PTC Announces Q4 and FY’13 Results; Provides Q1 and FY’14 Outlook; Initiates New Long-Term Target Non-GAAP Operating Margin

  PTC Announces Q4 and FY’13 Results; Provides Q1 and FY’14 Outlook; Initiates
  New Long-Term Target Non-GAAP Operating Margin of 28-30%

Business Wire

NEEDHAM, Mass. -- November 6, 2013

PTC (Nasdaq: PMTC) today reported results for its fourth fiscal quarter and
year ended September 30, 2013.

Highlights

  *Q4 Results:

       *Non-GAAP revenue of $345 million, up 6% year over year (up 6% on a
         constant currency basis)
       *Non-GAAP EPS of $0.59, up 19% year over year (up 20% on a constant
         currency basis)
       *Non-GAAP operating margin of 27.4%, up 300 basis points year over
         year (up approximately 310 basis points on a constant currency basis)
       *GAAP revenue of $345 million, GAAP operating margin of 14.2% and GAAP
         EPS of $0.47, including an $18 million restructuring charge
       *Q4 revenue contribution from acquired businesses including
         Servigistics (acquired on October 2, 2012), Enigma (acquired on July
         11, 2013) and NetIDEAS (acquired on September 5, 2013) was $27
         million on both a GAAP and non-GAAP basis.

  *FY’13 Results:

       *Non-GAAP revenue of $1,297 million, up 3% year over year (up 5% on a
         constant currency basis)
       *Non-GAAP EPS of $1.81, up 20% year over year (up 24% on a constant
         currency basis)
       *Non-GAAP operating margin of 22.1%, up 247 basis points year over
         year (up approximately 285 basis points on a constant currency basis)
       *GAAP revenue of $1,294 million, GAAP EPS of $1.19, and GAAP operating
         margin of 9.8%.

  *Q1 Guidance:

       *Revenue of $310 to $320 million and non-GAAP EPS of $0.41 to $0.46
       *License revenue of $70 to $80 million
       *GAAP EPS of $0.23 to $0.28
       *Assumes $1.35 USD / EURO and 98 YEN / USD

  *FY’14 Guidance:

       *Revenue of $1,325 to $1,340 million and non-GAAP EPS of $2.00 to
         $2.10
       *License revenue of $350 to $365 million
       *Non-GAAP operating margin of approximately 25%
       *GAAP EPS of $1.28 to $1.38 and GAAP operating margin of approximately
         18%
       *Assumes $1.35 USD / EURO and 98 YEN / USD

The Q4 and FY’13 non-GAAP revenue and non-GAAP EPS results exclude a $0.3
million (for Q4) and a $3.0 million (for FY’13) effect of purchase accounting
on the fair value of the deferred revenue balance of acquired companies. The
Q4 and FY’13 non-GAAP EPS results also exclude $13.9 million (for Q4) and
$48.8 million (for FY’13) of stock-based compensation expense, $11.4 million
(for Q4) and $45.1 million (for FY’13) of acquisition-related intangible asset
amortization, $17.8 million (for Q4) and $52.2 million (for FY’13) of
restructuring charges, $2.2 million (for Q4) and $9.9 million (for FY’13) of
acquisition-related expense, and $0.6 million (for Q4) and $5.7 million (for
FY’13) of non-operating gains. The Q4 and FY’13 non-GAAP EPS results include a
tax rate of 23% (for Q4) and 22% (for FY’13) and 121 million diluted shares
outstanding.

Results Commentary

James Heppelmann, president and chief executive officer, commented, “PTC’s
non-GAAP revenue and EPS exceeded the high end of our guidance range despite
macroeconomic headwinds and with no mega deals in the quarter. Our results
also demonstrate our continued efforts to drive margin expansion and earnings
growth. License revenue of $105 million was up 5% year over year (5% on a
constant currency basis) and slightly above our guidance range. From a
geographic perspective, we saw a rebound in Europe and solid growth in Japan
and the Pac Rim, which was offset by softer results in the Americas reflecting
ongoing macroeconomic uncertainty and a comparison to very strong performance
in the Americas in Q4’12.”

