PTC had actual GAAP revenues of $301.12 million in nominal Q1 2012, up 11.89% compared to $269.13 million in nominal Q1 2011. However, PTC’s net income in Q1 2012 was only $3.57 million, down 81.23% compared to $19.02 million in Q1 2011. Accordingly, Q1 2012 EPS was only $0.03 vs $0.36 in Q1 2011. Guidance three months ago for nominal Q1 2012 was for GAAP revenue of $304 to $319 million and GAAP EPS of $0.06 to $0.11, including a $20 million restructuring charge.
- Nominal Q1 2012 GAAP revenue of $301 million and GAAP EPS of $0.03
- Q1 license revenue of $75 million
- Q1 revenue contribution from MKS (acquired on May 31, 2011) and 4CS Solutions (acquired on September 2, 2011) was $22 million on a GAAP basis
- GAAP operating margin of 2.3%
- No material impact from currency effects relative to Q1 guidance assumptions
- Nominal Q2 2012 Guidance: Revenue of $300 to $315 million
- GAAP EPS of $0.15 to $0.20
- Assumes $1.30 USD / EURO. Revenue guidance assumes approximately $22 million contribution from MKS and 4CS
- FY'12 Targets:
- GAAP revenue of $1,262 to $1,282 million and GAAP EPS of $0.76 to $0.84
- Assumes $1.30 USD / EURO. Revenue guidance assumes approximately $90 million contribution from MKS and 4CS
Nominal Q1 2012 Results Commentary
Heppelmann added, "While we are disappointed with our (Nominal Q1 2012) results, our market momentum and competitive positioning remain strong and we expect our pipeline to benefit over time from our focus on increasing sales capacity. Our organizational realignment around five market segments is progressing on plan and, importantly, we remain committed to driving long-term operating margin improvement."
Jeff Glidden, chief financial officer, commented, "We delivered $0.03 GAAP EPS in part due to better than anticipated services margins and continued discipline on operating expenses. We ended Q1 2012 with $224 million of cash, up from $187 million at the end of Q4 2011, reflecting strong operating cash flow, $40 million used to repay our revolving credit facility and $15 million for stock repurchases."
Glidden continued, “The 2012 targets assume a GAAP tax rate of 20% and 121 million diluted shares outstanding.”
Glidden added, “For Q2 2012, the GAAP EPS target is $0.15 to $0.20.”
PTC self description
PTC enables manufacturers to achieve maximum value from their product strategies with software and services designed to optimize key business processes throughout the entire product lifecycle - from conception and design to sourcing and service. PTC's integral solution portfolio enables customers to unleash product innovation, improve collaboration and ensure product data integrity within engineering and across the enterprise, supply chain and service partner networks. Founded in 1985, PTC employs over 6,000 professionals serving more than 27,000 customers worldwide. More information can be found at www.ptc.com.
PTC and all other PTC product names and logos are trademarks or registered trademarks of Parametric Technology Corporation or its subsidiaries in the United States and in other countries.
News from PTC
PTC CEO Jim Heppelmann Declares New Era of Manufacturing Competitiveness Driven By Product and Service Advantage
On June 4, 2012, at its annual worldwide gathering of customers, PlanetPTC Live in Orlando, Florida, PTC® (Nasdaq: PMTC) declared a new era of manufacturing competitiveness driven by technology solutions that help companies achieve product and service advantage. In his keynote address, PTC president and CEO Jim Heppelmann argued that the world is poised to enter what The Economist magazine recently labeled a "third industrial revolution." In this new era, a concerted focus on strategy will lead a renaissance in global manufacturing which will, in turn, put companies using PTC technology solutions in increasingly important roles helping create new value for their companies, and helping them achieve a competitive edge in the 21st Century.
"Over the past few decades, global manufacturers have made massive investments in technology and process change aimed at improving operational efficiency," said Heppelmann. "Today, however, we are reaching the limits of the competitive edge these investments can deliver. Manufacturers need to be operationally efficient to stay in the game, but they can no longer achieve meaningful advantage from that alone. The time has come for a new source of competitive advantage - product and service advantage - from technology and process change that improves strategy decision-making across the enterprise, from engineering to the supply chain to sales and service networks."
Fundamentally, PTC technology solutions transform the way companies create and service products by enabling them to make better, smarter, faster strategy and planning decisions. These decisions relate to how products are designed and engineered, how a supply chain is optimized, how quality and compliance is assured throughout the manufacturing process and, ultimately, how service is efficiently delivered against a product once sold. Individually, these planning decisions help deliver a strategy that supports a brand. Collectively, they are the new source of competitive advantage.
Over its 25 year history, PTC has developed a deep expertise in helping companies optimize the processes associated with each stage of the product lifecycle. In recent years, through a combination of organic development and acquisition, PTC has built a broad portfolio of technology solutions that it combines with its process expertise to assist customers in achieving greatness. In 2012, PTC has gone one step further and reorganized the company itself to align directly with the organizational structure of the modern manufacturing enterprise. Specifically, PTC has established five internal leadership teams focused on driving its technology solution strategies in the areas of product lifecycle management (PLM), computer-aided design (CAD), application lifecycle management (ALM), supply chain management (SCM), and service lifecycle management (SLM).