PTC announced their quarterly results last wee week. No matter how financial news
is framed in a press release sent to us, our news service is trained to distill 3 key items to formulate a headline:
revenue, change in revenue and profit. I'm not a financial analyst but I hold profit as the most important parameter of a business. The bottom line.
Checking over the PTC press release, I see the revenue dipped a bit,
from $339M to $325M, down 5%....but where is the profit, AKA net inclome? There is no mention of
it in the headline, not in the body. I look all the way down to the
tables....and Whoa, baby! PTC lost a whopping $84 million. I can hardly believe
it. How can this escape being mentioned?
PTC loses $84M for quarter. At least GraphicSpeak noticed.
I rush to see the transcripts of the call (Seeking Apha transcript), fully
expecting the analysts to have flayed PTC management for such a performance Granted, the executives
would not lead the discussion of the loss. Who would want to? But there is no
question of it. In fact, nowhere in the whole transcript does the $84M figure
come up. Rather, the analyst seem to be a bit upbeat about the company. I'm
thinking PTC has somehow transfixed the audience... maybe served them
some Kool Aid. Then, to further my confusion the next day, PTC stock rises.
All my knowledge of finance, or just the basic principles, limited as they
are to revenue and profit (which have served me since I had a paper route) all
must have been turned on their head. If the analysts (financial whizzes, unlike
me)
don't have a problem with losing $84M, I have to be doing something wrong. I
must find out why there is no hue and cry over the enormous loss. Is it because the company still paid a dividend
to its investors? There is a a tax
item of $120M that seems to me to have singlehandedly given PTC this huge loss.
Was a one time occurrence and it is ok to ignore it. Inquiring (non-financial)
minds need to know. Or does it have to do with the $230M PTC paid to acquire Servigistics. I hope its not because PTC still has
almost $500M in the bank, because they could lose money at this rate for several years before people get worried.
is framed in a press release sent to us, our news service is trained to distill 3 key items to formulate a headline:
revenue, change in revenue and profit. I'm not a financial analyst but I hold profit as the most important parameter of a business. The bottom line.
Checking over the PTC press release, I see the revenue dipped a bit,
from $339M to $325M, down 5%....but where is the profit, AKA net inclome? There is no mention of
it in the headline, not in the body. I look all the way down to the
tables....and Whoa, baby! PTC lost a whopping $84 million. I can hardly believe
it. How can this escape being mentioned?
PTC loses $84M for quarter. At least GraphicSpeak noticed.
I rush to see the transcripts of the call (Seeking Apha transcript), fully
expecting the analysts to have flayed PTC management for such a performance Granted, the executives
would not lead the discussion of the loss. Who would want to? But there is no
question of it. In fact, nowhere in the whole transcript does the $84M figure
come up. Rather, the analyst seem to be a bit upbeat about the company. I'm
thinking PTC has somehow transfixed the audience... maybe served them
some Kool Aid. Then, to further my confusion the next day, PTC stock rises.
All my knowledge of finance, or just the basic principles, limited as they
are to revenue and profit (which have served me since I had a paper route) all
must have been turned on their head. If the analysts (financial whizzes, unlike
me)
don't have a problem with losing $84M, I have to be doing something wrong. I
must find out why there is no hue and cry over the enormous loss. Is it because the company still paid a dividend
to its investors? There is a a tax
item of $120M that seems to me to have singlehandedly given PTC this huge loss.
Was a one time occurrence and it is ok to ignore it. Inquiring (non-financial)
minds need to know. Or does it have to do with the $230M PTC paid to acquire Servigistics. I hope its not because PTC still has
almost $500M in the bank, because they could lose money at this rate for several years before people get worried.
DIGITAL JUICE
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