Date of report (Date of earliest event reported)
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April 23, 2014
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PTC Inc.
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(Exact Name of Registrant as Specified in Its Charter)
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Massachusetts
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(State or Other Jurisdiction of Incorporation)
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0-18059
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04-2866152
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(Commission File Number)
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(IRS Employer Identification No.)
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140 Kendrick Street
Needham, Massachusetts
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02494-2714
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(Address of Principal Executive Offices)
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(Zip Code)
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(781) 370-5000
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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|
o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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99.1
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A copy of the press release issued by PTC Inc. on April 23, 2014 is furnished herewith.
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99.2
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A copy of the prepared remarks posted by PTC Inc. to its website on April 23, 2014 is furnished herewith.
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PTC Inc.
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|||
Date: April 23, 2014
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By:
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/s/ Jeffrey Glidden
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Jeffrey Glidden
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|||
Executive Vice President and Chief Financial Officer
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|||
·
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Q2 Results:
|
o
|
Revenue of $329 million, up 4% over Q2’13 non-GAAP revenue and up 5% on a constant currency basis
|
o
|
Non-GAAP EPS of $0.48, up 17% year over year and up 18% on a constant currency basis
|
o
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Non-GAAP operating margin of 24.4%, up 440 basis points year over year on both a reported and constant currency basis
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o
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GAAP operating margin of 15.6% and GAAP EPS of $0.36
|
o
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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
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·
|
Q3 Guidance:
|
·
|
FY’14 Guidance (Revenue increase of $5 million and EPS increase of $0.02):
|
o
|
License revenue of $355 to $370 million
|
o
|
Non-GAAP operating margin of approximately 25%
|
o
|
Assumes $1.38 USD / EURO and 103 YEN / USD
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What:
|
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
|
Webcast:
|
www.ptc.com/for/investors.htm
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Replay:
|
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.
|
PTC Inc.
|
||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
March 29,
|
March 30,
|
March 29,
|
March 30,
|
|||||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||
Revenue:
|
||||||||||||||||||||
License
|
$ | 85,218 | $ | 79,690 | $ | 164,411 | $ | 158,875 | ||||||||||||
Service
|
77,164 | 73,084 | 152,755 | 149,844 | ||||||||||||||||
Support
|
166,318 | 161,175 | 336,459 | 324,981 | ||||||||||||||||
Total revenue
|
328,700 | 313,949 | 653,625 | 633,700 | ||||||||||||||||
Cost of revenue:
|
||||||||||||||||||||
Cost of license revenue (1)
|
7,972 | 8,291 | 15,517 | 16,303 | ||||||||||||||||
Cost of service revenue (1)
|
64,261 | 64,550 | 129,756 | 133,142 | ||||||||||||||||
Cost of support revenue (1)
|
21,564 | 20,429 | 41,480 | 40,897 | ||||||||||||||||
Total cost of revenue
|
93,797 | 93,270 | 186,753 | 190,342 | ||||||||||||||||
Gross margin
|
234,903 | 220,679 | 466,872 | 443,358 | ||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Sales and marketing (1)
