PTC Q4 and FY 2005 Financial Results Overview

Overview:

· Total Q4 revenue of $195.1 million grew 15% year-over-year, reflecting strong organic growth and the addition of Arbortext; strongest PTC revenue since Q1 2002.

· Total FY 2005 revenue was up 9% year-over-year, above expectations.

· FY 2005 operating margin improved to 14.3% from 13% in FY 2004.

· Cash at $204M, down from $403M sequentially primarily due to Arbortext acquisition.

Q4 Revenue Highlights:

Total Revenue

· Total Q4 revenue up 15% year over year, and FY 2005 revenue was up 9%

· For FY 2005, revenue grew in all major geographies:

· 17% in North America

· 6% in Europe

· 4% in Asia Pacific

Revenue by Product Category

• PTC defined new revenue categories with the addition of Arbortext and the launch of Pro/INTRALINK 8.0 They are Desktop Solutions and Enterprise solutions. Desktop Solutions = Pro/ENGINEER, Arbortext Editor, and other "create" solutions. Enterprise solutions = Windchill, Pro/INTRALINK, Arbortext Publishing Engine, and all other "collaborate", "control" or "communicate" solutions.

Desktop Solutions Revenue

Total Desktop Solutions revenue was up 6% in Q4 and 5% for FY 2005, reflecting solid Pro/ENGINEER growth at the high end of MCAD market growth expectations.

Enterprise Solutions Revenue

Total Enterprise Solutions revenue was up 37% in Q4 and 21% for FY 2005, reflecting outstanding Windchill performance, as well great sales of Arbortext solutions in the first quarter, the highest revenue ever in this category.

VAR Program

FY 2005 reseller revenue was $138.6 million, up 2% from FY 2004. The reseller channel grew 27% in the Americas and 13% in Europe for the year.