Plans to cut 250 jobs to tackle the slump in earnings
Product lifecycle management software vendor PTC has reported a 53% decrease in net income to $4.7m for the first quarter 2009, compared to $9.9m in the year-ago quarter, on revenue flat at $240.4m compared to last year’s $241m. The company plans to cut 250 jobs to tackle the slump in earnings.
Operating income declined 77% to $3.5m, compared to $14.9m in the year-ago quarter. Diluted EPS fell 50% to $0.04 from $0.08 in the year-ago quarter, while cash and cash equivalents by the end of the quarter was $227m.
The company said license revenue declined 29% to $50.5m, while services revenue increased 6% to $59.1m, and maintenance revenue increased 13% to $130.8m. Geographically, Europe revenue declined 3% to $99.4m, North America revenue declined 1% to $83.5m, Pacific Rim revenue rose 6% to $31.7m, and Japan revenue increased 1% to $25.8m.
C Richard Harrison, president and chief executive at PTC, said: Our total revenue was up 2% on a constant currency basis, reflecting the growth of our services businesses and two months of additional revenue from CoCreate, acquired on November 30, 2007. Lengthening lead time, reduced spending on large deals, and softening end-market demand are impacting sales. We will continue investments to gain market share and improve operating profitability.
For the second quarter it expects revenue between $220m and $230m and a loss per share of between $0.10 and $0.19. For the year, it expects revenue of $960m and EPS between $0.43 and $0.49.