CIMdata PLM Industry Summary Online Archive
23 January 2013
Financial News
PTC Announces Q1 Results, Initiates Q2 Guidance and Updates FY’13 Targets
PTC has reported results for its first fiscal quarter ended December 29, 2012.
Highlights
- Q1 Results:
- Non-GAAP revenue of $321 million, flat year over year (up 2% on a constant currency basis)
- Non-GAAP EPS of $0.36, up 3% year over year (up 6% on a constant currency basis)
- Q1 revenue contribution from Servigistics (acquired on October 2, 2012) was $27 million on a non-GAAP basis and $25 million on a GAAP basis
- GAAP revenue of $320 million and GAAP EPS of $0.29, including a $15 million restructuring charge and a one-time non-cash tax benefit of $33 million associated with the purchase accounting for the Servigistics acquisition
- Q2 Guidance:
- Non-GAAP revenue of $305 to $325 million and non-GAAP EPS of $0.32 to $0.39
- License revenue of $70 to $85 million
- GAAP revenue of $304 to $324 million and GAAP EPS of $0.03 to $0.10, including $15 million of restructuring charges
- Assumes $1.33 USD / EURO and 90 YEN / USD.
- FY’13 Targets:
- Non-GAAP revenue of $1,340 to $1,370 million and non-GAAP EPS of $1.70 to $1.80
- License revenue of $360 to $380 million
- Non-GAAP operating margin of approximately 21.5%
- GAAP revenue of approximately $1,337 to $1,367 million and GAAP EPS of $0.95 to $1.05; GAAP operating margin of approximately 11%
- Revenue guidance assumes at least $80 million contribution from Servigistics, including $3 million in non-GAAP revenue
- Assumes $1.33 USD / EURO and 90 YEN / USD.
The Q1 non-GAAP revenue and non-GAAP EPS results exclude a $1.6 million effect of purchase accounting on the fair value of the acquired deferred maintenance balance of Servigistics. The Q1 non-GAAP EPS results also exclude $11.9 million of stock-based compensation expense, $11.3 million of acquisition-related intangible asset amortization, $15.4 million of restructuring charges, and $4.6 million of acquisition-related expense. The Q1 non-GAAP EPS results include a tax rate of 22% and 122 million diluted shares outstanding. The Q1 GAAP EPS results include a tax benefit of $33 million and 122 million diluted shares outstanding.
Results Commentary
James Heppelmann, president and chief executive officer, commented, “Given the economic environment we are pleased with our Q1 results, including strong performance from the recently acquired Servigistics business, which significantly broadens our Service Lifecycle Management (SLM) offering. Our license revenue of $79 million was down 10% on a constant currency basis as compared to very strong performance in Q1’12, and consistent with our guidance range. We again delivered on our commitment to earnings growth with Q1 non-GAAP EPS exceeding the high end of our guidance range.”
Heppelmann added, “We continued to demonstrate our PLM market leadership in Q1 with a competitive displacement of the legacy PLM provider at Brazilian-based Embraer, one of the world’s largest aircraft manufacturers. Embraer chose PTC as its partner of record for its entire global aircraft development program – commercial, executive and defense. The selection further extends PTC’s position as a leading PLM technology solution provider for the aerospace and defense (A&D) industry. We also had a strong quarter in our SLM business with double-digit organic license growth, further bolstered by strong performance from the Servigistics business. We remain excited about our unique positioning in the growing after-market service market.”
“We had 27 large deals (recognized license + services revenue of more than $1 million) in Q1’13, driven primarily by activity in the Americas. Consistent with last quarter, the mix of large deal revenue was skewed more heavily toward Services, reflecting strong PLM implementation activity and a lower level of large license transactions. During the quarter we recognized revenue from leading organizations such as AGCO, Caterpillar, Embraer, Esaote Group, Otto Bock Healthcare, Sulzer Pumpen, Turbomeca, and the Washington Metro Area Transit Authority.”
Jeff Glidden, chief financial officer, commented, “From a profitability standpoint we had another solid quarter; we delivered $0.36 non-GAAP EPS and achieved an 18.2% non-GAAP operating margin. We ended Q1 with $248 million of cash, down from $490 million at the end of Q4’12, reflecting in part $222 million used to complete the Servigistics acquisition and $16 million for stock repurchases.” Q1 GAAP EPS was $0.29 and GAAP operating margin was 4.3%.
Q1 Earnings Conference Call and Webcast
Prepared remarks for the conference call have been posted to the investor relations section of our website. The prepared remarks will not be read live; the call will be primarily Q&A.
What: |
PTC Fiscal Q1 Conference Call and Webcast |
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When: |
Thursday, January 24th, 2013 at 8:30am (ET) |
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Dial-in: |
1-800-857-5592 or 1-773-799-3757 |
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Webcast: |
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Replay: |
The audio replay of this event will be archived for public replay until 4:00 pm (CT) on February 3rd, 2013. |
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