Parametric fiscal 2nd-quarter net income up on software sales, but guidance misses Wall StreetBy AP
Tuesday, April 27, 2010
Parametric 2Q income up, but guidance disappoints
NEEDHAM, Mass. — Parametric Technology Corp., a maker of computer-aided design, manufacturing and engineering software, said Tuesday that its fiscal second-quarter net income rose 26 percent, helped by sales of software licenses.
However, the company’s guidance for the current quarter was lower than Wall Street expected, and shares fell in extended trading.
For the quarter ended April 3, net income rose to $9 million, or 8 cents per share, from $7.2 million, or 6 cents per share, in the same period last year.
Excluding stock-based compensation expenses, amortization charges and other items, Parametric said it earned 20 cents per share in the latest period.
Analysts surveyed by Thomson Reuters had forecast net income of 19 cents per share.
Revenue increased 7 percent to $240.6 million from $225.3 million, less than the $246.4 million Wall Street expected.
Product license revenue increased in the quarter, but Parametric’s larger division, services, saw revenue decline in the quarter. Parametric also said revenue was lower than expected because of changes in exchange rates.
For the current third quarter, the company said it expects to earn 14 cents to 20 cents per share on an adjusted basis, and revenue of $235 million to $245 million.
Analysts predict earnings of 23 cents per share on $246.4 million in revenue.
Shares of Parametric sank $1.26, or 6.5 percent, to $18 in after-hours trading. Earlier, the stock had shed 52 cents to close at $19.26. Shares have ranged from $10.14 to $20.17 over the past year.