PTC reported preliminary results for the third quarter FY'15 of approximately $303 million revenue and $0.13 to $0.14 earnings per share, including a legal accrual.
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Third quarter FY'15 non-GAAP revenue was approximately $304 million and $0.51 to $0.52 non-GAAP earnings per share. Software revenue of approximately $250 million, including $84 million of license and subscription solutions (L&SS) revenue, was slightly below the guidance range while professional services revenue of approximately $54 million was in line with guidance.
The company expects subscription solutions bookings, as a percentage of L&SS bookings, to be approximately 16% for the third quarter FY'15, slightly below guidance of 18%, due in part to several large perpetual license transactions in our Internet of Things business.
James Heppelmann, President and CEO said, "PTC preliminary third quarter non-GAAP earnings are above the high end of our guidance despite revenue coming in just below our guidance range.
"Although we saw a number of large deals in our core business push out at the end of the quarter, we delivered strong sequential growth in our Internet of Things business, closing a number of significant deals among large, industrial companies that are adopting our platform for their IoT initiatives."
"In connection with our ongoing negotiations to resolve previously disclosed investigations by the U.S. Securities & Exchange Commission and the Department of Justice with respect to our China business, we expect to record a liability of approximately $13.6 million in our third quarter financial statements.
"This is the minimum amount of liability we expect to incur if we are able to reach a settlement in this matter, and does not include any amounts associated with potential fines that might be imposed by either or both of the SEC and DOJ, which amounts would increase our liability and could be significant.
"Because our discussions with the SEC and DOJ are ongoing, the amount of this accrual could increase by the time we release our third quarter results on July 29, 2015. Further, there can be no assurance that we will reach a settlement with these agencies or that the cost of such settlements, if reached, would not materially exceed the existing accrual," the company said. ■