscription-only in the Americas and Western Europe effective January 1, 2018, and that it expects to adopt ASU 2014-09 (revenue recognition) under the modified retrospective method in fiscal 2019, which it says could result in a material retained earnings adjustment. The company reorganized its reporting into two segments, Software Products and Professional Services, effective fiscal 2018. Management highlighted strong bookings growth in CAD, PLM and IoT, and noted that a full valuation allowance remains against U.S. net deferred tax assets. Restructuring from fiscal 2016 is substantially complete, and the company has a $500 million share repurchase authorization running through September 30, 2020, under which it had made no repurchases as of the filing date.

    Feb 6, 2018
  28. 2017-Q3

    PTC Quarterly Report for Q3 Ended Jul 1, 2017

    PTC Inc. reported third-quarter fiscal 2017 results (quarter ended July 1, 2017) in this Form 10-Q. Total revenue was $291.3 million, up 1% from $288.7 million a year earlier, and total recurring revenue grew 11% to $215.3 million. The company reported a GAAP net loss of $951 thousand for the quarter, compared with net income of $3.1 million a year earlier, and GAAP operating income of $11.3 million. For the first nine months, revenue was $857.7 million and the net loss was $11.2 million. Management described the quarter as evidence of an exit from the subscription transition trough, with subscription bookings at 64% of total bookings versus 58% a year earlier. The filing highlights a sharp decline in license and subscription bookings in Japan, which fell 74% for the quarter and 52% for the first nine months, attributed to sales execution issues. Total license and subscription bookings for the quarter were $90 million, down 14%, while year-to-date bookings were $275 million, up 6%. Management also disclosed that, effective January 1, 2018, new software licenses for its core solutions and ThingWorx platform will be available only by subscription in the Americas and Western Europe. On the balance sheet, cash and cash equivalents were $260.7 million and total debt was $718.1 million, including $500 million of 6.0% senior notes due 2024 and $218.1 million outstanding under the credit facility. The company repurchased $35 million of common stock in the quarter and reported a total leverage ratio of 3.19 to 1.00 against a 4.50 to 1.00 covenant maximum. Management stated that it could borrow only $298 million of the $382 million not borrowed under the credit facility.

    Aug 8, 2017
  29. 2017-Q3

    PTC Quarterly Report for Q3 Ended Apr 1, 2017

    PTC Inc. reported second-quarter fiscal 2017 results (quarter ended April 1, 2017) in this Form 10-Q. Total revenue was $280.0 million, up from $272.6 million a year earlier, and GAAP net loss narrowed to $1.1 million, or $(0.01) per share, from $5.2 million, or $(0.05) per share. For the six months, revenue was $566.4 million versus $563.6 million, and net loss was $10.2 million versus $29.1 million. Subscription revenue rose to $65.8 million from $23.7 million, while support revenue fell to $141.7 million from $160.6 million and perpetual license revenue fell to $27.4 million from $39.7 million. Subscription bookings were 71% of total bookings in the quarter, compared with 54% a year earlier, and the company states that it has exited the subscription revenue trough. Non-GAAP operating margin was 16.0% for the quarter, up from 14.0%, and non-GAAP diluted EPS was $0.30, up from $0.23. Cash and cash equivalents were $243.3 million at April 1, 2017, plus $48.2 million of marketable securities, against total debt of $718.1 million. Operating cash flow for the six months was $28.4 million, down from $110.1 million, which the company attributes mainly to lower receivables collections, higher bonus and commission payments, its first bond interest payment, and a $12 million Korean tax assessment payment. The credit facility was reduced to $600 million from $900 million in March 2017, and the maximum total leverage ratio was raised to 4.50 to 1.00 from 4.00 to 1.00. As of April 1, 2017, the total leverage ratio was 3.25 to 1.00 and the company was in compliance with its covenants. The company resumed share repurchases in early third quarter 2017 and had repurchased $19 million through May 10, 2017. Management's outlook remains cautious on the macroeconomic environment. It expects the subscription transition to be a smaller headwind in the second half of fiscal 2017, plans to start offering core solutions and ThingWorx only by subscription in the Americas and Western Europe effective January 1, 2018, and expects an additional $3 million in restructuring charges in the third quarter of 2017.

    May 11, 2017
  30. 2017-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2016

