Parametric Technology Corporation F3Q08 (Qtr End 06/28/2008) Earnings Call Transcript

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2008-07-23 11:49:11.0

Tags: Parametric Technology Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Ross MacMillan - Jefferies & Co.

Ross MacMillan - Jefferies & Co.

First question just on Japan, we’ve been watching Japan for some time and it gradually improved, but this seemed to be a breakout quarter. Could you just describe whether there was any particular singular large deal there or just are we reaping the benefits of the improvements and change in management you put in place a little while ago?

Cornelius F. Moses

It was a good quarter for Japan, no question. We did have several large deals in Japan. As a matter of fact, three of our top five deals this quarter were in Japan. Even if you strip those deals out, it was a good quarter for Japan. But we did have significant large deal activity there.

Ross MacMillan - Jefferies & Co.

I know you gave specific clarity on the revenue and operating expense benefit from fx. Could you just remind us, I don’t know if you have it at hand, do you have the last couple of quarters where you could give us the same data?

Cornelius F. Moses

I’m sure we could get it for you offline. I don’t have it in front of me right now.

Ross MacMillan - Jefferies & Co.

I think CoCreate when you bought it was doing kind of quarterly run rate license of maybe something around $4 million or $5 million a quarter. Would that be consistent? Has that business kind of performed in line with your expectation from a new license perspective as you’ve started the integration process?

Cornelius F. Moses

Yes, the license revenue has performed in line with expectations and the overall CoCreate business has performed slightly above expectations.

Operator

Our next question comes from Jay Vleeschhouwer - Merrill Lynch.

Jay Vleeschhouwer - Merrill Lynch

Besides Japan there were two other metrics that were notably changed from prior quarters. First, Pro unit as you mentioned in the remarks were down sequentially quite a bit from Q2. They were up a little bit year-over-year but you’ve got it against easy compare, would you say that it’s in the Pro/E unit volume that you’re seeing the bulk of the effect of a softer US economy and what are your expectations now there for Q4 and beyond? And secondly, you had unusual strength in maintenance sequentially particularly but I would assume that that was highly correlated to the strength you saw in Windchill. So the question there too is how repeatable or sustainable is that strength in the maintenance number?

 

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