CIMdata PLM Industry Summary Online Archive

19 January 2005

Financial News

PTC Reports First Quarter Fiscal Year 2005 Results; Company Exceeds Revenue and EPS Targets, Accelerates Growth

PTC reported revenue of $169.2 million for the first fiscal quarter ended January 1, 2005, up 8% from $156.8 million for the same period last year. This revenue growth was driven by year-over-year growth in license, service and maintenance revenue across all major product lines and geographies.

Net income for the first quarter was $19.2 million, or $0.07 per diluted share, compared with a net loss of $26.5 million, or a loss of $0.10 per diluted share, in the year-ago period. The year-ago period net income included restructuring charges of $21.6 million. Cash and cash equivalents grew to $334.1 million at the end of the first quarter, from $294.9 million at the end of the fourth quarter of 2004. This cash position reflects the receipt in the quarter of a $39.5 million income tax refund, which was previously announced by the Company.

"Our performance in the first quarter was strong by all measures," said C. Richard Harrison, president and chief executive officer. "After significantly improving our profitability during the past year, we are working to accelerate growth. We will leverage our more productive distribution model, our highly differentiated software solutions, and our roadmap for customers to easily adopt full PLM functionality. Customer satisfaction is at an all-time high, and our growing list of new customers reflects the competitiveness of our offerings in the marketplace."

Total revenue for design solutions in the first quarter was $123.0 million, up 8% from the first quarter of 2004. Design solutions license revenue of $32.5 million grew 9% year over year. Stronger sales of all packages of Pro/ENGINEER® WildfireT drove year-over-year design solutions growth, with particular strength in the entry-level package for small and medium businesses.

Total revenue for our collaboration and control solutions in the first quarter was $46.2 million, up 8% from the first quarter of 2004. Collaboration and control solutions license revenue of $14.4 million grew 5% year over year. Sales were driven by a higher number of new seats, new customers and transactions in the quarter, reflecting PTC's success in driving incremental adoption of its solutions. Windchill Link solutions license revenue grew 32% year over year and represented 50% of overall collaboration and control solutions license revenue.

In the first quarter, PTC received orders from leading manufacturing organizations in our core vertical segments as well as emerging segments such as medical products and consumer products. Customers included Boeing Company, Dalian Shipyard, Gaz Transport & Technigaz, INA-Schaeffler KG, Lockheed Martin Corporation, Poclain Hydraulics, Raytheon, Rolex SA, Toyota Motor Corporation, Volke Entwicklungsring GmbH and Webasto AG. Additionally, our reseller channel delivered $33.2 million in total revenue during the quarter, a 9% year-over-year increase.

"We believe our business prospects are strong," continued Harrison. "The combination of increased business complexity in manufacturing and improved IT spending has driven new activity for PLM vendors. Leading companies are choosing to partner with PTC for product development solutions because of our superior ability to drive customer value. Our broad solution set provides a flexible platform to enable efficient and effective product development processes-something manufacturers struggle to achieve with outdated systems and manual processes. This allows us to drive adoption of our solutions in our traditional vertical segments and to position ourselves to serve new segments. As a result, we expect to continue to improve our competitive position and grow revenue and profit this year."

Second Quarter 2005 Financial Outlook

PTC's revenue forecast for the second quarter of fiscal 2005 is between $170 million and $175 million. Total costs and expenses (operating expenses) are expected to be approximately $150 million. The Company expects earnings per share on a GAAP basis to be between $0.06 and $0.08.

The Company will provide detailed financial information and an outlook update on its first quarter fiscal year 2005 results conference call and live webcast on January 19, 2005 at 10 a.m. ET. This earnings press release and accompanying financial and operating statistics will be accessible prior to the conference call and webcast on the Company's web site at http://www.ptc.com/for/investors.htm In addition, the live webcast may be accessed at the same Web address. To access the live call, please dial 888-566-8560 (in the U.S.) or +1-517-623-4768 (international). Please use passcode PTC. A replay of the call will be available until 5:00 p.m. ET on January 24, 2005. To access the replay via webcast, please visit http://www.ptc.com/for/investors.htm . To access the replay by phone, please dial 203-369-1212.

 

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