PTC Announces Solid Q3 Results, Increases FY’12 EPS Guidance

PTC (Nasdaq: PMTC) today reported results for its third fiscal quarter ended June 30, 2012.

Highlights
  • Q3 Results:
    • Non-GAAP revenue of $311.2 million, up 6% year over year (10% on a constant currency basis)
    • Non-GAAP EPS of $0.37, up 16% year over year (24% on a constant currency basis)
    • GAAP revenue of $311.0 million and GAAP EPS of $0.19, including a $4.1 million restructuring charge
    • Revenue contribution from MKS (acquired on May 31, 2011) and 4CS Solutions (acquired on September 2, 2011) was $20.5 million on a non-GAAP basis and $20.3 million on a GAAP basis
    • Non-GAAP operating margin of 18.6%; GAAP operating margin of 10.0%
    • Relative to Q3 guidance assumptions, currency had no material effect on reported results
  • Q4 Guidance:
    • Revenue of $320 to $335 million and non-GAAP EPS of $0.44 to $0.50
    • License revenue of $100 to $115 million
    • Revenue guidance assumes $1.20 USD / EURO, down from previous assumption of $1.30; an approximate $10 million negative impact to Q4 revenue guidance ($3 to $4 million license revenue impact)
    • Approximate $1 million quarterly expense benefit from restructuring in Q3’12
    • GAAP EPS of $0.33 to $0.39
  • FY’12 Targets:
    • Updated targets primarily reflect the impact of currency relative to previous guidance assumptions
    • Non-GAAP revenue of $1,255 to $1,270 million and non-GAAP EPS of $1.46 to $1.52
    • License revenue of approximately $355 million
    • Non-GAAP operating margin of approximately 19.5%
    • GAAP revenue of $1,252 to $1,267 million and GAAP EPS of $0.73 to $0.80, including a $24.9 million restructuring charge, and GAAP operating margin of approximately 10.0%.

The Q3 non-GAAP revenue results exclude a $0.2 million effect of purchase accounting on the fair value of the acquired deferred maintenance balance of MKS Inc. The Q3 non-GAAP EPS results also exclude $13.3 million of stock-based compensation expense, $9.0 million of acquisition-related intangible asset amortization, $4.1 million of restructuring charges, and $5.3 million of income tax adjustments. The Q3 results include a non-GAAP tax rate of 23%, a GAAP tax rate of 26% and 121 million diluted shares outstanding.

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