C. Richard Harrison, president and chief executive officer, said, "We are off to a great start to [fiscal] 2006. Our results reflect strong performance across product lines, with particularly outstanding performance in Windchill and our channel."
"We have begun to see strong benefits from the execution of our strategy and the investments we made in our business in 2005," continued Harrison. "We expect 2006 to be an exciting year for PTC as we focus on opportunities in our existing customer base, build momentum with Arbortext solutions, and work with our partner IBM to build a pipeline of business in China and targeted accounts around the world."
On January 25, 2006 PTC announced that its board of directors had authorized a two-for-five reverse split of its common stock.
On February 10, 2006 UGS reported its financial results for the fourth quarter and the year, the periods ending December 31, 2005. Total revenue for the quarter was $327 million, a 15% growth over the same period a year earlier and 12.8% growth over the prior quarter. The company's fourth quarter revenue included US$248.8 million in software revenue, or a 20% increase as compared to the fourth quarter 2004 and a 9.6% increase as compared to the third quarter. In terms of organic contribution and constant currency, revenue for the quarter was $310 million. The acquisition of Tecnomatix Technologies Ltd. that closed on April 1, 2005 added $68 million in revenue and $52 million in software revenue in Q4 2005.
License revenue at $114 million, accounting for 35% of total revenue, was up 13% year-over-year and 27% sequentially. Maintenance revenue at $134 million, accounting for 41% of total revenue, was up 26% year-over-year and 4% sequentially. Service revenue at $78 million was up 24% year-over-year and 10% sequentially.
cPDM revenue increased 47% including acquisitions, or 23% without acquisitions, over the same period a year earlier.
North America accounted for 42% of total revenue, EMEA 39% and Asia 19%. The Americas at $137 million, was up 18% year-over-year and 10% sequentially. EMEA at $128 million, was up 7% year-over-year and 16% sequentially. Asia at $62 million, was up 29% year-over-year and 13% sequentially.
Net income for the quarter was $12.9 million, up 54% year-over-year and a turnaround from the loss of $4.7 million in the prior quarter. EBITDA was $99 million, compared to $81 million in the fourth quarter of 2004 and compared to $64 million in the prior quarter. Adjusted EBITDA was $93 million. (EBITDA represents net income (loss) before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA removes the impact of purchase accounting, currency and other adjustments).
Tony Affuso, chairman, CEO and president of UGS, said, "Today we celebrate our continued momentum and our first full calendar year as an independent company. In 2005, we claimed the number one spot in digital manufacturing and solidified our cPDM leadership. With our victory at Nissan, a hotly contested multi-year battle, we underscored our superior CAx technology and relentless focus on customer satisfaction. In 2005, we also highlighted the mission-critical nature of Global Innovation Networks through our new corporate vision, and launched our game-changing initiative bringing PLM to the mid-market."
MCAD Vendor Stock Performances
In Q4 2005, the combined stock prices of the MCAD vendors enjoyed an 18% rise in absolute dollars and 19% rise in average price, over Q4 2004. This compares to an average increase of 1.2% for the major stock indexes over the same period. MSC.Software had the greatest year-over-year increase at 62%, with ANSYS a strong second at 33%. Autodesk and Dassault Systems also had double digit growth. Moldflow was the only decliner at minus 12%. See Tables 7 & 8, and Figure 3 in the sequel.
On a sequential quarterly basis, the combined stock prices rose only 2% in absolute dollars but dropped nearly 1% in terms of average price. This compares to an average increase of nearly 2% in the major stock indexes. ANSYS, Dassault Systems and MSC.Software had growth around the 10% mark. Moldflow and PTC declined about 13%. Autodesk also declined, at minus 7.5%.
(Note: UGS is no longer publicly traded)
Figure 3 - Stock Prices of MCAD Vendors