Schnitger Corporation

Q1 recap/Q2 preview: What we’ll be looking for

As we prepare ourselves for the onslaught of Q2 earnings reports, it’s helpful to look back at Q1 to see patterns that (perhaps) foreshadow future results and identify areas that were causes for concern last quarter.

To help with this analysis, we’ve created a composite view of the results of ANSYS, Autodesk, Cimatron, Dassault Systèmes (DS), ESI Group, Nemetschek and PTC to act as a proxy for engineering software companies as a whole. Why these 7? They report results every quarter, so are better barometers than companies that report every half year, like AVEVA and Delcam. They are software companies, unlike 3D Systems, Hexagon and Trimble, whose results may be affected by their hardware and hardware-related services businesses or MuM and CENIT who resell other’s products in addition to selling their own. Too, they focus on the needs of the engineering/design/analysis community — unlike SAP, for example — so their results represent that market well without having to subtract out a lot of extraneous business lines. Finally, they report using generally the same definitions for software, maintenance and services — very important if we want to draw conclusions from our comparisons.

How did this composite group do in the first quarter of 2012? So glad you asked:

That does this mean for the individual companies in the sample?

Look for updates as we roll into earnings season. The calendar so far has a few companies reporting next week, then a deluge the week of July 23, with PTC and DS reporting on July 25 and 26.

Is this useful? What other macro metrics would you be interested in seeing? Email or leave a comment below!

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