PTC (formerly Parametric Technology Corporation) hopes to be a paradigmatic model of success. The company develops software used in computer-aided design, manufacturing, and mechanical engineering (CAD/CAM/CAE) applications. Its Creo product is used to create 3D computer models for aircraft engines, car bodies, mobile phones, and toys. PTC also offers the Windchill software suite, which enables collaborative content and process management -- from design to supplier sourcing and production -- over the Internet. The Mathcad application automates mathematical calculations for engineering purposes. PTC sells directly, through resellers, and via systems integrators including IBM, Hewlett-Packard, and Accenture.
PTC's customer base is focused on the most developed regions of the world, with Europe (40% of sales) and the Americas (37%) accounting for the bulk of the company's sales; Japan and the Asia/Pacific region account for the rest.
Despite significantly higher expenses in several parts of its businesss, particularly in the areas of administration and sales, PTC's profit more than tripled in 2011 over 2010. This was due to healthy revenue growth driven largely by sales of desktop products to large commercial clients. The desktop segment got a boost in 2011 following the release of a new version of the company's Creo application. Additionally, sales of consulting services rose 23% and training revenue went up 15%. PTC makes more than 70% of its sales directly, with more than 400 resellers handling the company's indirect sales.
PTC is trying to broaden its reach into new markets by offering hardware and software development tools to a broader customer base and by branching into complementary products and services. It entered the service lifecycle management (SLM) game in 2005 with the purchase of Arbortext and subsequent acquisitions thereafter. In 2012 the company paid $220 million for SLM software developer Servigistics to solidify its market leadership in SLM. In 2011 PTC bought MKS for nearly C$295 million ($300 million). Also that year PTC acquired warranty management and service lifecycle management software developer 4CS Solutions that year to expand its lineup of applications for the product support and service organizations of equipment manufacturers. In early 2013 the company shortened its name from Parametric Technology Corporation to align it with popular usage.
Mergers and Acquisitions
PTC has made about 20 acquisitions since its founding in 1985 (more than 10 of those in the past decade) to round out its product line. Past purchases have included Arbortext, Mathsoft, CoCreate, NC Graphics, Logistics Business Systems, Digital Human, and ITEDO Software.
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