[April 23, 2014] |
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PTC Announces Q2 Results; Provides Q3 and Updated FY'14 Outlook
NEEDHAM, Mass. --(Business Wire)--
PTC
(Nasdaq: PTC) today reported results for its second fiscal quarter ended
March 29, 2014.
Highlights
-
Q2 Results:
-
Revenue of $329 million, up 4% over Q2'13 non-GAAP revenue and up
5% on a constant currency basis
-
Non-GAAP EPS of $0.48, up 17% year over year and up 18% on a
constant currency basis
-
Non-GAAP operating margin of 24.4%, up 440 basis points year over
year on both a reported and constant currency basis
-
GAAP operating margin of 15.6% and GAAP EPS of $0.36
-
Q2 revenue contribution from acquired businesses Enigma (acquired
on July 11, 2013), NetIDEAS (acquired on September 5, 2013), and
ThingWorx (acquired on December 30, 2013) was $4 million
-
Q3 Guidance:
-
Revenue of $325 to $340 million and non-GAAP EPS of $0.48 to $0.52
-
License revenue of $80 to $95 million
-
GAAP EPS of $0.31 to $0.35
-
Assumes $1.38 USD / EURO and 103 YEN / USD
-
FY'14 Guidance (Revenue increase of $5 million and EPS increase of
$0.02):
-
Revenue of $1,335 to $1,350 million and non-GAAP EPS of $2.05 to
$2.15
-
License revenue of $355 to $370 million
-
Non-GAAP operating margin of approximately 25%
-
GAAP EPS of $1.40 to $1.50 and GAAP operating margin of
approximately 18%
-
Assumes $1.38 USD / EURO and 103 YEN / USD
The Q2 non-GAAP results exclude $12.6 million of stock-based
compensation expense, $12.4 million of acquisition-related intangible
asset amortization, and $3.9 million of acquisition-related expense. The
Q2 non-GAAP EPS results include a tax rate of 25% and 121 million
diluted shares outstanding.
Results Commentary
James Heppelmann, president and chief executive officer, commented, "PTC
delivered solid operating results, with Q2 revenue and non-GAAP EPS at
the high end of our guidance range. License revenue of $85 million
increased 8% year over year on a constant currency basis. From a
geographic perspective, we saw strength in the Americas and Europe, with
14% and 6% year-over-year constant currency revenue growth,
respectively, partially offset by revenue declines in Japan and the Pac
Rim, down 10% and 6% on a constant currency basis, respectively."
Reported revenue in the Americas and Europe was up 13% and 8%,
respectively, and down 21% and 7% in Japan and the Pacific Rim,
respectively.
Heppelmann added, "We saw revenue growth across our solution areas, led
by our extended PLM and SLM businesses. Extended PLM license revenue
grew 12% year over year on a constant currency. Our SLM license revenue
(which includes Enigma and ThingWorx revenue) increased 11% year over
year on a constant currency basis. We experienced continued recovery in
our CAD business, with license revenue up 3% year over year on a
constant currency basis." On a reported basis license revenue was up 12%
year over year in our extended PLM business, 11% year over year in our
SLM business, and 2% year over year in our CAD business.
Heppelmann continued, "We had 35 large deals (recognized license +
services revenue of more than $1 million) in Q2'14, up from 24 in Q2'13.
We had three mega deals (transactions resulting in recognized license
revenue of over $5 million in the quarter) in Q2'14, two in the Americas
and one in Europe, compared to one mega deal in Q2'13 in Japan. The mix
of large deal revenue in Q2'14 was skewed somewhat more heavily toward
license. During the quarter we recognized revenue from leading
organizations such as Caleffi, Daktronics, Diebold, Gildan Activewear,
Kuhn, NASA, Nissan, and TRW."
