PTC Announces Second Quarter Fiscal Year 2019 Results
About PTC (NASDAQ:
PTC)
PTC
unleashes industrial innovation with award-winning, market-proven
solutions that enable companies to differentiate their products and
services, improve operational excellence, and increase workforce
productivity. With PTC, and its partner ecosystem, manufacturers can
capitalize on the promise of today’s new technology to drive digital
transformation.
PTC.com
@PTC
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PTC Inc.
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Subscription license
|
|
|
$
|
51,540
|
|
|
|
|
|
Subscription support & cloud services
|
|
|
|
83,228
|
|
|
|
|
|
Total Subscription
|
|
|
|
134,768
|
|
|
$
|
162,070
|
|
|
$
|
112,931
|
|
Perpetual support
|
|
|
|
104,417
|
|
|
|
103,564
|
|
|
|
126,683
|
|
Total recurring revenue
|
|
|
|
239,185
|
|
|
|
265,634
|
|
|
|
239,614
|
|
Perpetual license
|
|
|
|
10,336
|
|
|
|
11,267
|
|
|
|
22,839
|
|
Total software revenue
|
|
|
|
249,521
|
|
|
|
276,901
|
|
|
|
262,453
|
|
Professional services
|
|
|
|
40,930
|
|
|
|
38,598
|
|
|
|
45,430
|
|
Total revenue (1)
|
|
|
|
290,451
|
|
|
|
315,499
|
|
|
|
307,883
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
Cost of software revenue (2) (3)
|
|
|
|
45,749
|
|
|
|
45,222
|
|
|
|
46,189
|
|
Cost of professional services revenue (2) (3)
|
|
|
|
34,155
|
|
|
|
32,745
|
|
|
|
37,519
|
|
Total cost of revenue
|
|
|
|
79,904
|
|
|
|
77,967
|
|
|
|
83,708
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
210,547
|
|
|
|
237,532
|
|
|
|
224,175
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Sales and marketing (2) (3)
|
|
|
|
103,722
|
|
|
|
109,421
|
|
|
|
98,390
|
|
Research and development (2) (3)
|
|
|
|
61,402
|
|
|
|
61,402
|
|
|
|
62,197
|
|
General and administrative (2) (3)
|
|
|
|
35,371
|
|
|
|
35,371
|
|
|
|
33,369
|
|
Amortization of acquired intangible assets
|
|
|
|
5,930
|
|
|
|
5,930
|
|
|
|
7,895
|
|
Restructuring and other charges, net
|
|
|
|
26,980
|
|
|
|
26,980
|
|
|
|
114
|
|
Total operating expenses
|
|
|
|
233,405
|
|
|
|
239,104
|
|
|
|
201,965
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(22,858
|
)
|
|
|
(1,572
|
)
|
|
|
22,210
|
|
Other expense, net (3)
|
|
|
|
(10,562
|
)
|
|
|
(10,318
|
)
|
|
|
(10,664
|
)
|
Income (loss) before income taxes
|
|
|
|
(33,420
|
)
|
|
|
(11,890
|
)
|
|
|
11,546
|
|
Provision for income taxes
|
|
|
|
10,093
|
|
|
|
140
|
|
|
|
3,624
|
|
Net income (loss)
|
|
|
$
|
(43,513
|
)
|
|
$
|
(12,030
|
)
|
|
$
|
7,922
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.07
|
|
Weighted average shares outstanding
|
|
|
|
118,461
|
|
|
|
118,461
|
|
|
|
116,241
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.07
|
|
Weighted average shares outstanding
|
|
|
|
118,461
|
|
|
|
118,461
|
|
|
|
117,905
|
|
|
(1)
|
|
See supplemental financial data for revenue by license, support, and
professional services.
|
(2)
|
|
See supplemental financial data for additional information about
stock-based compensation.
|
(3)
|
|
In the first quarter of fiscal 2019, we adopted Accounting Standards
Update (ASU) 2017-07 - Improving the presentation of net periodic
pension cost and net periodic postretirement benefit cost . In
accordance with this guidance, we reclassified $0.2 million of
non-service related net periodic pension income to other expense,
net from cost of revenue and operating expenses for the three months
ended March 31, 2018.
