Parametric Tech Cuts Revenue Outlook
Manufacturing-software developer Parametric Tech (PMTC) warned Thursday that revenue for the third quarter would come in below its previous guidance.
The stock plunged $4.07, or 18.9%, to $17.50 in recent after-hours trading.
Revenue will be approximately $225 million, well short of previous expectations for revenue in the $235 million-to-$240 million range. Earnings will also be affected, according to the Needham, Mass., company.
Analysts were expecting revenue of $238 million and per-share earnings, excluding items, of 28 cents for the quarter, according to Thomson Financial.Lower-than-expected license revenue of $62 million was the primary cause, Parametric said. "Though third quarter total revenue grew approximately 4% year over year ... our license revenue fell short of our forecast in North America and Japan," said CEO and president C. Richard Harrison in a statement. The company has already begun reducing costs, he stated. The company also expects to lower fourth-quarter guidance when it makes its full earnings announcement on July 25. Analysts were expecting fourth-quarter revenue of $263 million. In June, CFO Neil Moses had said full-year revenue was expected to be $950 million, suggesting a fourth-quarter revenue expectation of at least $260 million.
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