CAD and PLM are slow but steady; new markets are starting to kick in.
PTC (NASDAQ: PTC) reported second quarter results that compare favorably with year-ago results. Revenue in the quarter (ending March 29, 2014) was $329 million, up 5% from a year earlier. The company’s newest acquisitions, Enigma, NetIDEAS, and ThingWorx, contributed $4 million in revenue.
Breaking down revenue further:
- License revenue: $85.2 million (up 7%)
- Service revenue: $77.2 million (up 6%)
- Support revenue: $166.3 million (up 3%)
- North America revenue: $134.4 million (up 13%)
- Europe/Middle East revenue: $128 million (up 8%)
- Asia/Pacific revenue: $66.3 million (down 14%).
- CAD software revenue: $138.2 (up 1%)
- Extended PLM revenue: $147.5 million (up 6%)
- Service Lifecycle Management (SLM) revenue: $43 million (up 12%).
Net income was $43.7 million.
PTC recorded 35 sales transactions over $1 million in the quarter, compared to 24 in the second quarter a year ago. Five of the transactions were over $5 million each.
What do we think?
As with Dassault Systemes in the most recent quarter, “other” was the best performing segment by growth percentage. In PTC’s case for now “other” is Service Lifecycle Management. PTC is working hard to distinguish itself from the other PLM vendors with its forays into service for manufacturers, application lifecycle management (software inside manufactured products), and the Internet of Things. But it is also nice to have consistent revenue with today’s lineup of CAD and PLM while the new segments mature.
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L. Stephen Wolfe, P.E., a contributing analyst for Jon Peddie Research, provided research for this report.