Jeff Glidden, chief financial officer, commented, "From a profitability
standpoint, we delivered $0.48 non-GAAP EPS, at the high end of our
guidance range, driven by a good mix of revenue, improved services
margins, and solid cost control. We achieved a 24.4% non-GAAP operating
margin, Q2 GAAP EPS of $0.36 and GAAP operating margin of 15.6%. We
generated $111 million in operating cash flow and used $112 million for
the acquisition of ThingWorx, $40 million for stock repurchases, $50
million to partially repay outstanding amounts under our credit
facility, and $5 million for capital expenditures, resulting in an
ending cash balance of $270 million."
Outlook Commentary
"While we remain mindful of the uncertain macroeconomic environment,
particularly in Asia, we are encouraged by a strengthening pipeline,
particularly in the Americas and Europe. When combined with our
expanding solutions portfolio, and opportunity to address key customer
challenges in the Internet of Things space through our ThingWorx
business, we see an exciting growth opportunity for PTC in the future.
We also remain committed to expanding non-GAAP operating margin toward
our FY'17 target range of 28% to 30%," said Heppelmann.
Glidden added, "For Q3'14, we are providing guidance of $325 to $340
million in revenue with $80 to $95 million in license revenue,
approximately $75 million in services revenue and approximately $170
million in support revenue. We are targeting Q3 non-GAAP EPS of $0.48 to
$0.52 and GAAP EPS of $0.31 to $0.35."
The Q3 guidance assumes $1.38 USD / EURO and 103 YEN / USD, a non-GAAP
tax rate of 25%, a GAAP tax rate of 25% and 121 million diluted shares
outstanding. The Q3 non-GAAP guidance excludes $13 million of
stock-based compensation expense, $12 million of intangible asset
amortization expense, $1 million of acquisition-related expense, their
related income tax effects, as well as any additional discrete tax items
or restructuring costs.
Glidden continued, "Given our H1 performance and outlook for H2, we are
now targeting FY'14 revenue of $1,335 to $1,350 million, up from our
prior guidance of $1,330 to $1,345 million, with license revenue of $355
to $370 million, services revenue of approximately $300 million and
support revenue of approximately $680 million, up from our prior
guidance of approximately $675 million. We are targeting non-GAAP EPS of
$2.05 to $2.15 and GAAP EPS of $1.40 to $1.50, up from our prior
guidance of $2.03 to $2.13 non-GAAP EPS and $1.38 to $1.48 GAAP EPS,
respectively."
The FY'14 targets assume $1.38 USD / EURO and 103 YEN / USD, a non-GAAP
tax rate of 25%, a GAAP tax rate of 23% and 121 million diluted shares
outstanding. The FY'14 non-GAAP guidance excludes $52 million of
stock-based compensation expense, $50 million of intangible asset
amortization expense, $1 million of restructuring charges, $7 million of
acquisition-related charges and their related income tax effects, as
well as any additional discrete tax items or restructuring costs.
Q2 Earnings Conference Call and Webcast
Prepared remarks for the conference call have been posted to the
investor relations section of our website. The prepared remarks will not
be read live; the call will be primarily Q&A.
What:
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PTC Fiscal Q2 FY'14 Conference Call and Webcast
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When:
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Thursday, April 24, 2014 at 8:30am (ET)
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Dial-in:
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1-800-857-5592 or 1-773-799-3757
Call Leader: James Heppelmann
Passcode: PTC
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Webcast:
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www.ptc.com/for/investors.htm
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Replay:
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The audio replay of this event will be archived for public replay
until 4:00 pm (CT) on May 4, 2014.
Dial-in: 800-296-6945 Passcode: 3579
To access the replay via webcast, please visit www.ptc.com/for/investors.htm.
|
Important Information About Non-GAAP References
PTC provides non-GAAP supplemental information to its financial results.
