Exceptional year for PTC

A PTC - Parametric Technology (UK) product story

Edited by the Engineeringtalk editorial team Nov 6, 2006

PTC has reported revenue of US $245.5 million for the fourth quarter ended 30th September 2006, up 26% from the same period last year.

PTC has reported revenue of US $245.5 million for the fourth quarter ended 30th September 2006, up 26% from the same period last year.

For fiscal year 2006, PTC reported total revenue of $854.9 million, up 19% from fiscal year 2005.

Total licence revenue for the fourth quarter of 2006 was $84.6 million, up 39% from the same period last year.

Total licence revenue for fiscal year 2006 was $263.5 million, up 26% from fiscal year 2005.

The results for the fourth quarter of 2006 reflected continued acceleration in organic revenue growth and the contribution of recently acquired Mathsoft.

"Fiscal 2006 was an exceptional year marked by customer success and strong financial results", said C Richard Harrison, President and Chief Executive Officer.

"In particular, we delivered robust desktop solutions results, record enterprise solutions revenue, and significant operating leverage".

"Our performance is attributable to three key differentiators: our expanding solution capability footprint, which includes Arbortext, Mathcad and, for fiscal 2007, Itedo solutions, our single platform architecture, and a thorough understanding of our customers' product development challenges".

GAAP operating income for the fourth quarter of 2006 was $34.2 million, compared with $11.6 million in the year-ago period.

GAAP net income for the fourth quarter of 2006 was $28.1 million, or $0.24 per diluted share, compared with GAAP net income of $17.3 million, or $0.15 per diluted share, in the year-ago period.

Our GAAP results for the fourth quarter and full fiscal year of 2006 include a $2.3 million charge for stock-based compensation expense resulting from our review of historic stock option grants, which is now complete.

Non-GAAP operating income, which excludes stock-based compensation cost, amortisation of acquisition-related intangible assets, in-process research and development writeoffs associated with acquisitions, and restructuring charges, was $48.6 million, or 19.8% of total revenue for the fourth quarter of 2006, compared with $27.8 million, or 14.2% of total revenue in the year-ago period.

Non-GAAP net income, which excludes the items excluded from non-GAAP operating income and the related tax effect of these items, as well as one-time tax items, was $42.6 million for the fourth quarter of 2006, or $0.37 per diluted share, compared with $24.6 million in the year-ago period, or $0.22 per diluted share.

GAAP operating income for fiscal year 2006 was $74.1 million compared with $85.8 million in fiscal year 2005.

GAAP net income for fiscal year 2006 was $63.2 million, or $0.56 per diluted share, compared with $83.6 million, or $0.75 per diluted share in fiscal year 2005.

PTC adopted SFAS 123 in the fourth quarter of fiscal year 2005 and, therefore, the full year GAAP results for the year-ago period do not include the cost of stock-based compensation for the first nine months of 2005 in accordance with SFAS 123.

Non-GAAP operating income, which excludes stock-based compensation cost, amortisation of acquisition-related intangible assets, in-process research and development writeoffs associated with acquisitions, and restructuring charges, was $132.8 million in 2006, or 15.5% of total revenue, compared with $103.0 million, or 14.3% of total revenue in 2005.

Non-GAAP net income, which excludes the items excluded from non-GAAP operating income and the related tax effect of these items, as well as one-time tax items, was $113.4 million for 2006, or $1.00 per diluted share, compared with $87.4 million in the year-ago period, or $0.78 per diluted share.

Cash and cash equivalents were $183 million at the end of the fiscal year 2006, up from $174 million at the end of the third quarter.

"We plan to drive continued revenue and earnings growth throughout 2007", said Harrison.

"Our market continues to grow, and our own growth exceeds that of the market".

"We will continue to execute our strategy to help our customers solve their product development challenges, while at the same time making continued improvements to our worldwide distribution and service business models".