-----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, TpO1chShFAjgSZqpvdSyJjBiYDv0FH6aIl0veKAW27A/Hrp9E867PD58NPxxM1cQ aHwoJg7Pbqg8FiFtOhaEHQ== 0000857005-04-000046.txt : 20041020 0000857005-04-000046.hdr.sgml : 20041020 20041020083803 ACCESSION NUMBER: 0000857005-04-000046 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041020 DATE AS OF CHANGE: 20041020 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: 041086464 BUSINESS ADDRESS: STREET 1: 140 KENDRICK STREET CITY: NEEDHAM STATE: MA ZIP: 02494 BUSINESS PHONE: 7813705000 MAIL ADDRESS: STREET 1: 140 KENDRICK STREET CITY: NEEDHAM STATE: MA ZIP: 02494 8-K 1 ptc8k102004.txt PTC 8-K OCTOBER 20, 2004 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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) October 20, 2004 -------------------------------- Parametric Technology Corporation - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Massachusetts - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-18059 04-2866152 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 140 Kendrick Street Needham, Massachusetts 02494-2714 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (781) 370-5000 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 2 - Financial Information Item 2.02. Results of Operations and Financial Condition. On October 20, 2004 the company issued a press release announcing results for its fiscal quarter and year ended September 30, 2004. A copy of the press release is furnished herewith as Exhibit 99.1. Section 9 - Financial Statements and Exhibits Item 9.01. Financial Statements and Exhibits. (c) Exhibits 99.1 A copy of the press release issued by Parametric Technology Corporation on October 20, 2004 is furnished herewith. 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: October 20, 2004 By: /s/ Cornelius F. Moses, III ----------------------------------------- Cornelius F. Moses, III Executive Vice President and Chief Financial Officer EX-99 2 ex9910202004.txt EXHIBIT 99.1 TO PTC'S 8-K 10-20-2004 Exhibit 99.1 Investor Contact: Media Contact: Meredith Mendola Nicole Rowe 781-370-6151 781-370-6369 mmendola@ptc.com nrowe@ptc.com PTC Reports Fourth Quarter and Fiscal Year 2004 Results - Company Delivers Growth in Revenue, Net Income and Cash - NEEDHAM, Mass., October 20, 2004 - PTC (Nasdaq: PMTC), the product development company(TM), today reported revenue of $170.1 million for the fourth quarter ended September 30, 2004, up 4% from $163.7 million for the same period last year. Net income for the fourth quarter was $42.0 million, or $0.15 per diluted share, compared with a net loss of $38.0 million, or a loss of $0.14 per share, in the year-ago period. The fourth quarter net income includes restructuring charges of $1.1 million, compared with restructuring charges of $15.8 million in the year-ago period. Additionally, the fourth quarter net income included a one-time benefit to the Company's tax provision of $18.9 million due to a favorable resolution of prior-year tax audits with the Internal Revenue Service, as previously announced. Cash and investments grew 14% sequentially to $294.9 million at the end of the fourth quarter, from $257.7 million at the end of the third quarter. This cash position does not include a $39.5 million income tax refund related to the resolution described above, which was received by the Company after September 30. For the 2004 fiscal year, revenue totaled $660.0 million, compared to $671.9 million for fiscal 2003. Net income was $34.8 million, or $0.13 per diluted share, compared to a net loss of $98.3 million, or a loss of $0.37 per share, in fiscal 2003. "During fiscal 2004, we exceeded all of our financial goals," said C. Richard Harrison, president and chief executive officer. "We achieved revenue growth in the second half of the year, and for the full fiscal year achieved an operating income improvement of almost $120 million and a net income improvement of more than $130 million. We have strengthened our balance sheet and dramatically improved our ability to make investments that will drive our future growth." Total design solutions revenue for the fourth quarter was $122.3 million, up from $118.0 million in the fourth quarter of 2003. Design solutions license revenue was $35.6 million, up 5% from $33.7 million in the year-ago period. This is attributable to increased sales of Pro/ENGINEER Wildfire by PTC's indirect channel in small- and medium-sized businesses. Total Windchill revenue in the fourth quarter grew to $47.8 million from $45.7 million in the fourth quarter of 2003. Windchill license revenue was $16.4 million, compared with $16.2 million in the year-ago period. Windchill Link solutions license revenue grew 15% year over year and represented 60% of overall Windchill license revenue. In the fourth quarter, PTC received orders from leading manufacturing organizations such as Airbus, BAE Systems, Boeing Company, G.L. River Motorcycle, Gildemeister, Green Point Enterprise, Lockheed Martin Corporation, RF Micro Devices, Smiths Industries, Stryker Corporation, Toyota Motor Corporation, and United Defense. Additionally, our reseller channel delivered $15.2 million in license revenue during the quarter, a 64% year-over-year increase. For the year, license revenue from PTC's reseller channel grew 23% to $56.2 million. "Our achievements in 2004 position us for revenue and earnings growth for fiscal 2005," continued Harrison. "Our product and service offerings are well suited to meet the challenges manufacturers face in managing increasingly complex global product development processes. We have worked hard to align our solutions with the needs of our customers by shortening implementation times and encouraging incremental adoption. As a result, our customers have begun to invest more meaningfully in our PLM solutions. We expect to see an acceleration of these investments throughout 2005." First Quarter 2005 Financial Outlook PTC's revenue forecast for the first quarter of fiscal 2005 is between $160 million and $167 million. Total costs and expenses (operating expenses) are