    PTC Inc. reported its first quarter of fiscal 2017 (three months ended December 31, 2016) with total revenue of $286.3 million, down from $291.0 million a year earlier, and a net loss of $9.1 million, or $(0.08) per share, compared with a net loss of $23.9 million, or $(0.21) per share, in the prior-year quarter. The company attributed the revenue decline mainly to its shift from perpetual licenses to subscriptions, which lowered recognized software revenue, and to lower professional services revenue. Subscription revenue rose to $54.4 million from $22.2 million, while support revenue fell to $151.5 million from $171.8 million and perpetual license revenue fell to $34.4 million from $47.8 million. Operating income was $4.6 million, versus an operating loss of $13.3 million a year earlier, reflecting lower restructuring charges of $6.3 million compared with $37.1 million. Non-GAAP operating margin was 15.4%, down from 21.3%. Cash flow was negative in the quarter, with net cash used in operating activities of $48.0 million, which the company tied to bonus and commission payments, its first bond interest payment of $15 million, and a $12 million Korea tax audit payment. Cash and cash equivalents fell to $173.4 million from $277.9 million at September 30, 2016, and total debt was $738.1 million, including $500 million of 6.0% senior notes due 2024 and $238.1 million drawn on the credit facility. Subsequent to quarter end, the company borrowed $40 million under its credit facility in January 2017 and sold a cost method investment for $13.7 million. Management stated that subscription bookings were 65% of license and subscription bookings in the quarter, compared with 28% a year earlier, and that license and subscription bookings were $90 million, up 31%. ARR was approximately $819 million, up 9%. Management expects that a significant majority of 2017 license and subscription bookings will be subscriptions and that the subscription transition will continue to weigh on revenue, operating margin and EPS, and it did not repurchase shares in the quarter.

    Feb 9, 2017
  31. 2016-Q3

    PTC Quarterly Report for Q3 Ended Jul 2, 2016

    PTC Inc. reported a net loss for the first nine months of fiscal 2016 of $(25,992) thousand, compared with net income of $53,111 thousand in the year-ago period, as total revenue declined to $852.3 million from $942.7 million. The filing attributes the decline primarily to the company's accelerating transition from perpetual licenses to subscription licensing, a 6% decline in professional services revenue in the third quarter, a challenging macroeconomic environment, and the stronger U.S. Dollar. Subscription bookings rose to 58% of license and subscription bookings in the third quarter of 2016, up from 16% a year earlier, and perpetual license revenue fell 35% for the nine months. Operating income was $(3.9) million for the nine months, versus $63.2 million a year earlier, after $44.5 million of restructuring charges. The balance sheet shows total debt of $778.1 million at July 2, 2016, following the issuance of $500 million of 6.0% senior notes due 2024 in May 2016, which were used to repay part of the revolving credit facility. Cash and cash equivalents were $294.6 million, and the company reported net cash provided by operating activities of $169.6 million for the nine months. The company also disclosed a $12 million Korean tax assessment that it intends to appeal, a China investigation by the Agency that could result in fines, and a securities class action lawsuit filed in March 2016 that seeks unspecified damages. Management anticipates that the macroeconomic conditions affecting discrete manufacturing customers will persist through 2016, and it does not expect to repurchase shares in the fourth quarter of 2016. The company expects the subscription share of license and solutions bookings to be approximately 48% in 2016, and it is targeting a significant majority of subscription bookings by 2018.

    Aug 11, 2016
  32. 2016-Q3

    PTC Quarterly Report for Q3 Ended Apr 2, 2016

    PTC Inc. reported a GAAP net loss of $5.2 million for the second quarter of fiscal 2016 and a net loss of $29.1 million for the six months ended April 2, 2016, compared with net income of $5.4 million and $35.7 million in the prior-year periods. Total revenue fell to $272.6 million in the quarter from $314.1 million, and to $563.6 million for the six months from $639.6 million. Management attributes the decline mainly to the shift from perpetual licenses to subscriptions, weaker professional services revenue, a challenging macroeconomic environment, and a stronger U.S. Dollar. Subscription bookings reached 54% of license and subscription bookings in the quarter, up from 14% a year earlier, and the company reported $368.5 million in cash at April 2, 2016. Restructuring charges of $41.7 million in the first half of 2016 and $28.2 million paid to resolve the China FCPA investigation with the SEC and DOJ weighed on results. Borrowings under the credit facility rose to $838.1 million, and the company priced $500 million of 6.000% senior notes due 2024, with closing expected May 12, 2016, and proceeds used to repay part of the credit facility. Non-GAAP operating margin was 14.0% in the quarter versus 23.4% a year earlier. The filing also discloses a shareholder securities lawsuit and a China AIC investigation whose outcome the company cannot predict. The company reported a total leverage ratio of 3.12 to 1.00 against a covenant maximum of 3.50 to 1.00 and stated it was in compliance with all financial and operating covenants. Management expects capital expenditures of about $30 million and stock repurchases of $70 million in 2016.

