On a geographic basis, North America accounted for 34% of total revenue, Europe 43%, Japan 9% and Pacific Rim 13%.
There were 25 customers from which PTC recognized more than $1 million of license and services revenue in fiscal Q4 (calendar Q3). This compares to 13 customers last quarter, and 22 in the same period last year.
Reseller revenue was $75 million, or 25% of total revenue. This was an increase of 46% year-over-year, and an increase of 7% sequentially.
Net income for the quarter was $36.5 million, an increase of 19% from the $30.6 million in the year ago quarter, and increase of 152% from the $14.4 million in the prior quarter. During the quarter, PTC recorded a $4.7 million restructuring charge related to ongoing globalization.
For fiscal 2008, PTC reported total revenue of $1,070 million, an increase of almost 14% from the $941 million in fiscal 2007. License revenue was $316 million, or almost 30% of total revenue. This was an increase of 6.8%. Maintenance and service revenue was $754 million, an increase of almost 17% over the prior year. Net income of the year was $79.7 million, a 44% drop from the $144 million in the fiscal 2007.
Richard Harrison, PTC president and chief executive officer, commented, "We achieved record revenue in our fourth quarter and full fiscal year. Our non-GAAP year-over-year revenue growth was 13% in the fourth quarter and 14% for the full year, reflecting contribution from the CoCreate Software business acquired on November 30, 2007, favorable currency impact and organic growth.” MCAD Vendor Stock Performances
As revealed in the discussion of the economy earlier, the combined stock prices of five of the MCAD vendors fell in absolute terms in Q3 2008 by 14% year-over-year and 9% sequentially. On average the stock prices fell 10% year-over-year and almost 5% sequentially. ANSYS stock price increased nearly 11% year-over-year. PTC saw a 5.6% increase. Autodesk had the steepest stock price decline at 33%. MSC.Software and Dassault Systemes saw drops around 20%. On a sequential basis, PTC was only firm to see a rise (+10.4%) in stock price. ANSYS saw the largest decline at nearly 20%. See Table 7.
This MCAD stock performance slightly outperformed a year-over-year decline of 20% for the average of the major indexes, and to a 7.4% decline from the previous quarter. See Table 8.
The month of October 2008 was also not been kind to those with money in the stock market. The three major indexes fell an average of 16%. The MCAD vendor stock prices fell an average 29%. The largest decliner was Autodesk at -36.5% and the smallest decliner was MSC.Software at -19.6%.
Forecast Guidance from Individual MCAD Providers
Only four MCAD firms offered guidance for the next quarter. As a group they forecast a combined revenue growth of 8% over the same period a year ago and an average growth rate of 11%. ANSYS is the most bullish compared to the fourth quarter of last year with a forecast of revenue growth at over 25%. The other three are more cautious with single digit growth expectations. On a sequential basis the combined forecast is for 6% growth. PTC expects a downturn of nearly 15%. Dassault is the most optimistic at 18% growth expectation with ANSYS second at 13.7%.
Individual Company Guidance
As guidance ANSYS expects revenue for the quarter ending December 31, 2008 to be in the range of $137million to $141 million. This compares to $122 million in the quarter just reported and to $111 million in the same quarter a year earlier. For fiscal 2008 ANSYS expects revenue in the range of $480 million to $484 million. This is a 25% increase relative to the $385 the previous year. For fiscal 2009 the company expects revenue to be in the range of $602 million to $622 million, a 26% rise from the projection for fiscal 2008.
As guidance Autodesk expects revenue for the fourth quarter of fiscal to be in the range of $525 million and $550 million, compared to $607 million in the quarter just reported and compared to $599 million in the same quarter a year earlier. For the year this forecast translates into annual revenue in the range of $1.818 billion to $1.843 billion, versus $2.172 billion million in the previous year.
Thibault de Tersant, Dassault Systemes Senior Executive Vice President and CFO, said, “Turning to our outlook, we expect 2008 to be a year of strong, organic software growth for DS. We have factored into our fourth quarter and full year outlook the signs of weakening we saw in September due to the economic crisis. However, thanks to our diversification strategy, sales channels expansion, recurring revenue model and year-to-date results, we continue to target a non-GAAP software revenue growth objective of 12% in constant currencies.”
More specifically Dassault revenue objective for the fourth quarter is about €385 to €395 million. The objective for the year is about €1.340 to €1.350 billion. These objectives are based upon exchange rate assumptions for the 2008 fourth quarter of US$1.45 per €1.00 and full year exchange rate assumptions of US$1.50 per €1.00. Therefore the fourth quarter objective in US currencies is $558 million to $572 million compared to $477 million in the quarter just reported and compared to $526 million in the fourth quarter of last year. The forecast for the full fiscal year becomes $2.01 billion to $2.02 billion compared to $1.725 billion for fiscal 2007.
While MSC.Software did not give guidance, Bill Weyand, CEO and Chairman of MSC.Software, said, “While we are mindful of the global macroeconomic environment, we believe a number of important factors will allow MSC to weather this storm. As a software company with more than 45 years serving the aerospace and automotive industries, we have seen these cycles before and we know how our customers behave. We believe they will look at their internal processes to improve productivity by reducing physical prototype testing in order to save costs, speed time to market and accelerate product innovation. However, we believe that a prolonged economic downturn could adversely impact our customers, IT spending patterns, and thereby our business as well."
As guidance for next quarter PTC CEO Harrison said, "Looking forward to (fiscal) Q1, we are currently expecting revenue to be between $250 million and $260 million”. This compares to $300 million in the quarter just reported and compares to $252 million in the first quarter of fiscal 2008. For the fiscal year ending September 30, 2009, PTC currently expects revenue to be approximately $1,100 million, compared to $1,070 million in fiscal 2008.”