[January 17, 2018] |
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PTC Announces First Quarter Fiscal Year 2018 Results
PTC
(NASDAQ: PTC) today reported financial results for its fiscal first
quarter ended December 30, 2017.
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First quarter FY'18 total revenue was $307 million
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First quarter GAAP net income was $14 million or $0.12 per diluted
share; non-GAAP net income was $36 million or $0.31 per diluted share
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First quarter license and subscription bookings were $104 million and
subscription mix was 67%
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Total deferred revenue, billed and unbilled, was $1.17 billion, an
increase of 42% from the same period last year
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First quarter subscription Annualized Recurring Revenue (ARR) was $402
million, an increase of $183 million or 84% from the same period last
year
"We are very pleased with our first quarter fiscal 2018 results and the
continuing momentum we see in our business," said James Heppelmann,
President and CEO, PTC. "Bookings of $104 million exceeded the high end
of our guidance range by $12 million, powered by large strategic wins in
our Solutions business with marquee customers like BMW, momentum in our
IoT business where we had five deals with bookings of over $1 million,
and strength in the channel."
Heppelmann added, "This is a strong start to fiscal year 2018 with
broad-based strength both geographically and across our product
portfolio. CAD, PLM, and IoT performed above our expectations, while the
demand environment, particularly for our subscription offerings, remains
strong around the globe. Given the strong start, we are raising our
FY'18 guidance."
Additional first quarter operating and financial highlights are set
forth below. Information about our bookings and other reporting measures
is provided beginning on page four. For additional details, please refer
to the prepared remarks and financial data tables that have been posted
to the Investor Relations section of our website at investor.ptc.com.
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Q1'18 license and subscription bookings were $104 million, up 16%
year-over-year.
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Total bookings in the first quarter exceeded the high end of our
guidance by $12 million and subscription bookings comprised 67% of
total bookings. We believe that the announced discontinuation of new
perpetual license sales in the Americas and Western Europe led to an
increase in perpetual license purchases of approximately $4 million in
the quarter, which impacted the subscription mix by approximately 3
percentage points.
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Total deferred revenue - billed and unbilled - increased $344 million
or 42% year-over-year and increased $77 million or 7% sequentially to
$1.17 billion. Billed deferred revenue increased 15% year-over year
and declined 6% sequentially, as expected, to $431 million, due to the
timing of support billings during the year. Billed deferred revenue
can fluctuate quarterly based upon the contractual billings dates in
our recurring revenue contracts, as well as the timing of our fiscal
reporting periods.
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GAAP and non-GAAP software revenue in the first quarter were both
approximately $265 million, an increase of 10% year-over-year, despite
a higher mix of subscription bookings than the same period last year.
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Approximately 87% of first quarter GAAP and non-GAAP software revenue
came from recurring revenue streams.
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Annualized Recurring Revenue (ARR) was approximately $928 million, an
increase of 13% year-over-year and the fourth consecutive quarter of
double-digit growth.
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GAAP operating expenses in the first quarter were approximately $206
million, compared to $200 million in the same period last year;
non-GAAP operating expenses were approximately $183 million, compared
to $170 million in the same period last year.
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GAAP operating margin in the first quarter was 6%, compared to 2% in
the same period last year; non-GAAP operating margin was 17%, compared
to 15% in the same period last year.
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Operating cash flows in the first quarter were $25 million, and free
cash flow was $19 million, ahead of our expectations, and both include
cash payments related to our October 2015 restructuring plan of
approximately $1 million.
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Total cash, cash equivalents, and marketable securities as of the end
of the first quarter was $342 million and total debt, net of deferred
issuance costs, was $743 million.
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On December 22, 2017, the United States enacted tax reform legislation
through the Tax Cuts and Jobs Act, which significantly changed the
existing U.S. tax laws, including a reduction in the corporate tax
rate from 35% to 21%, and a move from a worldwide tax system to a
territorial system. We have recorded the impact of this legislation in
our Q1 GAAP earnings, resulting in a non-cash tax benefit of
approximately $7 million. In addition, we recorded a non-cash tax
benefit of approximately $0.5 million related to the new stock-based
compensation accounting guidance. We have adjusted our balance sheet
accounts accordingly and excluded these benefits from our non-GAAP
results.