Heppelmann added, “We saw improvement in year-over-year performance within our
CAD license business; however, performance in our extended PLM business was
muted by the softer macroeconomic environment, most noticeably in the
Americas. Our SLM business was up strongly on both an organic basis and
including acquisitions. We had 45 large deals (recognized license + services
revenue of more than $1 million) in Q4’13, up from 35 in Q4’12 and 33 in
Q3’13. The mix of large deal revenue was skewed more heavily toward licenses
reflecting more large license transactions. During the quarter we recognized
revenue from leading organizations such as CNH Industrial, Cummins, Embraer,
GKN plc, IMA S.p.A., Milacron, Raytheon, and TE Connectivity.”

Jeff Glidden, chief financial officer, commented, “From a profitability
standpoint we had a very strong quarter; we delivered $0.59 non-GAAP EPS,
above the high end of our guidance range, and achieved a 27.4% non-GAAP
operating margin. Q4 GAAP EPS was $0.47 and GAAP operating margin was 14.2%.
We generated $44 million in operating cash flow and used $25 million to
complete the acquisitions of Enigma and NetIDEAS, $10 million for capital
expenditures, $10 million to partially repay our credit facility, and $20
million for stock repurchases, resulting in an ending cash balance of $242
million. For the full year we increased our non-GAAP EPS by 20% to $1.81 and
generated $225 million in operating cash flow.”

Outlook Commentary

“We remain excited about our long-term growth opportunity based on the
strength of our pipeline, competitive wins in our core markets, and an
expanding set of impact solutions that address key customer challenges. We
remain committed to driving margin expansion and now expect to achieve our 25%
non-GAAP operating margin target in FY’14, a year earlier than we had
previously communicated. We are now establishing a new long-term non-GAAP
operating margin target range of 28% to 30% by FY’17,” said Heppelmann.

Glidden added, “For Q1’14, we are providing guidance of $310 to $320 million
in revenue with $70 to $80 million in license revenue, approximately $70
million in services revenue and approximately $170 million in support revenue.
We are expecting Q1 non-GAAP EPS of $0.41 to $0.46 and GAAP EPS of $0.23 to
$0.28.”.

The Q1 guidance assumes $1.35 USD / EURO, 98 YEN / USD, a non-GAAP tax rate of
25%, a GAAP tax rate of 30% and 122 million diluted shares outstanding. The Q1
non-GAAP guidance excludes $0.5 million of restructuring charges, $13 million
of stock-based compensation expense, $12 million of intangible asset
amortization expense, their related income tax effects, as well as any
additional discrete tax items.

Glidden continued, “Based on our robust sales pipeline and increasing customer
adoption of our broader solution set, but uncertain timing of global economic
recovery, we are targeting revenue of $1,325 to $1,340 million, license
revenue of $350 to $365 million, services revenue of approximately $300
million and support revenue of approximately $675 million. We expect to
increase our full year FY’14 non-GAAP operating margin to 25%, driven by: (1)
improvement in services non-GAAP net margin to approximately 15%; (2)
increased sales productivity; and (3) continued vigilance on cost controls. We
are guiding to non-GAAP EPS of $2.00 to $2.10 and GAAP EPS of $1.28 to $1.38
reflecting our continued commitment to improving profitability.”

The FY’14 targets assume a non-GAAP tax rate of 25%, a GAAP tax rate of 30%
and 122 million diluted shares outstanding. The FY’14 non-GAAP guidance
excludes $0.5 million of restructuring charges, $52 million of stock-based
compensation expense, $49 million of intangible asset amortization expense,
their related income tax effects, as well as any additional discrete tax
items.

Ticker Symbol Change to PTC

PTC will change its NASDAQ ticker symbol to “PTC” effective at the start of
trading on December 3 (prior NASDAQ common stock symbol: “PMTC”). All stock
trading, filings and market related information will be reported under this
new symbol. Along with changing its legal name to PTC Inc. on January 28,
2013, this ticker symbol change is another step in our effort to align with a
broadened purpose of helping manufacturers transform the way products are
created and serviced.

