(RTTNews) - Tuesday, product lifecycle management service provider Parametric Technology Corp. (PMTC:
News ) reported a plunge in profit for the fourth quarter from a year ago, hit by a slew of charges as well as lower revenues. Adjusted earnings, though down from last year, came in ahead of analysts' consensus by two cents. The company also provided guidance for the first quarter and fiscal year 2010.
The Needham, Massachusetts-based company's net income for the fourth quarter declined to $16.00 million or $0.13 per share from $36.50 million or $0.32 per share in the year-ago period.
The results for the latest quarter include a $6.3 million restructuring charge, $14.6 million of stock-based compensation expense, $9.2 million of acquisition-related intangible asset amortization as well as $10.3 million of income tax adjustments.
Excluding one-time items, net income for the quarter declined to $35.61 million or $0.30 per share from $54.00 million or $0.45 per share in the year-ago quarter. On average, nine analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.
Quarterly revenues declined to $246.34 million from $299.55 million in the same quarter last year. Adjusted revenues for the quarter decreased to $246.34 million from $300.21 million last year, nevertheless, beat analysts consensus revenue estimate of $240.42 million
License revenues for the quarter dropped to $70.69 million from $103.63 million in the prior-year quarter, and service revenues were $175.65 million, down from $195.91 million in the same quarter of the prior year.
Operating income for the quarter slipped to $15.20 million from $47.43 million in the prior-year quarter, while total costs and expenses was $231.15 million, down from $252.12 million in the year-ago quarter.
Neil Moses, Chief Financial Officer, Parametric said, "Our Q4 operating margins and EPS were stronger than expected primarily due to stronger than expected license revenue. Our balance sheet remains solid with $235 million of cash, up from $231 million in Q3 primarily due to strong license sales. We also have an additional $172 million available on our revolving credit facility."
For the full-year, net income dropped to $31.52 million or $0.27 per share from $79.70 million or $0.68 per share last year. On an adjusted basis, net income decreased to $93.57 million or $0.80 per share from $160.01 million or $1.36 per share last year.
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