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Continuing the phased global rollout of our subscription licensing
model, we separately announced that new software licenses for our core
solutions and ThingWorx industrial innovation platform will be
available globally only by subscription, effective January 1, 2019,
with a few exceptions. Those exceptions apply to China, Korea, Taiwan,
Russia, Turkey and India where we have not announced the end-of-life
of perpetual licenses. Also, Kepware will continue to be available
under perpetual licensing. We previously announced the transition to
subscription-only licensing in the Americas and Western Europe
effective January 1, 2018. Customers globally will be able to continue
to use their existing perpetual licenses and renew support on active
licenses.
Fiscal 2018 Business Outlook For
the second quarter and fiscal year ending September 30, 2018, the
company expects:
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In millions except per share amounts
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Operating Measures(1)
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Q2'18 Low
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Q2'18 High
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FY'18 Low
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FY'18 High
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Subscription ACV
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$ 37
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$ 41
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$ 181
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$ 189
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License and Subscription Bookings
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$ 94
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$ 104
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$ 455
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$ 475
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Subscription % of Bookings
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79%
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79%
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80%
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80%
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(1) An explanation of the metrics included in this
table is provided below.
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Financial Measures
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Q2'18 Low
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Q2'18 High
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FY'18 Low
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FY'18 High
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Subscription Revenue
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$ 111
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$ 113
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$ 460
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$ 470
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Support Revenue
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126
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126
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510
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510
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Perpetual License Revenue
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20
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23
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92
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97
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Total Software Revenue
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257
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262
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1,062
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1,077
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Professional Services Revenue
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43
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43
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173
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173
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Total Revenue
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$ 300
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$ 305
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$ 1,235
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$ 1,250
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Operating Expense (GAAP)
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$ 202
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$ 205
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$ 825
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$ 836
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Operating Expense (Non-GAAP)
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176
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179
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727
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737
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Operating Margin (GAAP)
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4%
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6%
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6%
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7%
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Operating Margin (Non-GAAP)
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16%
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17%
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17%
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18%
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Tax Rate (GAAP)
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15%
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15%
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(5%)
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(5%)
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Tax Rate (Non-GAAP)
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11%
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9%
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11%
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9%
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Shares Outstanding (GAAP)
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117
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117
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117
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117
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Shares Outstanding (Non-GAAP)
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117
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117
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117
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117
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EPS (GAAP)
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$ 0.01
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$ 0.04
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$ 0.28
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$ 0.37
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EPS (Non-GAAP)
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$ 0.28
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$ 0.32
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$ 1.29
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$ 1.39
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Free Cash Flow
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$ 195
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$ 205
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Adjusted Free Cash Flow
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$ 199
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$ 209
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The second quarter and fiscal 2018 non-GAAP operating margin and
non-GAAP EPS guidance exclude the estimated items outlined in the table
below, as well as any tax effects and discrete tax items (which are not
known nor reflected).
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In millions
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Q2'18
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FY'18
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Effect of acquisition accounting on fair value of acquired
deferred revenue
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$ 0
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$ 2
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Restructuring charges
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-
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0
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Intangible asset amortization expense
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15
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58
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Stock-based compensation expense
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21
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79
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Total Estimated Pre-Tax GAAP adjustments
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$ 36
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$ 139
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PTC's Fiscal 2018 First Quarter Results
Conference Call, Prepared Remarks and Data Tables Prepared
remarks and financial data tables have been posted to the Investor
Relations section of our website at ptc.com. The Company will host a
management presentation to discuss results at 5:00 pm ET on Wednesday,
January 17, 2018. To access the live webcast, please visit PTC's
Investor Relations website at investor.ptc.com at least 15 minutes
before the scheduled start time to download any necessary audio or
plug-in software. To participate in the live conference call, dial
773-799-3757 or 800-857-5592 and provide the passcode PTC. The call will
be recorded and a replay will be available for 10 days following the
call by dialing 866-376-2452 and entering the pass code 0513. The
archived webcast will also be available on PTC's
Investor Relations website.
Bookings Metrics We offer both
perpetual and subscription licensing options to our customers, as well
as monthly software rentals for certain products. Given the difference
in revenue recognition between the sale of a perpetual software license
(revenue is recognized at the time of sale) and a subscription (revenue
is deferred and recognized ratably over the subscription term), we use
bookings for internal planning, forecasting and reporting of new license
and cloud services transactions. In order to normalize between perpetual
and subscription licenses, we define subscription bookings as the
subscription annualized contract value (subscription ACV) of new
subscription bookings multiplied by a conversion factor of 2. We arrived
at the conversion factor of 2 by considering a number of variables
including pricing, support, length of term, and renewal rates. We define
subscription ACV as the total value of a new subscription booking
divided by the term of the contract (in days) multiplied by 365. If the
term of the subscription contract is less than a year, the ACV is equal
to the total contract value.