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Subscription license
|
|
|
$
|
115,057
|
|
|
|
|
|
Subscription support & cloud services
|
|
|
|
160,652
|
|
|
|
|
|
Total Subscription
|
|
|
|
275,709
|
|
|
$
|
310,483
|
|
|
$
|
212,939
|
|
Perpetual support
|
|
|
|
214,914
|
|
|
|
212,789
|
|
|
|
257,880
|
|
Total recurring revenue
|
|
|
|
490,623
|
|
|
|
523,272
|
|
|
|
470,819
|
|
Perpetual license
|
|
|
|
52,141
|
|
|
|
53,017
|
|
|
|
56,824
|
|
Total software revenue
|
|
|
|
542,764
|
|
|
|
576,289
|
|
|
|
527,643
|
|
Professional services
|
|
|
|
82,376
|
|
|
|
77,967
|
|
|
|
86,884
|
|
Total revenue (1)
|
|
|
|
625,140
|
|
|
|
654,256
|
|
|
|
614,527
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
Cost of software revenue (2) (3)
|
|
|
|
89,509
|
|
|
|
88,199
|
|
|
|
92,805
|
|
Cost of professional services revenue (2) (3)
|
|
|
|
67,747
|
|
|
|
64,964
|
|
|
|
73,938
|
|
Total cost of revenue
|
|
|
|
157,256
|
|
|
|
153,163
|
|
|
|
166,743
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
467,884
|
|
|
|
501,093
|
|
|
|
447,784
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Sales and marketing (2) (3)
|
|
|
|
207,940
|
|
|
|
216,725
|
|
|
|
197,765
|
|
Research and development (2) (3)
|
|
|
|
122,184
|
|
|
|
122,184
|
|
|
|
126,169
|
|
General and administrative (2) (3)
|
|
|
|
73,235
|
|
|
|
73,235
|
|
|
|
68,389
|
|
Amortization of acquired intangible assets
|
|
|
|
11,866
|
|
|
|
11,866
|
|
|
|
15,716
|
|
Restructuring and other charges, net
|
|
|
|
45,473
|
|
|
|
45,473
|
|
|
|
219
|
|
Total operating expenses
|
|
|
|
460,698
|
|
|
|
469,483
|
|
|
|
408,258
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
7,186
|
|
|
|
31,610
|
|
|
|
39,526
|
|
Other expense, net (3)
|
|
|
|
(20,184
|
)
|
|
|
(20,046
|
)
|
|
|
(21,509
|
)
|
Income (loss) before income taxes
|
|
|
|
(12,998
|
)
|
|
|
11,564
|
|
|
|
18,017
|
|
Provision (benefit) for income taxes (4)
|
|
|
|
9,530
|
|
|
|
4,346
|
|
|
|
(3,782
|
)
|
Net income (loss)
|
|
|
$
|
(22,528
|
)
|
|
$
|
7,218
|
|
|
$
|
21,799
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.19
|
)
|
|
$
|
0.06
|
|
|
$
|
0.19
|
|
Weighted average shares outstanding
|
|
|
|
118,392
|
|
|
|
118,392
|
|
|
|
115,986
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
(0.19
|
)
|
|
$
|
0.06
|
|
|
$
|
0.19
|
|
Weighted average shares outstanding
|
|
|
|
118,392
|
|
|
|
119,490
|
|
|
|
117,780
|
|
|
(1)
|
|
See supplemental financial data for revenue by license, support, and
professional services.
|
(2)
|
|
See supplemental financial data for additional information about
stock-based compensation.
|
(3)
|
|
In the first quarter of fiscal 2019, we adopted Accounting Standards
Update (ASU) 2017-07 - Improving the presentation of net periodic
pension cost and net periodic postretirement benefit cost . In
accordance with this guidance, we reclassified $0.3 million of
non-service related net periodic pension income to other expense,
net from cost of revenue and operating expenses for the six months
ended March 31, 2018.
|
(4)
|
|
Our 2018 year-to-date tax rate includes a benefit of $7 million
relating to the enactment of the Tax Cuts and Jobs Act.
|
|
|
|
|
PTC Inc.
