Here we go! The PLM earnings season starts today: so far, 2 of 2 companies have reported
solid calendar Q3 results but see rocky times ahead. Quick hits:

– MSC did not announce earnings (that’s next Tuesday) but did file a series of forms with the
SEC about changes in stock ownership. Of note, Elliot Associates or a subsidiary controlled
by Elliot Associates has bought an additional 35,500 MSC shares. You may recall that Elliot
is an activist shareholder whose earlier buys of a 10% stake in MSC caused great
consternation.

– PTC announced fiscal Q4 results that were ahead of expectations. Total GAAP-based
revenue was $299.55 million, up from $266.65 million a year-ago — an increase of 12%. As
has been the case for a while, maintenance revenue was the stand-out, up 25% to $132.2
million, while license revenue grew 3% to $98.5 million. On a geographic basis, Europe led
the way, up 29% to $131 million; the Pacific Rim was up 15% to $36 million (even though
Japan declined 4%) while the Americas were flat at $102 million.

Revenue for fiscal 2008, ended September 30, was $1.07 billion, up 14% over last year.
Maintenance again grew ahead of the other revenue categories, up 22% while license
revenue was up 7%. The company announced that it expects revenue of $1.10 billion in fiscal
2009, a significant slowdown in growth (just 3%) due to the uncertain economic climate.

– Dassault Systémes reported Q3 results that were also ahead of expectations, although not
quite as stellar as PTC’s. Total GAAP-based revenue was €318.3 million, up 6%, led by a
14% increase in recurring revenue, which grew to €186 million. On a GAAP-basis, new
license revenue actually declined slightly, from €92.8 million a year ago to €90.5 million this
last quarter. Looking at a geographic split, GAAP revenue was up 12% in Europe, up 6% in
the Americas and down 2% in Asia. By product category, again using GAAP numbers, PLM
was up 8%, including a 6% increase in CATIA and a 16% increase in ENOVIA. The
Mainstream 3D software category increase 9% for the quarter.

DS expects Q4 revenue to be between €385 million and €395 million, leading to a full-year
forecast of between €1.340 to €1.350 billion — up about €20 million from prior estimates. The
company sees economic turbulence ahead, but, according to prepared remarks by CFO
Thibault de Tersant, "However, thanks to our diversification strategy, sales channels
expansion, recurring revenue model and year-to-date results…" the company remains
confident in its ability to meet these targets.