In the late afternoon Altium Limited (ASX: ALU) reported its financials for the half year to 31 December 2017.
Altium is a software provider for the design of electronic printed circuit boards (‘PCBs’), it is one of the world’s largest.
Here are the results, all of which are in US dollars unless stated, compared to the prior corresponding period:
- Revenue increased by 30% to $63.2 million
- Operating earnings, or EBITDA, increased by 51% (What the heck is EBITDA?)
- EBITDA margin increased to 30% from 25.8%
- Profit per share increased by 50% to 11.48 cents
- Dividend per share increased by 18% to AU$0.13 per share
Altium said it was very pleased with the result, as all of its business units reported higher revenue.
The Board and Systems segment increased revenue by 27% to $50 million, Altium Nexus increased revenue by 218% to $2 million, TASKING increased revenue by 21% to $6.3 million and Octopart increased revenue by 42% to $5 million.
Altium CEO Mr Aram Mirkazemi commented, “Altium’s strong first half performance across all regions and all businesses reflects disciplined execution to capitalise on a growing market opportunity.”
Outlook
Altium re-affirmed its target of US$200 million revenue by 2020 and an EBITDA margin of 35% or higher.
Mr Mirkazemi said, “The first half results are in line with expectations and build momentum toward the achievement of our 2020 revenue target of US$200 million and a margin of 35% or better.”
Management are confident that Altium can grow strongly in China, as well as other regions.
Altium’s Chief Financial Officer, Joe Bedewi, added: “Altium will continue to drive its new licenses and subscription pool aggressively in its core PCB business, supported by the company’s next generation products and further systematisation of our direct sales methodology.”
Altium will continue its focus on strong fiscal discipline to expand margins, while pursuing investment in partnerships and mergers & acquisitions. – Bedewi
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