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
Revenue by license, support and services is as follows:
|
|
|
|
Three Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
License revenue (1)
|
|
|
$
|
61,876
|
|
$
|
156,131
|
|
$
|
120,505
|
Support and cloud services revenue
|
|
|
|
187,645
|
|
|
120,770
|
|
|
141,948
|
Professional services revenue
|
|
|
|
40,930
|
|
|
38,598
|
|
|
45,430
|
Total revenue
|
|
|
$
|
290,451
|
|
$
|
315,499
|
|
$
|
307,883
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
License revenue (1)
|
|
|
$
|
167,198
|
|
$
|
330,036
|
|
$
|
240,023
|
Support and cloud services revenue
|
|
|
|
375,566
|
|
|
246,253
|
|
|
287,620
|
Professional services revenue
|
|
|
|
82,376
|
|
|
77,967
|
|
|
86,884
|
Total revenue
|
|
|
$
|
625,140
|
|
$
|
654,256
|
|
$
|
614,527
|
|
|
|
|
|
|
|
|
(1) Under ASC 605, all subscription revenue is classified as license
revenue.
|
|
|
|
|
|
|
|
|
|
|
The amounts in the income statement include stock-based compensation
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
Cost of software revenue
|
|
|
$
|
1,206
|
|
$
|
1,206
|
|
$
|
1,098
|
Cost of professional services revenue
|
|
|
|
1,906
|
|
|
1,906
|
|
|
1,669
|
Sales and marketing
|
|
|
|
9,522
|
|
|
9,522
|
|
|
5,038
|
Research and development
|
|
|
|
5,190
|
|
|
5,190
|
|
|
3,383
|
General and administrative
|
|
|
|
9,143
|
|
|
9,143
|
|
|
5,838
|
Total stock-based compensation
|
|
|
$
|
26,967
|
|
$
|
26,967
|
|
$
|
17,026
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
Cost of software revenue
|
|
|
$
|
2,503
|
|
$
|
2,503
|
|
$
|
2,319
|
Cost of professional services revenue
|
|
|
|
3,720
|
|
|
3,720
|
|
|
3,375
|
Sales and marketing
|
|
|
|
19,244
|
|
|
19,244
|
|
|
9,917
|
Research and development
|
|
|
|
10,090
|
|
|
10,090
|
|
|
6,343
|
General and administrative
|
|
|
|
20,817
|
|
|
20,817
|
|
|
13,403
|
Total stock-based compensation
|
|
|
$
|
56,374
|
|
$
|
56,374
|
|
$
|
35,357
|
|
|
|
|
|
|
|
|
|
|
|
|
PTC Inc.
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
|
|
|
|
|
|
|
|
GAAP revenue
|
|
|
$
|
290,451
|
|
|
$
|
315,499
|
|
|
$
|
307,883
|
|
Fair value adjustment of acquired deferred subscription revenue
|
|
|
|
-
|
|
|
|
-
|
|
|
|
75
|
|
Fair value adjustment of acquired deferred services revenue
|
|
|
|
198
|
|
|
|
198
|
|
|
|
233
|
|
Non-GAAP revenue
|
|
|
$
|
290,649
|
|
|
$
|
315,697
|
|
|
$
|
308,191
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
|
|
$
|
210,547
|
|
|
$
|
237,532
|
|
|
$
|
224,175
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
198
|
|
|
|
198
|
|
|
|
308
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(77
|
)
|
|
|
(77
|
)
|
|
|
(96
|
)
|
Stock-based compensation
|
|
|
|
3,112
|
|
|
|
3,112
|
|
|
|
2,767
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,842
|
|
|
|
6,842
|
|
|
|
6,556
|
|
Non-GAAP gross margin
|
|
|
$
|
220,622
|
|
|
$
|
247,607
|
|
|
$
|
233,710
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
|
$
|
(22,858
|
)
|
|
$
|
(1,572
|
)
|
|
$
|
22,210
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
198
|
|
|
|
198
|
|
|
|
308
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(77
|
)
|
|
|
(77
|
)
|
|
|
(96
|
)
|
Stock-based compensation
|
|
|
|
26,967
|
|
|
|
26,967
|
|
|
|
17,026
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,842
|
|
|
|
6,842
|
|
|
|
6,556
|
|
Amortization of acquired intangible assets
