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. With some 28,000 customers, PTC sells directly, through resellers, and via systems integrators including IBM, HP, and Accenture.
Its PLM (Windchill) and CAD (Creo) offerings each account for almost 45% of sales. Service lifecycle management (SLM) products, Servigistics and ArborText, account for almost 15% of sales.
PTC's customer base is focused on the most developed regions of the world, with the Americas (41% of sales) and Europe (37%) accounting for the bulk of the company's sales; Japan and the Asia/Pacific region account for the rest.
Altogether it operates from more than 100 offices in 30 countries around the world. Software development is performed in India and the US.
Sales and Marketing
The majority of its business is through direct sales. Only about a quarter of sales are through resellers and other strategic partners, who focus on the small to midsized market.
PTC has experienced revenue growth for the past four years. In fiscal 2013 (year-end September) sales grew 3% to $1.29 billion. It makes the most money from support of contracts to maintain new or previously purchased software; revenues from service (consulting and training) and licenses combined account for the rest. In 2013 it took in a record $143 million in profits and ended the year with $224 million in cash flow.
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.
In early 2013 it 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. Recently, in 2014 it paid $170 million for Axeda, a maker of device relationship management (DRM) software that allows companies to use the Internet to access and control remote devices (i.e. the Internet of Things). Also that year it bought Atego, a developer of model-based systems and software engineering applications to enhance PTC's portfolio of product lifecycle management (PLM) and application lifecycle management (ALM) software.
In 2013 it bought ThingWorx, NetIDEAS, and Israel-based Enigma Information Systems. In 2012 it paid $220 million for SLM software developer Servigistics to solidify its market leadership in SLM.
Past purchases have included Arbortext, Mathsoft, CoCreate, MKS, NC Graphics, 4CS Solutions, Logistics Business Systems, Digital Human, and ITEDO Software.