PTC Posts a Loss

PTC Posts a Loss

Jul 16, 2002
2 minute read
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Product lifecycle management software maker PTC announced third quarter results this morning that met analysts expectations of a pro forma loss of 2 cents per share.

The Needham, Mass., company reported revenues totaling $182.5 million for its fiscal third quarter, which ended June 29. That compared with revenue of $230.7 million for the same period last year.

The pro forma net loss for the company was reported at $5.8 million, or 2 cents per share, compared with a pro forma net income of $6.7 million, or earnings of 3 cents per share for the same year-ago period. All-tolled, the net loss for PTC was tallied at $24.6 million, or 9 cents per share, compared with a net loss of $2.7 million, or 1 cent per share for the same period last year.

Edwin Gillis, executive vice president and chief financial officer at PTC, forecasted flat revenues of about $180 million for the next two quarters.

“If we do better in revenue, well do better in profits,” said Gillis.

PTC also recorded a $18.4 million hit for the third quarter related to layoffs announced in the previous quarter. After its second quarter announcements in April, PTC restructured its organization and started a headcount reduction of about 300 employees.

Today, PTC officials said the companys headcount has been decreased by about 258 employees, with 3,098 employees remaining. Any additional reductions in the fourth quarter will come through attrition.

All in all, Richard Harrison, PTCs president and CEO, seemed pleased with the companys performance.

“Despite a continued weak IT spending environment, we met the third quarter targets we set in April,” said Harrison, in a teleconference. “Solid execution of our cost reduction programs and consistent focus on our key initiatives will position us for enhanced earnings potential once the economy improves.”

PTCs Windchill suite posted $46.7 million in license revenues in the third quarter. Overall license revenues were $56.2 million, compared with $86.5 million for the same quarter last year.

The Pro/Engineer WildFire software, released in the third quarter, is the companys most ambitious effort with over a third of the Pro/Engineer code lines rewritten to provide a better user interface and overall better ease of use.While the software was introduced to over 7,500 customers, no revenues were booked for WildFire during the third quarter, officials said.

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