Parametric Technology Corp – the computer-aided design software maker whose stock has lost more than a third of its value in the last two months – surprisingly reported second-quarter results that were right in line with analysts’ expectations. Net income for the quarter was up 44% to $53.1m on revenue up 41% at $198.0m. Earnings per share increased 39% to $0.39. Speculation has been widespread recently that the company’s international revenues were getting hammered by the strong dollar and that it was in the process of an acquisition. While Parametric’s international revenues were weaker, the damage was offset by a stronger-than-expected performance in North America. And a spokesperson for the company said that the search for a non- dilutive acquisition is not a major focus right now. Given these conditions, Jay Vleeschhouwer, an analyst with Josephthal Lyon & Ross, thinks Parametric shares are undervalued and recommends them as a buy. He is confident the company will meet expectations for the rest of the year. For the first six months of fiscal 1997, net income was up 47% at $102.5m on revenue that increased 43% to $381.5m. Earnings per share for the period improved by 43% to $0.76. On Thursday, Parametric stock closed up $1.375 at $42.75.
Content from our partners