Non-GAAP revenue, operating expenses, margin and EPS exclude the effect
of purchase accounting on the fair value of acquired deferred revenue of
Servigistics, Inc., stock-based compensation expense, amortization of
acquired intangible assets, restructuring charges, acquisition-related
expenses and gains, and the related tax effects of the preceding items
and discrete tax items. We use these non-GAAP measures, and we believe
that they assist our investors, to make period-to-period comparisons of
our operational performance because they provide a view of our operating
results without items that are not, in our view, indicative of our core
operating results. We believe that these non-GAAP measures help
illustrate underlying trends in our business, and we use the measures to
establish budgets and operational goals, communicated internally and
externally, for managing our business and evaluating our performance. We
believe that providing non-GAAP measures affords investors a view of our
operating results that may be more easily compared to the results of
peer companies. In addition, compensation of our executives is based in
part on the performance of our business based on these non-GAAP
measures. However, non-GAAP information should not be construed as an
alternative to GAAP information as the items excluded from the non-GAAP
measures often have a material impact on PTC's financial results.
Management uses, and investors should consider, non-GAAP measures in
conjunction with our GAAP results. PTC also provides results on a
constant currency basis to provide a year-over-year view of our results
excluding the effect of currency translation. Our constant currency
disclosures are calculated by multiplying the actual results for the
second quarter of 2014 by the exchange rates in effect for the
comparable period in 2013.
Forward-Looking Statements
Statements in this press release that are not historic facts, including
statements about our fiscal 2014 and other future financial and growth
expectations and anticipated tax rates, are forward-looking statements
that involve risks and uncertainties that could cause actual results to
differ materially from those projected. These risks include the
possibility that the macroeconomic climate may not improve or may
deteriorate, the possibility that customers may not purchase or adopt
our solutions when or at the rates we expect and that our pipeline deals
may not convert as we expect, the possibility foreign currency exchange
rates may vary from our expectations and thereby affect our reported
revenue and expense, the possibility that we may not achieve the
license, services or support growth rates that we expect, which could
result in a different mix of revenue between license, service and
support and could impact our EPS results, the possibility that we may be
unable to improve services margins as we expect, the possibility that we
may be unable to improve sales productivity as we expect, the
possibility that our businesses, including the ThingWorx business, may
not expand and/or generate the revenue we expect, the possibility that
resource constraints and personnel reductions could adversely affect our
revenue, the possibility that remedial actions relating to our
previously announced investigation in China will have a material impact
on our operations in China and that fines and penalties may be assessed
against us in connection with this matter. In addition, our assumptions
concerning our future GAAP and non-GAAP effective income tax rates are
based on estimates and other factors that could change, including the
geographic mix of our revenue, expenses and profits and loans and cash
repatriations from foreign subsidiaries. Other risks and uncertainties
that could cause actual results to differ materially from those
projected are detailed from time to time in reports we file with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K and our Quarterly Reports on Form 10-Q.
PTC, the PTC logo, ThingWorx, and all other PTC product names and
logos are trademarks or registered trademarks of PTC Inc. or its
subsidiaries in the United States and in other countries. All other
companies referenced herein are trademarks or registered trademarks of
their respective holders.
About PTC
PTC
(Nasdaq: PTC) enables manufacturers to achieve sustained product and
service advantage. PTC's technology solutions help customers transform
the way they create, operate and service products for a smart,
connected, world. Founded in 1985, PTC employs approximately 6,000
professionals serving more than 28,000 businesses in rapidly-evolving,
globally distributed manufacturing industries worldwide. Get more
information at www.ptc.com.
|
PTC Inc.
