PARAMETRIC TECHNOLOGY REPORTS 101 PERCENT

increase in third-quarter net income on 85 percent sales growth 
WALTHAM, Mass.--(BUSINESS WIRE)--Parametric Technology
Corporation (NASDAQ: PMTC) today reported net income of $11.4 million
for its third quarter of fiscal 1993, ended July 3, 1993, an increase
of 101 percent over net income of $5.7 million for the third quarter
of fiscal 1992, ended June 27, 1992. 
Revenue rose 85 percent to $43.5 million, compared with $23.5
million for the same period of fiscal 1992.  Net income per share for
the third quarter increased to $0.20, from $0.10 per share for the
same period a year ago.  All per share data has been adjusted to
reflect a two-for-one stock split, effective February 25, 1993. 
For the nine months ended July 3, 1993, Parametric Technology
reported net income of $29.5 million, an increase of 108 percent over
net income of $14.2 million for the same period of fiscal 1992.
Revenue for the nine months increased 93 percent to $114.1 million,
compared with $59.2 million for the same period of fiscal 1992.  Net
income per share for the nine months was $0.51, compared with $0.25
per share for the same period a year ago. 
"We continued to enjoy a rapid pace of business growth during our
third fiscal quarter,"  said Steven C.  Walske, president and chief
executive officer of Parametric Technology.  "Sales of our
Pro/ENGINEER software products were strong in all major geographic
regions.  We added nearly 300 new customers in the quarter while also
maintaining a very high level of repeat business from our installed
base, especially among Fortune 500 manufacturers and their
international equivalents." 
Walske stated that 86 percent of Parametric Technology's revenue
in the third quarter was generated from existing customers.  In all,
he noted, more than 65 customers made soft-ware purchases that
exceeded $100,000 -- including Merlin Gerin, Tata Engineering &
Locomotive Co., Cummins Engine, U.S.  Surgical, Polaroid Corp.,
Pitney Bowes, Harris Corp., Kubota Corp., British Aerospace,
Allied-Signal, Siemens, Space Systems/Loral, Northern Telecom, Daewoo
Shipbuilding & Heavy Machine, and Lucky-Goldstar. 
During the quarter, Parametric Technology also shipped 500 seats
of Pro/ENGINEER software to Caterpillar Inc.  as part of a 2,000-seat
total order the company received in its fourth quarter of fiscal
1992.  In addition, Walske noted that Parametric Technology received
an order from Ford Motor Co.  during the quarter for Pro/ENGINEER
software valued at approximately $1 million, which will be shipped to
Ford during Parametric Technology's fourth fiscal quarter. 
Parametric Technology added 296 new customers in the third
quarter, bringing the total number of customers using Pro/ENGINEER to
nearly 2,900 worldwide.  Altogether, the company sold close to 2,400
seats and 35,000 software modules in the third quarter, increasing
the cumulative totals to more than 16,500 seats and 193,000 software
modules since Pro/ENGINEER was first shipped to customers in January
1988. 
The company also continued to strengthen its balance sheet in the
third quarter, generating more than $10 million in cash.  The
company's high level of profitability improved as well, with net
income increasing to more than 26 percent of revenue.  The third
quarter marks Parametric Technology's achievement of 21 consecutive
quarters of sequential increases in both revenue and profits. 
Parametric Technology Corporation has emerged as the leader in
the mechanical design automation industry.  Its new generation of
CAD/CAM/CAE technology is revolutioniz17% the mechanical design
automation process with a market strategy that emphasizes
technological leadership, aggressive price/performance, hardware
independence, worldwide distribution and extensive customer support.
The consolidated statement of operations and condensed consolidated
balance sheet for the third quarter of fiscal 1993 are attached. 



PARAMETRIC TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)

                          Three months ended        Nine months ended
                         July 3,      June 27,    July 3,      June 27,
                         1993          1992        1993          1992

Revenue:
  License               $35,708      $19,147      $93,204      $50,097
  Service                 7,809        4,377       20,870        9,140
                   ------------ ------------- ------------ -----------

Total revenue            43,517       23,524      114,074       59,237
                 ------------- ------------- -------------------------
Costs and expenses:
  Cost of revenue         2,897        1,229        7,319        3,296
  Sales and marketing    18,454       10,477       47,828       26,274
  Research and
    development           2,610        2,031        7,696        5,219
  General and
    administrative        2,102        1,308        5,724        3,606
                   ------------  ----------- ------------ ------------
Total costs and
  expenses               26,063       15,045       68,567       38,395
                   ------------  ----------- ------------ ------------

Operating income         17,454        8,479       45,507       20,842

Other income, net           795          578        1,576        1,488
                   ------------  ----------- ------------ ------------

Income before
  income taxes           18,249        9,057       47,083       22,330

Provision for
  income taxes            6,800        3,351       17,556        8,131
                   ------------  ----------- ------------- ------------
Net income              $11,449     $  5,706      $29,527     $14,199

Net income per
  share(a)                $0.20        $0.10        $0.51       $0.25

Weighted average
 number of common
 and dilutive common
 equivalent shares
 outstanding             57,899       56,673       57,418      56,009

(a)-All per share data has been adjusted to reflect a two-for-one
split of common stock, effective February 25, 1993.

PARAMETRIC TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
                                                                              
                                   July 3, 1993          Sept. 30, 1992
ASSETS                              (unaudited)

Cash and short-term investments       $108,032            $   73,493
Accounts receivable, net                23,083                19,842
Note receivable, net                     6,515                 3,139
Other current assets                     5,692                 2,743
                                  ------------          ------------
 Total current assets                  143,322                99,217

Other assets                             9,507                 7,948
                                  ------------          ------------
 Total assets                         $152,829              $107,165



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                 $   26,652            $   26,969
Other liabilities                          788                 1,523
Stockholders' equity                   125,389                78,673
                                  ------------          ------------
 Total liabilities and
   stockholders' equity               $152,829              $107,165

 
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