PTC Announces Q1 Results Issues Q2 Guidance and Full Fiscal Year

PTC Announces Q1 Results Issues Q2 Guidance and Full Fiscal Year 2009 Targets

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

	Three Months Ended
	January 3,		December 29,
	2009		2007
Cost of license revenue	$	14	$	--
Cost of service revenue		2,255		2,347
Sales and marketing		2,908		2,867
Research and development		2,258		2,270
General and administrative		3,096		3,119
Total stock-based compensation	$	10,531	$	10,603

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

	Three Months Ended
	January 3,			December 29,
	2009			2007
GAAP revenue	$	240,391		$	241,242
Fair value adjustment of acquired CoCreate deferred maintenance revenue		--			1,237
Non-GAAP revenue	$	240,391		$	242,479

GAAP operating income	$	3,538		$	14,865
Fair value adjustment of acquired CoCreate deferred maintenance revenue		--			1,237
Stock-based compensation		10,531			10,603
Amortization of acquired intangible assets included in cost of license revenue		4,668			2,954
Amortization of acquired intangible assets included in cost of service revenue		8			17
Amortization of acquired intangible assets		3,868			2,893
In-process research and development		--			1,887
Restructuring charge		--			9,685
Non-GAAP operating income	$	22,613		$	44,141

GAAP net income	$	4,659		$	9,880
Fair value adjustment of acquired CoCreate deferred maintenance revenue		--			1,237
Stock-based compensation		10,531			10,603
Amortization of acquired intangible assets included in cost of license revenue		4,668			2,954
Amortization of acquired intangible assets included in cost of service revenue		8			17
Amortization of acquired intangible assets		3,868			2,893
In-process research and development		--			1,887
Restructuring charge		--			9,685
Income tax adjustments ⁽¹⁾		(6,202	)		(8,076	)
Non-GAAP net income	$	17,532		$	31,080

GAAP diluted earnings per share	$	0.04		$	0.08
Stock-based compensation		0.09			0.09
All other items identified above		0.02			0.09
Non-GAAP diluted earnings per share	$	0.15		$	0.26

Weighted average shares outstanding - diluted		117,356			118,087
(1) Reflects the tax effect of non-GAAP adjustments above.

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


	January 3,		September 30,
	2009		2008

ASSETS

Cash and cash equivalents	$	226,933	$	256,941
Accounts receivable, net		185,007		201,509
Property and equipment, net		57,526		55,253
Goodwill and acquired intangibles, net		581,305		587,537
Other assets		251,921		248,333

Total assets	$	1,302,692	$	1,349,573

LIABILITIES AND STOCKHOLDERS' EQUITY

Deferred revenue	$	261,775	$	258,295
Borrowings under revolving credit facility		74,036		88,505
Other liabilities		266,645		300,248
Stockholders' equity		700,236		702,525

Total liabilities and stockholders' equity	$	1,302,692	$	1,349,573

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


	Three Months Ended
	January 3,			December 29,
	2009			2007

Cash flows from operating activities:
Net income	$	4,659		$	9,880
Stock-based compensation		10,531			10,603
Amortization of acquired intangible assets		8,544			5,864
Depreciation and other amortization		6,251			6,071
In-process research and development		--			1,887
Accounts receivable		23,439			38,100
Accounts payable and accruals ⁽¹⁾		(26,033	)		(30,119	)
Deferred revenue		(8,730	)		(16,417	)
Other		(4,237	)		(5,314	)
Net cash provided by operating activities		14,424			20,555

Capital expenditures		(8,172	)		(4,830	)
Acquisitions of businesses, net of cash acquired ⁽²⁾		(8,362	)		(262,285	)
Proceeds from (payments of) debt, net		(13,265	)		205,000
Repurchases of common stock		(9,581	)		--
Other investing and financing activities		(491	)		(6,946	)
Foreign exchange impact on cash		(4,561	)		23

Net change in cash and cash equivalents		(30,008	)		(48,483	)
Cash and cash equivalents, beginning of period		256,941			263,271
Cash and cash equivalents, end of period	$	226,933		$	214,788
(1) Includes accounts payable, accrued expenses, and accrued compensation and benefits.
(2) Acquisitions of businesses:
a. The quarter ended January 3, 2009 includes $7 million for our acquisition of Synapsis and $1 million for a contingent purchase price earned during the quarter related to a prior acquisition.
b. The quarter ended December 29, 2007 includes $248 million for our acquisition of CoCreate and $14 million for two other businesses, net of cash acquired.

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