Parametric Issues Warning On Weak Revenue

Parametric Technology (PMTC) Thursday afternoon said revenue for its fiscal third quarter ended June 30 were about $225 million, which is short of its previous guidance of $235 million to $240 million. The Street has been looking for $238 million.

The company said EPS will be short of prior guidance, which had called for EPS of 15-18 cents GAAP, 26-29 cents non-GAAP.

In a release, CEO C. Richard Harrison said that license revenue fell short of the company’s forecast in North America and Japan. In response, he said the company is implementing cost-reduction initiatives.

Parametric also said it expects to lower its guidance for the fiscal fourth quarter and full year ending in September. It expects to provide details when it announces earnings on July 25. Previously, the company had been looking for full year revenue of $950 million with EPS of 71-76 cents GAAP, $1.17 to $1.22 pro forma.

After hours, Parametric shares were down $4.67, or nearly 22%, at $16.90.

PMTC 1-yr chart: