View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 15, 1998

PARAMETRIC REPORTS EXPECTED Q4 RESULTS

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.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED
THANK YOU