PTC Q4 FY'13 Prepared Remarks



Consistent with our goal of enhancing value for our stakeholders by generating consistent improvement in profitability, we are introducing new FY'17 targets. We now expect to increase non-GAAP operating margin to 28% to 30% by FY'17. We anticipate achieving this goal through a mix of measures including: (1) improving services gross margin toward our longer-term goal of 20%; (2) further expanding our services partner ecosystem; (3) implementing solutions that require shorter sales cycles and less services; (4) enhancing sales force productivity and efficiency; and (5) continued vigilance on cost control.

Based on our robust sales pipeline and increasing customer adoption of our broader solution set, but uncertain timing of global economic recovery (with some signs of macroeconomic recovery in Europe offset by potential headwinds in the U.S.), we believe it is appropriate to guide FY'14 revenues to approximately $1,325 to $1,340 million, up by a low single digit percentage year over year. However, we expect non-GAAP EPS to grow faster than revenues (up by a low to mid-teens percentage y/y to $2.00 to $2.10), reflecting our demonstrated commitment to profitability. Our current pipeline continues to expand and if the economic environment improves, we believe we are well positioned to accelerate revenue growth.

Q4 Fiscal 2013 Prepared Remarks (pdf)