Shares of design software manufacturer Parametric Technology plummeted almost 22% to $16.86 in AH trading Thursday after the company announced it is lowering its Q3, Q4 and full-year revenue and EPS forecasts. Q3 revenue is now projected at $225 million, 4% higher than last year but down from an earlier forecast of $235-240 million. "Lower-than-expected license revenue totaling approximately $62 million was the primary driver of the Q3 results," the company said in a release. Parametric expects Q3 EPS, which it forecast in April to come in at $0.15-0.18 [GAAP] and $0.26-0.29 [non-GAAP], to fall short, though it did not specify to what extent. Analysts had been expecting Q3 EPS of $0.28 on revenue of $238.2 million. On July 25, Parametric will report Q3 results and issue lowered forecasts for Q4 and the full year. Parametric had been forecasting fiscal 2007 revenue of $950 million, GAAP EPS of $0.71-0.76 and non-GAAP EPS of $1.17-1.22. Analysts had been expecting $1.17 in full-year EPS on $951.2 million in revenue.
Sources: Press release, TheStreet.com, AP, MarketWatch, RTT News
Commentary: Parametric Issues Warning on Weak Revenue • Eye on the CAD/PLM Market
Stocks/ETFs to watch: Parametric Technology Corp. (PMTC). Competitors: Dassault Systemes SA (OTCPK:DASTY). ETFs: iShares Goldman Sachs Software Index Fund (NYSEARCA:IGV), Software HOLDRS Trust ETF (NYSE:SWH), PowerShares Dynamic Software (NYSEARCA:PSJ)
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