|
85,934 | 88,059 | 170,172 | 181,608 | ||||||||||||||||
Research and development (1)
|
55,631 | 55,528 | 108,704 | 112,957 | ||||||||||||||||
General and administrative (1)
|
34,140 | 33,398 | 65,071 | 69,215 | ||||||||||||||||
Amortization of acquired intangible assets
|
7,985 | 6,640 | 15,774 | 13,263 | ||||||||||||||||
Restructuring charges
|
- | 15,810 | 1,067 | 31,212 | ||||||||||||||||
Total operating expenses
|
183,690 | 199,435 | 360,788 | 408,255 | ||||||||||||||||
Operating income
|
51,213 | 21,244 | 106,084 | 35,103 | ||||||||||||||||
Other expense, net
|
(2,692 | ) | (1,867 | ) | (4,446 | ) | (3,672 | ) | ||||||||||||
Income before income taxes
|
48,521 | 19,377 | 101,638 | 31,431 | ||||||||||||||||
Provision (benefit) for income taxes
|
4,765 | 2,340 | 18,225 | (21,417 | ) | |||||||||||||||
Net income
|
$ | 43,756 | $ | 17,037 | $ | 83,413 | $ | 52,848 | ||||||||||||
Earnings per share:
|
||||||||||||||||||||
Basic
|
$ | 0.37 | $ | 0.14 | $ | 0.70 | $ | 0.44 | ||||||||||||
Weighted average shares outstanding
|
118,978 | 119,518 | 118,973 | 119,722 | ||||||||||||||||
Diluted
|
$ | 0.36 | $ | 0.14 | $ | 0.69 | $ | 0.44 | ||||||||||||
Weighted average shares outstanding
|
120,698 | 121,071 | 120,916 | 121,438 | ||||||||||||||||
(1 | ) |
The amounts in the tables above include stock-based compensation as follows:
|
||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
March 29,
|
March 30,
|
March 29,
|
March 30,
|
|||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Cost of license revenue
|
$ | 5 | $ | 8 | $ | 9 | $ | 13 | ||||||||||||
Cost of service revenue
|
1,426 | 1,420 | 3,024 | 3,032 | ||||||||||||||||
Cost of support revenue
|
889 | 835 | 1,813 | 1,661 | ||||||||||||||||
Sales and marketing
|
3,019 | 2,835 | 5,518 | 5,293 | ||||||||||||||||
Research and development
|
2,147 | 1,824 | 4,836 | 4,336 | ||||||||||||||||
General and administrative
|
5,080 | 4,888 | 10,130 | 9,368 | ||||||||||||||||
Total stock-based compensation
|
$ | 12,566 | $ | 11,810 | $ | 25,330 | $ | 23,703 | ||||||||||||
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,
|
March 30,
|
March 29,
|
March 30,
|
||||||||||||||
2014
|
2013
|
2014
|
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.
|
||||||||||||||||
·
|
CAD: PTC Creo® and PTC Mathcad®
|
·
|
Extended PLM: PTC Windchill®, PTC Integrity TM, and SCM solutions
|
·
|
SLM: PTC Arbortext® and PTC Servigistics®
|
·
|
IoT: ThingWorx
|
1)
|
Our Q2 non-GAAP EPS of $0.48 was up 17% year over year, at the high end of our guidance range due to: (1) reported Q2 revenue coming in toward the high end of our guidance range; (2) better than expected services gross margin; and (3) continued focus on cost control. There was no material impact to Q2 non-GAAP EPS from currency effects relative to guidance.
|
2)
|
Total Q2 revenue of $328.7 million was up 4% over Q2’13 non-GAAP revenue (up 5% year over year on a constant currency basis) and was near the high end of our guidance range.
|
3)
|
License revenue of $85.2 million was in the middle of our Q2 guidance range and was up 7% year over year (up 8% on a constant currency basis). License revenue was strong in the Americas and Europe, including three mega deals (transactions resulting in recognized license revenue of over $5 million in the quarter), compared to Q2’13, which had one mega deal in Japan. This growth was offset by declines in the Pac Rim and Japan (including currency headwinds from Yen depreciation).
|
4)
|
We delivered support revenue of $166.3 million, slightly above our guidance and up 3% over Q2’13 non-GAAP support revenue (up 4% on a constant currency basis).
|
5)
|
Services revenue of $77.2 million (up 6% year over year both as reported and on a constant currency basis) came in above our guidance. We achieved non-GAAP services gross margin of 18.7% for the quarter, up from 15.6% in Q1’14 and 13.6% in Q2‘13.
|
6)
|
We had 35 large deals (greater than $1 million in license and services revenue from a single customer recognized in the quarter) that contributed $78.3 million in revenue, a 35% increase year over year.
|
7)
|
We generated $111 million in operating cash flow, used $5 million for capital expenditures, $40 million to repurchase shares during the quarter, and $50 million to repay a portion of the amounts outstanding under our credit facility. Additionally, we paid $112 million for our acquisition of ThingWorx, resulting in an ending cash balance of $270 million.
