Product lifecycle management software provider PTC yesterday became the latest vendor to feel the recession’s sting, reporting dramatic drops in both license revenue and net income.
With the global economic downturn bringing lengthening order cycle times and reduced spending on large deals, PTC also reduced earlier guidance on second-quarter and full-year 2009 results and announced plans for a layoff.
For its fiscal first quarter, ended Jan. 3, PTC reported $240.4 million in total revenue, down less than 1% from the first quarter of 2008. The company saw a 28.8% drop in license revenue to $50.5 million. The decline was largely offset by an 11.5% increase in services revenue — including maintenance — which totaled $190 million.
First-quarter net earnings totaled $4.7 million, down 53% from $9.9 million in the comparable period in fiscal 2008.