License and subscription bookings equal subscription bookings (as
described above) plus perpetual license bookings plus any monthly
software rental bookings during the period. Total ACV equals
subscription ACV (as described above) plus the annualized value of
incremental monthly software rental bookings during the period.
Because subscription bookings is a metric we use to approximate the
value of subscription sales if sold as perpetual licenses, it does not
represent the actual revenue that will be recognized with respect to
subscription sales or that would be recognized if the sales were
perpetual licenses, nor does the annualized value of monthly software
rental bookings represent the value of any such booking.
Total Deferred Revenue Total
Deferred Revenue consists of Billed Deferred Revenue and Unbilled
Deferred Revenue. We define Unbilled Deferred Revenue as contractually
committed orders for license, subscription and support with a customer
for which the associated revenue has not been recognized and the
customer has not been invoiced. We do not record Unbilled Deferred
Revenue on our Consolidated Balance Sheet until we invoice the customer.
Billed Deferred Revenue primarily relates to software agreements
invoiced to customers for which the revenue has not yet been recognized.
Software Revenue Any reference
to "total recurring software revenue" or "recurring software revenue"
means the sum of subscription revenue and support revenue. Any reference
to "total software revenue" or "software revenue" means the sum of
subscription revenue, support revenue and perpetual license revenue.
"Subscription revenue" includes cloud services revenue.
Annualized Recurring Revenue (ARR) To
help investors understand and assess the success of our subscription
transition, we provide an Annualized Recurring Revenue operating
measure. Annualized Recurring Revenue (ARR) for a given quarter is
calculated by dividing the portion of non-GAAP software revenue
attributable to subscription and support for the quarter by the number
of days in the quarter and multiplying by 365. (A related metric is
Subscription ARR, which is calculated by dividing the portion of
non-GAAP revenue attributable to subscription for the quarter by the
number of days in the quarter and multiplying by 365.) ARR should be
viewed independently of revenue and deferred revenue as it is an
operating measure and is not intended to be combined with or to replace
either of those items. ARR is not a forecast of future revenue, which
can be impacted by contract expiration and renewal rates, and does not
include revenue reported as perpetual license or professional services
revenue in our consolidated statement of income. Subscription and
support revenue and ARR disclosed in a quarter can be impacted by
multiple factors, including but not limited to (1) the timing of the
start of a contract or a renewal, including the impact of on-time
renewals, support win-backs, and support conversions, which may vary by
quarter, (2) the ramping of committed monthly payments under a
subscription agreement over time, and (3) multiple other contractual
factors with the customer including other elements sold with the
subscription or support contract. These factors can result in
variability in disclosed ARR.
Navigate Allocation Revenue and
bookings for Navigate are allocated 50% to Solutions and 50% to IoT.
Constant Currency Change Metric Year-over-year
changes in revenue and bookings on a constant currency basis compare
reported results excluding the effect of any hedging converted into U.S.
dollars based on the corresponding prior year's foreign currency
exchange rates to reported results for the comparable prior year period.
Important Information about Non-GAAP References PTC
provides non-GAAP supplemental information to its financial results. 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 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 and such items often recur.
Management uses, and investors should consider, non-GAAP measures in
conjunction with our GAAP results.
Non-GAAP revenue, non-GAAP operating expense, non-GAAP operating margin,
non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income and
non-GAAP EPS exclude the effect of the following items: fair value of
acquired deferred revenue, fair value adjustment to deferred services
cost, stock-based compensation, amortization of acquired intangible
assets, acquisition-related charges included in general and
administrative costs, restructuring charges, and income tax adjustments.
Additional information about the items we exclude from our non-GAAP
financial measures and the reasons we exclude them can be found in
"Non-GAAP Financial Measures" beginning on page 33 of our Annual Report
on Form 10-K for the fiscal year ended September 30, 2017.
A reconciliation of non-GAAP measures to GAAP results is provided within
this press release.
PTC also provides information on "free cash flow" and "adjusted free
cash flow" to enable investors to assess our ability to generate cash
without incurring additional external financings and to evaluate our
performance against our announced long term goal of returning
approximately 40% of our free cash flow to shareholders via stock
repurchases. Free cash flow is net cash provided by (used in) operating
activities less capital expenditures; adjusted free cash flow is free
cash flow excluding restructuring payments and certain identified
non-ordinary course payments. Free cash flow and adjusted free cash flow
are not measures of cash available for discretionary expenditures.
