Net income was up 111% from a year earlier. Cash on hand is back in its normal range.
PTC (Nasdaq: PMTC) saw sales of its desktop products (including the former Pro/Engineer) spike by 40% in second quarter results posted today. Revenue for the quarter, ending April 2, 2011, was in line with previous guidance at $269.2 million.
Net income for the quarter was $19 million, up 111% from $9 million a year earlier.
Revenue from software sales (licenses) was $74.2 million, up 15% from a year earlier. Of that, $48.8 million (up 40%) was from desktop software, such as Creo Elements/Pro (formerly Pro/Engineer), Arbortext, Creo Elements/Direct (formerly CoCreate), and other single-user solutions. Enterprise license revenue (primarily Windchill PLM) was $114.4 million, down 15% from $29.9 million a year earlier.
This was the fifth consecutive quarter of year-over-year improvement in desktop license revenue and in channel-driven business. PTC says enterprise license revenue was “significantly impacted by lower than expected Federal, Aerospace & Defense revenue in North America, as well as the dilutive effect of the strong desktop revenue on PLM sales capacity.” We note the second quarter was the last quarter before the release of a significant Windchill upgrade, and it is also nearing the end of the Pro/Engineer epoch, as the new Creo line debuts later this year. So it seems customers were stocking up on CAD and postponing PLM purchases until the product line sorts itself out in the current quarter.
Revenue from services was $194 million, up 10% from $175.9 million a year earlier.
Revenue by regions:
- Americas: $94.4 million
- Europe: $106 million
- Asia/Pacific: $68.8 million; of that:
- Japan: $32.6 million
- Pacific Rim: $36.2 million
Cash per share on April 2, 2011 was $2.20, up significantly from $1.55 three months earlier, when PTC had to write off expenses from long-standing legal entanglements. Cash on hand at the end of the quarter was $259.5 million, about 25% of what Autodesk and Dassault Systèmes have on hand.
Six charts follow.
Contributing analyst L. Stephen Wolfe, P.E, contributed research for this article.
