CIMdata PLM Industry Summary Online Archive
29 April 2009
Financial News
PTC Announces Q2 Results
Story ContPTC reported results for its second fiscal quarter ended April 4, 2009.
Highlights
Q2 Results: Revenue of $225.3 million and non-GAAP EPS of $0.15
Currency was a $3 million headwind relative to Q2 revenue guidance
Non-GAAP operating margin of 10.5%; GAAP operating margin of (0.6%)
GAAP EPS of $0.06, including $10 million restructuring charge to reduce operating expenses
Q3 Guidance: Revenue of $220 to $230 million and non-GAAP EPS of $0.12 to $0.18
GAAP loss per share of $0.03 to EPS of $0.03
FY 2009 Targets: Revenue of $940 million and non-GAAP EPS of approximately $0.80
Non-GAAP operating margin of 13% to 14%; GAAP operating margin of 3% to 4%
GAAP EPS of approximately $0.34
Assumes $1.30 EURO / USD, down from $1.35 EURO / USD in prior guidance
Approximately 17% non-GAAP and 8% GAAP operating margin for H2’09
The Q2 non-GAAP results exclude a $10 million restructuring charge, $7 million of stock-based compensation expense, $9 million of acquisition-related intangible asset amortization expenses and $15 million of income tax adjustments. The Q2 results include a non-GAAP tax rate of 25% and a GAAP tax benefit rate of 529%.
Q2 Results Commentary & Outlook
C. Richard Harrison, chairman and chief executive officer, commented, “On a constant currency and non-GAAP basis, our total Q2 revenue was down 10%, or approximately $25 million, compared to last year. While constant currency license revenue was down 44% in Q2, as expected, our results highlight our maintenance and services businesses, which both grew on a constant currency basis in Q2 and currently represent approximately 80% of our revenue base.”
“Not surprisingly, we are continuing to experience longer lead times and reduced spending on large deals and our reseller channel continues to be impacted by soft end-market demand,” continued Harrison. “On the positive side, our pipeline for new business opportunities remains strong and our products continue to perform well in competitive benchmarks for strategically significant PLM programs. For example, we won an important benchmark with Nokia during the quarter and received major orders from other leading organizations such as AGCO, BAE Systems, EADS, Force Protection, Lockheed Martin, ITT Corporation, Toyota Motor Corporation and the US Navy.”
James Heppelmann, president and chief operating officer added, “We remain very optimistic about the long-term opportunity for PTC. We intend to continue to make strategic investments that we believe are critical to gaining market share and improving operating profitability over the longer-term, including investing in the breadth and competitiveness of our product portfolio, expanding our reseller channel and developing an ecosystem of enterprise reseller partners and strategic services partners.”
Neil Moses, chief financial officer, commented, “Our Q2 operating margins and EPS were stronger than expected primarily due to revised bonus plans, earlier than anticipated execution on the restructuring activities we acted on during the quarter, as well as some favorable impact from currency movements.”
“Looking forward, we are adjusting our FY’09 revenue target to $940 million as currency and macroeconomic factors continue to move against us,” Moses continued. “Consequently, we are now expecting FY’09 non-GAAP operating margins of 13% to 14% and non-GAAP EPS of approximately $0.80. For Q3, we are initiating guidance of $220 to $230 million in revenue with non-GAAP EPS of $0.12 to $0.18.”
Moses concluded, “We continue to generate significant cash flow from operations which we can use to pay down our outstanding debt of $53 million, fund acquisitions and to buy back our stock. Our balance sheet remains strong with $268 million of cash and an additional $177 million available on our revolving credit facility. We remain committed to accelerating our organic growth rate and expanding our non-GAAP operating margins over the longer-term.”
The Q3 guidance assumes a non-GAAP tax rate of 25% and a GAAP tax rate of 8%. The Q3 non-GAAP guidance excludes approximately $12 million of stock-based compensation expense, $9 million of acquisition-related intangible asset amortization expense, $3 million of restructuring related expense and the related income tax effects.
The FY’09 guidance assumes a non-GAAP tax rate of 25% and a GAAP tax rate of -21%. The FY’09 non-GAAP guidance excludes approximately $43 million of stock-based compensation expense, $35 million of acquisition-related intangible asset amortization expense, $13 million of restructuring related expense and the related income tax effects.
Q2 Earnings Conference Call and Webcast
Supplemental financial and operating metric information and prepared remarks for the conference call will be posted to the investor relations section of our website simultaneously with this press release. The prepared remarks will not be read live; the call will be primarily Q&A.
When: |
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Wednesday, April 29, 2009 at 8:30 a.m. Eastern Time |
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Dial-in: |
1-888-566-8560 or 1-517-623-4768 |
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Call Leader: Richard Harrison with Passcode: PTC |
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Webcast: |
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Replay: |
The audio replay of this event will be archived for public replay until 4:00 p.m. on May 4, 2009 at 1-888-568-0858 or 1-402-998-0243. To access the replay via webcast, please visit http://www.ptc.com/for/investors.htm.
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