SAN DIEGO – Altium downgraded its fiscal 2020 revenue outlook for the fourth time, citing Covid-related issues in China and the US.
The recent Beijing lockdown forced Altium to suspend operations at its office there, according to reports. Covid-19 cases have also increased in the US, the firm noted.
Revenue is tracking below the analyst consensus estimate of fiscal 2020 revenue of $195 million for the period ending June 30, compared to $285 million last year.
Altium CEO Aram Mirkazemi lowered pricing and extended payment terms for the company’s software because of Covid-19, with the goal of a 2020 subscriber target of 50,000. "While we are likely to deliver solid revenue growth, this will land marginally behind the latest analyst consensus for the full year,” said Mirkazemi.
"We see Altium's approach to Covid-19 pricing and extended payment terms as the right thing to do to support our customers in this challenging environment and to not lose momentum as we enter the next phase of growth."
Altium plans to provide a final revenue update in early July.