PTC Corrects Replay Phone Numbers

  PTC Corrects Replay Phone Numbers

CORRECTION... by PTC

Business Wire

NEEDHAM, Mass. -- April 29, 2010

In the Q2 Earnings Conference Call and Webcast section, for the release dated
April 27, 2010, the replay phone numbers should read... 1-800-333-1825 or
402-220-0203 (sted: 1-866-373-4992 or 203-369-0272).

The corrected release reads:

PTC ANNOUNCES Q2 RESULTS, INITIATES Q3 GUIDANCE AND UPDATES FY’10 TARGETS

Targets 35% to 40% license revenue growth in FY’10 on strength of Windchill
PLM solution

PTC (Nasdaq: PMTC), The Product Development Company®, today reported results
for its second fiscal quarter ended April 3, 2010.

Highlights

  *Q2 Results: Revenue of $240.6 million and non-GAAP EPS of $0.20; GAAP EPS
    of $0.08

       *Non-GAAP operating margin of 13.6%; GAAP operating margin of 4.8%
       *Relative to Q2 guidance, currency was unfavorable to revenue by $3.1
         million and favorable to non-GAAP expenses by $1.6 million and to
         GAAP expenses by $1.9 million

  *Q3 Guidance: Revenue of $235 to $245 million and non-GAAP EPS of $0.14 to
    $0.20

       *GAAP EPS of $0.02 to $0.07
       *Assumes $1.36 USD / EURO, down from $1.46 assumption in previous
         guidance, a $7 million negative impact to revenue in Q3

  *FY 2010 Targets: Maintaining revenue target of $1,015 million and non-GAAP
    EPS of $1.00

       *GAAP EPS of $0.50
       *Increasing license revenue growth target to 35% to 40% year-over-year
         growth, up from previous target of 30% growth
       *Non-GAAP operating margin of 16%; GAAP operating margin of 7.5%
       *Assumes $1.36 USD / EURO, down from $1.46 assumption in previous
         guidance, a $14 million negative impact to revenue in H2’10

The Q2 non-GAAP results exclude $12.3 million of stock-based compensation
expense, $8.9 million of acquisition- related intangible asset amortization
and $6.7 million of income tax adjustments. The Q2 results include a non-GAAP
tax rate of 27% and a GAAP tax rate of 18%.

Results Commentary

C. Richard Harrison, chairman and chief executive officer, commented, “Q2 was
another solid quarter for PTC with total revenue up 7% year-over-year and
license revenue up 54%. Adjusting for FX impact relative to guidance, our
revenue performance was at the high-end of our expectations, driven primarily
by continued strength of our PLM business.” On a constant currency basis total
Q2 revenue was up 3% and license revenue was up 48% compared to the year ago
period.

“Our PLM license revenue in Q2 was $30 million, up 107% year-over-year,
continuing to highlight our leadership position in a large and growing segment
of the enterprise software market,” continued Harrison. “Our pipeline for new
business opportunities with new and existing customers remains strong. During
the quarter we recognized revenue from leading organizations such as BAE
Systems, EADS, Huawei Technologies, NASA, the United States Navy, and Vestas
Wind Systems.”

James Heppelmann, president and chief operating officer added, “We believe
there is a lot of momentum in the PLM market and that PTC is gaining share and
becoming recognized as the industry leader for both our technology and product
development process expertise. We secured 2 additional strategically important
‘domino’ account wins during Q2, bringing the total number of domino account
wins to 13. We are also engaged in more than 200 other opportunities
world-wide where companies are looking to replace their existing PLM solution
to help improve their competitive position in their own markets.”

“We are very optimistic about the long-term opportunity for PTC and are
committed to achieve our goal of a 20% non-GAAP EPS CAGR over the next 5
years,” continued Heppelmann. “In order to enable us to achieve this goal, we
are investing to extend our technology leadership position and expand our high
caliber, solutions oriented sales teams. We expect to add up to 30 more sales
teams through the end of FY’10, which will significantly increase capacity as
we enter FY’11. As of Q2’10, we are well positioned to achieve at least 20%
non-GAAP EPS growth in FY’10.”

Neil Moses, chief financial officer, commented, “Our strong license revenue
and solid maintenance revenue performance was partly offset by a
year-over-year decline in our services revenue as we continue to work through
the impact of soft license sales in 2009. Our CAD and SMB businesses are
showing signs of recovery, as both businesses delivered sequential license
revenue growth. Our balance sheet remains solid with $223 million of cash.
During Q2 we repurchased $40 million worth of stock and repaid $20 million of
our outstanding debt; leaving a balance of $34 million outstanding on our
revolving credit facility.”