    May 11, 2016
  33. 2016-Q2

    PTC Quarterly Report for Q2 Ended Jan 2, 2016

    PTC Inc. reported a GAAP net loss of $23.9 million, or $(0.21) per share, for the first quarter of fiscal 2016 ended January 2, 2016, compared with net income of $30.3 million, or $0.26 per share, a year earlier. Total revenue fell to $291.0 million from $325.4 million, driven by a shift from perpetual licenses to subscriptions, a 24% decline in professional services revenue, and currency headwinds from a stronger U.S. Dollar. Subscription revenue rose to $22.2 million from $14.2 million, while perpetual license revenue dropped to $47.8 million from $64.7 million. Operating loss was $(13.3) million, against operating income of $37.6 million a year earlier, largely reflecting a $37.1 million restructuring charge tied to a plan that workforce reductions of 432 employees and facility consolidation. Non-GAAP operating margin was 21.3% versus 21.4%, and non-GAAP diluted EPS was $0.51 versus $0.50. Cash and cash equivalents increased to $296.8 million, supported by $61.3 million of operating cash flow and a $50 million credit facility borrowing used to fund the Vuforia acquisition for about $64.8 million net of cash acquired. Total debt outstanding under the credit facility was $718.1 million at January 2, 2016, and the company stated it was in compliance with its financial covenants, with a total leverage ratio of 2.68 to 1.00. In January 2016, PTC acquired Kepware for approximately $100 million in cash plus an $18 million contingent earn-out and borrowed $120 million under its credit facility to fund it, with $100 million used for the acquisition. The company also disclosed a $28.2 million liability recorded in connection with an agreement in principle to settle an investigation by the SEC and DOJ concerning expenditures in China, and stated that a final settlement is not assured. Management guides to 2016 capital expenditures of $37 million, the China settlement payment of $28 million, and share repurchases of $50 million to $60 million, and it expects the restructuring to yield net annualized expense reductions of approximately $17 million.

    Feb 10, 2016
  34. 2015-Q3

    PTC Quarterly Report for Q3 Ended Jul 4, 2015

    PTC Inc. reported a third quarter of fiscal 2015 (ended July 4, 2015) with total revenue of $303.1 million, down from $336.6 million a year earlier, and GAAP net income of $17.4 million, or $0.15 per diluted share, versus $38.0 million and $0.32 a year earlier. Operating income fell to $21.6 million from $54.4 million. The decline reflected lower license and subscription solutions revenue ($83.9 million vs. $97.7 million), lower professional services revenue ($53.5 million vs. $66.9 million), and a $13.6 million accrual related to the pending China investigation, plus $4.4 million of restructuring charges. Non-GAAP diluted EPS was $0.53 in both periods. Management said that challenging macroeconomic conditions, particularly in the Americas and China, and a stronger U.S. Dollar affected large-deal closings, and that 2015 revenue and non-GAAP earnings are now expected to be below previous guidance. For the nine months, revenue was $942.7 million versus $990.3 million, and net income was $53.1 million versus $121.4 million. Cash and cash equivalents were $275.1 million at July 4, 2015, and the credit facility balance was $624.4 million, with a leverage ratio of 2.31 to 1.00 against a 3.00 to 1.00 maximum. The company acquired ColdLight for approximately $98.6 million in cash in May 2015. It also began a restructuring plan of up to $45 million that resulted in charges of $42.6 million for the first nine months, and it is terminating its U.S. defined benefit pension plan, with an expected pre-tax settlement loss of approximately $66 million in the fourth quarter. The Internet of Things business was a bright spot, with IoT license revenue exceeding 20% of L&SS revenue in the quarter. Recurring revenue (subscription and support) was about 60% of revenue, compared with about 53% a year earlier, but the company recorded only 8 large deals in the quarter versus 21 in the prior-year quarter.

    Aug 11, 2015
  35. 2015-Q3

    PTC Quarterly Report for Q3 Ended Apr 4, 2015

    PTC Inc. reported a sharp drop in profitability for the second quarter and first six months of fiscal 2015 ended April 4, 2015. Total revenue for the quarter was $314.1 million, down from $328.7 million a year earlier, while GAAP operating income fell to $4.0 million from $51.2 million, and GAAP net income was $5.4 million, or $0.05 diluted EPS, versus $43.8 million and $0.36 a year earlier. The decline reflected a $38.5 million restructuring charge tied to a workforce realignment (up to $45 million total, with expected net annualized expense reductions of about $30 million), along with a higher mix of subscription bookings, unfavorable currency movements, and lower professional services revenue. Non-GAAP diluted EPS was $0.53 for the quarter, compared with $0.48 a year earlier, as stated in the filing. Cash and cash equivalents ended the period at $267.8 million, down from $293.7 million at fiscal year-end September 30, 2014. Operating cash flow for the six months was $105.6 million, versus $147.0 million a year earlier. Total debt under the credit facility stood at $530.6 million at April 4, 2015, and rose to $631 million by May 8, 2015 after a $100 million borrowing and the ColdLight acquisition, which closed May 7, 2015 for approximately $100 million in cash plus up to $5 million contingent. The company also disclosed an ongoing investigation in China involving possible U.S. Foreign Corrupt Practices Act issues, where resolution is likely to include fines and penalties that could be material, though no liability has been recorded. Management stated that it now expects 2015 revenue below prior guidance, while still expecting 2015 non-GAAP earnings to be consistent with prior guidance. The company is also terminating a U.S. defined benefit pension plan, with pre-tax settlement losses currently estimated at approximately $65 million and completion expected by September 30, 2015. Share repurchases are expected to resume in the third quarter of 2015, with up to $100 million of stock repurchases possible for the remainder of 2015.