Q4 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 Q4 Conference Call and Webcast
             
When:        Thursday, November 7^th, 2013 at 8:30am (ET)
             
Dial-in:     1-800-857-5592 or 1-773-799-3757
             Call Leader: James Heppelmann
             Passcode: PTC
             
Webcast:     www.ptc.com/for/investors.htm
             
Replay:      The audio replay of this event will be archived for public replay
             until 10:59 pm (CT) on November 17th, 2013.
             Dial-in: 800-839-2204 Passcode: 5689
             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 revenue, operating expenses, margin and EPS exclude the effect of
purchase accounting on the fair value of acquired deferred revenue of
Servigistics, Inc. and MKS, Inc., stock-based compensation expense,
amortization of acquired intangible assets, restructuring charges,
acquisition-related expenses and gains, certain foreign currency transaction
losses, certain litigation gains, and the related tax effects of the preceding
items and discrete tax items. We use these non-GAAP measures, and we believe
that they assist our investors, to make period-to-period comparisons of our
operational performance because they provide a view of our operating results
without items that are not, in our view, indicative of our core operating
results. We believe that these non-GAAP measures help illustrate underlying
trends in our business, and we use the measures to establish budgets and
operational goals, communicated internally and externally, for managing our
business and evaluating our performance. We believe that providing non-GAAP
measures affords investors a view of our operating results that may be more
easily compared to the results of peer companies. Inaddition, 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 consider, non-GAAP measures in conjunction with our
GAAP results.

Forward-Looking Statements

Statements in this press release that are not historic facts, including
statements about our fiscal 2014 and other future financial and growth
expectations and anticipated tax rates, 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 the
macroeconomic climate may not improve or may deteriorate, the possibility that
customers may not purchase or adopt our solutions when or at the rates we
expect and that our pipeline deals may not convert as 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, services or support growth rates that we expect,
which could result in a different mix of revenue between license, service and
support and could impact our EPS results, the possibility that we may be
unable to improve services margins as we expect, the possibility that we may
be unable to improve sales productivity as we expect, the possibility that our
CAD and SLM businesses may not continue to expand, the possibility that
resource constraints and personnel reductions could adversely affect our
revenue, and the possibility that remedial actions relating to our previously
announced investigation in China will have a material impact on our operations
in China and that fines and penalties may be assessed against us in connection
with this matter. 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 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 PTC logo, and all other PTC product names and logos are trademarks or
registered trademarks of PTC Inc. 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

PTC (Nasdaq: PMTC) enables manufacturers to achieve sustained product and
service advantage. The company’s technology solutions help customers transform
the way they create and service products across the entire product lifecycle –
from conception and design to sourcing and service. Founded in 1985, PTC
employs nearly 6,000 professionals serving more than 27,000 businesses in
rapidly-evolving, globally distributed manufacturing industries worldwide. Get
more information at www.ptc.com.

PTC Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
                                                                  
                                                                            
                          Three Months Ended              Twelve Months Ended
                          September       September       September 30,     September 30,
                          30,             30,
                          2013            2012            2013              2012
                                                                            
Revenue:
    License               $ 105,432       $ 100,698       $ 344,209         $ 348,394
    Service                 72,269          69,138          294,653           295,342
    Support                167,144       155,459       654,679         611,943   
Total revenue              344,845       325,295       1,293,541       1,255,679 
                                                                            
Cost of revenue:
    Cost of license         8,270           7,478           33,004            30,595
    revenue ^(1)
    Cost of service         62,871          61,978          258,954           265,483
    revenue ^(1)
    Cost of support        20,388        18,383        81,081          76,050    
    revenue ^(1)
Total cost of revenue      91,529        87,839        373,039         372,128   
                                                                            
Gross margin               253,316       237,456       920,502         883,551   
                                                                            
Operating expenses:
    Sales and               90,734          94,350          360,640           377,796
    marketing ^(1)
    Research and            55,127          52,131          221,918           214,960
    development ^(1)
    General and
    administrative          33,910          28,511          131,937           117,468
    ^(1)
    Amortization of
    acquired                6,691           4,859           26,486            20,303
    intangible assets
    Restructuring          17,848        -             52,197          24,928    
    charges
Total operating            204,310       179,851       793,178         755,455   
expenses
                                                                            
Operating income            49,006          57,605          127,324           128,096
    Other income           (599    )      (1,446  )      (1,090    )      (7,360    )
    (expense), net
Income before income        48,407          56,159          126,234           120,736
taxes
    (Benefit)
    provision for          (8,059  )      140,144       (17,535   )      156,134   
    income taxes
Net income (loss)         $ 56,466       $ (83,985 )     $ 143,769        $ (35,398   )
                                                                            