Outlook Commentary

“Looking forward to the remainder of FY’10, despite FX movements we are
maintaining our full-year revenue target of $1,015 million and non-GAAP EPS
target of $1.00,” continued Moses. “We have lowered our currency assumption
from $1.46 USD/EURO to $1.36 USD/EURO, which negatively impacts revenue by
approximately $18 million for FY’10 and which makes achieving these full year
targets more challenging. We are increasing our license revenue growth
expectations to 35% to 40% year over year, with our maintenance and services
businesses now expected to be down modestly on a year-over-year basis.”

“We are maintaining our non-GAAP operating margin target of 16%,” continued
Moses, “as we intend to continue to invest in our business to leverage our
technology leadership position and capitalize on our long-term growth
opportunity. We expect to pay down the remaining $34 million on our revolving
credit facility and repurchase an additional $15 million worth of our stock
during the remainder of FY’10.” For FY’10 the GAAP operating margin target is
7.5% and the GAAP EPS target is $0.50.

The FY’10 targets assume a non-GAAP tax rate of 25%, a GAAP tax rate of 17%
and 120 million diluted shares outstanding. The FY’10 non-GAAP guidance
excludes approximately $49 million of stock-based compensation expense, $34
million of acquisition-related intangible asset amortization and $27 million
of related income tax effects.

“For Q3 we are initiating guidance of $235 to $245 million in revenue with
non-GAAP EPS of $0.14 to $0.20,” Moses added. “We are expecting approximately
30% year-over-year growth in our license revenue in Q3 and 7% year-over-year
growth in total revenue.” The Q3 GAAP EPS target is $0.02 - $0.07.

The Q3 guidance assumes a non-GAAP tax rate of 23%, a GAAP tax rate of 15% and
120 million diluted shares outstanding. The Q3 non-GAAP guidance excludes
approximately $12 million of stock-based compensation expense, $9 million of
acquisition-related intangible asset amortization expense and $6 million of
related income tax effects.

Q2 Earnings Conference Call and Webcast

Prepared remarks for the conference call have been posted to the investor
relations section of our website. The prepared remarks will not be read live;
the call will be primarily Q&A.

What:     PTC Fiscal Q2 Conference Call and Webcast

When:      Wednesday, April 28, 2010 at 8:30 a.m. Eastern Time

Dial-in:   1-888-566-8560 or 1-517-623-4768
           Call Leader: Richard Harrison
           Passcode: PTC

Webcast:   www.ptc.com/for/investors.htm

Replay: The audio replay of this event will be archived for public replay
until 4:00 pm (CT) on May 3, 2010 at 1-800-333-1825 or 402-220-0203. To access
the replay via webcast, please visit www.ptc.com/for/investors.htm.

Important Information About Non-GAAP References

PTC provides non-GAAP supplemental information to its financial results.
Non-GAAP operating expenses, margin and EPS exclude stock-based compensation
expense, amortization of acquired intangible assets, acquired in-process
research and development expense, restructuring charges, and the related tax
effects of the preceding items and any one-time tax items. PTC provides this
non-GAAP information to facilitate period-to-period comparisons of its
operational performance by adjusting for certain non-cash and certain episodic
expenses. We believe that providing non-GAAP measures affords investors a view
of our operating results that may be more easily compared to peer companies.
PTC management also uses this and other non-GAAP financial information to
evaluate, manage and plan our business because the information provides
additional insight into ongoing financial performance. In addition,
compensation of our executives is based in part on the performance of our
business based on these non-GAAP measures. However, non-GAAP information
should not be construed as an alternative to GAAP information as the items
excluded from the non-GAAP measures often have a material impact on PTC’s
financial results. Management uses, and investors should use, non-GAAP
measures in conjunction with our GAAP results. We calculate revenue and
expenses on a constant currency basis to obtain a view of the performance of
our business without the effect of differences in foreign currency exchange
rates used for translation. We calculate these measures by applying the
applicable prior period exchange rates to current period revenues and
expenses.

Forward-Looking Statements

Statements in this press release that are not historic facts, including
statements about our fiscal 2010 and other future financial and growth
expectations, anticipated tax rates, the expected impact of our planned
strategic investments on our future growth, and the long-term prospects for
the PLM segment of the enterprise software market are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from those projected. These risks include the
possibility that customers may not purchase our solutions when or at the rates
we expect, the possibility the foreign currency exchange rates may vary from
our expectations and thereby affect our reported revenue and expense, the
possibility that we may not achieve the license growth rates that we expect,
which could result in a different mix of revenue between license, service and
maintenance and could impact our EPS results, the possibility that strategic
customer wins may not generate the revenue we expect, the possibility that we
will experience a shortfall in revenue that causes us to decrease or eliminate
planned strategic investments in our business or planned share repurchases and
debt repayments, and the possibility that any strategic investments that we do
make may not have the effects that we expect. In addition, our assumptions
concerning our future GAAP and non-GAAP effective income tax rates are based
on estimates and other factors that could change, including the geographic mix
of our revenue, expenses (including restructuring charges) and profits and
loans and cash repatriations from foreign subsidiaries. Other risks and
uncertainties that could cause actual results to differ materially from those
projected are detailed from time to time in reports we file with the
Securities and Exchange Commission, including our Annual Report on Form10-K
and our Quarterly Reports on Form 10-Q.