Forward-Looking Statements Statements
in this press release that are not historic facts, including statements
about our second quarter and full fiscal 2018 targets, and other future
financial and growth expectations and targets, 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 macroeconomic and/or global
manufacturing climates may deteriorate; customers may not purchase our
solutions when or at the rates we expect; our businesses, including our
Internet of Things (IoT) business, may not expand and/or generate the
revenue we expect; foreign currency exchange rates may vary from our
expectations and thereby affect our reported revenue and expense; the
mix of revenue between license & subscription solutions, support and
professional services could be different than we expect, which could
impact our EPS results; our transition to subscription-only licensing in
the Americas and Western Europe could adversely affect sales and
revenue; sales of our solutions as subscriptions may not have the
longer-term effect on revenue and earnings that we expect; we may be
unable to expand our partner ecosystem as we expect and our partners may
not generate the revenue we expect; we may be unable to improve
performance in Japan when or as we expect; we may be unable to generate
sufficient operating cash flow to return 40% of free cash flow to
shareholders and other uses of cash or our credit facility limits could
preclude share repurchases. 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. 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 most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
PTC and the PTC logo are trademarks or registered trademarks of PTC
Inc. or its subsidiaries in the United States and in other countries.
About PTC (NASDAQ: PTC) PTC has
the most robust Internet of Things technology in the world. In 1986 we
revolutionized digital 3D design, and in 1998 were first to market with
Internet-based PLM. Now our leading IoT and AR platform and field-proven
solutions bring together the physical and digital worlds to reinvent the
way you create, operate, and service products. With PTC, global
manufacturers and an ecosystem of partners and developers can capitalize
on the promise of the IoT today and drive the future of innovation.
PTC.com
@PTC
Blogs
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PTC Inc.
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
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(in thousands, except per share data)
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Three Months Ended
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December 30,
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December 31,
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2017
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2016
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Revenue:
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Subscription
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$
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100,008
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$
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54,362
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Support
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131,197
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151,478
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Total recurring revenue
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231,205
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205,840
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Perpetual license
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33,985
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34,379
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Total subscription, support and license revenue
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265,190
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240,219
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Professional services
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41,454
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46,108
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Total revenue
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306,644
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286,327
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Cost of revenue:
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Cost of license and subscription revenue (1) (2)
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24,376
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20,130
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Cost of support revenue (1) (2)
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22,200
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22,817
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Total cost of software revenue
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46,576
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42,947
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Cost of professional services revenue(1)
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36,382
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39,168
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Total cost of revenue
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82,958
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82,115
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Gross margin
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223,686
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204,212
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Operating expenses:
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Sales and marketing (1)
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99,315
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90,690
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Research and development (1)
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63,969
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57,914
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General and administrative (1)
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35,004
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36,695
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Amortization of acquired intangible assets
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7,821
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8,067
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Restructuring charges, net
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105
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6,285
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Total operating expenses
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206,214
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199,651
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Operating income
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17,472
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4,561
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Other expense, net
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(11,001
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(11,064
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Income (loss) before income taxes
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6,471
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(6,503
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Provision (benefit) for income taxes (3)
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(7,406
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2,638
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Net income (loss)
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$
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13,877
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$
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(9,141
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Earnings (loss) per share:
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Basic
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$
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0.12
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$
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(0.08
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Weighted average shares outstanding
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115,731
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115,290
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Diluted
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$
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0.12
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$
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(0.08
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Weighted average shares outstanding
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117,656
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115,290
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|
(1)
|
The amounts in the tables above include stock-based compensation as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 30,
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Cost of license and subscription revenue
|
|
|
$
|
413
|
|
|
|
$
|
293
|
|
|
Cost of support
|
|
|
|
808
|
|
|
|
|
1,144
|
|
|
Cost of professional services revenue
|
|
|
|
1,706
|
|
|
|
|
1,457
|
|
|
Sales and marketing
|
|
|
|
4,879
|
|
|
|
|
3,621
|
|
|
Research and development
|
|
|
|
2,960
|
|
|
|
|
2,997
|
|
|
General and administrative
|
|
|
|
7,565
|
|
|
|
|
8,476
|
|
|
|
Total stock-based compensation
|
|
|
$
|
18,331
|
|
|
|
$
|
17,988
|
|
|
|
|
|
|
|
|
|
|
(2) In the third quarter of 2017, PTC began reporting cost of support
revenue separate from cost of license and subscription revenue. Costs
for previous periods have also been separately reported to conform to
the current period presentation.
