This will take the Needham, Massachusetts-based company’s revenue for the year to $854m, 18% up on last year’s figure. PTC also set a target for revenue in the 2007 financial year to grow 10% to $940m and expects to start the year with first-quarter revenue in the $215m to $220m, at least 12% over last year’s level.
CEO Richard Harrison said PTC is excited about the momentum it is generating in the market. The 2007 revenue target represented 10% organic growth, consistent with the organic growth figure for 2006. He said he is confident of its ability to drive further operating margin improvements on the path toward achieving its longer-term financial goals.
Meanwhile, an inquiry into stock-option grants did not identify any that involved the intentional selection of an earlier effective date in order to offer a more favorable exercise price.
However, PTC’s review did identify some stock-option grants, substantially all of which were made to non-executive employees, where all of the prerequisites for completing an option grant were not completed at the time of grant, resulting in financial accounting measurement dates for those grants that differ from the stated grant dates.
While the company identified errors, related primarily to 2002 and prior periods, it said these are not material to its reported results and do not require restatement. It said it expects to record a fourth-quarter, non-cash, stock-based compensation charge of approximately $2.3m to correct past errors.
