MCAD/MCAE Industry View – A November 2010 Update

"Looking to FY'11, we are targeting 10% to 12% revenue growth and 20% to 25% non-GAAP EPS growth," said Glidden. "We are expecting license revenue growth of approximately 20% to 25%, services revenue growth of approximately 10% and maintenance revenue growth of approximately 5%. The currency (exchange) assumption embedded in our guidance is $1.37 USD/EURO. We are also establishing a target of having won 30 domino accounts by the end of FY'11 (i.e. end of September 2011), up from 19 currently."

Glidden continued, "We are expecting non-GAAP operating margin of approximately 17% to 18%. We intend to continue to invest prudently in our business to leverage our technology leadership position and capitalize on our long-term growth opportunity." For FY'11, the GAAP operating margin target is 11% to 12% and the GAAP EPS target is $0.75 to $0.80.

The FY'11 targets assume a non-GAAP tax rate of 25%, a GAAP tax rate of 25% and 121 million diluted shares outstanding. The FY'11 non-GAAP guidance excludes approximately $43.3 million of stock-based compensation expense, $28.2 million of acquisition-related intangible asset amortization and their related income tax effects.

"For calendar Q42010 we are initiating guidance of $255 to $265 million in revenue with non-GAAP EPS of $0.22 to $0.26," Glidden added. "We are expecting approximately flat to low single digit year-over-year growth in our license revenue in the quarter, with our combined services and maintenance businesses essentially flat resulting in flat to low single-digit year-over-year growth in total revenue." The calendar Q4 2010 GAAP EPS target is $0.11 - $0.15.

The calendar Q4 2010 guidance assumes a non-GAAP tax rate of 25%, a GAAP tax rate of 25% and 121 million diluted shares outstanding. The calendar Q4 2010 non-GAAP guidance excludes approximately $11.0 million of stock-based compensation expense, $7.3 million of acquisition-related intangible asset amortization expense and their related income tax effects.

PMTC    11/24/10 CLOSE = $ 21.84       MKT CAP = $2.50 B

NASDAQ   11/24/10 CLOSE = $2543.12

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PTC provides discrete manufacturers with software and services to meet the globalization, time-to-market and operational efficiency objectives of product development. Using the company's PLM and CAD solutions, organizations in the Industrial, High-Tech, Aerospace and Defense, Automotive, Retail & Consumer and Medical industries are able to support key business objectives and create innovative products that meet customer needs and comply with industry regulations. For more information on PTC, please visit

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ANSYS posted this article from “NASA Tech Briefs”

Industry Update: Analysis & Simulation Software
Monday, November 01, 2010

In our annual poll of executives at leading analysis and simulation software companies, we asked about (1) the economic situation's effect on the market, (2) the pros and cons of virtual prototyping, and (3) how software vendors are helping customers do more with less. Here's what they had to say about market trends for 2011, and maintaining competitive advantages in a challenging business market.

Doing More With Less



Last year, the executives we polled discussed the challenging economic environment and how their customers were being forced to do more with less, including a reduced staff of analysts and qualified simulation experts. But today, while the economy is still struggling, companies are using more simulation and it is being performed by both experts and designers/engineers.

Engineers have historically been expert in a specific area of simulation. They would run one case at a time with time available to double-check their work,” said Mike Peery, president and CEO of Tecplot. “Today, simulations are being run more and more by generalists - the engineers who are a direct part of the design process - and they are tasked with doing many things.” As a result, added Peery, the easier the software is to use, the better. “We worked to make our tool easy to learn and apply. After all, specialists appreciate fast learning curves as much as any professional with a heavy workload.”

Jim Spann, vice president of marketing for Blue Ridge Numerics, agrees that experts and “generalists” are collaborating more to produce more and faster simulations. “Experienced analysts are taking advantage of new collaboration and customization tools that allow them to share knowledge, participate in design reviews, and build templates for use by design engineers. This removes a lot of the learning curve for the designer and helps ensure every simulation follows pre-defined guidelines that will yield consistent results.”

This broader community of simulation users also has benefits for managers. “The economic situation has focused organizations on several needs, including not only efficiency, but on their competitive situation,” said Dale Berry, director of technical marketing for Dassault Systèmes SIMULIA. “What we see is not that designers are taking up analysis tasks instead of dedicated analysts. Rather, designers are now being asked to leverage and re-use methods previously developed and validated by expert groups.” As a result, said Berry, “The work is not shifting to designers from analysts, but is expanding as designers discover the value of the experts' methods.”

“Innovation is enabled by using simulation up-front in conceptual analysis and design, as well as by broadening the user community beyond a core group of specialized analysts,” added Dipankar Choudhury, vice president of corporate product strategy and planning for ANSYS. “As the simulation community expands, there is a continued need for experts who understand deep, comprehensive physics concepts and how to best deploy the simulation tools to a broader base. At the same time,” Choudhury explained, “not every user will require the same level of technology because he or she may not have the need to model complex physics.”

So while the simulation user base is expanding and evolving, so is the software. According to Bruce Klimpke, technical director of Integrated Engineering Software, “There is a trend by senior R&D managers to acquire software that the design engineer can learn quickly. This requires the results of the simulation to match reality with very little room for error. This is especially true in organizations where simulation results are followed by production.” While the current economy is speeding up this trend, said Klimpke, it is the natural evolution of simulation software.

This evolution means there are more diverse users of simulation and analysis software, which should, in turn, help both the software vendors and their customers. “The primary effect of the current economy is on the amount of simulation being done,” said David L. Vaughn, vice president of worldwide marketing for CD-adapco. “It seems everyone has realized that simulation is the key to reducing product development costs by reducing or eliminating physical prototyping and testing.”

“Over the past several years, managers looking to streamline workflows and engineers interested in quicker turnaround for results have moved from dedicated environments for simulation and analysis to their desktop,” said Jon Friedman, aerospace and defense industry manager at The MathWorks. “Engineers visualize and analyze data, develop algorithms, and share results, allowing the industry to adapt to changes in both the economy and market needs.”

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