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
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(in thousands, except per share data)
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|
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|
|
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|
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|
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|
|
|
|
|
|
|
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|
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Three Months Ended
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Six Months Ended
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March 29,
|
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March 30,
|
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March 29,
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March 30,
|
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|
|
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2014
|
|
|
|
2013
|
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2014
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2013
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Revenue:
|
|
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|
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License
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$
|
85,218
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|
|
|
|
$
|
79,690
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|
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$
|
164,411
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|
|
|
|
|
$
|
158,875
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Service
|
|
|
|
77,164
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|
|
|
|
|
73,084
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|
|
|
|
152,755
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|
|
|
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149,844
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Support
|
|
|
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166,318
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|
|
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161,175
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|
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336,459
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|
|
|
|
|
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324,981
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Total revenue
|
|
|
|
328,700
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|
|
|
|
|
313,949
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|
|
|
|
653,625
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|
|
|
|
|
|
633,700
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|
|
|
|
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Cost of revenue:
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|
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Cost of license revenue (1)
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|
|
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7,972
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|
|
|
|
|
8,291
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|
|
|
|
15,517
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|
|
|
|
|
|
16,303
|
|
Cost of service revenue (1)
|
|
|
|
64,261
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|
|
|
|
|
64,550
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|
|
|
|
129,756
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|
|
|
|
|
|
133,142
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Cost of support revenue (1)
|
|
|
|
21,564
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|
|
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|
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20,429
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|
|
|
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41,480
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|
|
|
|
|
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40,897
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Total cost of revenue
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|
|
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93,797
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|
|
|
|
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93,270
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|
|
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186,753
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|
|
|
|
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190,342
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Gross margin
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234,903
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220,679
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466,872
