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Randall S. Newton, January 30, 2007
PTC (Nasdaq: PMTC) reported strong first quarter 2007 results this week.
The company made strong claims about its competitive situation and set a new
revenue goal. Year-over revenue was up 15% and net income showed growth of
over 100% year-over.
PTC reported revenue of $221.7 million for the first quarter of fiscal
year 2007, which ended December 30, 2006. Revenue for the quarter was up 15%
from the same period last year. Total license revenue for the first quarter
of 2007 was $66.6 million, up 14% from the same period last year. PTC said
results for the first quarter reflected year-over-year growth in all
geographies and strength across all product lines, with virtually all growth
from existing products, not from acquisitions. “This is a PTC phenomenon,”
crowed C. Richard Harrison, president and chief executive officer. “The
[PLM] market has not grown this fast.”
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Cash and cash equivalents were $147 million at the end of
the first fiscal quarter of 2007, down from $183 million at the end of the
fourth fiscal quarter 2006 primarily due to the $17 million acquisition of
ITEDO and annual compensation and commission payments made in the first
quarter that related to fiscal 2006 performance.
Total revenue from the PTC reseller channel was $47.3
million, up 20%. PTC attributes this to their new global emphasis on the
SMB market.
PTC is raising revenue targets for the next quarter to
between $225 million and $230 million. It is also raising its long-term
financial goals, to achieve $1.5 billion in revenue and 22% non-GAAP
operating margins by 2010. “This reflects about 15% annual revenue growth,”
said PTC's Harrison, “which should primarily come from organic revenue. We
plan to continue to drive operating margin growth through a combination of
productivity improvements in our distribution and service delivery models,
as well as by leveraging top-line growth.”
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