Altium (ASX:ALU) delivers mixed results despite positive FY22 guidance

Company News

by Lauren Evans

Altium (ASX:ALU) posted revenue of US$180.2 million for the year ending 30 Jun 2021, up 6 per cent from the prior year, driven by their Octopart and China businesses. 

The engineering software company delivered a strong second half following adoption of the cloud platform Altium 365, which aims to enhance subscriptions and digitally connect designs to the broader engineering ecosystem.

Revenue was, however, weighed down by the negative performance in Manufacturing and Nexus segments, down 7 and 5 per cent.

Amid mixed revenue, the company noted earnings before interest, taxes, depreciation and amortisation of US$60 million, down 3 per cent from the prior year.

In the June quarter, they faced weakness in their subscription renewal, due to customers purchasing at a discounted price during the height of the pandemic.

Profit after tax reached US$35.3 million, up 79 per cent from the prior year on a lower tax rate.

A 15 per cent partially franked final dividend of $0.21 cents per share is set to be paid on 28 Sep this year.

Altium expects revenue to grow between 16 and 20 per cent by accelerating their cloud adoption and scaling high-end professional sales through strategic partnerships.

These results are preliminary due to delays amplified from the pandemic. Altium does not expect there to be any material difference between today's results and the audited ones that will be released within a week. 

Shares in Altium (ASX:ALU) are trading 11.1 per cent lower at $30.95. 

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