|
|
|
|
5,930
|
|
|
|
5,930
|
|
|
|
7,895
|
|
Acquisition-related and other transactional charges included in
general and administrative costs
|
|
|
|
372
|
|
|
|
372
|
|
|
|
133
|
|
Restructuring and other charges, net
|
|
|
|
26,980
|
|
|
|
26,980
|
|
|
|
114
|
|
Non-GAAP operating income (1)
|
|
|
$
|
44,354
|
|
|
$
|
65,640
|
|
|
$
|
54,146
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
(43,513
|
)
|
|
$
|
(12,030
|
)
|
|
$
|
7,922
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
198
|
|
|
|
198
|
|
|
|
308
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(77
|
)
|
|
|
(77
|
)
|
|
|
(96
|
)
|
Stock-based compensation
|
|
|
|
26,967
|
|
|
|
26,967
|
|
|
|
17,026
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
6,842
|
|
|
|
6,842
|
|
|
|
6,556
|
|
Amortization of acquired intangible assets
|
|
|
|
5,930
|
|
|
|
5,930
|
|
|
|
7,895
|
|
Acquisition-related and other transactional charges included in
general and administrative costs
|
|
|
|
372
|
|
|
|
372
|
|
|
|
133
|
|
Restructuring and other charges, net
|
|
|
|
26,980
|
|
|
|
26,980
|
|
|
|
114
|
|
Income tax adjustments (2)
|
|
|
|
2,138
|
|
|
|
(10,399
|
)
|
|
|
(80
|
)
|
Non-GAAP net income
|
|
|
$
|
25,837
|
|
|
$
|
44,783
|
|
|
$
|
39,778
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.07
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Stock-based compensation
|
|
|
|
0.23
|
|
|
|
0.23
|
|
|
|
0.14
|
|
Amortization of acquired intangibles
|
|
|
|
0.11
|
|
|
|
0.11
|
|
|
|
0.12
|
|
Acquisition-related and other transactional charges
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Restructuring and other charges, net
|
|
|
|
0.23
|
|
|
|
0.23
|
|
|
|
-
|
|
Income tax adjustments
|
|
|
|
0.02
|
|
|
|
(0.09
|
)
|
|
|
-
|
|
Non-GAAP diluted earnings per share
|
|
|
$
|
0.22
|
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares outstanding
|
|
|
|
118,461
|
|
|
|
118,461
|
|
|
|
117,905
|
|
Dilutive effect of stock-based compensation plans
|
|
|
|
881
|
|
|
|
881
|
|
|
|
-
|
|
Non-GAAP diluted weighted average shares outstanding
|
|
|
|
119,342
|
|
|
|
119,342
|
|
|
|
117,905
|
|
|
|
|
|
|
|
|
|
(1)Operating margin impact of non-GAAP adjustments:
|
|
|
|
Three Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
GAAP operating margin
|
|
|
|
-7.9
|
%
|
|
|
-0.5
|
%
|
|
|
7.2
|
%
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
Fair value adjustment to deferred services cost
|
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Stock-based compensation
|
|
|
|
9.3
|
%
|
|
|
8.5
|
%
|
|
|
5.5
|
%
|
Amortization of acquired intangibles
|
|
|
|
4.4
|
%
|
|
|
4.0
|
%
|
|
|
4.7
|
%
|
Acquisition-related and other transactional charges
|
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
0.0
|
%
|
Restructuring and other charges, net
|
|
|
|
9.3
|
%
|
|
|
8.6
|
%
|
|
|
0.0
|
%
|
Non-GAAP operating margin
|
|
|
|
15.3
|
%
|
|
|
20.8
|
%
|
|
|
17.6
|
%
|
|
(2)
|
|
We have recorded a full valuation allowance against our U.S. net
deferred tax assets. As we are profitable on a non-GAAP basis, the
2019 and 2018 non-GAAP tax provisions are being calculated assuming
there is no valuation allowance. Income tax adjustments reflect the
tax effects of non-GAAP adjustments which are calculated by applying
the applicable tax rate by jurisdiction to the non-GAAP adjustments
listed above.
|
|
|
|
|
PTC Inc.
