PTC Announces Q2 Results, Initiates Q3 Guidance and Updates

PTC Announces Q2 Results, Initiates Q3 Guidance and Updates FY’13 Targets

(3) In the first quarter of 2012 we recorded $0.8 million of foreign currency transaction losses related to legal entity mergers completed during the quarter.

(4) Reflects the tax effects of non-GAAP adjustments for the three and six months ended March 30, 2013 and March 31, 2012, which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above, as well as any one-time non-cash GAAP charges. In the fourth quarter of 2012, a valuation allowance was established against our U.S. net deferred tax assets. As the U.S. is profitable on a non-GAAP basis, the 2013 non-GAAP tax provision is being calculated assuming there is no U.S. valuation allowance and, as a result, an income tax benefit of $4.1 million and $10.3 million is included for the three and six months ended March 30, 2013. The three and six months ended March 30, 2013 excludes tax benefits of $3.2 million relating to final resolution of a long standing tax litigation and completion of an international jurisdiction tax audit. The six months ended March 30, 2013 includes a one-time non-cash tax benefit of $32.6 million related to the release of a portion of the valuation allowance as a result of deferred tax liabilities established in accounting for the acquisition of Servigistics. The six months ended March 31, 2012 exclude one-time non-cash GAAP charges net, of $1.4 million related to the impact from a reduction in the statutory tax rate in Japan on deferred tax assets from a litigation settlement.

PTC Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)


	March 30,		September 30,
	2013		2012

ASSETS

Cash and cash equivalents	$	240,809	$	489,543
Accounts receivable, net		213,252		217,370
Property and equipment, net		62,731		63,466
Goodwill and acquired intangible assets, net		1,026,999		796,232
Other assets		241,028		225,023

Total assets	$	1,784,819	$	1,791,634

LIABILITIES AND STOCKHOLDERS' EQUITY

Deferred revenue	$	350,341	$	327,529
Borrowings under credit facility		308,125		370,000
Other liabilities		298,554		296,846
Stockholders' equity		827,799		797,259

Total liabilities and stockholders' equity	$	1,784,819	$	1,791,634

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,
	2013			2012			2013			2012

Cash flows from operating activities:
Net income	$	17,037		$	3,569		$	52,848		$	25,692
Stock-based compensation		11,810			12,692			23,703			26,074
Depreciation and amortization		19,387			16,259			38,864			33,285
Accounts receivable		6,047			25,403			22,185			38,698
Accounts payable and accruals ⁽⁵⁾		3,216			18,988			(24,742	)		(13,868	)
Deferred revenue		34,377			35,557			30,843			33,482
Income taxes		(6,774	)		(9,492	)		(40,553	)		(11,901	)
Excess tax benefits from stock-based awards		(111	)		(303	)		(139	)		(453	)
Other		(2,193	)		(6,124	)		(6,577	)		2,025
Net cash provided by operating activities ⁽⁶⁾		82,796			96,549			96,432			133,034

Capital expenditures		(5,033	)		(9,054	)		(12,426	)		(16,624	)
Acquisitions of businesses, net of cash acquired ⁽⁷⁾		-			(290	)		(222,423	)		(1,170	)
Proceeds (payments) on debt, net		(60,000	)		(40,000	)		(61,875	)		(40,000	)
Proceeds from issuance of common stock		2,229			6,927			2,874			14,123
Payments of withholding taxes in connection with
vesting of stock-based awards		(3,543	)		(6,804	)		(12,891	)		(19,465	)
Repurchases of common stock		(19,155	)		(14,983	)		(34,947	)		(14,983	)
Excess tax benefits from stock-based awards		111			303			139			453
Foreign exchange impact on cash		(4,988	)		4,108			(3,617	)		861

Net change in cash and cash equivalents		(7,583	)		36,756			(248,734	)		56,229
Cash and cash equivalents, beginning of period		248,392			187,351			489,543			167,878
Cash and cash equivalents, end of period	$	240,809		$	224,107		$	240,809		$	224,107

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