    May 11, 2015
  36. 2015-Q2

    PTC Quarterly Report for Q2 Ended Jan 3, 2015

    PTC Inc. reported its first quarter of fiscal 2015 (ended January 3, 2015) with total revenue of $325.4 million, essentially flat versus $324.9 million in the year-ago quarter. GAAP net income was $30.3 million, or $0.26 per diluted share, down from $39.7 million, or $0.33, a year earlier. GAAP operating income was $37.6 million versus $54.9 million, and operating cash flow fell to $13.6 million from $36.2 million. Management attributed the weaker profitability largely to a higher mix of subscription bookings, which defer revenue recognition, and to a $12 million unfavorable foreign-exchange impact on revenue. Subscription solutions bookings were 19% of license and subscription solutions (L&SS) bookings, above management's expectation of 15%, and recurring revenue (subscription plus support) was approximately 60% of total revenue, up from approximately 53% a year earlier. The company lowered its 2015 targets. It now expects revenue to decline 1% to 3% year over year, GAAP EPS of $1.32 to $1.47, and non-GAAP EPS of $2.20 to $2.35, citing currency rates and economic uncertainty in Europe, China and Japan. The filing also estimates pre-tax settlement losses of about $65 million from terminating the U.S. pension plan, which is expected to be completed by September 30, 2015. Cash and cash equivalents declined to $261.1 million, and the credit facility balance stood at $605.6 million with a leverage ratio of 1.74 to 1.00. PTC continues to cooperate with the SEC and Department of Justice on an investigation of payments by business partners and employees in China that may raise questions under the Foreign Corrupt Practices Act. The company has not recorded a liability and states that it cannot predict the timing or amount of any resolution, which could include substantial fines and penalties.

    Feb 10, 2015
  37. 2014-Q3

    PTC Quarterly Report for Q3 Ended Jun 28, 2014

    PTC Inc. reported a quarter ended June 28, 2014 with total revenue of $336.6 million, up from $315.0 million a year earlier, and GAAP net income of $38.0 million, or $0.32 per diluted share, versus $34.5 million and $0.29 a year earlier. For the nine months, revenue was $990.3 million and net income was $121.4 million ($1.01 diluted EPS), compared with $948.7 million and $87.3 million a year earlier. GAAP operating income rose to $54.4 million in the quarter and $160.5 million for the nine months, and operating cash flow for the nine months was $253.4 million versus $181.0 million. Non-GAAP diluted EPS was $0.53 for the quarter and $1.51 for the nine months. The balance sheet shows cash and equivalents of $304.2 million and total debt (current and long-term) of $315.0 million under the credit facility, with a leverage ratio of 0.93 to 1.00 and covenant compliance. Goodwill rose to $870.8 million following the ThingWorx acquisition, completed for $111.5 million in cash plus $13.0 million of contingent consideration. Share repurchases totaled $99.9 million in the nine months, and on August 4, 2014 the board authorized up to $600 million of buybacks through September 30, 2017, including an intended $125 million accelerated share repurchase in the fourth quarter of fiscal 2014. Subsequent events include the pending Axeda acquisition for approximately $170 million in cash, expected to close in mid-August 2014, and the Atego acquisition for approximately $50 million completed June 30, 2014. The company also disclosed an ongoing internal review and cooperation with the SEC and Department of Justice regarding payments in China that may raise Foreign Corrupt Practices Act questions, with no liability recorded and possible fines and penalties that cannot yet be estimated. A U.S. pension plan termination is underway, with losses currently estimated at about $70 million to be recognized as liabilities settle.

    Aug 5, 2014
  38. 2014-Q2

    PTC Quarterly Report for Q2 Ended Mar 29, 2014

    PTC Inc. reported fiscal second-quarter 2014 results (quarter ended March 29, 2014) with total revenue of $328.7 million, up from $313.9 million a year earlier, and GAAP net income of $43.8 million, or $0.36 diluted EPS, versus $17.0 million and $0.14 a year earlier. Operating income rose to $51.2 million from $21.2 million, reflecting the absence of restructuring charges ($15.8 million in the prior-year quarter) and lower operating expenses. Six-month results showed revenue of $653.6 million and net income of $83.4 million, with operating cash flow of $147.0 million. Results include a $8.9 million non-cash tax benefit tied to the ThingWorx acquisition, which was completed on December 30, 2013 for $111.5 million in cash net of cash acquired plus $13.0 million of contingent consideration. The company replaced its credit facility on January 30, 2014 with a $250 million term loan and a $750 million revolving commitment maturing in January 2019. Outstanding borrowings were $318.1 million at quarter end, and the leverage ratio was 0.98 to 1.00. Cash and equivalents were $270.5 million, and the company repurchased 1.1 million shares for $40.0 million in the quarter. Goodwill increased to $869.3 million following the ThingWorx deal. The filing also discloses an ongoing investigation in China, in which PTC has been cooperating with the SEC and the Department of Justice regarding payments by business partners and employees of its Chinese subsidiary. The company has recorded no liability because it cannot estimate a potential amount, and revenue from China has historically represented 5% to 7% of total revenue. The company's 2014 goals call for revenue growth of 3% to 4% and non-GAAP EPS of $2.05 to $2.15.

