Parametric Technology Corporation reported unaudited consolidated earnings results for the first quarter ended December 29, 2012. For the quarter, the company reported total revenue of $319,751,000 against $318,276,000 a year ago. Operating income was $13,859,000 against $32,505,000 a year ago. Income before income taxes was $12,054,000 against $29,862,000 a year ago. Net income was $35,811,000 or $0.29 per diluted share against $22,123,000 or $0.18 per diluted share a year ago. On non-GAAP basis, the company reported net income of $44,121,000 or $0.36 diluted earnings per share against net income of $42,490,000 or $0.35 diluted earnings per share a year ago. Non-GAAP operating income was $58,569,000 against $58,789,000 a year ago. Non-GAAP revenue was $321,305,000 against $319,798,000 a year ago. Net cash provided by operating activities was $13,636,000 and capital expenditures were $7,393,000 against net cash provided by operating activities of $36,485,000 and capital expenditures of $7,570,000 a year ago.

The company provided earnings guidance for the second quarter, Non-GAAP revenue of $305 million to $325 million and non-GAAP EPS of $0.32 to $0.39. The expect GAAP revenue of $304 million to $324 million and GAAP EPS of $0.03 to $0.10, including $15 million of restructuring charges. A non-GAAP tax rate of 18% reflecting the extension of the federal R&D tax credit, a GAAP tax rate of 30%.

Full year 2013, the company was targeting non-GAAP revenue of $1,340 million to $1,370 million, reflecting a wider range on license guidance given the macroeconomic environment, as well as a $10 million reduction to previous services revenue guidance. The have increased non-GAAP gross margin target for fiscal year 2013 by 100 bps reflecting continued improvements in its Services business. Non-GAAP EPS target remains $1.70 to $1.80. It expects GAAP revenue of $1,337 million to $1,367 million, GAAP operating margin of approximately 11% and GAAP EPS of $0.95 to $1.05. Assume a non-GAAP tax rate of 22%, a GAAP tax rate of 12%.