PTC, The Product Development Company, and all other 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 referenced herein are trademarks or registered trademarks
of their respective holders.

About PTC (www.ptc.com)

PTC (Nasdaq: PMTC) provides discrete manufacturers with software and services
to meet the globalization, time-to-market and operational efficiency
objectives of product development. Using the company’s PLM and CAD and related
solutions, organizations in the Industrial, High-Tech, Aerospace/Defense,
Automotive, Retail/Consumer and Life Sciences industries are able to support
key business objectives such as reducing costs and shortening lead times while
creating innovative products that meet customer needs and comply with industry
regulations.

PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

                       Three Months Ended           Six Months Ended
                        April 3,      April 4,       April 3,      April
                                                                     4,
                        2010           2009          2010           2009    
                                                                             
Revenue:
License               $ 64,644       $ 42,070       $ 139,460      $ 92,572
Service                 175,912        183,222        359,525        373,111
Total revenue           240,556        225,292        498,985        465,683
                                                                             
Costs and expenses:
Cost of license         8,232          6,976          16,379         14,560
revenue^(1)
Cost of service         68,934         72,302         139,458        148,043
revenue^(1)
Sales and               75,137         71,387         153,735        151,249
marketing^(1)
Research and            49,960         44,752         100,650        93,113
development^(1)
General and             22,807         17,693         46,878         39,130
administrative^(1)
Amortization of
acquired intangible     3,975          3,815          8,033          7,683
assets
Restructuring           --             9,788          --             9,788
charges
Total costs and         229,045        226,713        465,133        463,566
expenses
                                                                             
Operating income        11,511         (1,421   )     33,852         2,117
(loss)
Other expense, net      (605     )     (250     )     (1,129   )     (1,321  )
Income (loss)           10,906         (1,671   )     32,723         796
before income taxes
Provision for
(benefit from)          1,904          (8,846   )     5,858          (11,038 )
income taxes
Net income            $ 9,002        $ 7,175        $ 26,865       $ 11,834
Earnings per share:
Basic                 $ 0.08         $ 0.06         $ 0.23         $ 0.10
Weighted average        115,951        114,793        116,104        114,672
shares outstanding
Diluted               $ 0.08         $ 0.06         $ 0.22         $ 0.10
Weighted average        119,856        115,656        120,487        116,503
shares outstanding

(1) The amounts in the tables above include stock-based compensation as
follows:

                            Three Months Ended        Six Months Ended
                             April 3,    April 4,       April 3,    April 4,
                             2010         2009           2010         2009
                                                                      
Cost of license revenue    $ 2          $ 3            $ 19         $ 17
Cost of service revenue      2,241        1,291          4,821        3,546
Sales and marketing          3,520        2,193          6,594        5,101
Research and development     2,383        1,566          5,042        3,824
General and                  4,146        1,677          9,671        4,773
administrative
Total stock-based          $ 12,292     $ 6,730        $ 26,147     $ 17,261
compensation

PARAMETRIC TECHNOLOGY CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
(in thousands, except per share data)

                     Three Months Ended           Six Months Ended
                      April        April 4,         April 3,      April 4,
                      3,
                      2010          2009            2010           2009     
                                                                             
GAAP operating      $ 11,511      $ (1,421   )     $ 33,852       $ 2,117
income (loss)
Stock-based           12,292        6,730            26,147         17,261
compensation
Amortization of
acquired
intangible assets     4,928         4,703            9,826          9,371
included in cost
of license
revenue
Amortization of
acquired
intangible assets     --            --               --             8
included in cost
of service
revenue
Amortization of
acquired              3,975         3,815            8,033          7,683
intangible assets
Restructuring         --            9,788            --             9,788
charges
Non-GAAP
operating income    $ 32,706      $ 23,615         $ 77,858       $ 46,228
^(2)
                                                                             
GAAP net income     $ 9,002       $ 7,175          $ 26,865       $ 11,834
Stock-based           12,292        6,730            26,147         17,261
compensation
Amortization of
acquired
intangible assets     4,928         4,703            9,826          9,371
included in cost
of license
revenue
Amortization of
acquired
intangible assets     --            --               --             8
included in cost
of service
revenue
Amortization of
acquired              3,975         3,815            8,033          7,683
intangible assets
Restructuring         --            9,788            --             9,788
charges
Income tax            (6,696  )     (14,717  )       (14,073  )     (20,919  )
adjustments ^(3)
Non-GAAP net        $ 23,501      $ 17,494         $ 56,798       $ 35,026
income
                                                                             
