Parametric Technology Corp. (PMTC), a product lifecycle software solutions developer, Tuesday reported a decline in earnings for the third quarter, hurt by higher provision for income taxes. On an adjusted basis, earnings more than doubled to beat analysts' estimates by 3 cents. The company provided outlook for the fourth quarter, while revising fiscal year 2008 outlook.
The Needham, Massachusetts-based company's net income for the third quarter plunged to $14.5 million or $0.12 per share from $80.5 million or $0.68 per share in the previous year quarter.
Net income included stock-based compensation expense of $11.1 million, up from $5.0 million in last year quarter, amortization expense of $6.3 million, compared to $1.7 million in the prior year quarter and income tax adjustments of $7.7 million, compared to $71.0 million in the previous year quarter.
Excluding special items, non-GAAP net income for the third quarter was $39.2 million or $0.33 per share, higher than $18.5 million or $0.16 per share in the same quarter a year before. On average, nine analysts polled by First Call/Thomson Financial projected earnings of $0.30 per share for the quarter.
Total revenues for the third quarter were $271.7 million, up from $224.9 million in the same quarter of the preceding year. Nine analysts, on average, anticipated the company to report revenues of $264.69 million.
Operating income for the third quarter increased to $31.9 million from $19.6 million in the comparable quarter of the earlier year.
Total costs and expenses grew to $239.8 million from $205.3 million in the same quarter of the preceding year. Provision for income taxes was $10.3 million, compared to benefit from income taxes was $58.6 in the year-ago quarter.
For the nine-month period, the company's net income was $43.2 million or $0.37 per share, down from $113.0 million in the corresponding period of the previous year.
On an adjusted basis, net income was $106.0 million or $0.90 per share, higher than $73.5 million or $0.63 per share in the year-ago period.
Total revenues for the first nine months increased to $770.8 million from $674.6 million in the preceding year period.
The company expects fourth quarter GAAP earnings of $0.21 - $0.25 per share and non-GAAP earnings of $0.38 - $0.42 per share. The company also expects GAAP revenues of $289 million - $299 million and non-GAAP revenues of $290 million - $300 million. Street analysts, on average, estimate earnings of $0.39 per share on revenues of $292.90 million for the fourth quarter.
The company lowered its fiscal 2008 GAAP earnings outlook to $0.58 - $0.62 per share from its prior forecast of $0.66 - $0.77 per share. The company raised its outlook for earnings on a non-GAAP basis to $1.28 - $1.32 per share from its previous outlook of $1.17 - $1.27 per share. Nine analysts, on average, estimated earnings of $1.26 per share.
The company raised its GAAP revenue outlook to $1.065 billion from its prior expectation of $1.055 billion. The company also raised its non-GAAP revenue outlook to $1.070 billion from its previous anticipation of $1.060 billion. Nine analysts, on average, targeted revenues of $1.06 billion.
Shares of PMTC are currently trading at $19.57, up 52 cents or 2.73% on a volume of 2.54 million shares. In the after hours trading, the stock further gained 93 cents or 4.75%.
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