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  1. Technology
October 15, 1998


By CBR Staff Writer

Parametric Technology Corp, Waltham, Massachusetts-based CAD and engineering software developer, has reported fourth-quarter net income up 12.5% at $45.3m on revenue down 2.3% at $250m. Earnings per share rose 13.3% to $0.17 for the quarter, exactly what analysts surveyed by First Call were looking for. For the year, net income fell 1.1% to $86.7m on revenue down 4.1% at $1.02bn. Earnings per share fell 3.1% to $0.31 for the year. Results for the year include acquisition-related charges of $105.8m and a one-time loss of $19m stemming from the early re-payment of debt assumed in the acquisition. Last year’s full-year results include acquisition charges of $45m and both a one-time revenue gain of $82.2m as well as a one-time charge of $94m related to discontinued hardware services operations. Parametric says its sales force restructuring – for which it blamed much of last quarter’s troubles – is well underway and has seen minimal defections. It is following a three-tiered strategy with separate groups targeting major and primary customers, with sales to minor customers – $10m in revenues and under – are being left to resellers. For the quarter, North America represented 46% of total revenue, with Europe bringing in 39% and Asia-Pacific 15%. The company gained 9,525 seats during the quarter and 34,000 for the year, to finish with a total of 196,000 in all. Its cash position stood at $426m, flat with the preceding quarter but down 25% from the year-ago period. Looking ahead, the company says it is being cautious about the first half of fiscal 1999 and is predicting flat revenue next quarter with earnings possibly up a penny from this time. It says Street estimates for the full year of revenue growth in the 10%-15% range and earnings of $0.95 per share are reasonable.

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