Progress Continues in 2006

Quality Remains Prime Focus at PTC

November’s annual PTC/USER Board of Directors meeting with PTC executives brought few surprises and seemed more of a continuation of the previous year’s discussions. In reviewing the highlights of 2005, it is clear that PTC has been making steady progress in many key areas of greatest concern to the PTC/USER community—most notably software quality and training. In addition, PTC’s run of acquisitions last year addressed unfilled needs and also added important complementary technology to the company’s portfolio of solutions.

Assuring Quality

As always, software quality remains a top concern. In the years since beginning its quality assurance initiative, PTC has methodically improved its process for building quality into its software, ensuring end-to-end coverage within the organization. Through the deployment of the Quality Management System, the company has implemented comprehensive automated and manual testing procedures. In the last year alone, PTC nearly doubled the number of quality assurance engineers, bringing the ratio of developers to test staff to approximately 1.6 to 1. This change ensures a far more thorough examination of software than previously possible. 

PTC has also reached a significant milestone in achieving CMMI level 2.0. As progress is made, PTC is systematically tightening its release criteria. Wildfire 3.0 is on track for its scheduled release in early Spring 2006 and is expected to meet increased quality requirements. The company is also raising its investment in research and development for the coming year. Aggressive action on multiple fronts should eliminate more defects before product is shipped to customers.

Taking on Training

Reversing a recent trend, PTC is now taking a more active role in the production of training materials and services. Global Services is refocusing and redoubling efforts to improve quality and customer satisfaction with education. This includes training provided through PTC University Learning Management System and all direct and certified training centers. As part of this strategy, PTC has recently acquired CADTRAIN, the leading third-party provider of training solutions for Pro/ENGINEER. [See accompanying article in this issue for details.]

The overall education experience is the first priority for enhancements. Among its commitments, Global Services is charged with:

• Strengthening standards for instructor certification to guarantee that the content is valuable and delivered in a professional manner. Student evaluations will play a major role in driving improvements.
• Developing new course content that addresses issues of best practices and business processes, particularly in growth areas such as Windchill and Arbortext.
• Adapting the scheduling and availability of courses to better meet customer needs and avoid overbooking or canceling sessions.
• Streamlining order and payment procedures to make it easier for customers to do business. 

Business and Acquisitions

PTC was in an acquisitive mood in 2005, snapping up technology outfits Aptavis and Polyplan along with Arbortext, a leader in the dynamic enterprise publishing industry.  PTC expects to make further acquisitions as business conditions and technology needs warrant. 

PTC’s revenues and profits are up significantly with growth attributable to existing business as well as Arbortext. The company has rebuilt its cash reserves to around $200 million. PTC is forecasting 12% growth in the coming year, with further upside potential in that number. Clearly, PTC has made great strides in solidifying the gains it has made through financial discipline, and is now well positioned to better serve its customers and take advantage of future opportunities.