PTC Inc. said the DOJ and SEC are still investigating “payments and expenses” by China business partners and employees that raise FCPA compliance concerns.
PTC (formerly Parametric Technology Corporation) first disclosed the investigation in late 2011.
In an SEC filing on February 4, PTC said it had started settlement talks with the DOJ and SEC but the agencies are now requesting more information.
PTC said it is cooperating and responding to the DOJ and SEC’s questions.
The Needham, Massachusetts-based firm said on its website that it “works with more than 27,000 businesses around the world.”
It has a “Corporate Visit Center” in Shanghai.
PTC helps manufactuers in the industrial equipment, automotive, high tech and electronics, aerospace and defense, retail, consumer, and medical device industries.
It reported revenue last year of $1.3 billion.
PTC Inc. trades in the Nasdaq green sheets under the symbol PTC.
Here’s PTC’s most recent FCPA disclosure from its Form 10-Q filed February 4:
We have been cooperating to provide information to the U.S. Securities and Exchange Commission and the Department of Justice concerning payments and expenses by certain of our business partners in China and/or by employees of our Chinese subsidiary that raise questions concerning compliance with laws, including the U.S. Foreign Corrupt Practices Act.
Although we had begun discussions with the SEC and Department of Justice regarding possible resolution of this matter, we continue to respond to requests for information and cannot predict when or how this matter may be resolved.
Resolution of this matter ould include fines and penalties; however we are unable to estimate an amount that could be associated with any resolution and, accordingly, we have not recorded a liability for this matter. If we are required to record a liability for this matter, or to pay fines or penalties associated with this matter, this could materially impact our results for the period in which the liability is recorded or such amounts are paid. Further, any settlement or other resolution of this matter could have collateral effects on our business in China, the United States and elsewhere.
We terminated certain employees and business partners in China in connection with this matter, which may have an adverse impact on our level of sales in China until replacements for those employees and business partners are in place and productive. Revenue from China has historically represented 6% to 7% of our total revenue.
Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.