-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZJoqE8vxndzF+WRdDvO71hcj8qFP7f9pv5C4pDQ/s/QOX2x1FQUi73tWXq8zkzj nC8xfStN3OwM+vRvXB6T1Q== 0000857005-03-000012.txt : 20030716 0000857005-03-000012.hdr.sgml : 20030716 20030715200802 ACCESSION NUMBER: 0000857005-03-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030716 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030716 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARAMETRIC TECHNOLOGY CORP CENTRAL INDEX KEY: 0000857005 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 042866152 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-18059 FILM NUMBER: 03788185 BUSINESS ADDRESS: STREET 1: 128 TECHNOLOGY DR CITY: WALTHAM STATE: MA ZIP: 02453 BUSINESS PHONE: 7813985000 MAIL ADDRESS: STREET 1: 128 TECHNOLOGY CORP CITY: WALTHAM STATE: MA ZIP: 02453 8-K 1 ptc8k71603ver1.txt PTC 8-K DATED JULY 16, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 16, 2003 PARAMETRIC TECHNOLOGY CORPORATION (Exact Name of Registrant as Specified in its Charter) Massachusetts 0-18059 04-2866152 (State or other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 140 Kendrick Street, Needham, Massachusetts 02494 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (781) 370-5000 Item 9. Regulation FD Disclosure. Information Furnished under Item 12 ("Results of Operations and Financial Condition"). On July 16, 2003 the company issued a press release announcing results for the fiscal quarter ended June 28, 2003. Pursuant to Item 12, a copy of that press release is hereby furnished to the Commission as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Parametric Technology Corporation Date: July 15, 2003 By: /s/ Cornelius F. Moses, III ------------------------------------- Cornelius F. Moses, III Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description 99.1 Press release issued by Parametric Technology Corporation on July 16, 2003. EX-99 2 ex9971603.txt PRESS RELEASE PTC Reports Fiscal 2003 Third Quarter Results Page 2 Exhibit 99.1 Investor Relations Contact: Public Relations Contact: Meredith Mendola Joe Gavaghan 781-370-6151 781-370-5074 mmendola@ptc.com jgavaghan@ptc.com PTC Reports Fiscal 2003 Third Quarter Results NEEDHAM, Mass., July 16, 2003 - PTC (Nasdaq: PMTC), the product development company(TM), today reported revenue totaling $165.2 million for the third quarter ended June 28, 2003, compared with $178.1 million for the same period last year. Net loss for the third quarter was $33.8 million, or $0.13 per share, compared to net loss of $27.3 million, or $0.10 per share, for the year-ago period. During the third quarter of 2003, PTC recorded restructuring and other charges of $15.1 million, compared to restructuring and other charges of $18.4 million in the year-ago period. Cash and investments were $208 million at the end of the third quarter. Total design solutions revenue for the third quarter was $123.6 million, which was down 4% sequentially. Design solutions license revenue was $38.0 million, down 5% sequentially. However, the Pro/ENGINEER component of this license revenue improved sequentially and year over year, driven by Pro/ENGINEER Wildfire. Total Windchill revenue in the third quarter was $41.6 million, down 2% sequentially. Windchill license revenue was $10.6 million, compared with $15.2 million in the second quarter. This is primarily attributable to diminished transaction size in the quarter, as the number of transactions remained stable sequentially. Additionally, PTC sold Windchill software to a record 97 new customers this quarter, bringing the total Windchill customer count to 1,005. Windchill Link solutions license revenue represented 54% of overall Windchill license revenue. "Although we continue to face revenue challenges, customer adoption of our new product offerings confirms that our unique approach to product lifecycle management drives value for our customers," said C. Richard Harrison, president and chief executive officer of PTC. "We are focused on helping manufacturing companies improve their competitive positions by putting product development at the heart of their businesses. Our broad and well-architected product offering, together with our service expertise, is well-suited to this important process. "Customers are validating the benefits of using a fully integrated product development system," continued Harrison. "This is evidenced by the significant growth in sales of our Flex 3C package that combines PTC's solutions for digital product creation, collaboration and control. These customers include: Asahi Matsushita Electric, Concurrent Technologies Corporation, Harman Becker Automotive Systems, Harris Corporation, Hewlett Packard Company, Maxtor, Reed Tool Company, Smith International and Xerox Corporation." "During the quarter, we began the implementation of the cost reduction plan announced in April," said Neil Moses, PTC's new executive vice president and chief financial officer. "The objective of this plan is to lower PTC's quarterly operating cost structure from $180 million to $160 million entering fiscal 2004. In addition, we have recently committed to reducing our quarterly operating cost structure further, to $150 million by the end of fiscal 2004. Our goal is to be profitable in 2004, while maintaining our dedication to product quality and customer satisfaction." Moses concluded, "For the fourth quarter of 2003, we expect revenue to be in the range of $160 million to $170 million and net loss per share to be in the range of $0.10 to $0.14. This guidance includes a restructuring charge of approximately $15 million for the quarter related to the cost reduction initiatives outlined above." The Company will provide detailed financial information and an outlook update on its third quarter results conference call and live webcast on July 16, 2003 at 10 a.m. ET. This earnings press release and accompanying financial and operating statistics will be accessible prior to the conference call and webcast on the Company's web site at www.ptc.com/for/investors.htm. In addition, the live webcast may be accessed at the same Web address. To access the live call, please dial 888-829-8668 (in the U.S.) or +1-630-395-0019 (international). Please