|
·
|
Approximately $13 million of expense related to stock-based compensation
|
·
|
Approximately $12 million of acquisition-related intangible asset amortization expense
|
·
|
Approximately $1 million of acquisition-related expenses
|
·
|
Approximately $52 million of expense related to stock-based compensation
|
·
|
Approximately $50 million of acquisition-related intangible asset amortization expense
|
·
|
Approximately $1 million of restructuring charges
|
·
|
Approximately $7 million of acquisition-related expenses
|
PTC Inc.
|
||||||||||||||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||||
GAAP MARGINS
|
||||||||||||||||||||||||||||||||||||||||||
FY '11
|
Q1 '12
|
Q2 '12
|
Q3 '12
|
Q4 '12
|
FY '12
|
|||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 1,166,949 | $ | 318,276 | $ | 301,125 | $ | 310,983 | $ | 325,295 | $ | 1,255,679 | ||||||||||||||||||||||||||||||
Cost of license revenue
|
28,792 | 7,659 | 7,824 | 7,634 | 7,478 | 30,595 | ||||||||||||||||||||||||||||||||||||
Cost of service revenue
|
260,650 | 71,450 | 66,366 | 65,689 | 61,977 | 265,482 | ||||||||||||||||||||||||||||||||||||
Cost of support revenue
|
67,326 | 19,110 | 19,026 | 19,531 | 18,384 | 76,051 | ||||||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 810,181 | 69.4 | % | $ | 220,057 | 69.1 | % | $ | 207,909 | 69.0 | % | $ | 218,129 | 70.1 | % | $ | 237,456 | 73.0 | % | $ | 883,551 | 70.4 | % | ||||||||||||||||||
Sales & marketing
|
$ | 353,051 | 30.3 | % | $ | 97,778 | 30.7 | % | $ | 90,962 | 30.2 | % | $ | 94,706 | 30.5 | % | $ | 94,350 | 29.0 | % | $ | 377,796 | 30.1 | % | ||||||||||||||||||
Research & development
|
211,406 | 18.1 | % | 54,993 | 17.3 | % | 54,576 | 18.1 | % | 53,260 | 17.1 | % | 52,131 | 16.0 | % | 214,960 | 17.1 | % | ||||||||||||||||||||||||
General & administrative
|
110,291 | 9.5 | % | 29,572 | 9.3 | % | 29,534 | 9.8 | % | 29,851 | 9.6 | % | 28,511 | 8.8 | % | 117,468 | 9.4 | % | ||||||||||||||||||||||||
Amortization of acquired intangible assets
|
18,319 | 1.6 | % | 5,209 | 1.6 | % | 5,132 | 1.7 | % | 5,103 | 1.6 | % | 4,859 | 1.5 | % | 20,303 | 1.6 | % | ||||||||||||||||||||||||
Restructuring charge
|
- | 0.0 | % | - | 0.0 | % | 20,802 | 6.9 | % | 4,126 | 1.3 | % | - | 0.0 | % | 24,928 | 2.0 | % | ||||||||||||||||||||||||
Operating Expenses
|
$ | 693,067 | 59.4 | % | $ | 187,552 | 58.9 | % | $ | 201,006 | 66.8 | % | $ | 187,046 | 60.1 | % | $ | 179,851 | 55.3 | % | $ | 755,455 | 60.2 | % | ||||||||||||||||||
GAAP Operating Margin
|
$ | 117,114 | 10.0 | % | $ | 32,505 | 10.2 | % | $ | 6,903 | 2.3 | % | $ | 31,083 | 10.0 | % | $ | 57,605 | 17.7 | % | $ | 128,096 | 10.2 | % | ||||||||||||||||||
ADJUSTMENTS TO DERIVE NON-GAAP MEASURES
|
||||||||||||||||||||||||||||||||||||||||||
FY '11
|
Q1 '12
|
Q2 '12
|
Q3 '12
|
Q4 '12
|
FY '12
|
|||||||||||||||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||||||||||||||||
Fair value of deferred revenue
|
$ | 2,606 | 0.2 | % | $ | 1,522 | 0.5 | % | $ | 736 | 0.2 | % | $ | 227 | 0.1 | % | $ | - | 0.0 | % | $ | 2,485 | 0.2 | % | ||||||||||||||||||