Earnings (loss) per
share:
    Basic                 $ 0.47          $ (0.71   )     $ 1.20            $ (0.30     )
         Weighted
         average            119,020         119,048         119,473           118,705
         shares
         outstanding
                                                                            
    Diluted               $ 0.47          $ (0.71   )     $ 1.19            $ (0.30     )
         Weighted
         average            121,267         119,048         121,240           118,705
         shares
         outstanding
                                                                            
                                                                            
                                                                            
    (1)  The amounts in the tables above include stock-based compensation as follows:
                                                                            
                          Three Months Ended              Twelve Months Ended
                          September       September       September 30,     September 30,
                          30,             30,
                          2013            2012            2013              2012
    Cost of license       $ 4             $ 6             $ 21              $ 22
    revenue
    Cost of service         1,730           1,447           6,134             5,682
    revenue
    Cost of support         941             735             3,324             3,234
    revenue
    Sales and               3,340           3,441           11,326            13,809
    marketing
    Research and            2,115           2,086           8,590             8,761
    development
    General and            5,777         4,185         19,392          19,797    
    administrative
         Total
         stock-based      $ 13,907       $ 11,900       $ 48,787         $ 51,305    
         compensation
                                                                                        

PTC Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
(in thousands, except per share data)
                                                      
                              Three Months Ended             Twelve Months Ended
                              September     September       September 30,   September 30,
                              30,            30,
                              2013          2012            2013            2012
                                                                              
GAAP revenue                  $ 344,845      $ 325,295       $ 1,293,541      $ 1,255,679
  Fair value of acquired
  company's
      deferred                 287          -             3,035          2,485     
      maintenance revenue
Non-GAAP revenue              $ 345,132     $ 325,295      $ 1,296,576     $ 1,258,164 
                                                                              
GAAP gross margin             $ 253,316      $ 237,456       $ 920,502        $ 883,551
  Fair value of acquired
  company's
      deferred                  287            -               3,035            2,485
      maintenance revenue
  Stock-based                   2,675          2,188           9,479            8,938
  compensation
  Amortization of
  acquired intangible
  assets
      included in cost of      4,721        3,852         18,586         15,819    
      revenue
Non-GAAP gross margin         $ 260,999     $ 243,496      $ 951,602       $ 910,793   
                                                                              
GAAP operating income         $ 49,006       $ 57,605        $ 127,324        $ 128,096
  Fair value of acquired
  company's
      deferred                  287            -               3,035            2,485
      maintenance revenue
  Stock-based                   13,907         11,900          48,787           51,305
  compensation
  Amortization of
  acquired intangible
  assets
      included in cost of       4,721          3,852           18,586           15,819
      revenue
  Amortization of
  acquired intangible           6,691          4,859           26,486           20,303
  assets
  Acquisition-related
  charges included in
      general and
      administrative            2,246          1,321           9,855            3,833
      expenses
  Restructuring charges        17,848       -             52,197         24,928    
Non-GAAP operating income     $ 94,706      $ 79,537       $ 286,270       $ 246,769   
^(2)
                                                                              
GAAP net income (loss)        $ 56,466       $ (83,985 )     $ 143,769        $ (35,398   )
  Fair value of acquired
  company's
      deferred                  287            -               3,035            2,485
      maintenance revenue
  Stock-based                   13,907         11,900          48,787           51,305
  compensation
  Amortization of
  acquired intangible
  assets
      included in cost of       4,721          3,852           18,586           15,819
      revenue
  Amortization of
  acquired intangible           6,691          4,859           26,486           20,303
  assets
  Acquisition-related
  charges included in
      general and
      administrative            2,246          1,321           9,855            3,833
      expenses
  Restructuring charges         17,848         -               52,197           24,928
  Non-operating one-time        (594    )      -               (5,717    )      761
  (gains) losses ^(3)
  Income tax adjustments       (29,990 )     122,255       (77,834   )     98,827    
  ^(4)
Non-GAAP net income           $ 71,582      $ 60,202       $ 219,164       $ 182,863   
                                                                              