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|
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|
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|
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443,358
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Operating expenses:
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|
|
|
|
|
|
|
|
|
|
|
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|
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Sales and marketing (1)
|
|
|
|
85,934
|
|
|
|
|
|
88,059
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|
|
|
|
170,172
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|
|
|
|
|
|
181,608
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Research and development (1)
|
|
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|
55,631
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|
|
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55,528
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|
108,704
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|
|
|
|
|
|
112,957
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|
General and administrative (1)
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|
34,140
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|
|
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|
33,398
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|
|
|
|
65,071
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|
|
|
|
|
|
69,215
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Amortization of acquired intangible assets
|
|
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|
7,985
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|
|
|
|
|
6,640
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|
|
|
|
15,774
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|
|
|
|
|
|
13,263
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Restructuring charges
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|
|
|
-
|
|
|
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15,810
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|
|
1,067
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|
|
|
|
|
|
31,212
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Total operating expenses
|
|
|
|
183,690
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|
|
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|
|
199,435
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360,788
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|
|
|
|
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408,255
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
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Operating income
|
|
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|
51,213
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|
|
|
|
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21,244
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|
|
|
|
106,084
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|
|
|
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|
|
35,103
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Other expense, net
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|
|
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(2,692
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)
|
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(1,867
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)
|
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(4,446
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)
|
|
|
|
|
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(3,672
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)
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Income before income taxes
|
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|
48,521
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|
|
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19,377
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101,638
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|
|
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31,431
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Provision (benefit) for income taxes
|
|
|
|
4,765
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|
|
|
|
|
2,340
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|
|
|
|
18,225
|
|
|
|
|
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|
(21,417
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)
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Net income
|
|
|
$
|
43,756
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|
|
|
|
$
|
17,037
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|
|
|
$
|
83,413
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|
|
|
|
$
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52,848
