PTC stock plunges after forecast

Shares of Parametric Technology Corp. plunged in premarket trading today after the design and engineering software cut its fiscal third-quarter profit and sales forecast.

The Needham, Mass., company said late Thursday it expects to widely miss analyst expectations for the period ended June 30, due mainly to weak license revenue.

The company forecast revenue of about $225 million for the quarter ended June 30, down from its earlier outlook for $235 million to $240 million, while analysts polled by Thomson Financial were expecting, on average, sales of $238.2 million. The company also said earnings per share will fall below previous guidance but did not offer specifics.

Analysts said the problems stemmed from weak sales in North America and Japan.

The warning prompted a downgrade from Kaufman Brothers analyst Barbara Coffey, who cut her rating on the shares to "Hold" from "Buy." She cited the "magnitude" of the revenue miss "and the seemingly surprise nature of this event, all which lead us to consider if this misstep will have implications beyond one quarter."

Parametric shares lost $4.21, or 19.5 percent, to $17.36 in premarket electronic trading, from their Thursday close at $21.57.

Premarket indicators were mixed as investors weighed employment figures released ahead of the bell. Payrolls rose a better-than-expected 132,000 jobs in June, keeping the unemployment rate at low 4.5 percent but sparking concerns that the Federal Reserve may consider raising -- or at least not move to cut -- interest rates.

Among the stocks showing gains in the early session was CBOT Holdings Inc., which moved higher after Chicago Mercantile Exchange Holdings Inc. sweetened its offer to buy its cross-town rival for the third time.

The increased bid would hand Chicago Board of Trade shareholders a 36 percent ownership stake in the combined exchange, up from 35 percent in the previous agreement. All other terms remain the same.

CBOT shares added $5.85, or 2.8 percent, to $212 premarket, from their Thursday close at $206.15.

Merc shares were trading unchanged at $555.69, while shares of IntercontinentalExchange Inc. added $2.64, just under 2 percent, to $154.45, from their close at $151.81.

The Merc offer was aimed at convincing CBOT shareholders to vote against a rival bid from Atlanta-based ICE.

Also gaining were shares of tiny Transmeta Corp., after the chipmaker received a $7.5 million "strategic investment" from Advanced Micro Devices Inc.

Transmeta shares added 34 cents, or 48.6 percent, to $1.04 in premarket trading, from their close at 70 cents Thursday.

AMD, which will get preferred stock in the deal, were off a penny from their Thursday close at $14.19. (AP)