Cost of license revenue:
|
||||||||||||||||||||||||||||||||||||||||||
Acquired intangible amortization
|
15,393 | 1.3 | % | 4,103 | 1.3 | % | 3,931 | 1.3 | % | 3,933 | 1.3 | % | 3,852 | 1.2 | % | 15,819 | 1.3 | % | ||||||||||||||||||||||||
Stock-based compensation
|
15 | 0.0 | % | 5 | 0.0 | % | 7 | 0.0 | % | 4 | 0.0 | % | 6 | 0.0 | % | 22 | 0.0 | % | ||||||||||||||||||||||||
Cost of service revenue:
|
||||||||||||||||||||||||||||||||||||||||||
Acquired intangible amortization
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||
Stock-based compensation
|
5,011 | 0.4 | % | 1,563 | 0.5 | % | 1,358 | 0.5 | % | 1,314 | 0.4 | % | 1,447 | 0.4 | % | 5,682 | 0.5 | % | ||||||||||||||||||||||||
Cost of support revenue:
|
||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
2,721 | 0.2 | % | 950 | 0.3 | % | 813 | 0.3 | % | 736 | 0.2 | % | 735 | 0.2 | % | 3,234 | 0.3 | % | ||||||||||||||||||||||||
Sales & marketing:
|
||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
11,428 | 1.0 | % | 3,728 | 1.2 | % | 3,306 | 1.1 | % | 3,334 | 1.1 | % | 3,441 | 1.1 | % | 13,809 | 1.1 | % | ||||||||||||||||||||||||
Research & development:
|
||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
8,547 | 0.7 | % | 2,549 | 0.8 | % | 2,240 | 0.7 | % | 1,886 | 0.6 | % | 2,086 | 0.6 | % | 8,761 | 0.7 | % | ||||||||||||||||||||||||
General & administrative:
|
||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
17,680 | 1.5 | % | 4,587 | 1.4 | % | 4,968 | 1.6 | % | 6,057 | 1.9 | % | 4,185 | 1.3 | % | 19,797 | 1.6 | % | ||||||||||||||||||||||||
Acquisition-related costs
|
7,761 | 0.7 | % | 2,068 | 0.6 | % | 444 | 0.1 | % | - | 0.0 | % | 1,321 | 0.4 | % | 3,833 | 0.3 | % | ||||||||||||||||||||||||
Amortization of acquired intangible assets
|
18,319 | 1.6 | % | 5,209 | 1.6 | % | 5,132 | 1.7 | % | 5,103 | 1.6 | % | 4,859 | 1.5 | % | 20,303 | 1.6 | % | ||||||||||||||||||||||||
Restructuring charge
|
- | 0.0 | % | - | 0.0 | % | 20,802 | 6.9 | % | 4,126 | 1.3 | % | - | 0.0 | % | 24,928 | 2.0 | % | ||||||||||||||||||||||||
Non-GAAP adjustments
|
$ | 89,481 | 7.7 | % | $ | 26,284 | 8.3 | % | $ | 43,737 | 14.5 | % | $ | 26,720 | 8.6 | % | $ | 21,932 | 6.7 | % | $ | 118,673 | 9.5 | % | ||||||||||||||||||
NON-GAAP MARGINS
|
||||||||||||||||||||||||||||||||||||||||||
FY '11
|
Q1 '12
|
Q2 '12
|
Q3 '12
|
Q4 '12
|
FY '12
|
|||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 1,169,555 | $ | 319,798 | $ | 301,861 | $ | 311,210 | $ | 325,295 | $ | 1,258,164 | ||||||||||||||||||||||||||||||
Cost of license revenue
|
13,384 | 3,551 | 3,886 | 3,697 | 3,620 | 14,754 | ||||||||||||||||||||||||||||||||||||
Cost of service revenue
|
255,639 | 69,887 | 65,008 | 64,375 | 60,530 | 259,800 | ||||||||||||||||||||||||||||||||||||
Cost of support revenue
|
64,605 | 18,160 | 18,213 | 18,795 | 17,649 | 72,817 | ||||||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 835,927 | 71.5 | % | $ | 228,200 | 71.4 | % | $ | 214,754 | 71.1 | % | $ | 224,343 | 72.1 | % | $ | 243,496 | 74.9 | % | $ | 910,793 | 72.4 | % | ||||||||||||||||||