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Earnings per share:
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Basic
|
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$
|
0.37
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|
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$
|
0.14
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|
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$
|
0.70
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|
|
|
|
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$
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0.44
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|
Weighted average shares outstanding
|
|
|
|
118,978
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|
|
|
|
|
119,518
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|
|
|
|
118,973
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|
|
|
|
|
|
119,722
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Diluted
|
|
|
$
|
0.36
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|
|
|
|
$
|
0.14
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|
|
|
$
|
0.69
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|
|
|
|
|
$
|
0.44
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Weighted average shares outstanding
|
|
|
|
120,698
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|
|
|
|
|
121,071
|
|
|
|
|
120,916
|
|
|
|
|
|
|
121,438
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|
|
|
|
|
|
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|
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|
|
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(1)The amounts in the tables above include stock-based compensation
as follows:
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|
|
|
|
|
|
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Three Months Ended
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|
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Six Months Ended
|
|
|
|
|
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March 29,
|
|
|
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March 30,
|
|
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March 29,
|
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|
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March 30,
|
|
|
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|
2014
|
|
|
|
2013
|
|
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2014
|
|
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2013
|
Cost of license revenue
|
|
|
$
|
5
|
|
|
|
|
$
|
8
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|
|
|
$
|
9
|
|
|
|
|
|
$
|
13
|
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Cost of service revenue
|
|
|
|
1,426
|
|
|
|
|
|
1,420
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|
|
|
|
3,024
|
|
|
|
|
|
|
3,032
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|
Cost of support revenue
|
|
|
|
889
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|
|
|
|
|
835
|
|
|
|
|
1,813
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|
|
|
|
|
|
1,661
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Sales and marketing
|
|
|
|
3,019
|
|
|
|
|
|
2,835
|
|
|
|
|
5,518
|
|
|
|
|
|
|
5,293
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Research and development
|
|
|
|
2,147
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|
|
|
|
|
1,824
|
|
|
|
|
4,836
|
|
|
|
|
|
|
4,336
|
|
General and administrative
|
|
|
|
5,080
|
|
|
|
|
|
4,888
|
|
|
|
|
10,130
|
|
|
|
|
|
|
9,368
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|
Total stock-based compensation
|
|
|
$
|
12,566
|
|
|
|
|
$
|
11,810
|
|
|
|
$
|
25,330
|
|
|
|
|
|
$
|
23,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
PTC Inc.
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
March 29,
|
|
|
March 30,
|
|
|
March 29,
|
|
|
|
March 30,
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenue
|
|
|
|
$
|
328,700
|
|
|
|
$
|
313,949
|
|
|
|
$
|
653,625
|
|
|
|
|
$
|
633,700
|
|
Fair value of acquired company's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred support revenue
|
|
|
|
|
-
|
|
|
|
|
660
|
|
|
|
|
-
|
|
|
|
|
|
2,214
|
|
Non-GAAP revenue
|
|
|
|
$
|
328,700
|
|
|
|
$
|
314,609
|
|
|
|
$
|
653,625
|
|
|
|
|
$
|
635,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
|
|
|
$
|
234,903
|
|
|
|
$
|
220,679
|
|
|
|
$
|
466,872
|
|
|
|
|
$
|
443,358
|
|
Fair value of acquired company's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred support revenue
|
|
|
|
|
-
|
|
|
|
|
660
|
|
|
|
|
-
|
|
|
|
|
|
2,214
|
|
Stock-based compensation
|
|
|
|
|
2,320
|
|
|
|
|
2,263
|
|
|
|
|
4,846
|
|
|
|
|
|
4,706
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of license revenue
|
|
|
|
|
4,316
|
|
|
|
|
4,628
|
|
|
|
|
8,721
|
|
|
|
|
|
9,267
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of service revenue
|
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
