Basically, PTC says that FQ4 revenue will be at or above the high end of earlier guidance ($340 million to $355 million), and that Axeda will add another $4 million to $5 million in revenue on top of that.
Even so, the company last week decided to restructure its workforce, “in support of integrating businesses acquired in the past year”. This includes terminating a bunch of people, to a sum of “$34 million … all of which is attributable to termination benefits”.
We’ll learn more on November 5, when PTC publishes Q4 earnings or on the 6th, when it hosts its earnings call.
It’s a definite case of no news/good news/bad news. No news is when you make your forecast; good news is when you’re at the high end. But bad news is when people lose their jobs — even if it is in the cause of growing the company in new directions.
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It would be interesting to know what the win rate is when PTC puts creo/Windchill in front of a prospect and has to face solidworks CAD & SW enterprise PDM. Having used and administered both, it is difficult to understand why any company other than a raytheon or caterpillar would choose PTC. The administrative burden of windchill vs. ePDM is onerous. PTC should aggressively put windchill in the cloud so that PTC customers can use it while PTC does the administration.