    May 6, 2014
  39. 2014-Q1

    PTC Quarterly Report for Q1 Ended Dec 28, 2013

    PTC Inc. reported a first quarter of fiscal 2014 (quarter ended December 28, 2013) with total revenue of $324.9 million, up from $319.8 million a year earlier, and GAAP net income of $39.7 million, or $0.33 per diluted share, compared with $35.8 million, or $0.29 per diluted share, in the prior-year quarter. Operating income rose to $54.9 million from $13.9 million, reflecting lower restructuring charges ($1.1 million versus $15.4 million) and lower operating expenses, which fell to $177.1 million from $208.8 million. Net income in the prior-year quarter benefited from a $32.6 million tax benefit tied to the Servigistics acquisition, and the effective tax rate was 25% this quarter versus a benefit of 197% a year earlier. Cash provided by operating activities was $36.2 million. Balance sheet and liquidity changed notably in the quarter. Cash and cash equivalents rose to $371.4 million from $241.9 million at September 30, 2013, largely due to a $110 million borrowing under the credit facility to fund the ThingWorx acquisition, which closed on December 30, 2013 for approximately $112 million in cash plus up to an additional $18 million in earn-out payments. Total long-term debt including the current portion was $368.1 million at quarter end. On January 30, 2014, PTC replaced its credit facility with a new $1 billion facility consisting of a $250 million term loan and a $750 million revolving commitment, maturing in January 2019, and raised the maximum leverage ratio covenant to 3.00 to 1.00 from 2.50 to 1.00. The filing also discloses an ongoing investigation involving payments and expenses by certain business partners in China and employees of its Chinese subsidiary, which may relate to the U.S. Foreign Corrupt Practices Act. PTC has not recorded a liability because it cannot estimate any amount that could be associated with resolution, and the matter could include fines and penalties. Revenue from China has historically represented 6% to 7% of total revenue. For fiscal 2014, the company stated goals of 3% to 4% revenue growth and GAAP earnings per share of $1.38 to $1.48.

    Feb 4, 2014
  40. 2013-Q3

    PTC Quarterly Report for Q3 Ended Jun 29, 2013

    PTC Inc. (formerly Parametric Technology Corporation) reported third-quarter fiscal 2013 revenue of $315.0 million, up 1% year over year and up 4% on a constant currency basis. Excluding revenue from the Servigistics acquisition, organic revenue fell 6%. License revenue declined 5% to $79.9 million, service revenue fell 3% to $72.5 million, and support revenue rose 7% to $162.6 million. The company attributed weakness to the global manufacturing slowdown, particularly in Europe and China, and to unfavorable currency movements, especially the Japanese Yen. GAAP diluted EPS was $0.29, up 50% from $0.19, and non-GAAP diluted EPS was $0.45, up 22% from $0.37. GAAP operating margin rose to 13.7% from 10.0%, and non-GAAP operating margin rose to 22.2% from 18.6%, driven mainly by cost containment, restructuring actions and higher service margins. For the nine months ended June 29, 2013, revenue was $948.7 million and net income was $87.3 million, compared with $48.6 million a year earlier. Net income for the period includes a $32.6 million one-time tax benefit from releasing part of the U.S. valuation allowance. The company acquired Servigistics on October 2, 2012 for $220.8 million in cash, and the business added $22.5 million to quarterly revenue. Cash and equivalents fell to $257.0 million from $489.5 million at September 30, 2012, reflecting the acquisition, $101.9 million of credit facility repayments and $54.9 million of share repurchases. Outstanding credit facility borrowings were $268.1 million, with a leverage ratio of 0.99 to 1.00 against a 2.50 maximum. For fiscal 2013, the company lowered its revenue growth goal to 2% to 3% (from a prior 4% to 5%) but maintained its earnings targets, with non-GAAP EPS of $1.72 to $1.77 and GAAP EPS of $1.04 to $1.09. The filing also discloses an ongoing investigation in China, being handled with the SEC and Department of Justice under the Foreign Corrupt Practices Act. The company has begun discussions on a possible resolution but has recorded no liability because it cannot estimate the amount or timing.

    Aug 7, 2013
  41. 2013-Q2

    PTC Quarterly Report for Q2 Ended Mar 30, 2013

    PTC Inc. (formerly named Parametric Technology Corporation) reported second-quarter fiscal 2013 total revenue of $313.9 million, up from $301.1 million a year earlier, and net income of $17.0 million, or $0.14 per diluted share, versus $3.6 million ($0.03) in the prior-year quarter. For the six months ended March 30, 2013, revenue was $633.7 million and net income was $52.8 million, which includes a $32.6 million tax benefit tied to the Servigistics acquisition. Operating income for the quarter was $21.2 million, and restructuring charges were $15.8 million, with the company stating that these actions are expected to produce approximately $9 million per quarter in cost savings beginning in the third quarter of 2013. The company acquired Servigistics, Inc. on October 2, 2012 for $222.4 million in cash, funded largely by a $230 million borrowing under its credit facility. Servigistics added $20.2 million to second-quarter revenue. Cash and cash equivalents fell to $240.8 million at March 30, 2013 from $489.5 million at September 30, 2012, and total debt outstanding under the credit facility was $308.1 million. The company reported that it was in compliance with all financial covenants, with a leverage ratio of 1.2 to 1.00. The filing also discloses that PTC is cooperating with the SEC and the Department of Justice on payments and expenses by certain business partners in China and employees of its Chinese subsidiary that raise questions under the U.S. Foreign Corrupt Practices Act. The company has not recorded a liability for this matter, and it states that any resolution could include fines and penalties and could materially affect results in the period a liability is recorded. Management also lowered its 2013 revenue growth outlook to 4% to 5% while maintaining its non-GAAP earnings per share target of $1.70 to $1.80.

