Fiscal 1998 Net Income as Earnings Per Share Rise to $0.47 Business Editors WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 15, 1998-- PTC Achieves Its 39th Consecutive Quarter of Increased Revenue and Profits Parametric Technology Corporation (NASDAQ:PMTC), developer of the Pro/ENGINEER(R) family of software tools used to automate mechanical product development, reported today that its net income for the first quarter of fiscal 1998, ended January 3, 1998, increased 26 percent to $62.3 million, compared with $49.5 million for the three months ended December 28, 1996. Net income per share (diluted) increased to $0.47, from $0.37 per share for the same quarter last year. Revenue for the first quarter of fiscal 1998 totaled $223.0 million, an increase of 22 percent (27 percent at constant currency) from last year's first-quarter revenue of $183.5 million. Steven C. Walske, chairman and chief executive officer of Parametric Technology, stated: "Overall, PTC's products and services continue to be in demand among both current customers and first-time buyers. North America, our most mature market, remains a key contributor to our growth. While we saw a strengthening business climate in Europe, it was partially offset by pockets of weakness in the Asia/Pacific market. In the face of a difficult currency environment and the economic uncertainties affecting much of Asia, our ability to show not only year-over-year growth but sequential quarterly growth in our revenue and profits gives us a measure of satisfaction with our performance this quarter." In the first fiscal quarter, Walske noted that Parametric Technology shipped 7,838 new seats of its Pro/ENGINEER software products worldwide. Repeat business from PTC's existing customer base continued to account for more than 70 percent of the quarter's license revenue, while the company also added approximately 930 new customers to its base. During the quarter significant orders for software were shipped to Bang & Olufsen, Compaq, Dell, Harley-Davidson, Honeywell, Lucent Technologies, Mirae Corp., Seiko Epson, SpeedFam, Stanley Works, Timberjack Group and U.S. Surgical, among others. "As we announced earlier this week, Parametric Technology has completed its merger with Computervision Corporation," said Walske. "Going forward, we expect the acquisition to expand our business presence in the automotive, aerospace and shipbuilding industries. With the addition of several key Computervision product offerings, we also expect to broaden our suite of software solutions and services to better address the enterprise-wide data management requirements of larger customers." He added, "In the near-term, our challenges include the successful integration of Computervision's employees, products and services into our overall operations. That undertaking must be balanced against our continuing efforts to rebuild our sales and support infrastructure in Japan, and to return that region to growth rates that contribute positively to our objectives for total growth. "We remain confident of the overall demand for software technology and services that help companies deliver their own products to market more efficiently and productively," said Walske. "For companies in all industries regardless of geographic region, bringing high-quality products to market in the shortest possible time frame remains a critical business requirement -- and one in which PTC consistently demonstrates significant competitive advantage." Parametric Technology Corporation is one of the world's largest independent software companies and the CAD/CAM/CAE industry's leading supplier of software tools used to automate the mechanical development of a product from its conceptual design through production. Worldwide, more than 16,000 companies employ PTC's integrated software technologies to reduce time to market, improve engineering processes, and optimize product quality. Parametric Technology's growth strategy emphasizes technological leadership, aggressive price/performance, hardware independence, worldwide distribution, and extensive customer support. The consolidated statement of income and condensed consolidated balance sheet for the first quarter of fiscal 1998 are attached. 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 risks and uncertainties that are 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. In particular, the Company's future results depend upon, among other factors, its ability to continue to penetrate the mechanical segment of the CAD/CAM/CAE industry, to attract and retain skilled personnel, to deliver timely product enhancements, to execute measures to strengthen results in Japan, and to integrate the business operations of Computervision into the Company, as well as upon the strength of the U.S. dollar in relation to foreign currencies and the Company's ability to adequately manage its exposure to foreign currency fluctuations. Parametric Technology Corporation and Pro/ENGINEER are registered trademarks, and all names in the PTC product family as well as the PTC logo are trademarks, of Parametric Technology Corporation in the United States and other countries. -0- PARAMETRIC TECHNOLOGY CORPORATION Consolidated Statement of Income (in thousands, except per share data) (unaudited) Three months ended January 3, December 28, 1998 1996 Revenue: License $152,367 $138,442 Service 70,640 45,059 Total revenue 223,007 183,501 Costs and expenses: Cost of revenue 24,063 17,548 Sales and marketing 81,282 71,661 Research and development 15,048 12,134 General and administrative 11,327 8,705 Total costs and expenses 131,720 110,048 Operating income 91,287 73,453 Other income, net 3,172 2,625 Income before income taxes 94,459 76,078 Provision for income taxes 32,116 26,627 Net income $62,343 $49,451 Net income per share - Basic $0.49 $0.39 Net income per share - Diluted $0.47 $0.37 Weighted average number of common shares outstanding 128,047 127,499 Weighted average number of common and dilutive common equivalent shares outstanding 131,893 135,439 -0- PARAMETRIC TECHNOLOGY CORPORATION Condensed Consolidated Balance Sheet (in thousands) January 3, 1998 September 30, 1997 ASSETS Cash and investments $607,317 $554,324 Accounts receivable, net 157,896 154,777 Other assets 142,243 123,322 Total assets $907,456 $832,423 LIABILITIES AND STOCKHOLDERS' EQUITY Total liabilities $182,734 $187,628 Stockholders' equity 724,722 644,795 Total liabilities and stockholders' equity $907,456 $832,423
PARAMETRIC TECHNOLOGY REPORTS 26% INCREASE IN FIRST-QUARTER
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