By January 26, 2012 Read More →

PTC first quarter revenue up 19%; plans internal re-organization

Revenue of $318 million was led by Windchill PLM and contributions of recent acquisitions. CAD revenue is flat.

PTC (PMTC: NASDAQ) reported a good first quarter of its fiscal year 2012. For the period ending December 31, 2011 revenue was $318.3 million, up 19.4% from $266.5 million a year ago. The stock is up 17% to 25.44 in early trading following the results announcement.

Net income for the quarter was $22.1 million, up 66% from $13.3 million a year earlier.

During the conference call with analysts to discuss the quarter’s results, PTC announced plans to realign into five divisions, to streamline sales activities and their support. The five divisions are PLM, CAD, ALS (application lifecycle management), SCM (supply chain management), and SLM (services lifecycle management).  As part of the realignment PTC plans to eliminate about 3% of its staff, or approximately 180 employees. At the same time, it plans to open new sales positions to reflect the organization changes.

Windchill PLM (“enterprise” revenues) continues to lead company growth, with revenue of $164.4 million in the quarter, up 36% from a year earlier. Revenue from last year’s acquisitions MKS and 4CS was $18.5 million. Digging in further:

  • Enterprise license revenue was $48.2 million, up 39.7% from $34.5 a year earlier;
  • Enterprise service revenue was $116.2 million, up 35% from $86 million a year earlier.

Desktop revenues, primarily CAD software, was up 3.5% to $153.8 million. This is an underwhelming figure, given that one year ago nothing was shipping from the new Creo initiative, which is replacing the Pro/Engineer and CoCreate lines. Clearly the switch to Creo CAD technology among the PTC user base will be a long-term proposition. Looking deeper:

  • Desktop license revenue was $40.9 million, no change from a year earlier;
  • Desktop service revenue was $112.9 million, up 4.8% from $107.7 million a year earlier.

PTC says it closed 24 large deals in the quarter, defined as license plus service revenue greater than $1 million.

Revenue by regions:

  • North America revenue was $118.3 million, up 18% from $100.1 million a year earlier;
  • Europe revenue was $133.7 million, up 23.9% from $107.9 million a year earlier;
  • Asia/Pacific revenue was $67.8 million, up 15.7% from $58.6 million a year earlier. Japan is responsible for $30.5 million of PTC’s Asia/Pacific revenue.

Cash per share on December 31, 2011 was $1.58, up from $1.43 three months ago. Nine months ago cash per share was $2.20. PTC is slowly rebuilding its cash on hand following two significant acquisitions in 2011.

Six of our custom charts follow.

L. Stephen Wolfe, P.E., a Jon Peddie Research consulting analyst, contributed research for this report.  

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About the Author:

Randall S. Newton is Managing Editor of GraphicSpeak. He has been writing about engineering and design technologies for more than 25 years.

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