    May 8, 2013
  42. 2013-Q1

    PTC Quarterly Report for Q1 Ended Dec 29, 2012

    PTC Inc. (formerly named Parametric Technology Corporation) reported GAAP net income of $35.8 million, or $0.29 per diluted share, for the first quarter ended December 29, 2012, compared with $22.1 million, or $0.18 per diluted share, a year earlier. GAAP revenue was $319.8 million, flat with $318.3 million a year earlier, and GAAP operating income fell to $13.9 million from $32.5 million, reflecting $15.4 million of restructuring charges. Non-GAAP diluted EPS was $0.36 versus $0.35. Net income was also boosted by a $32.6 million tax benefit tied to the Servigistics acquisition. Cash and cash equivalents declined to $248.4 million from $489.5 million at September 30, 2012, mainly due to the $222.4 million cash acquisition of Servigistics, Inc., completed October 2, 2012. License revenue declined 11% to $79.2 million, with Europe down 36%, while support revenue rose 7% to $163.8 million and SLM revenue, which includes Servigistics, rose 122% to $45.4 million. Management attributes the weakness to slow global manufacturing growth and customer delays in large deals. Cash flow from operations was $13.6 million, down from $36.5 million. Total debt outstanding under the credit facility was $368.1 million, and the company was in compliance with its covenants, with a leverage ratio of 1.5 to 1.00. The filing also discloses a January 2013 plan to further restructure the workforce, with an expected charge of approximately $15 million in the second quarter of 2013, and a FY2013 non-GAAP EPS target of $1.70 to $1.80. The company is also under investigation in China relating to potential Foreign Corrupt Practices Act compliance issues, and it has voluntarily disclosed the results to the Department of Justice and the SEC. The company is unable to estimate any resulting fines or sanctions.

    Feb 6, 2013
  43. 2012-Q3

    PTC Quarterly Report for Q3 Ended Jun 30, 2012

    Parametric Technology Corporation (PTC) reported third-quarter fiscal 2012 total revenue of $311.0 million, up 7% year over year (10% on a constant currency basis), with GAAP net income of $22.9 million and diluted EPS of $0.19 versus $0.13 a year earlier. Nine-month revenue was $930.4 million, up 12%, and nine-month GAAP operating income was $70.5 million compared with $65.9 million. Management cites cost reductions, improved services margins, and acquisitions of MKS and 4CS, which contributed $20.3 million of third-quarter revenue. Non-GAAP operating margin rose to 19% in the quarter from 18%, and GAAP operating margin rose to 10% from 8%. The company recorded restructuring charges of $4.1 million in the third quarter and $24.9 million year to date, including severance for 209 employees across the second and third quarters. Management expects operating expense savings of about $6 million per quarter. Full-year 2012 revenue growth is now targeted at 7% to 9%, lowered from prior expectations mainly because of foreign currency effects. Balance sheet and cash flow improved. Cash and cash equivalents rose to $238.0 million from $167.9 million at September 30, 2011, and nine-month operating cash flow was $197.0 million versus $78.7 million a year earlier. The revolving credit facility balance fell to $140.0 million from $200.0 million. The filing also discloses an ongoing investigation of payments and expenses in China that may be reviewed by the U.S. Department of Justice and the SEC, with China historically representing 6% to 7% of revenue.

    Jul 30, 2012
  44. 2012-Q2

    PTC Quarterly Report for Q2 Ended Mar 31, 2012

    Parametric Technology Corporation (PTC) reported second-quarter fiscal 2012 total revenue of $301.1 million, up from $269.2 million in the prior-year quarter, with license revenue of $74.8 million and service revenue of $226.3 million. GAAP operating income fell to $6.9 million from $24.2 million, reflecting $20.8 million of restructuring charges recorded in the quarter. Net income was $3.6 million, or $0.03 per diluted share, compared with $19.0 million, or $0.16 per diluted share, a year earlier. For the six months ended March 31, 2012, total revenue was $619.4 million and net income was $25.7 million. The company also disclosed that a large European license transaction did not close and that North American license sales were lower than expected. The company generated $133.0 million of operating cash flow in the first six months of 2012, compared with $30.2 million a year earlier, which the filing attributes in part to the absence of a prior-year litigation settlement payment of $52.1 million. Cash and cash equivalents rose to $224.1 million, while the revolving credit facility balance was reduced to $160 million from $200 million at September 30, 2011. The company repurchased 0.6 million shares for $15.0 million in the quarter, and the restructuring eliminated 168 positions with expected operating expense savings of about $5 million per quarter. Management reported a GAAP operating margin of 2% for the quarter and a non-GAAP operating margin of 17%, and narrowed its fiscal 2012 revenue growth target to 8% to 10%. The filing also discloses an ongoing internal investigation of payments by certain business partners and expenses by certain employees in China, which the company has voluntarily disclosed to the U.S. Department of Justice and the Securities and Exchange Commission. Revenue from China has historically represented 6% to 7% of total revenue, and the company stated it is unable to predict the outcome, which could include fines or other sanctions.

