TROY, MI – Altair reported first quarter revenue of $131.5 million, an increase of 3% year-over-year.
Net income was $6 million, down 54% compared to the first quarter of 2019. Adjusted EBITDA was $21.7 million, a decrease of 9.6%.
Free cash flow for the period ended Mar. 31 was $26.4 million, compared to $20.7 million for the first quarter of 2019.
“We are pleased to report a strong first quarter with revenue above our guidance range and financial performance at the high end of our expectations, despite challenging market conditions as a result of Covid-19,” said James Scapa, founder, chairman and CEO. “We transitioned quickly to a remote work environment and are supporting our customers through innovative solutions such as hosted units, temporary licenses and online training and webinars. Moreover, we introduced two new product releases in the quarter and added 20% more customers than in the same period a year ago.
“While our software renewals are coming in as expected, and we see many new and expansion opportunities, as well as growing interest for our products, we are experiencing elongated sales cycles, particularly in the automotive and aerospace end markets, as well as currency headwinds as a result of Covid-19. In light of these factors and increasing uncertainty related to the economic impact of the pandemic, we believe it is prudent to temper our expectations for the year and are reducing our guidance for 2020. We maintain a strong balance sheet with a solid cash position and believe we are well positioned to resume above market growth when economic conditions normalize.”
In the first quarter, software product revenue was $108.4 million, an increase of 5% year-over-year.
Altair expects second quarter revenue of $91 million to 96 million and software product revenue of $76 million to $80 million. For 2020, the firm expects revenue of $440 million to $460 million and software product revenue of $365 million to $380 million.
Altair is the owner of Polliwog, a maker of printed circuit design simulation and modeling tools.