GAAP diluted earnings         $ 0.47         $ (0.71   )     $ 1.19           $ (0.30     )
(loss) per share
  Fair value of deferred        -              -               0.03             0.02
  maintenance revenue
  Stock-based                   0.11           0.10            0.40             0.42
  compensation
  Amortization of               0.09           0.07            0.37             0.30
  acquired intangibles
  Acquisition-related           0.02           0.01            0.08             0.03
  charges
  Restructuring charges         0.15           -               0.43             0.21
  Non-operating one-time        -              -               (0.05     )      0.01
  (gains) losses ^(3)
  Income tax adjustments       (0.25   )     1.01          (0.64     )     0.82      
  ^(4)
Non-GAAP diluted earnings     $ 0.59        $ 0.50         $ 1.81          $ 1.51      
per share
                                                                              
GAAP diluted weighted
average shares                  121,267        119,048         121,240          118,705
outstanding
  Dilutive effect of
  stock based                  -            2,227         -              2,293     
  compensation plans
Non-GAAP diluted weighted
average shares                 121,267      121,275       121,240        120,998   
outstanding
                                                                              
  (2) Operating margin impact of non-GAAP adjustments:
                              Three Months Ended             Twelve Months Ended
                              September      September       September 30,    September 30,
                              30,            30,
                              2013           2012            2013             2012
  GAAP operating margin         14.2    %      17.7    %       9.8       %      10.2      %
      Fair value of
      deferred                  0.1     %      0.0     %       0.2       %      0.2       %
      maintenance revenue
      Stock-based               4.0     %      3.7     %       3.8       %      4.1       %
      compensation
      Amortization of
      acquired                  3.3     %      2.7     %       3.5       %      2.9       %
      intangibles
      Acquisition-related       0.7     %      0.4     %       0.8       %      0.3       %
      charges
      Restructuring            5.2     %     0.0     %      4.0       %     2.0       %
      charges
  Non-GAAP operating           27.4    %     24.5    %      22.1      %     19.6      %
  margin
                                                                              
      The fourth quarter of 2013 includes a gain on investment of $0.6 million, and the
      third quarter of 2013 includes a legal settlement gain of $5.1 million, which are
  (3) both excluded from non-GAAP net income. In the first quarter of 2012 we recorded $0.8
      million of foreign currency transaction losses related to legal entity mergers
      completed during the quarter, which is excluded from non-GAAP net income.
                                                                              
      Reflects the tax effects of non-GAAP adjustments for the three and twelve months
      ended September 30, 2013 and September 30, 2012, which are calculated by applying the
      applicable tax rate by jurisdiction to the non-GAAP adjustments listed above, as well
      as any discrete tax items. In the fourth quarter of 2012, a valuation allowance was
      established against our U.S. net deferred tax assets. As the U.S. is profitable on a
      non-GAAP basis, the 2013 non-GAAP tax provision is being calculated assuming there is
      no U.S. valuation allowance and, as a result, an income tax benefit of $0.2 million
      and $20.3 million is included for the three and twelve months ended September 30,
      2013, respectively. In the three and twelve months ended September 30, 2013, the
      non-GAAP tax provision excludes the non-cash benefit related to the reversal of a
      portion of the valuation allowance in the U.S. of $7.9 million relating to the
      release of a valuation allowance as a result of the pension gain (decrease in
      unrecognized actuarial loss) recorded in accumulated other comprehensive income, a
      $4.1 million benefit related to the release of a portion of the valuation allowance
  (4) as a result of deferred tax liabilities established in accounting for acquisitions
      completed in the fourth quarter and a $2.6 million benefit relating to a tax audit in
      a foreign jurisdiction of an acquired company. The twelve months ended September 30,
      2013 non-GAAP tax provision also excludes a non-cash tax benefit of $32.6 million
      related to the release of deferred tax liabilities established for the Servigistics
      acquisition recorded in the first quarter and tax benefits of $3.2 million relating
      to the final resolution of a long standing tax litigation and completion of an
      international jurisdiction tax audit recorded in the second quarter. The three and
      twelve months ended September 30, 2012 non-GAAP tax provision excludes a non-cash
      charge, net, of $124.5 million to establish a valuation allowance against our U.S.
      net deferred tax assets and $5.4 million, net primarily related to foreign tax
      credits which would be fully realized on a non-GAAP basis recorded in the fourth
      quarter of 2012; $3.3 million primarily related to acquired legal entity integration
      activities recorded in the third quarter of 2012; and $1.4 million related to the
      impact from a reduction in the statutory tax rate in Japan on deferred tax assets
      from a litigation settlement recorded in the first quarter of 2012.
      

