PLM software bellwethers PTC and Dassault Systèmes this week both reported disappointing financial results, as the worldwide recession took big bites out of new license revenues.
For its fiscal second quarter, ended April 4, PTC reported total revenue of $225.3 million, down 12.6% from $257.8 million in the same quarter last year. PTC saw its net income tumble 61.9% to $7.2 million as dramatically lower new product revenue for the period was exacerbated by a $9.8 million restructuring charge.
Competitor Dassault, meanwhile, reported slightly better, though still disappointing, results for the first quarter, ended March 31. Consistent with Dassault’s recent earnings preview statement, the company reported total revenue of €309.7 million, down less than 1% compared with the €307.4 million in revenue the company reported in the same period last year. Dassault’s net income for the period, €28.8 million, was down 50% compared with a year earlier. While the company’s revenue from maintenance grew a healthy 23% to €207.2 million, its revenue from new software licenses fell by nearly 36% to just €64.6 million.
PTC saw a similar steep drop in new license revenue, which, at $43.1 million for the most recent period, fell 46%. The company’s maintenance and service revenue, meanwhile, rose 1.8% to $183.2 million.