expected to be approximately $145 million. The Company expects earnings per share on a GAAP basis to be between $0.03 and $0.06. The Company will provide detailed financial information and an outlook update on its fourth quarter and fiscal year 2004 results conference call and live webcast on October 20, 2004 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 888-577-8992 (in the U.S.) or +1-517-308-9008 (international). Please use passcode PTC. A replay of the call will be available until 5:00 p.m. ET on October 25, 2004. To access the replay via webcast, please visit www.ptc.com/for/investors.htm. To access the replay by phone, please dial 203-369-1649. The Company's unaudited consolidated statements of operations, the unaudited condensed consolidated balance sheets, and the unaudited condensed consolidated statements of cash flows for the fourth quarter and fiscal year 2004 are attached. About PTC PTC (Nasdaq: PMTC) provides leading Product Lifecycle Management (PLM) software solutions to more than 35,000 companies worldwide. PTC customers include many of the world's most innovative manufacturing companies in the aerospace & defense, automotive, consumer, electronics & high technology, industrial products and life sciences industries. PTC is included in the S&P 500 and Russell 2000 indices. For more information on PTC, please visit 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 capture market share by elevating investments in PLM as a spending priority and by differentiating our product offerings from those of other vendors; our success in leveraging customers' initial investments in our offerings to achieve longer term, more substantial customer investments through delivery of superior products, implementation services and support offerings and customer satisfaction initiatives; our efforts to leverage our distribution model (including effectively coordinating our indirect channel sales activities); our ability to achieve financial and operating goals (including our first quarter revenue and earnings targets) by maintaining our significantly reduced cost structure while at the same time increasing revenues; and continued improvement in the IT spending environment, which until recently has been weak and 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 STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Year Ended --------------------------------------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 --------------------------------------------------------------- Revenue: License $ 51,967 $ 49,919 $ 198,860 $ 205,301 Service 118,167 113,784 461,169 466,639 --------------------------------------------------------------- Total revenue 170,134 163,703 660,029 671,940 --------------------------------------------------------------- Costs and expenses: Cost of license revenue 1,933 3,492 8,234 10,990 Cost of service revenue 41,501 55,752 173,941 207,496 Sales and marketing 55,500 67,078 226,054 298,479 Research and development 25,383 32,703 107,992 128,425 General and administrative 15,571 19,310 58,264 69,418 Amortization of other intangible assets 1,223 1,461 5,195 5,861 Restructuring and other charges 1,085 15,762 42,933 30,896 --------------------------------------------------------------- Total costs and expenses 142,196 195,558 622,613 751,565 --------------------------------------------------------------- Operating income (loss) 27,938 (31,855) 37,416 (79,625) Other income (expense), net 236 (1,342) (377) (2,804) --------------------------------------------------------------- Income (loss) before income taxes 28,174 (33,197) 37,039 (82,429) Provision for (benefit from) income taxes (13,870) 4,762 2,226 15,851 --------------------------------------------------------------- Net income (loss) $ 42,044 $ (37,959) $ 34,813 $ (98,280) =============================================================== Net income (loss) per share: Basic $ 0.16 $ (0.14) $ 0.13 $ (0.37) Weighted average shares outstanding 269,001 265,660 267,704 264,149 Diluted $ 0.15 $ (0.14) $ 0.13 $ (0.37) Weighted average shares outstanding 275,180 265,660 273,183 264,149 PARAMETRIC TECHNOLOGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, September 30, 2004 2003 ----------------------------------------- ASSETS Cash and investments $ 294,887 $ 205,312 Accounts receivable, net 130,393 140,151 Property and equipment, net 55,780 73,563 Goodwill and other intangibles, net 56,543 51,851 Other assets 128,779 106,813 ----------------------------------------- Total assets $ 666,382 $ 577,690 ========================================= LIABILITIES AND STOCKHOLDERS' EQUITY Deferred revenue $ 176,664 $ 173,015 Other liabilities 247,767 209,517 Stockholders' equity 241,951 195,158 ----------------------------------------- Total liabilities and stockholders' equity $ 666,382 $ 577,690 ========================================= PARAMETRIC TECHNOLOGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Year Ended --------------------------------------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 --------------------------------------------------------------- Cash flows from operating activities: Net income (loss) $ 42,044 $ (37,959) $ 34,813 $ (98,280) Depreciation and amortization 8,077 10,927 35,594 42,093 Other (10,501) 23,498 30,929 62,682 --------------------------------------------------------------- Net cash provided (used) by operating activities 39,620 (3,534) 101,336 6,495 Capital expenditures (4,839) (5,832) (12,448) (25,932) Acquisition of a business - - (9,822) - Other investing and financing activities 4,495 3,738 9,712 7,369 Foreign exchange impact on cash (2,130) 2,678 797 6,966 --------------------------------------------------------------- Net change in cash and investments 37,146 (2,950) 89,575 (5,102) Cash and investments, beginning of period 257,741 208,262 205,312 210,414 --------------------------------------------------------------- Cash and investments, end of period $ 294,887 $ 205,312 $ 294,887 $ 205,312 =============================================================== -----END PRIVACY-ENHANCED MESSAGE-----