PTC Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                            
                                                                 
                                               September 30,     September 30,
                                               2013              2012
                                                                 
ASSETS
                                                                 
Cash and cash equivalents                      $  241,913        $  489,543
Accounts receivable, net                          229,106           217,370
Property and equipment, net                       64,652            63,466
Goodwill and acquired intangible assets,          1,042,216         796,232
net
Other assets                                      238,386           225,023
                                                                
Total assets                                   $  1,816,273      $  1,791,634
                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                 
Deferred revenue                               $  336,913        $  327,529
Borrowings under credit facility                  258,125           370,000
Other liabilities                                 294,755           296,846
Stockholders' equity                              926,480           797,259
                                                                
Total liabilities and stockholders' equity     $  1,816,273      $  1,791,634
                                                                 

PTC Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                             
                                                                      
                     Three Months Ended              Twelve Months Ended
                     September       September       September        September
                     30,             30,             30,              30,
                     2013            2012            2013             2012
                                                                      
Cash flows from
operating
activities:
    Net income       $ 56,466        $ (83,985 )     $ 143,769        $ (35,398 )
    (loss)
    Stock-based        13,907          11,900          48,787           51,305
    compensation
    Depreciation
    and                19,119          16,319          76,551           66,471
    amortization
    Accounts           (18,566 )       (9,473  )       17,308           32,309
    receivable
    Accounts
    payable and        14,732          (1,281  )       6,208            (7,573  )
    accruals
    ^(5)
    Deferred           (36,224 )       (37,866 )       6,727            14,362
    revenue
    Income taxes       (14,576 )       128,872         (54,925  )       100,761
    Excess tax
    benefits
    from               (163    )       (871    )       (334     )       (1,324  )
    stock-based
    awards
    Other             8,966         (2,684  )      (19,408  )      (2,938  )
Net cash
provided by            43,661          20,931          224,683          217,975
operating
activities ^ (6)
                                                                      
Capital                (10,200 )       (8,907  )       (29,328  )       (31,413 )
expenditures
Acquisitions of
businesses, net        (25,026 )       950             (245,843 )       (220    )
of cash acquired
^(7)
Proceeds
(payments) on          (10,000 )       230,000         (111,875 )       170,000
debt, net
Proceeds from
issuance of            1,472           5,895           4,884            21,210
common stock
Payments of
withholding
taxes in
connection with
    vesting of
    stock-based        (22     )       (74     )       (14,996  )       (20,967 )
    awards
Repurchases of         (19,959 )       -               (74,871  )       (34,953 )
common stock
Excess tax
benefits from          163             871             334              1,324
stock-based
awards
Other financing
and investing          721             (1,951  )       721              (1,951  )
activities
Foreign exchange      4,072         3,781         (1,339   )      660     
impact on cash
                                                                      
Net change in
cash and cash          (15,118 )       251,496         (247,630 )       321,665
equivalents
Cash and cash
equivalents,          257,031       238,047       489,543        167,878 
beginning of
period
Cash and cash
equivalents, end     $ 241,913      $ 489,543      $ 241,913       $ 489,543 
of period
                                                                      
                                                                      
(5) Includes accounts payable, accrued expenses, and accrued compensation and
    benefits
                                                                      
    The three and twelve months ended September 30, 2013 and September 30, 2012
(6) include restructuring payments of $6 million and $37 million and $5 million
    and $21 million, respectively.
                                                                      
    We completed two acqusition in the fourth quarter for $25 million, net of
    cash acquired. We acquired Servigistics on October 2, 2012, for approximately
(7) $221 million (net of cash acquired) which was funded with $230 million in
    borrowings under our revolving credit facility. We borrowed the funds in the
    fourth quarter of 2012 in contemplation of the acquisition closing.


Contact:

PTC Investor Relations
James Hillier, 781-370-6359
jhillier@ptc.com