(3) In Q1'18 our effective tax rate was lower than the 24.5% statutory
federal income tax rate due, in large part, to our corporate structure
in which our foreign taxes are at an effective tax rate lower than the
U.S. Additionally, our rate includes a benefit of $7.0M relating to the
enactment of the Tax Cuts and Jobs Act.
|
|
|
|
|
|
|
PTC Inc.
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
December 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP revenue
|
|
|
$
|
306,644
|
|
|
|
$
|
286,327
|
|
|
Fair value adjustment of acquired deferred subscription revenue
|
|
|
|
117
|
|
|
|
|
646
|
|
|
Fair value adjustment of acquired deferred services revenue
|
|
|
|
246
|
|
|
|
|
268
|
|
Non-GAAP revenue
|
|
|
$
|
307,007
|
|
|
|
$
|
287,241
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
|
|
$
|
223,686
|
|
|
|
$
|
204,212
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
363
|
|
|
|
|
914
|
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(104
|
)
|
|
|
|
(113
|
)
|
|
Stock-based compensation
|
|
|
|
2,927
|
|
|
|
|
2,894
|
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,675
|
|
|
|
|
6,388
|
|
Non-GAAP gross margin
|
|
|
$
|
233,547
|
|
|
|
$
|
214,295
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$
|
17,472
|
|
|
|
$
|
4,561
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
363
|
|
|
|
|
914
|
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(104
|
)
|
|
|
|
(113
|
)
|
|
Stock-based compensation
|
|
|
|
18,331
|
|
|
|
|
17,988
|
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,675
|
|
|
|
|
6,388
|
|
|
Amortization of acquired intangible assets
|
|
|
|
7,821
|
|
|
|
|
8,067
|
|
|
Acquisition-related charges included in general and administrative
costs
|
|
|
|
7
|
|
|
|
|
169
|
|
|
Restructuring charges, net
|
|
|
|
105
|
|
|
|
|
6,285
|
|
Non-GAAP operating income (1)
|
|
|
$
|
50,670
|
|
|
|
$
|
44,259
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
13,877
|
|
|
|
$
|
(9,141
|
)
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
363
|
|
|
|
|
914
|
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(104
|
)
|
|
|
|
(113
|
)
|
|
Stock-based compensation
|
|
|
|
18,331
|
|
|
|
|
17,988
|
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,675
|
|
|
|
|
6,388
|
|
|
Amortization of acquired intangible assets
|
|
|
|
7,821
|
|
|
|
|
8,067
|
|
|
Acquisition-related charges included in general and administrative
costs
|
|
|
|
7
|
|
|
|
|
169
|
|
|
Restructuring charges, net
|
|
|
|
105
|
|
|
|
|
6,285
|
|
|
Income tax adjustments (2)
|
|
|
|
(11,000
|
)
|
|
|
|
148
|
|
Non-GAAP net income
|
|
|
$
|
36,075
|
|
|
|
$
|
30,705
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share
|
|
|
$
|
0.12
|
|
|
|
$
|
(0.08
|
)
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
Stock-based compensation
|
|
|
|
0.16
|
|
|
|
|
0.15
|
|
|
Amortization of acquired intangibles
|
|
|
|
0.12
|
|
|
|
|
0.12
|
|
|
Acquisition-related charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Restructuring charges, net
|
|
|
|
-
|
|
|
|
|
0.05
|
|
|
Income tax adjustments
|
|
|
|
(0.09
|
)
|
|
|
|
-
|
|
Non-GAAP diluted earnings per share
|
|
|
$
|
0.31
|
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares outstanding
|
|
|
|
117,656
|
|
|
|
|
115,290
|
|
|
Dilutive effect of stock-based compensation plans
|
|
|
|
-
|
|
|
|
|
1,735
|
|
Non-GAAP diluted weighted average shares outstanding
|
|
|
|
117,656
|
|
|
|
|
117,025
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Operating margin impact of non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
December 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
GAAP operating margin
|
|
|
|
5.7
|
%
|
|
|
|
1.6
|
%
|
|
|
Fair value of acquired deferred revenue
|
|
|
|
0.1
|
%
|
|
|
|
0.3
|
%
|
|
|
Fair value adjustment to deferred services cost
|
|
|
|
0.0
|
%
|
|
|
|
0.0
|
%
|
|
|
Stock-based compensation
|
|
|
|
6.0
|
%
|
|
|
|
6.3
|
%
|
|
|
Amortization of acquired intangibles
|
|
|
|
4.7
|
%
|
|
|
|
5.0
|
%
|
|
|
Acquisition-related charges
|
|
|
|
0.0
|
%
|
|
|
|
0.1
|
%
|
|
|
Restructuring charges, net
|
|
|
|
0.0
|
%
|
|
|
|
2.2
|
%
|
|
Non-GAAP operating margin
|
|
|
|
16.5
|
%
|
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
(2) We have recorded a full valuation allowance against our U.S. net
deferred tax assets and a valuation allowance against net deferred tax
assets in certain foreign jurisdictions. As we are profitable on a
non-GAAP basis, the 2018 and 2017 non-GAAP tax provisions are being
calculated assuming there is no valuation allowance. Income tax
adjustments 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. We have recorded the impact of the
Tax Cuts and Jobs Act in our Q1'18 GAAP earnings, resulting in a
non-cash benefit of approximately $7 million. We have excluded this
benefit from our non-GAAP results.