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
|
|
|
|
|
|
|
|
GAAP revenue
|
|
|
$
|
625,140
|
|
|
$
|
654,256
|
|
|
$
|
614,527
|
|
Fair value adjustment of acquired deferred subscription revenue
|
|
|
|
66
|
|
|
|
66
|
|
|
|
191
|
|
Fair value adjustment of acquired deferred services revenue
|
|
|
|
405
|
|
|
|
405
|
|
|
|
480
|
|
Non-GAAP revenue
|
|
|
$
|
625,611
|
|
|
$
|
654,727
|
|
|
$
|
615,198
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
|
|
$
|
467,884
|
|
|
$
|
501,093
|
|
|
$
|
447,784
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
471
|
|
|
|
471
|
|
|
|
671
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(162
|
)
|
|
|
(162
|
)
|
|
|
(200
|
)
|
Stock-based compensation
|
|
|
|
6,223
|
|
|
|
6,223
|
|
|
|
5,694
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
13,559
|
|
|
|
13,559
|
|
|
|
13,231
|
|
Non-GAAP gross margin
|
|
|
$
|
487,975
|
|
|
$
|
521,184
|
|
|
$
|
467,180
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$
|
7,186
|
|
|
$
|
31,610
|
|
|
$
|
39,526
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
471
|
|
|
|
471
|
|
|
|
671
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(162
|
)
|
|
|
(162
|
)
|
|
|
(200
|
)
|
Stock-based compensation
|
|
|
|
56,374
|
|
|
|
56,374
|
|
|
|
35,357
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
13,559
|
|
|
|
13,559
|
|
|
|
13,231
|
|
Amortization of acquired intangible assets
|
|
|
|
11,866
|
|
|
|
11,866
|
|
|
|
15,716
|
|
Acquisition-related and other transactional charges included in
general and administrative costs
|
|
|
|
791
|
|
|
|
791
|
|
|
|
140
|
|
Restructuring and other charges, net
|
|
|
|
45,473
|
|
|
|
45,473
|
|
|
|
219
|
|
Non-GAAP operating income (1)
|
|
|
$
|
135,558
|
|
|
$
|
159,982
|
|
|
$
|
104,660
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
(22,528
|
)
|
|
$
|
7,218
|
|
|
$
|
21,799
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
471
|
|
|
|
471
|
|
|
|
671
|
|
Fair value adjustment to deferred services cost
|
|
|
|
(162
|
)
|
|
|
(162
|
)
|
|
|
(200
|
)
|
Stock-based compensation
|
|
|
|
56,374
|
|
|
|
56,374
|
|
|
|
35,357
|
|
Amortization of acquired intangible assets included in cost of
revenue
|
|
|
|
13,559
|
|
|
|
13,559
|
|
|
|
13,231
|
|
Amortization of acquired intangible assets
|
|
|
|
11,866
|
|
|
|
11,866
|
|
|
|
15,716
|
|
Acquisition-related and other transactional charges included in
general and administrative costs
|
|
|
|
791
|
|
|
|
791
|
|
|
|
140
|
|
Restructuring and other charges, net
|
|
|
|
45,473
|
|
|
|
45,473
|
|
|
|
219
|
|
Income tax adjustments (2)
|
|
|
|
(12,718
|
)
|
|
|
(22,540
|
)
|
|
|
(11,080
|
)
|
Non-GAAP net income
|
|
|
$
|
93,126
|
|
|
$
|
113,050
|
|
|
$
|
75,853
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share
|
|
|
$
|
(0.19
|
)
|
|
$
|
0.06
|
|
|
$
|
0.19
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Stock-based compensation
|
|
|
|
0.47
|
|
|
|
0.47
|
|
|
|
0.30
|
|
Amortization of acquired intangibles
|
|
|
|
0.21
|
|
|
|
0.21
|
|
|
|
0.25
|
|
Acquisition-related and other transactional charges
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
-
|
|
Restructuring and other charges, net
|
|
|
|
0.38
|
|
|
|
0.38
|
|
|
|
-
|
|
Income tax adjustments
|
|
|
|
(0.11
|
)
|
|
|
(0.19
|
)
|
|
|
(0.09
|
)
|
Non-GAAP diluted earnings per share
