PTC's margin (ratio of income over expenses) goal is a 20%. It is currently at 15%. By comparison, Autodesk's net margin is over 20% and Dassault's operating margin is close to 30%. However, R&D, currently at 16%, will not be sacrificed for higher margins.
The net income for FY2006 is expected to be a very healthy $100M to $108M. The company has more than $200M in cash. Although, PTC's recent quarterly announcement of profit fell short of stockholders' expectations (see MarketWatch report), CAD insiders still remember not that long ago when the company was not making any profit at all. Present income and cash on hand should be sufficient to fund additional acquisitions.
Revenue is up in almost all markets, with North America still being the strongest (as expected) in total revenue and growth, increasing 25% up in last 12 months. Strangely, Japan is proving to be a tough market to crack with revenue showing a decline for the last 6 quarters.
Average deal size for deals over $1M has grown from $1.8M in 2004 to $2.4M today.