    May 9, 2012
  45. 2012-Q1

    PTC Quarterly Report for Q1 Ended Dec 31, 2011

    Parametric Technology Corporation (PTC) reported first-quarter fiscal 2012 results for the three months ended December 31, 2011, with total revenue of $318.3 million, up 19% from $266.6 million a year earlier (18% on a constant currency basis). License revenue was $89.1 million, consulting and training service revenue $75.6 million and maintenance revenue $153.6 million. GAAP operating income rose to $32.5 million from $17.1 million, and net income was $22.1 million, or $0.18 per diluted share, versus $13.3 million, or $0.11, a year earlier. The MKS and 4CS acquisitions contributed $18.5 million of revenue in the quarter. The filing also notes that operating results were affected by a $5 million contract loss recorded in the prior-year quarter. Cash provided by operating activities was $36.5 million, compared with $48.0 million used in the prior-year quarter, which included a $52.1 million litigation settlement payment. Cash and cash equivalents ended the quarter at $187.4 million, and $200 million was outstanding under the $300 million revolving credit facility. The company disclosed a January 19, 2012 plan to restructure its workforce by about 3%, with an expected charge of approximately $20 million in the second quarter of 2012 and expected quarterly operating expense savings of about $5 million beginning in the third quarter. Management targets fiscal 2012 revenue growth of 12% to 14% and a non-GAAP operating margin of approximately 20%. The filing also discloses an ongoing investigation of payments by certain business partners and expenses by certain employees in China, which may have compliance implications under the Foreign Corrupt Practices Act. The company has voluntarily disclosed the results to the U.S. Department of Justice and the SEC and is cooperating, and it says it cannot predict the outcome, which could include fines or other sanctions. Revenue from China has historically been 6% to 7% of total revenue.

    Feb 8, 2012
  46. 2011-Q3

    PTC Quarterly Report for Q3 Ended Jul 2, 2011

    Parametric Technology Corporation (PTC) reported third-quarter fiscal 2011 total revenue of $291.8 million, up 20% from $243.0 million a year earlier (13% on a constant currency basis), with GAAP operating income of $24.5 million and net income of $15.5 million, or $0.13 per diluted share. For the first nine months, revenue was $827.5 million and net income was $47.8 million, or $0.39 per diluted share. Growth was broad-based, with license revenue up 21%, maintenance revenue up 17% and consulting and training revenue up 27% in the quarter. The company's results included $6.0 million of acquisition-related costs and a $4.4 million foreign currency loss tied to its May 31, 2011 acquisition of MKS Inc. for an aggregate cash purchase price of approximately $298 million. The balance sheet expanded materially. Total assets rose to $1.68 billion from $1.31 billion at September 30, 2010, driven by goodwill of $623.6 million and acquired intangibles of $228.2 million. The company drew $250 million on its revolving credit facility to help fund the MKS deal, leaving $260.8 million in cash and cash equivalents at quarter end. Operating cash flow for the nine months was $78.7 million, down from $141.1 million, mainly because of a $52.1 million litigation settlement payment in the first quarter. Management expects 2011 revenue to be 14% to 15% higher than 2010. The filing also discloses an internal investigation into certain payments by business partners in China that raise questions under the Foreign Corrupt Practices Act, which the company has voluntarily disclosed to the Department of Justice and the SEC, and it reports that the European Commission is investigating anti-competitive practices related to CAD software. The company states that it is unable to estimate potential penalties from the China matter.

    Aug 10, 2011
  47. 2011-Q3

    PTC Quarterly Report for Q3 Ended Apr 2, 2011

    Parametric Technology Corporation (PTC) reported strong second-quarter fiscal 2011 results for the three months ended April 2, 2011, with total revenue of $269.2 million, up 12% from $240.6 million a year earlier (11% on a constant currency basis). License revenue rose 15% to $74.2 million, maintenance revenue rose 7% to $132.0 million, and consulting and training service revenue rose 19% to $63.0 million. GAAP operating income was $24.2 million (9% of revenue) versus $11.5 million a year earlier, and GAAP net income was $19.0 million, or $0.16 per diluted share, compared with $9.0 million, or $0.08. For the six months, revenue was $535.7 million, up 7%, and net income was $32.3 million, or $0.27 per diluted share. Operating cash flow for the six months fell to $30.2 million from $90.7 million, mainly because of a $52.1 million litigation settlement payment in the first quarter. The company reported $259.5 million in cash and cash equivalents and no borrowings under its $300 million revolving credit facility at April 2, 2011. It also disclosed a planned acquisition of MKS Inc., a provider of application lifecycle management software, for approximately CDN$292.5 million, expected to close in early June 2011. The acquisition is to be financed with about $250 million drawn on the credit facility and about $54 million of cash on hand. Management guided fiscal 2011 revenue growth of 11% to 12%, with license revenue growth of 15% to 20%, and expects to use about $55 million of cash from operations to repurchase shares in the second half of 2011. The filing also notes a first-quarter 2011 strategic contract with an automotive customer expected to generate a loss of about $5 million, a European Commission investigation into allegedly anti-competitive practices in CAD software in which PTC is cooperating but has not been charged, and the planned launch of its Creo CAD platform in June 2011.

