PTC sets third quarter revenue record

Net income up 44% on revenue of $291 million. PTC has reported a possible legal problem in China to regulators.

PTC (Nasdaq: PMTC ) reported a solid third quarter, as the CAD vendor posted record 3rd quarter revenue of $291.8 million, up 20% from a year earlier. Revenue from new acquisition MKS was $6.0 million in the quarter.

Net income for the quarter was $15.5 million, up 44%.

By category, license revenue was $81.4 million, up 20% from $67.4 million in 3Q10. Service revenue was $210.4 million, up 19.8% from a year earlier. PTC sales are recovering in all sectors, bouyed by new releases of Windchill and the first products in the Creo line, replacing Pro/Engineer Wildfire.

By regions:

  • North America revenue was $105 million, up 27.4% from 3Q10;
  • Europe/Middle East/Africa revenue was $120.5 million, up 18.3% from 3Q10;
  • Asia/Pacific revenue was $67 million, up 13.9% from 3Q10.

PTC says currency fluctuations negatively impacted revenue by $0.5 million during the quarter.

At the same time as the earnings announcement, PTC said yesterday it is looking into payments from Chinese business partners that might have violated US law. PTC has notified the Department of Justice and the Securities and Exchange Commission about the payments, which it said could fall under the Foreign Corrupt Practices Act. PTC says it does not believe the matter will have a material adverse effect on the company’s financial condition.

PTC shares closed at $21.84 yesterday, down 7 cents, as the results largely met analyst expectations.

Cash per share on June 30, 2011 was $2.19, down a penny from three months ago.

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Contributing Analyst L. Stephen Wolfe, P.E. provided research for this report.