|
|
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2017
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
291,679
|
|
|
$
|
280,003
|
Marketable securities
|
|
|
|
50,567
|
|
|
|
50,315
|
Accounts receivable, net
|
|
|
|
131,059
|
|
|
|
152,299
|
Property and equipment, net
|
|
|
|
61,219
|
|
|
|
63,600
|
Goodwill and acquired intangible assets, net
|
|
|
|
1,427,988
|
|
|
|
1,440,680
|
Other assets
|
|
|
|
343,430
|
|
|
|
373,487
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,305,942
|
|
|
$
|
2,360,384
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
$
|
431,494
|
|
|
$
|
458,907
|
Debt, net of deferred issuance costs
|
|
|
|
742,622
|
|
|
|
712,406
|
Other liabilities
|
|
|
|
242,727
|
|
|
|
303,635
|
Stockholders' equity
|
|
|
|
889,099
|
|
|
|
885,436
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,305,942
|
|
|
$
|
2,360,384
|
|
|
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 30,
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
13,877
|
|
|
|
$
|
(9,141
|
)
|
|
Stock-based compensation
|
|
|
|
18,331
|
|
|
|
|
17,988
|
|
|
Depreciation and amortization
|
|
|
|
21,046
|
|
|
|
|
21,454
|
|
|
Accounts receivable
|
|
|
|
21,603
|
|
|
|
|
21,184
|
|
|
Accounts payable and accruals
|
|
|
|
(53,057
|
)
|
|
|
|
(53,608
|
)
|
|
Deferred revenue
|
|
|
|
22,055
|
|
|
|
|
(11,726
|
)
|
|
Income taxes
|
|
|
|
(14,272
|
)
|
|
|
|
(6,096
|
)
|
|
Other
|
|
|
|
(4,456
|
)
|
|
|
|
(27,931
|
)
|
Net cash provided (used) by operating activities (1)
|
|
|
|
25,127
|
|
|
|
|
(47,876
|
)
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(6,377
|
)
|
|
|
|
(7,100
|
)
|
Purchase of intangible asset
|
|
|
|
(2,500
|
)
|
|
|
|
-
|
|
Proceeds (payments) on debt, net
|
|
|
|
30,000
|
|
|
|
|
(20,000
|
)
|
Payments of withholding taxes in connection with
|
|
|
|
|
|
|
|
vesting of stock-based awards
|
|
|
|
(33,488
|
)
|
|
|
|
(18,623
|
)
|
Proceeds from investments
|
|
|
|
-
|
|
|
|
|
1,502
|
|
Contingent consideration
|
|
|
|
(3,176
|
)
|
|
|
|
(2,711
|
)
|
Purchases of marketable securities, net
|
|
|
|
(508
|
)
|
|
|
|
-
|
|
Foreign exchange impact on cash
|
|
|
|
2,598
|
|
|
|
|
(9,760
|
)
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
11,676
|
|
|
|
|
(104,568
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
280,003
|
|
|
|
|
277,935
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
291,679
|
|
|
|
$
|
173,367
|
|
|
|
|
|
|
|
|
|
(1) Effective the beginning of fiscal 2018, in accordance with the
adoption of ASU 2016-09, "Compensation - Stock Compensation (Topic 718):
Improvements to Employee Share-Based Payment Accounting," excess tax
benefits are now classified as an operating activity on the statement of
cash flows rather than as a financing activity. The prior period excess
tax benefits have been reclassified for comparability.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180117006367/en/
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