    May 11, 2011
  48. 2011-Q2

    PTC Quarterly Report for Q2 Ended Jan 1, 2011

    Parametric Technology Corporation (PTC) reported first-quarter fiscal 2011 results for the three months ended January 1, 2011, with total revenue of $266.6 million, up from $258.4 million, and net income of $13.3 million, or $0.11 per diluted share, versus $17.9 million, or $0.15 per diluted share, a year earlier. GAAP operating income fell to $17.1 million from $22.3 million, and non-GAAP operating income was $35.3 million versus $45.1 million. The decline was driven primarily by a contract loss of approximately $5 million on a services contract with a large automotive customer, along with higher sales and marketing expenses tied to the Creo product launch and sales investments. Cash flow was weak in the quarter. Net cash used by operating activities was $48.0 million, compared with $22.8 million provided a year earlier, primarily because of the litigation resolution with GE Japan Corporation, which involved a $52.1 million cash payment. Cash and cash equivalents declended to $182.9 million from $240.3 million at September 30, 2010. The company had no borrowings under its $300 million revolving credit facility, which matures in August 2014. Management stated that it expects fiscal 2011 revenue to grow 10% to 12%, with license revenue growth of 20% to 25%, and plans to repurchase $55 million of shares in 2011. The company also noted that a new headquarters lease through November 2022 will commit it to future minimum lease payments of about $92 million, and that a pending Japanese tax law change is expected to produce a discrete non-cash tax charge of approximately $3 million.

    Feb 9, 2011
  49. 2010-Q3

    PTC Quarterly Report for Q3 Ended Jul 3, 2010

    Parametric Technology Corporation (PTC) reported improved results for the third quarter and first nine months of fiscal 2010 ended July 3, 2010. Third-quarter total revenue was $242,998 thousand, up from $226,159 thousand a year earlier, and license revenue rose to $67,498 thousand from $49,450 thousand. Operating income was $11,978 thousand versus $1,987 thousand, and diluted EPS was $0.09 versus $0.03. For the nine months, net income was $37,583 thousand compared with $15,622 thousand, and diluted EPS was $0.31 versus $0.13. Management attributes the license growth primarily to sales of its Windchill PLM product to large customers, and expects 35%-40% license revenue growth for fiscal 2010, with maintenance and services revenue down modestly from 2009. Cash flow from operations was $141,076 thousand for the nine months, compared with $64,203 thousand a year earlier. The company repaid its $57,880 thousand revolving credit balance in the quarter, leaving no amount outstanding, and cash and equivalents stood at $219,019 thousand. It repurchased 3.6 million shares for $60.0 million year to date, with $20.5 million left under its authorization, which expires May 31, 2011. The company expects to enter a new credit facility in the fourth quarter of 2010, as the existing facility expires February 20, 2011. The principal open risk is the lawsuit brought by GE Capital Leasing Corporation (now GE Japan) relating to transactions in Japan. The company has deferred 4,658,162,417 Yen ($53.1 million) of previously recorded revenue as customer advances and has accrued no other liability. The Tokyo District Court is expected to render judgment as early as late summer or fall 2010, and an adverse outcome could affect cash and earnings.

    Aug 12, 2010
  50. 2010-Q3

    PTC Quarterly Report for Q3 Ended Apr 3, 2010

    Parametric Technology Corporation (PTC) reported total revenue of $240.6 million for the second quarter of fiscal 2010 (ended April 3, 2010), up from $225.3 million a year earlier, and $499.0 million for the first six months, up from $465.7 million. License revenue rose 54% in the quarter to $64.6 million, driven mainly by Windchill sales to large customers, while consulting and training services declined 12% and maintenance was flat. GAAP operating income was $11.5 million in the quarter versus an operating loss of $1.4 million a year earlier, and net income was $9.0 million, or $0.08 per diluted share. Non-GAAP diluted EPS was $0.20 for the quarter and $0.47 for the six months. The balance sheet remained solid, with $222.7 million of cash and cash equivalents, $33.5 million outstanding under the revolving credit facility, and $741.8 million of stockholders' equity at April 3, 2010. Operating cash flow for the first six months was $90.7 million. The company repurchased $45.1 million of stock in the first half, and $35.5 million remained under its $100 million repurchase authorization. Management expects 35%-40% license revenue growth for fiscal 2010, with maintenance and services revenue down modestly from 2009. The filing also discloses a pending lawsuit in Tokyo District Court brought by GE Japan, which seeks damages of approximately $61 million, with a judgment expected in late summer or fall 2010. PTC has deferred $49.3 million of related revenue as customer advances and has not accrued any other liability. The filing also announces that James E. Heppelmann will succeed C. Richard Harrison as Chief Executive Officer effective October 1, 2010, with Harrison becoming Executive Chairman.

    May 13, 2010