CIMdata PLM Industry Summary Online Archive
20 October 2004
Financial News
PTC Reports Fourth Quarter and Fiscal Year 2004 Results Company Delivers Growth in Revenue, Net Income and Cash
PTC 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. 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 http://www.ptc.com/for/investors.htm . To access the replay by phone, please dial 203-369-1649.
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