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| 8-K - FORM 8-K - PTC INC. | form8-kq42016preliminarye.htm |
PTC Announces Preliminary Fourth Quarter FY’16 Results;
Bookings and Subscription Mix Expected to be Significantly Above
the High End of Guidance
NEEDHAM,
Mass., – October 3, 2016 – PTC (Nasdaq:
PTC) today announced that preliminary bookings for the fourth
fiscal quarter ended September 30, 2016 are expected to be between
$139 million and $142 million, above the high end of the
company’s previous guidance of $111 million to $121 million.
There are two mega deals (>$5 million in bookings) in the
quarter, including a competitive PLM displacement within one of the
top Tier 1 global automotive suppliers, and a worldwide cloud
implementation of PTC’s service parts management solution
– both a testament to PTC’s leading technology position
in these markets.
PTC
also now expects its Q4’16 bookings subscription mix to be
approximately 70%, significantly exceeding its prior guidance of
46%. Due primarily to the higher than expected subscription mix,
and also the incremental commission expense associated with
bookings and subscription outperformance, we expect GAAP and
non-GAAP revenue, and GAAP and non-GAAP EPS to be below the low end
of our prior guidance.
In
addition, in support of continued realignment of resources toward
higher growth opportunities and driving long-term margin expansion,
PTC now expects FY’16 restructuring charges of approximately
$75 to $80 million, above the $50 million to $70 million range
included in the company’s Q3’16 form 10-Q filed on
August 11, 2016, and the $40 million to $50 million range included
in our Q4’16 guidance on July 20, 2016.
Fiscal Q4’16 and Fiscal 2016 Earnings Conference Call and
Webcast
PTC
will release its fiscal 2016 fourth quarter and year-end results on
Wednesday, October 26th after the stock
market closes. Senior management will host a live webcast and
conference call to review the results on Wednesday, October
26th at
5pm Eastern Time. The earnings press release and accompanying
prepared remarks will be accessible prior to the conference call
and webcast on the Investor Relations section of the
Company’s web site at PTC-Investor Relations.
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What:
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PTC
Fiscal Q4’16 Conference Call and Webcast
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When:
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Wednesday,
October 26th, 2016 at 5:00pm (ET)
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Dial-in:
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1-800-857-5592
or 1-773-799-3757
Call
Leader: James Heppelmann
Passcode:
PTC
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Webcast:
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www.ptc.com/for/investors.htm
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Replay:
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The
audio replay of this event will be archived for public replay until
4:00 pm (PT) on November 6th, 2016.
Dial-in:
888-566-0433 Passcode: 3010
To access the replay via webcast, please visit www.ptc.com/for/investors.htm.
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Please
note that statements made on the conference call and webcast are as
of the date of the conference call and webcast and PTC does not
assume any obligation to update any statements made live or to
update the archived call. Matters discussed may include
forward-looking statements about PTC’s anticipated financial
results and growth, as well as about the development of products
and markets, which are based on current plans and assumptions.
Actual results in future periods may differ materially from current
expectations due to a number of risks and uncertainties, including
those described from time to time in reports filed by PTC with the
U.S. Securities and Exchange Commission, including PTC’s most
recent reports on Form 10-Q and Form 10-K.
Bookings Metrics
We
offer both perpetual and subscription licensing options to our
customers, as well as monthly software rentals for certain
products. Given the difference in revenue recognition between the
sale of a perpetual software license (revenue is recognized at the
time of sale) and a subscription (revenue is deferred and
recognized ratably over the subscription term), we use bookings for
internal planning, forecasting and reporting of new license and
cloud services transactions. In order to normalize between
perpetual and subscription licenses, we define subscription
bookings as the subscription annualized contract value
(subscription ACV) of new subscription bookings multiplied by a
conversion factor of 2. We arrived at the conversion factor of 2 by
considering a number of variables including pricing, support,
length of term, and renewal rates. We define subscription ACV as
the total value of a new subscription booking divided by the term
of the contract (in days) multiplied by 365. If the term of the
subscription contract is less than a year, the ACV is equal to the
total contract value.
License
and subscription bookings equal subscription bookings (as described
above) plus perpetual license bookings plus any monthly software
rental bookings during the period. Total ACV equals subscription
ACV (as described above) plus the annualized value of incremental
monthly software rental bookings during the period.
Because
subscription bookings is a metric we use to approximate the value
of subscription sales if sold as perpetual licenses, it does not
represent the actual revenue that will be recognized with respect
to subscription sales or that would be recognized if the sales were
perpetual licenses, nor does the annualized value of monthly
software rental bookings represent the value of any such
booking
Forward-Looking
Statements
This press release contains preliminary bookings and subscription
mix results for the fourth quarter of 2016, preliminary estimates
of revenue and EPS results for the fourth quarter of 2016, and
projected restructuring charges for Fiscal 2016. Actual results may
differ materially from those stated as a result of finalization of
our fourth quarter financial statements and finalization of
restructuring actions yet to be completed.
About PTC
PTC (NASDAQ: PTC) is a global provider of technology
platforms and solutions that transform how companies create,
operate, and service the “things” in the Internet of
Things (IoT). The company’s next-generation ThingWorx®
technology platform gives developers the tools they need to
capture, analyze, and capitalize on the vast amounts of data being
generated by smart, connected products and systems. The
company’s field-proven solutions are deployed in more than
26,000 businesses worldwide to generate a product or service
advantage. PTC’s award-winning CEO, considered an industry
thought leader, co-authored the definitive guides to the impact of
the IoT on business in the Harvard Business Review.
PTC Investor Relations Contacts
Tim
Fox, 781-370-5961
tifox@ptc.com
Jason
Howard, 781-370-5087
jahoward@ptc.com