Sales & marketing
|
$ | 341,623 | 29.2 | % | $ | 94,050 | 29.4 | % | $ | 87,656 | 29.0 | % | $ | 91,372 | 29.4 | % | $ | 90,909 | 27.9 | % | $ | 363,987 | 28.9 | % | ||||||||||||||||||
Research & development
|
202,859 | 17.3 | % | 52,444 | 16.4 | % | 52,336 | 17.3 | % | 51,374 | 16.5 | % | 50,045 | 15.4 | % | 206,199 | 16.4 | % | ||||||||||||||||||||||||
General & administrative
|
84,850 | 7.3 | % | 22,917 | 7.2 | % | 24,122 | 8.0 | % | 23,794 | 7.6 | % | 23,005 | 7.1 | % | 93,838 | 7.5 | % | ||||||||||||||||||||||||
Amortization of acquired intangible assets
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||
Restructuring charge
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||
Operating Expenses
|
$ | 629,332 | 53.8 | % | $ | 169,411 | 53.0 | % | $ | 164,114 | 54.4 | % | $ | 166,540 | 53.5 | % | $ | 163,959 | 50.4 | % | $ | 664,024 | 52.8 | % | ||||||||||||||||||
Non-GAAP Operating Margin
|
$ | 206,595 | 17.7 | % | $ | 58,789 | 18.4 | % | $ | 50,640 | 16.8 | % | $ | 57,803 | 18.6 | % | $ | 79,537 | 24.5 | % | $ | 246,769 | 19.6 | % | ||||||||||||||||||
PTC Inc.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
GAAP MARGINS
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Q1 '13
|
Q2 '13
|
Q3 '13
|
Q4 '13
|
FY '13
|
Q1 '14
|
Q2 '14
|
|||||||||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 319,751 | $ | 313,949 | $ | 314,996 | $ | 344,845 | $ | 1,293,541 | $ | 324,925 | $ | 328,700 | |||||||||||||||||||||||||||||||||||
Cost of license revenue
|
8,012 | 8,291 | 8,431 | 8,270 | 33,004 | 7,545 | 7,972 | ||||||||||||||||||||||||||||||||||||||||||
Cost of service revenue
|
68,592 | 64,550 | 62,941 | 62,871 | 258,954 | 65,495 | 64,261 | ||||||||||||||||||||||||||||||||||||||||||
Cost of support revenue
|
20,468 | 20,429 | 19,796 | 20,388 | 81,081 | 19,916 | 21,564 | ||||||||||||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 222,679 | 69.6 | % | $ | 220,679 | 70.3 | % | $ | 223,828 | 71.1 | % | $ | 253,316 | 73.5 | % | $ | 920,502 | 71.2 | % | $ | 231,969 | 71.4 | % | $ | 234,903 | 71.5 | % | |||||||||||||||||||||
Sales & marketing
|
$ | 93,549 | 29.3 | % | $ | 88,059 | 28.0 | % | $ | 88,298 | 28.0 | % | $ | 90,734 | 26.3 | % | $ | 360,640 | 27.9 | % | $ | 84,238 | 25.9 | % | $ | 85,934 | 26.1 | % | |||||||||||||||||||||
Research & development
|
57,429 | 18.0 | % | 55,528 | 17.7 | % | 53,834 | 17.1 | % | 55,127 | 16.0 | % | 221,918 | 17.2 | % | 53,073 | 16.3 | % | 55,631 | 16.9 | % | ||||||||||||||||||||||||||||
General & administrative
|
35,817 | 11.2 | % | 33,398 | 10.6 | % | 28,812 | 9.1 | % | 33,910 | 9.8 | % | 131,937 | 10.2 | % | 30,931 | 9.5 | % | 34,140 | 10.4 | % | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets
|
6,623 | 2.1 | % | 6,640 | 2.1 | % | 6,532 | 2.1 | % | 6,691 | 1.9 | % | 26,486 | 2.0 | % | 7,789 | 2.4 | % | 7,985 | 2.4 | % | ||||||||||||||||||||||||||||
Restructuring charge
|
