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by Diane Himes, MA Editorial Staff
Posted on Monday, November 13, 2006 6:18:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | PLM vendor cites the retooling of its sales and marketing organizations as the main culprit in a third-quarter growth lag; net loss widens to $7.4 million as debt service fees rise. |
| Keywords: | UGS, PLM, product lifecycle management, CAD, Teamcenter, Tecnomatix, third quarter financial results |
Although it recorded its thirteenth consecutive quarterly top-line increase, PLM vendor UGS Corp. said revenue growth slowed in the period due to a restructuring of its sales and marketing force. The company's net loss also widened in the period, due in part to an increase in debt service fees. For the quarter ended September 30, UGS reported total revenues of $295.5 million, a 1.8% increase from the corresponding period in 2005. Year-over-year software revenue topped $223 million (including license and maintenance revenues), a tepid 1.6% year-over-year rise. On a conference call this morning with financial analysts, UGS Chairman, CEO, and President Tony Affuso attributed the top-line softness to a retooling of the company's sales and marketing channels. He said UGS's sales force was at 60% of its required level, and that the company plans to continue hiring in Q4 and achieve necessary headcount by the end of the second quarter of next year. [Click to continue] |
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