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Parametric Tech Beats Estimates

But charges hit fourth-quarter profit.
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SAN FRANCISCO --

Parametric Technology's

(PMTC)

first-quarter net income fell sharply from acquisition-restructuring charges, the company reported Wednesday.

The Needham, Mass., software developer posted revenue of $241.2 million, up 8.8% from a year earlier. Analysts were expecting $240.8 million, according to Thomson Financial.

Net income fell 35% to $9.9 million, from $15.2 million in the same quarter of last year. EPS was 8 cents vs. 13 cents a year ago. The company took a $9.7 milllion restructuring charge in the latest quarter.

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Excluding items, EPS was 26 cents. Analysts were looking for 23 cents.

The company projected second-quarter revenue of $248 million to $258 million. EPS, less items, will range from 24 cents to 28 cents. Analysts were expecting a top line of $255.2 million and EPS of 26 cents, less items.

Excluding items related to the acquisition of software maker CoCreate, second-quarter revenue will range from $250 million to $260 million.

First-quarter results were also affected by a restatement of third-quarter 2007 earnings and a higher tax rate of 40% in the quarter, vs. 30% in the year-ago period, according to the company.

Parametric paid $50 million in cash toward the acquisition during the quarter and financed the additional $220 million of the purchase price with debt, the company reported.

Excluding items, operating margin was 18.2%, a 330-basis-point improvement year over year.

Shares of Parametric Tech were recently up 33 cents, or 2.4%, to $14.40.