15,402 | 4.8 | % | 15,810 | 5.0 | % | 3,137 | 1.0 | % | 17,848 | 5.2 | % | 52,197 | 4.0 | % | 1,067 | 0.3 | % | - | 0.0 | % | ||||||||||||||||||||||||||||
Operating Expenses
|
$ | 208,820 | 65.3 | % | $ | 199,435 | 63.5 | % | $ | 180,613 | 57.3 | % | $ | 204,310 | 59.2 | % | $ | 793,178 | 61.3 | % | $ | 177,098 | 54.5 | % | $ | 183,690 | 55.9 | % | |||||||||||||||||||||
GAAP Operating Margin
|
$ | 13,859 | 4.3 | % | $ | 21,244 | 6.8 | % | $ | 43,215 | 13.7 | % | $ | 49,006 | 14.2 | % | $ | 127,324 | 9.8 | % | $ | 54,871 | 16.9 | % | $ | 51,213 | 15.6 | % | |||||||||||||||||||||
ADJUSTMENTS TO DERIVE NON-GAAP MEASURES
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Q1 '13
|
Q2 '13
|
Q3 '13
|
Q4 '13
|
FY '13
|
Q1 '14
|
Q2 '14
|
|||||||||||||||||||||||||||||||||||||||||||
Revenue:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of deferred revenue
|
$ | 1,554 | 0.5 | % | $ | 660 | 0.2 | % | $ | 534 | 0.2 | % | $ | 287 | 0.1 | % | $ | 3,035 | 0.2 | % | $ | - | 0.0 | % | $ | - | 0.0 | % | |||||||||||||||||||||
Cost of license revenue:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Acquired intangible amortization
|
4,639 | 1.5 | % | 4,628 | 1.5 | % | 4,598 | 1.5 | % | 4,695 | 1.4 | % | 18,560 | 1.4 | % | 4,405 | 1.4 | % | 4,316 | 1.3 | % | ||||||||||||||||||||||||||||
Stock-based compensation
|
5 | 0.0 | % | 8 | 0.0 | % | 4 | 0.0 | % | 4 | 0.0 | % | 21 | 0.0 | % | 4 | 0.0 | % | 5 | 0.0 | % | ||||||||||||||||||||||||||||
Cost of service revenue:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Acquired intangible amortization
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | 26 | 0.0 | % | 26 | 0.0 | % | 92 | 0.0 | % | 91 | 0.0 | % | ||||||||||||||||||||||||||||
Stock-based compensation
|
1,612 | 0.5 | % | 1,420 | 0.5 | % | 1,372 | 0.4 | % | 1,730 | 0.5 | % | 6,134 | 0.5 | % | 1,598 | 0.5 | % | 1,426 | 0.4 | % | ||||||||||||||||||||||||||||
Cost of support revenue:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
826 | 0.3 | % | 835 | 0.3 | % | 722 | 0.2 | % | 941 | 0.3 | % | 3,324 | 0.3 | % | 924 | 0.3 | % | 889 | 0.3 | % | ||||||||||||||||||||||||||||
Sales & marketing:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
2,458 | 0.8 | % | 2,835 | 0.9 | % | 2,693 | 0.9 | % | 3,340 | 1.0 | % | 11,326 | 0.9 | % | 2,499 | 0.8 | % | 3,019 | 0.9 | % | ||||||||||||||||||||||||||||
Research & development:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
2,512 | 0.8 | % | 1,824 | 0.6 | % | 2,139 | 0.7 | % | 2,115 | 0.6 | % | 8,590 | 0.7 | % | 2,689 | 0.8 | % | 2,147 | 0.7 | % | ||||||||||||||||||||||||||||
General & administrative:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
4,480 | 1.4 | % | 4,888 | 1.6 | % | 4,247 | 1.3 | % | 5,777 | 1.7 | % | 19,392 | 1.5 | % | 5,050 | 1.6 | % | 5,080 | 1.5 | % | ||||||||||||||||||||||||||||
Acquisition-related costs
|
4,599 | 1.4 | % | 2,110 | 0.7 | % | 900 | 0.3 | % | 2,246 | 0.7 | % | 9,855 | 0.8 | % | 1,305 | 0.4 | % | 3,935 | 1.2 | % | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets
|
