Targets 35% to 40% license revenue growth in FY’10 on strength of Windchill PLM solution
NEEDHAM, Mass. — (BUSINESS WIRE) — April 27, 2010 — PTC (Nasdaq: PMTC), The Product Development Company®, today reported results for its second fiscal quarter ended April 3, 2010.
The Q2 non-GAAP results exclude $12.3 million of stock-based compensation expense, $8.9 million of acquisition- related intangible asset amortization and $6.7 million of income tax adjustments. The Q2 results include a non-GAAP tax rate of 27% and a GAAP tax rate of 18%.
C. Richard Harrison, chairman and chief executive officer, commented, “Q2 was another solid quarter for PTC with total revenue up 7% year-over-year and license revenue up 54%. Adjusting for FX impact relative to guidance, our revenue performance was at the high-end of our expectations, driven primarily by continued strength of our PLM business.” On a constant currency basis total Q2 revenue was up 3% and license revenue was up 48% compared to the year ago period.
“Our PLM license revenue in Q2 was $30 million, up 107% year-over-year, continuing to highlight our leadership position in a large and growing segment of the enterprise software market,” continued Harrison. “Our pipeline for new business opportunities with new and existing customers remains strong. During the quarter we recognized revenue from leading organizations such as BAE Systems, EADS, Huawei Technologies, NASA, the United States Navy, and Vestas Wind Systems.”
James Heppelmann, president and chief operating officer added, “We believe there is a lot of momentum in the PLM market and that PTC is gaining share and becoming recognized as the industry leader for both our technology and product development process expertise. We secured 2 additional strategically important ‘domino’ account wins during Q2, bringing the total number of domino account wins to 13. We are also engaged in more than 200 other opportunities world-wide where companies are looking to replace their existing PLM solution to help improve their competitive position in their own markets.”
“We are very optimistic about the long-term opportunity for PTC and are committed to achieve our goal of a 20% non-GAAP EPS CAGR over the next 5 years,” continued Heppelmann. “In order to enable us to achieve this goal, we are investing to extend our technology leadership position and expand our high caliber, solutions oriented sales teams. We expect to add up to 30 more sales teams through the end of FY’10, which will significantly increase capacity as we enter FY’11. As of Q2’10, we are well positioned to achieve at least 20% non-GAAP EPS growth in FY’10.”
Neil Moses, chief financial officer, commented, “Our strong license
revenue and solid maintenance revenue performance was partly offset by a
year-over-year decline in our services revenue as we continue to work
through the impact of soft license sales in 2009. Our CAD and SMB
businesses are showing signs of recovery, as both businesses delivered
sequential license revenue growth. Our balance sheet remains solid with
$223 million of cash. During Q2 we repurchased $40 million worth of
stock and repaid $20 million of our outstanding debt; leaving a balance
of $34 million outstanding on our revolving credit facility.”