Two PLM providers today revealed revenue growth in their most recent fiscal quarters despite global economic turbulence, and in one case, acquisition rumors.
Parametric Technologies Corp. (PTC), which reportedly put itself on the block last month, boasted record revenue for its fiscal fourth quarter and full year, which grew 12% and 14% year-over-year, respectively. Meanwhile, competitor Dassault Systemes reported a moderate 6% year-over-year increase in revenue for its fiscal third quarter. Both periods ended Sept. 30.
Dassault reported non-GAAP net income of € 58.7 million on revenue of € 319.7 million for its Q3. That compares with income of € 46.7 million on € 301.3 million in sales for the same period last year.
For its part, U.S.-based PTC recorded net income of $36.5 million on sales of $299.5 million for its fiscal fourth quarter. In the same period last year, the company reported $30.6 million in net income on $266.6 million in sales.
But the real head-turner in PTC’s announcement was its full-year results, which showed net income of $79.7 million on revenue of $1.07 billion. This marks the first time in nearly 10 years that PTC has hit $1 billion in sales. In fiscal 2007, the company reported net income of $143 million on sales of $941 million.
In November 2007, PTC acquired CoCreate Software, which contributed significantly to sales, the company said. During the most recent quarter, PTC took a $4.7 million restructuring charge related to an ongoing initiative to transition some back-office functions to lower-cost regions, the company said. In addition, PTC, which generated $222 million of cash flow from operations for the full fiscal year, used $11 million in the quarter to repay amounts borrowed under a revolving credit facility used to finance the CoCreate acquisition.
PTC, which claims it is seeing some scaling back of deployments, but not a slowdown in software purchases, recently won a large contract with EADS, the parent of Airbus, which will standardize on PTC across its businesses. Officials reported no deterioration in maintenance revenue, which pulled in $498 million for the year.
In addition, the company is investing in channel partners and put 50 more feet on the street for direct sales during the fourth quarter. Officials said on a conference call today that these developments mean the company is building itself up, not putting itself on the block.
“We are not shopping the company,” PTC CFO Neil Moses told analysts during this morning’s call.
Dassault, which also announced today a major customer win, with Procter & Gamble for its ENOVIA PLM product, is optimistic for 2009, according to officials. Dassault, which is heavily entrenched in the anguished U.S. automotive industry, has been diversifying markets and channel partners to reach into CPG and life sciences, as well as expand in high-growth regions, including China, India, and Latin America.