6,623 | 2.1 | % | 6,640 | 2.1 | % | 6,532 | 2.1 | % | 6,691 | 1.9 | % | 26,486 | 2.0 | % | 7,789 | 2.4 | % | 7,985 | 2.4 | % | ||||||||||||||||||||||||||||
Restructuring charge
|
15,402 | 4.8 | % | 15,810 | 5.0 | % | 3,137 | 1.0 | % | 17,848 | 5.2 | % | 52,197 | 4.0 | % | 1,067 | 0.3 | % | - | 0.0 | % | ||||||||||||||||||||||||||||
Non-GAAP adjustments
|
$ | 44,710 | 14.0 | % | $ | 41,658 | 13.3 | % | $ | 26,878 | 8.5 | % | $ | 45,700 | 13.3 | % | $ | 158,946 | 12.3 | % | $ | 27,422 | 8.4 | % | $ | 28,893 | 8.8 | % | |||||||||||||||||||||
NON-GAAP MARGINS
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Q1 '13
|
Q2 '13
|
Q3 '13
|
Q4 '13
|
FY '13
|
Q1 '14
|
Q2 '14
|
|||||||||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 321,305 | $ | 314,609 | $ | 315,530 | $ | 345,132 | $ | 1,296,576 | $ | 324,925 | $ | 328,700 | |||||||||||||||||||||||||||||||||||
Cost of license revenue
|
3,368 | 3,655 | 3,829 | 3,571 | 14,423 | 3,136 | 3,651 | ||||||||||||||||||||||||||||||||||||||||||
Cost of service revenue
|
66,980 | 63,130 | 61,569 | 61,115 | 252,794 | 63,805 | 62,744 | ||||||||||||||||||||||||||||||||||||||||||
Cost of support revenue
|
19,642 | 19,594 | 19,074 | 19,447 | 77,757 | 18,992 | 20,675 | ||||||||||||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 231,315 | 72.0 | % | $ | 228,230 | 72.5 | % | $ | 231,058 | 73.2 | % | $ | 260,999 | 75.6 | % | $ | 951,602 | 73.4 | % | $ | 238,992 | 73.6 | % | $ | 241,630 | 73.5 | % | |||||||||||||||||||||
Sales & marketing
|
$ | 91,091 | 28.4 | % | $ | 85,224 | 27.1 | % | $ | 85,605 | 27.1 | % | $ | 87,394 | 25.3 | % | $ | 349,314 | 26.9 | % | $ | 81,739 | 25.2 | % | $ | 82,915 | 25.2 | % | |||||||||||||||||||||
Research & development
|
54,917 | 17.1 | % | 53,704 | 17.1 | % | 51,695 | 16.4 | % | 53,012 | 15.4 | % | 213,328 | 16.5 | % | 50,384 | 15.5 | % | 53,484 | 16.3 | % | ||||||||||||||||||||||||||||
General & administrative
|
26,738 | 8.3 | % | 26,400 | 8.4 | % | 23,665 | 7.5 | % | 25,887 | 7.5 | % | 102,690 | 7.9 | % | 24,576 | 7.6 | % | 25,125 | 7.6 | % | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||||||
Restructuring charge
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||||||
Operating Expenses
|
$ | 172,746 | 53.8 | % | $ | 165,328 | 52.6 | % | $ | 160,965 | 51.0 | % | $ | 166,293 | 48.2 | % | $ | 665,332 | 51.3 | % | $ | 156,699 | 48.2 | % | $ | 161,524 | 49.1 | % | |||||||||||||||||||||
Non-GAAP Operating Margin
|
$ | 58,569 | 18.2 | % | $ | 62,902 | 20.0 | % | $ | 70,093 | 22.2 | % | $ | 94,706 | 27.4 | % | $ | 286,270 | 22.1 | % | $ | 82,293 | 25.3 | % | $ | 80,106 | 24.4 | % | |||||||||||||||||||||
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 (1)
|
$ | 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 (2)
|
(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 | |||||||||
(1)
|
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 | % | |||||||||
(2)
|
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.
|
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