|
183
|
|
|
|
|
|
-
|
|
Non-GAAP gross margin
|
|
|
|
$
|
241,630
|
|
|
|
$
|
228,230
|
|
|
|
$
|
480,622
|
|
|
|
|
$
|
459,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
|
$
|
51,213
|
|
|
|
$
|
21,244
|
|
|
|
$
|
106,084
|
|
|
|
|
$
|
35,103
|
|
Fair value of acquired company's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred support revenue
|
|
|
|
|
-
|
|
|
|
|
660
|
|
|
|
|
-
|
|
|
|
|
|
2,214
|
|
Stock-based compensation
|
|
|
|
|
12,566
|
|
|
|
|
11,810
|
|
|
|
|
25,330
|
|
|
|
|
|
23,703
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of license revenue
|
|
|
|
|
4,316
|
|
|
|
|
4,628
|
|
|
|
|
8,721
|
|
|
|
|
|
9,267
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of service revenue
|
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
|
183
|
|
|
|
|
|
-
|
|
Amortization of acquired intangible assets
|
|
|
|
|
7,985
|
|
|
|
|
6,640
|
|
|
|
|
15,774
|
|
|
|
|
|
13,263
|
|
Acquisition-related charges included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
general and administrative expenses
|
|
|
|
|
3,935
|
|
|
|
|
2,110
|
|
|
|
|
5,240
|
|
|
|
|
|
6,709
|
|
Restructuring charges
|
|
|
|
|
-
|
|
|
|
|
15,810
|
|
|
|
|
1,067
|
|
|
|
|
|
31,212
|
|
Non-GAAP operating income (2)
|
|
|
|
$
|
80,106
|
|
|
|
$
|
62,902
|
|
|
|
$
|
162,399
|
|
|
|
|
$
|
121,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
$
|
43,756
|
|
|
|
$
|
17,037
|
|
|
|
$
|
83,413
|
|
|
|
|
$
|
52,848
|
|
Fair value of acquired company's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred support revenue
|
|
|
|
|
-
|
|
|
|
|
660
|
|
|
|
|
-
|
|
|
|
|
|
2,214
|
|
Stock-based compensation
|
|
|
|
|
12,566
|
|
|
|
|
11,810
|
|
|
|
|
25,330
|
|
|
|
|
|
23,703
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of license revenue
|
|
|
|
|
4,316
|
|
|
|
|
4,628
|
|
|
|
|
8,721
|
|
|
|
|
|
9,267
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of service revenue
|
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
|
183
|
|
|
|
|
|
-
|
|
Amortization of acquired intangible assets
|
|
|
|
|
7,985
|
|
|
|
|
6,640
|
|
|
|
|
15,774
|
|
|
|
|
|
13,263
|
|
Acquisition-related charges included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
general and administrative expenses
|
|
|
|
|
3,935
|
|
|
|
|
2,110
|
|
|
|
|
5,240
|
|
|
|
|
|
6,709
|
|
Restructuring charges
|
|
|
|
|
-
|
|
|
|
|
15,810
|
|
|
|
|
1,067
|
|
|
|
|
|
31,212
|
|
Income tax adjustments (3)
|
|
|
|
|
(14,954
|
)
|
|
|
|
(9,141
|
)
|
|
|
|
(21,813
|
)
|
|
|
|
|
(45,541
|
)
|
Non-GAAP net income
|
|
|
|
$
|
57,695
|
|
|
|
$
|
49,554
|
|
|
|
$
|
117,915
|
|
|
|
|
$
|
93,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share
|
|
|
|
$
|
0.36
|
|
|
|
$
|
0.14
|
|
|
|
$
|
0.69
|
|
|
|
|
$
|
0.44
|
|
Fair value of acquired deferred support revenue
|
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
|
0.02
|
|
Stock-based compensation
|
|
|
|
|
0.10
|
|
|
|
|
0.10
|
|
|
|
|
0.21
|
|
|
|
|
|
0.20
|
|
Amortization of acquired intangibles
|
|
|
|
|
0.10
|
|
|
|
|
0.09
|
|
|
|
|
0.20
|
|
|
|
|
|
0.19
|
|
Acquisition-related charges
|
|
|
|
|
0.03
|
|
|
|
|
0.02
|
|
|
|
|
0.04
|
|
|
|
|
|
0.06
|
|
Restructuring charges
|
|
|
|
|
-
|
|
|
|
|
0.13
|
|
|
|
|
0.01
|
|
|
|
|
|
0.26
|
|
Income tax adjustments
|
|
|
|
|
(0.12
|
)
|
|
|
|
(0.08
|
)
|
|
|
|
(0.18
|
)
|
|
|
|
|
(0.38
|
)
|
Non-GAAP diluted earnings per share
|
|
|
|
$
|
0.48
|
|
|
|
$
|
0.41
|
|
|
|
$
|
0.98
|
|
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)Operating margin impact of non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
March 29,
|
|
|
March 30,
|
|
|
March 29,
|
|
|
|
March 30,
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
GAAP operating margin
|
|
|
|
|
15.6
|
%
|
|
|
|
6.8
|
%
|
|
|
|
16.2
|
%
|
|
|
|
|
5.5
|
%
|
Fair value of acquired deferred support revenue
|
|
|
|
|
0.0
|
%
|
|
|
|
0.2
|
%
|
|
|
|
0.0
|
%
|
|
|
|
|
0.3
|
%
|
Stock-based compensation
|
|
|
|
|
3.8
|
%
|
|
|
|
3.8
|
%
|
|
|
|
3.9
|
%
|
|
|
|
|
3.7
|
%
|
Amortization of acquired intangibles
|
|
|
|
|
3.8
|
%
|
|
|
|
3.6
|
%
|
|
|
|
3.8
|
%
|
|
|
|
|
3.6
|
%
|
Acquisition-related charges
|
|
|
|
|
1.2
|
%
|
|
|
|
0.7
|
%
|
|
|
|
0.8
|
%
|
|
|
|
|
1.1
|
%
|
Restructuring charges
|
|
|
|
|
0.0
|
%
|
|
|
|
5.0
|
%
|
|
|
|
0.2
|
%
|
|
|
|
|
4.9
|
%
|
Non-GAAP operating margin
|
|
|
|
|
24.4
|
%
|
|
|
|
20.0
|
%
|
|
|
|
24.8
|
%
|
|
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)Income tax adjustments for the three and six months ended March
29, 2014 and March 30, 2013 reflect the tax effects of non-GAAP
adjustments which are calculated by applying the applicable tax rate
by jurisdiction to the non-GAAP adjustments listed above, and also
include any identified tax items. In Q4'12, a valuation allowance
was established against our U.S. net deferred tax assets. As the
U.S. is profitable on a non-GAAP basis, the 2014 and 2013 non-GAAP