use passcode PTC. A replay of the call will be available until 5:00 p.m. ET on July 21, 2003. To access the replay via webcast, please visit www.ptc.com/for/investors.htm. To access the replay by phone, please dial 402-530-7895. The Company's unaudited consolidated statement of operations, the unaudited condensed consolidated balance sheet, and the unaudited condensed consolidated statement of cash flows for the third quarter are attached. About PTC PTC (Nasdaq: PMTC) develops, markets, and supports software solutions that help manufacturers win with superior products. PTC is the world's largest software company with a total commitment to product development and product lifecycle management (PLM). The Company services more than 35,000 customers worldwide. Further information on PTC is available at http://www.ptc.com. Except for the historical information contained herein, matters discussed in this news release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These include: the growth of the PLM market and our ability to facilitate our customer's understanding of the benefits of our PLM solutions, including return on investment and value creation; the acceptance of Pro/ENGINEER Wildfire and our Windchill Link Solutions, both as stand-alone products and as an integrated product development system; the effective execution of our cost reduction initiatives while minimizing organization disruption; and the effects of a weak IT spending environment which has impacted the overall demand for software and related services; as well as other risks and uncertainties detailed from time to time in reports filed by PTC with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and 10-Q. PTC, the product development company, Pro/ENGINEER, Wildfire, Windchill, and all PTC product names and logos are trademarks or registered trademarks of Parametric Technology Corporation or its subsidiaries in the United States and in other countries. All other companies and products referenced herein have trademarks or registered trademarks of their respective holders. # # # PARAMETRIC TECHNOLOGY CORPORATION UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data) Three Months Ended Nine Months Ended ----------------------------------------------------------- June 28, June 29, June 28, June 29, 2003 2002 2003 2002 ----------------------------------------------------------- Restated Restated Note 1 Note 1 Revenue: License $ 48,621 $ 56,215 $ 155,382 $ 177,565 Service 116,623 121,850 352,855 375,832 ----------------------------------------------------------- Total revenue 165,244 178,065 508,237 553,397 ----------------------------------------------------------- Costs and expenses: Cost of license revenue 2,875 4,197 7,498 12,608 Cost of service revenue 52,420 48,615 151,744 152,081 Sales and marketing 72,329 83,321 231,401 252,420 Research and development 31,880 33,464 95,722 103,725 General and administrative 17,931 17,302 50,108 49,505 Amortization of goodwill and other intangible assets 1,459 8,820 4,400 27,019 Restructuring and other charges 15,134 18,392 15,134 24,481 ----------------------------------------------------------- Total costs and expenses 194,028 214,111 556,007 621,839 ----------------------------------------------------------- Operating loss (28,784) (36,046) (47,770) (68,442) Other expense, net (10) (1,230) (1,462) (1,927) ----------------------------------------------------------- Loss before income taxes (28,794) (37,276) (49,232) (70,369) Provision for (benefit from) income taxes 4,968 (9,936) 11,089 (18,521) ----------------------------------------------------------- Net loss $(33,762) $(27,340) $ (60,321) $ (51,848) =========================================================== Loss per share: Basic $ (0.13) $ (0.10) $ (0.23) $ (0.20) Diluted $ (0.13) $ (0.10) $ (0.23) $ (0.20) Weighted average shares outstanding 264,487 260,825 263,625 260,581 PARAMETRIC TECHNOLOGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 28, September 30, 2003 2002 -------------------------------------------- ASSETS Cash and investments $ 208,262 $ 210,414 Accounts receivable, net 162,146 157,522 Property and equipment, net 78,808 86,535 Goodwill and other intangibles, net 51,524 54,303 Other assets 112,328 166,185 -------------------------------------------- Total assets $ 613,068 $ 674,959 ============================================ LIABILITIES AND STOCKHOLDERS' EQUITY Total liabilities $ 189,445 $ 187,728 Deferred revenue 190,122 197,303 Stockholders' equity 233,501 289,928 -------------------------------------------- Total liabilities and stockholders' equity $ 613,068 $ 674,959 ============================================ PARAMETRIC TECHNOLOGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) Three Months Ended Nine Months Ended ------------------------------------------------------------ June 28, June 29, June 28, June 29, 2003 2002 2003 2002 ------------------------------------------------------------ Restated Restated Note 1 Note 1 Cash flows from operating activities: Net loss $ (33,762) $ (27,340) $ (60,321) $ (51,848) Depreciation and amortization 9,931 18,045 31,166 54,688 Changes in assets and liabilities 34,046 17,661 45,278 (25,398) ------------------------------------------------------------ Net cash provided (used) by operating activities 10,215 8,366 16,123 (22,558) Capital expenditures (5,815) (7,112) (19,100) (27,365) Other investing and financing activities (1,122) 4 2,783 (79) Foreign exchange and other (553) 6,342 (1,958) 4,759 ------------------------------------------------------------ Net change in cash and investments 2,725 7,600 (2,152) (45,243) Cash and investments, beginning of period 205,537 196,255 210,414 249,098 ------------------------------------------------------------ Cash and investments, end of period $ 208,262 $ 203,855 $ 208,262 $ 203,855 ============================================================ Note 1: These unaudited consolidated financial statements for the three and nine months ended June 29, 2002 reflect the restatement of maintenance revenues as previously reported in our 2002 Annual Report on Form 10-K filed with the Securities and Exchange Commission on January 28, 2003. -----END PRIVACY-ENHANCED MESSAGE-----