|
|
|
$
|
0.78
|
|
|
$
|
0.95
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares outstanding
|
|
|
|
118,392
|
|
|
|
119,490
|
|
|
|
117,780
|
|
Dilutive effect of stock-based compensation plans
|
|
|
|
1,098
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP diluted weighted average shares outstanding
|
|
|
|
119,490
|
|
|
|
119,490
|
|
|
|
117,780
|
|
|
|
|
|
|
|
|
|
(1) Operating margin impact of non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606
|
|
ASC 605
|
|
ASC 605
|
GAAP operating margin
|
|
|
|
1.1
|
%
|
|
|
4.8
|
%
|
|
|
6.4
|
%
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
Fair value adjustment to deferred services cost
|
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Stock-based compensation
|
|
|
|
9.0
|
%
|
|
|
8.6
|
%
|
|
|
5.8
|
%
|
Amortization of acquired intangibles
|
|
|
|
4.1
|
%
|
|
|
3.9
|
%
|
|
|
4.7
|
%
|
Acquisition-related and other transactional charges
|
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
0.0
|
%
|
Restructuring and other charges, net
|
|
|
|
7.3
|
%
|
|
|
7.0
|
%
|
|
|
0.1
|
%
|
Non-GAAP operating margin
|
|
|
|
21.7
|
%
|
|
|
24.4
|
%
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
(2)
|
|
We have recorded a full valuation allowance against our U.S. net
deferred tax assets. As we are profitable on a non-GAAP basis, the
2019 and 2018 non-GAAP tax provisions are being calculated assuming
there is no valuation allowance. Income tax adjustments reflect the
tax effects of non-GAAP adjustments which are calculated by applying
the applicable tax rate by jurisdiction to the non-GAAP adjustments
listed above. We have recorded the impact of the Tax Cuts and Jobs
Act in our Q1'18 GAAP earnings, resulting in a non-cash benefit of
approximately $7 million. We have excluded this benefit from our
non-GAAP results.
|
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March 30,
|
|
March 30,
|
|
September 30,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
ASC 606 (1)
|
|
ASC 605
|
|
ASC 605
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
294,299
|
|
$
|
294,299
|
|
$
|
259,946
|
Marketable securities
|
|
|
|
56,415
|
|
|
56,415
|
|
|
55,951
|
Accounts receivable, net
|
|
|
|
352,217
|
|
|
110,510
|
|
|
129,297
|
Property and equipment, net
|
|
|
|
106,837
|
|
|
106,837
|
|
|
80,613
|
Goodwill and acquired intangible assets, net
|
|
|
|
1,421,913
|
|
|
1,421,913
|
|
|
1,382,659
|
Other assets
|
|
|
|
484,138
|
|
|
490,722
|
|
|
420,556
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,715,819
|
|
$
|
2,480,696
|
|
$
|
2,329,022
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
$
|
391,807
|
|
$
|
553,709
|
|
$
|
499,442
|
Debt, net of deferred issuance costs
|
|
|
|
738,700
|
|
|
738,700
|
|
|
643,268
|
Other liabilities
|
|
|
|
337,604
|
|
|
275,359
|
|
|
311,723
|
Stockholders' equity
|
|
|
|
1,247,708
|
|
|
912,928
|
|
|
874,589
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,715,819
|
|
$
|
2,480,696
|
|
$
|
2,329,022
|
|
(1)
|
|
Our consolidated balance sheet as of March 30, 2019 under ASC 606 is
preliminary, pending final adjustments required as a result of our
adoption of ASC 606 in the first quarter of 2019. We expect the
adjustments to be finalized prior to the filing of our Form 10-Q for
the second quarter of 2019.
