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PTC Feature

Fast Growing PTC Turns in Impressive First 2007 Quarter Results

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Randall S. Newton, January 30, 2007

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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.”

The full article is available for a fee at CADCAMNet.

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