PTC Announces Third Quarter Fiscal 2017 Results
(2) In the third quarter of 2017, PTC began reporting cost of support
revenue separate from cost of license and subscription revenue. Costs
for previous periods have also been separately reported to conform to
the current period presentation.
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PTC Inc.
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NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
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(in thousands, except per share data)
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Three Months Ended
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Nine Months Ended
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July 1,
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July 2,
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July 1,
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July 2,
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2017
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2016
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2017
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2016
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GAAP revenue
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$
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291,293
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$
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288,652
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$
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857,660
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$
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852,296
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Fair value adjustment of acquired deferred subscription revenue
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373
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746
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1,430
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1,711
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Fair value adjustment of acquired deferred services revenue
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258
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277
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788
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873
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Non-GAAP revenue
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$
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291,924
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$
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289,675
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$
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859,878
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$
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854,880
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GAAP gross margin
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$
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209,025
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$
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206,182
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$
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611,447
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$
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609,487
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Fair value adjustment of acquired deferred revenue
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631
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1,023
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2,218
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2,584
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Fair value adjustment to deferred services cost
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(108
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)
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(121
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)
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(329
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)
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(378
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)
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Stock-based compensation
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2,991
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2,500
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9,092
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8,235
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Amortization of acquired intangible assets included in cost of
revenue
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6,517
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6,383
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19,294
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18,235
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Non-GAAP gross margin
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$
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219,056
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$
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215,967
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$
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641,722
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$
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638,163
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GAAP operating income (loss)
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$
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11,256
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$
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7,596
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$
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23,330
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$
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(3,939
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)
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Fair value adjustment of acquired deferred revenue
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631
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1,023
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2,218
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2,584
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Fair value adjustment to deferred services cost
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(108
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)
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(121
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)
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(329
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)
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(378
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)
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Stock-based compensation
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16,574
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13,796
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56,139
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51,821
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Amortization of acquired intangible assets included in cost of
revenue
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6,517
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6,383
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19,294
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18,235
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Amortization of acquired intangible assets
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7,973
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8,294
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23,986
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25,040
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Acquisition-related charges included in general and administrative
costs
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264
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937
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987
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3,215
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US pension plan termination-related costs
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285
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-
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285
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-
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Restructuring charges
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1,551
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2,815
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8,300
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44,541
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Non-GAAP operating income (1)
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$
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44,943
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$
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40,723
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$
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134,210
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$
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141,119
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GAAP net income (loss)
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$
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(951
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)
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$
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3,073
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$
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(11,196
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)
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$
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(25,992
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)
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Fair value adjustment of acquired deferred revenue
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631
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1,023
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|
|
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2,218
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|
|
|
|
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2,584
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Fair value adjustment to deferred services cost
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|
|
|
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(108
|
)
|
|
|
|
|
|
(121
|
)
|
|
|
|
|
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(329
|
)
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|
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(378
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)
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Stock-based compensation
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16,574
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13,796
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56,139
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51,821
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Amortization of acquired intangible assets included in cost of
revenue
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|
|
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|
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6,517
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6,383
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19,294
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18,235
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Amortization of acquired intangible assets
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7,973
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8,294
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23,986
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25,040
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Acquisition-related charges included in general and administrative
costs
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264
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937
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987
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3,215
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US pension plan termination-related costs
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|
|
|
|
|
285
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|
|
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|
-
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|
|
|
|
|
|
285
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|
|
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|
-
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Restructuring charges
|
|
|
|
|
|
1,551
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|
|
|
|
|
|
2,815
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|
|
|
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8,300
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|
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44,541
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Non-operating credit facility refinancing costs
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-
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-
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1,152
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|
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|
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2,359
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Income tax adjustments (2)
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(171
|
)
|
|
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(6,202
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)
|
|
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(2,810
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)
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|
|
|
|
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(6,481
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)
|
Non-GAAP net income
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$
|
32,565
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|
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$
|
29,998
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|
|
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$
|
98,026
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|
|
|
|
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$
|
114,944
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|
|
|
|
|
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GAAP diluted earnings (loss) per share
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$
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(0.01
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)
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$
|
0.03
|
|
|
|
|
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$
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(0.10
|
)
|
|
|
|
|
$
|
(0.23
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)
|
Fair value of acquired deferred revenue
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
0.02
|
|
Stock-based compensation
|
|
|
|
|
|
0.14
|
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
0.48
|
|
|
|
|
|
|
0.45
|
|
Amortization of acquired intangibles
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
|
0.37
|
|
|
|
|
|
|
0.38
|
|
Acquisition-related charges
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.03
|
|
Restructuring charges
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
0.07
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|
|
|
|
|
|
0.39
|
|
Non-operating credit facility refinancing costs
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|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.02
|
|
Income tax adjustments
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(0.05
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)
|
|
|
|
|
|
(0.02
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)
|
|
|
|
|
|
(0.06
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)
|
Non-GAAP diluted earnings per share
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|
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$
|
0.28
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|
|
|
|
|
$
|
0.26
|
|
|
|
|
|
$
|
0.84
|
|
|
|
|
|
$
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
GAAP diluted weighted average shares outstanding
|
|
|
|
|
|
115,615
|
|
|
|
|
|
|
115,698
|
|
|
|
|
|
|
115,511
|
|
|
|
|
|
|
114,499
|
|
Dilutive effect of stock based compensation plans
|
|
|
|
|
|
1,962
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
1,812
|
|
|
|
|
|
|
807
|
|
Non-GAAP diluted weighted average shares outstanding
|
|
|
|
|
|
117,577
|
|
|
|
|
|
|
115,698
|
|
|
|
|
|
|
117,323
|
|
|
|
|
|
|
115,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1)Operating margin impact of non-GAAP adjustments:
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
July 1,
|
|
|
|
|
July 2,
|
|
|
|
|
July 1,
|
|
|
|
|
July 2,
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
2016
|
GAAP operating margin
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
2.6
|
%
|
|
|
|
|
|
2.7
|
%
|
|
|
|
|
|
-0.5
|
%
|
Fair value of acquired deferred revenue
|
|
|
|
|
|
0.2
|
%
|
|
|
|
|
|
0.4
|
%
|
|
|
|
|
|
0.3
|
%
|
|
|
|
|
|
0.3
|
%
|
Fair value adjustment to deferred services cost
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
|
0.0
|
%
|
Stock-based compensation
|
|
|
|
|
|
5.7
|
%
|
|
|
|
|
|
4.8
|
%
|
|
|
|
|
|
6.5
|
%
|
|
|
|
|
|
6.1
|
%
|
Amortization of acquired intangibles
|
|
|
|
|
|
5.0
|
%
|
|
|
|
|
|
5.1
|
%
|
|
|
|
|
|
5.0
|
%
|
|
|
|
|
|
5.1
|
%
|
Acquisition-related charges
|
|
|
|
|
|
0.1
|
%
|
|
|
|
|
|
0.3
|
%
|
|
|
|
|
|
0.1
|
%
|
|
|
|
|
|
0.4
|
%
|
US pension plan termination-related costs
|
|
|
|
|
|
0.1
|
%
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
|
0.0
|
%
|
Restructuring charges
|
|
|
|
|
|
0.5
|
%
|
|
|
|
|
|
1.0
|
%
|
|
|
|
|
|
1.0
|
%
|
|
|
|
|
|
5.2
|
%
|
Non-GAAP operating margin
|
|
|
|
|
|
15.4
|
%
|
|
|
|
|
|
14.1
|
%
|
|
|
|
|
|
15.6
|
%
|
|
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|