tax provision is being calculated assuming there is no U.S.
valuation allowance. The following identified tax items have been
excluded from the non-GAAP tax results. Q2'14 includes a non-cash
tax benefit of $8.9 million related to the release of a portion of
the valuation allowance as a result of deferred tax liabilities
established for the acquisition of ThingWorx. Q2'13 includes tax
benefits of $3.2 million relating to final resolution of
long-standing tax litigation and completion of an international
jurisdiction tax audit. Q1'13 also includes a non-cash tax benefit
of $32.6 million related to the release of a portion of the
valuation allowance as a result of deferred tax liabilities
established for the acquisition of Servigistics.
|
|
|
|
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 29,
|
|
|
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
270,470
|
|
|
$
|
241,913
|
Accounts receivable, net
|
|
|
|
|
221,288
|
|
|
|
229,106
|
Property and equipment, net
|
|
|
|
|
60,632
|
|
|
|
64,652
|
Goodwill and acquired intangible assets, net
|
|
|
|
|
1,149,225
|
|
|
|
1,042,216
|
Other assets
|
|
|
|
|
257,511
|
|
|
|
251,019
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
1,959,126
|
|
|
$
|
1,828,906
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
$
|
365,582
|
|
|
$
|
336,913
|
Borrowings under credit facility
|
|
|
|
|
318,125
|
|
|
|
258,125
|
Other liabilities
|
|
|
|
|
292,998
|
|
|
|
307,388
|
Stockholders' equity
|
|
|
|
|
982,421
|
|
|
|
926,480
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
1,959,126
|
|
|
$
|
1,828,906
|
|
|
|
|
|
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
March 29, 2014
|
|
March 30, 2013
|
|
March 29, 2014
|
|
March 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
43,756
|
|
|
$
|
17,037
|
|
|
$
|
83,413
|
|
|
$
|
52,848
|
|
Stock-based compensation
|
|
|
|
|
12,566
|
|
|
|
11,810
|
|
|
|
25,330
|
|
|
|
23,703
|
|
Depreciation and amortization
|
|
|
|
|
19,173
|
|
|
|
19,387
|
|
|
|
38,273
|
|
|
|
38,864
|
|
Accounts receivable
|
|
|
|
|
(2,536
|
)
|
|
|
6,047
|
|
|
|
16,737
|
|
|
|
22,185
|
|
Accounts payable and accruals
|
|
|
|
|
5,231
|
|
|
|
3,216
|
|
|
|
(37,631
|
)
|
|
|
(24,742
|
)
|
Deferred revenue
|
|
|
|
|
40,510
|
|
|
|
34,377
|
|
|
|
29,683
|
|
|
|
30,843
|
|
Income taxes
|
|
|
|
|
(1,514
|
)
|
|
|
(6,774
|
)
|
|
|
5,879
|
|
|
|
(40,553
|
)
|
Excess tax benefits from stock-based awards
|
|
|
|
|
(1,290
|
)
|
|
|
(111
|
)
|
|
|
(8,092
|
)
|
|
|
(139
|
)
|
Other
|
|
|
|
|
(5,174
|
)
|
|
|
(2,193
|
)
|
|
|
(6,628
|
)
|
|
|
(6,577
|
)
|
Net cash provided by operating activities (4)
|
|
|
|
|
110,722
|
|
|
|
82,796
|
|
|
|
146,964
|
|
|
|
96,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(4,568
|
)
|
|
|
(5,033
|
)
|
|
|
(10,342
|
)
|
|
|
(12,426
|
)
|
Acquisitions of businesses, net of cash acquired (5)
|
|
|
|
|
(111,519
|
)
|
|
|
-
|
|
|
|
(111,519
|
)
|
|
|
(222,423
|
)
|
Proceeds (payments) on debt, net
|
|
|
|
|
(50,000
|
)
|
|
|
(60,000
|
)
|
|
|
60,000
|
|
|
|
(61,875
|
)
|
Proceeds from issuance of common stock
|
|
|
|
|
365
|
|
|
|
2,229
|
|
|
|
716
|
|
|
|
2,874
|
|
Payments of withholding taxes in connection with vesting of
stock-based awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,274
|
)
|
|
|
(3,543
|
)
|
|
|
(21,637
|
)
|
|
|
(12,891
|
)
|
Repurchases of common stock
|
|
|
|
|
(39,965
|
)
|
|
|
(19,155
|
)
|
|
|
(39,965
|
)
|
|
|
(34,947
|
)
|
Excess tax benefits from stock-based awards
|
|
|
|
|
1,290
|
|
|
|
111
|
|
|
|
8,092
|
|
|
|
139
|
|
Credit facility origination costs
|
|
|
|
|
(4,120
|
)
|
|
|
-
|
|
|
|
(4,120
|
)
|
|
|
-
|
|
Foreign exchange impact on cash
|
|
|
|
|
(838
|
)
|
|
|
(4,988
|
)
|
|
|
368
|
|
|
|
(3,617
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
|
(100,907
|
)
|
|
|
(7,583
|
)
|
|
|
28,557
|
|
|
|
(248,734
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
371,377
|
|
|
|
248,392
|
|
|
|
241,913
|
|
|
|
489,543
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
270,470
|
|
|
$
|
240,809
|
|
|
$
|
270,470
|
|
|
$
|
240,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
The three and six months ended March 29, 2014 include $5 million and
$17 million in restructuring payments, respectively. The three and
six months ended March 30, 2013 include $13 million and $23 million
in restructuring payments, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
We acquired ThingWorx on December 30, 2013 for $112 million (net of
cash acquired) which was funded with $110 million borrowed under our
revolving credit facility. We borrowed the funds in Q1'14 in
contemplation of the acquisition closing. We acquired Servigistics
on October 2, 2012 for $222 million (net of cash acquired) which was
funded with $230 million borrowed under our revolving credit
facility. We borrowed the funds in Q4'12 in contemplation of the
acquisition closing.
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