|
|
|
|
PTC Inc.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
March 30,
|
|
March 31,
|
|
March 30,
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(43,513
|
)
|
|
$
|
7,922
|
|
|
$
|
(22,528
|
)
|
|
$
|
21,799
|
|
Stock-based compensation
|
|
|
|
26,967
|
|
|
|
17,026
|
|
|
|
56,374
|
|
|
|
35,357
|
|
Depreciation and amortization
|
|
|
|
19,505
|
|
|
|
21,681
|
|
|
|
39,558
|
|
|
|
42,727
|
|
Accounts receivable
|
|
|
|
30,476
|
|
|
|
10,424
|
|
|
|
54,501
|
|
|
|
32,027
|
|
Accounts payable and accruals
|
|
|
|
9,264
|
|
|
|
13,927
|
|
|
|
(27,868
|
)
|
|
|
(39,130
|
)
|
Deferred revenue
|
|
|
|
58,767
|
|
|
|
36,972
|
|
|
|
36,947
|
|
|
|
59,027
|
|
Income taxes
|
|
|
|
5,991
|
|
|
|
138
|
|
|
|
(15,677
|
)
|
|
|
(14,134
|
)
|
Other (1)
|
|
|
|
33,673
|
|
|
|
2,993
|
|
|
|
41,037
|
|
|
|
(1,075
|
)
|
Net cash provided by operating activities (3)
|
|
|
|
141,130
|
|
|
|
111,083
|
|
|
|
162,344
|
|
|
|
136,598
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(20,936
|
)
|
|
|
(4,762
|
)
|
|
|
(51,268
|
)
|
|
|
(11,139
|
)
|
Acquisition of businesses, net of cash acquired (2)
|
|
|
|
103
|
|
|
|
(3,000
|
)
|
|
|
(69,453
|
)
|
|
|
(3,000
|
)
|
Purchase of intangible asset
|
|
|
|
-
|
|
|
|
(500
|
)
|
|
|
-
|
|
|
|
(3,000
|
)
|
Borrowings (payments) on debt, net
|
|
|
|
(40,000
|
)
|
|
|
(100,000
|
)
|
|
|
95,000
|
|
|
|
(70,000
|
)
|
Net proceeds associated with issuance of common stock
|
|
|
|
8,798
|
|
|
|
7,472
|
|
|
|
4,158
|
|
|
|
7,472
|
|
Repurchases of common stock
|
|
|
|
(64,994
|
)
|
|
|
-
|
|
|
|
(64,994
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
Payments of withholding taxes in connection with vesting of
stock-based awards
|
|
|
|
(703
|
)
|
|
|
(454
|
)
|
|
|
(34,491
|
)
|
|
|
(33,942
|
)
|
Proceeds from (purchase of) investment
|
|
|
|
(7,500
|
)
|
|
|
-
|
|
|
|
(7,500
|
)
|
|
|
-
|
|
Contingent consideration
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,575
|
)
|
|
|
(3,176
|
)
|
Purchases of marketable securities, net
|
|
|
|
(504
|
)
|
|
|
(5,046
|
)
|
|
|
(233
|
)
|
|
|
(5,554
|
)
|
Other financing & investing activities
|
|
|
|
1,709
|
|
|
|
-
|
|
|
|
114
|
|
|
|
-
|
|
Foreign exchange impact on cash
|
|
|
|
196
|
|
|
|
3,239
|
|
|
|
2,237
|
|
|
|
5,837
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash, cash equivalents, and restricted cash (1)
|
|
|
|
17,299
|
|
|
|
8,032
|
|
|
|
34,339
|
|
|
|
20,096
|
|
Cash, cash equivalents, and restricted cash, beginning of period
|
|
|
|
278,133
|
|
|
|
293,273
|
|
|
|
261,093
|
|
|
|
281,209
|
|
Cash, cash equivalents, and restricted cash, end of period
|
|
|
$
|
295,432
|
|
|
$
|
301,305
|
|
|
$
|
295,432
|
|
|
$
|
301,305
|
|
(1)
|
|
In the first quarter of fiscal 2019, we adopted Accounting Standards
Update (ASU) 2016-18 - Statement of Cash Flows (Topic 230) .
In accordance with this guidance, we excluded the $0.1 million
decrease and $0.3 million increase related to the change in
restricted cash from the change in other current assets for the
three months and six months ended March 31, 2018, respectively.
|
(2)
|
|
On December 29, 2018, we acquired Frustum for $70 million, net of
cash acquired.
|
(3)
|
|
Our consolidated cash flows as of March 30, 2019 under ASC 606 is
preliminary, pending final balance sheet adjustments required as a
result of our adoption of ASC 606 in the first quarter of 2019,
which will impact components of operating cash flow, but not total
cash from operating activities. We expect the adjustments to be
finalized prior to the filing of our Form 10-Q for the second
quarter of 2019.
|
|
|
|
|