GAAP diluted
earnings per        $ 0.08        $ 0.06           $ 0.22         $ 0.10
share
Stock-based           0.10          0.06             0.22           0.15
compensation
All other items       0.02          0.03             0.03           0.05
identified above
Non-GAAP diluted
earnings per        $ 0.20        $ 0.15           $ 0.47         $ 0.30
share

(2) Operating margin impact of non-GAAP adjustments:

                            Three Months Ended       Six Months Ended
                             April 3,   April 4,       April 3,   April 4,
                             2010        2009          2010        2009  
                                                                      
GAAP operating margin        4.8   %      (0.6  )%       6.8   %      0.4   %
Stock-based compensation     5.1   %      3.0   %        5.2   %      3.7   %
Amortization of acquired     3.7   %      3.8   %        3.6   %      3.7   %
intangibles
Restructuring charges        --    %      4.3   %        --    %      2.1   %
Non-GAAP operating margin    13.6  %      10.5  %        15.6  %      9.9   %

(3) Reflects the tax effects of non-GAAP adjustments for the second quarter
and first six months of 2010 and 2009, which are calculated by applying the
applicable tax rate by jurisdiction to the non-GAAP adjustments listed above,
as well as the effect of a $7.6 million one-time tax benefit recorded in the
second quarter of 2009 due to the recognition of deferred tax assets in a
foreign jurisdiction.

PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

                                              April 3,     September 30,
                                               2010          2009
                                                             
ASSETS
                                                             
Cash and cash equivalents                    $ 222,692     $ 235,122
Accounts receivable, net                       151,117       166,591
Property and equipment, net                    61,935        58,105
Goodwill and acquired intangibles, net         559,439       596,517
Other assets                                   316,642       293,877
                                                            
Total assets                                 $ 1,311,825   $ 1,350,212
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                             
Deferred revenue                             $ 268,899     $ 234,270
Borrowings under revolving credit facility     33,528        57,880
Other liabilities                              267,639       296,481
Stockholders' equity                           741,759       761,581
                                                            
Total liabilities and stockholders' equity   $ 1,311,825   $ 1,350,212

PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)


                      Three Months Ended           Six Months Ended
                       April 3,      April 4,       April 3,      April 4,
                       2010           2009           2010           2009
                                                                             
Cash flows from
operating
activities:
Net income           $ 9,002        $ 7,175        $ 26,865       $ 11,834
Stock-based            12,292         6,730          26,147         17,261
compensation
Depreciation and       15,976         15,162         31,899         29,957
amortization
Accounts               4,550          53,576         8,761          77,015
receivable
Accounts payable       2,343          (4,916   )     (12,733  )     (30,949  )
and accruals ^ (4)
Deferred revenue       32,440         15,589         16,453         6,859
Income taxes           (3,693   )     (23,600  )     (6,498   )     (34,787  )
Other                  (4,962   )     4,510          (186     )     11,460
Net cash provided
by operating           67,948         74,226         90,708         88,650
activities
                                                                             
Capital                (9,225   )     (7,094   )     (17,102  )     (15,266  )
expenditures
Acquisitions of
businesses, net of     (1,505   )     (113     )     (2,087   )     (8,475   )
cash acquired
Proceeds from
(payments on)          (19,720  )     (18,686  )     (19,720  )     (31,951  )
debt, net
Repurchases of         (40,000  )     --             (45,072  )     (9,581   )
common stock
Other investing
and financing          (1,460   )     (1,919   )     (12,901  )     (2,410   )
activities ^(5)
Foreign exchange       (4,490   )     (5,629   )     (6,256   )     (10,190  )
impact on cash
                                                                             
Net change in cash
and cash               (8,452   )     40,785         (12,430  )     10,777   
equivalents
Cash and cash
equivalents,           231,144        226,933        235,122        256,941
beginning of
period
Cash and cash
equivalents, end     $ 222,692      $ 267,718      $ 222,692      $ 267,718
of period

(4) Includes accounts payable, accrued expenses, and accrued compensation and
benefits.

(5) The three months ended April 3, 2010 and April 4, 2009 include $4.6
million and $1.9 million, respectively, for payments of withholding taxes in
connection with vesting of restricted stock units and restricted stock. The
six months ended April 3, 2010 and April 4, 2009 include $20.2 million and
$4.3 million, respectively, for payments of withholding taxes in connection
with vesting of restricted stock units and restricted stock.

Contact:

PTC
Kristian P. Talvitie, 781-370-6151
ktalvitie@ptc.com