SYDNEY – Altium reported second-half sales of $100.8 million, up 6.4% year-over-year and up 7.9% sequentially.
For its fiscal year ended Jun. 30, the EDA software company totaled revenue of $189.1 million, up 10% year-over-year. Pretax profit grew 12% to $65 million, while net profit declined 42%. EBITDA was $75.6 million, an increase of 13%. The EBITDA margin was 40%.
Operating cash flow was down 18% from a year ago, and cash on hand rose 16% to $93.1 million.
During the fiscal year, Altium experienced record growth of 17% in the subscription base to 51,006 subscribers.
“Altium achieved a strong performance in fiscal 2020, having exceeded its 50,000 subscriber target and delivered solid revenue growth,” said CEO Aram Mirkazemi. “While Covid-19 prevented us from achieving our long-held aspirational goal of $200 million, it has been a catalyst for our pursuit of market dominance and transformation. We have successfully launched Altium 365, our new cloud platform, which is causing excitement and gaining strong early adoption. This is most heartening and an early validation of our vision and strategy for this new digital platform to transform the electronics industry.
“Our performance demonstrates Altium’s strength, its business model adaptability and its organizational versatility to execute successfully across multiple fronts and in varying conditions. Our strategy to drive volume through attractive pricing to support our customers was rewarded and has allowed us to maintain momentum to successfully launch our digital sales platform and Altium 365.
“During the fourth quarter, we observed some of our customers preferred monthly payment terms, as they contended with Covid-19 conditions. While we do not have any long-term plan to offer extended payment terms on perpetual licenses, we have begun to promote term-based pricing for Altium Designer. This optionality will, in time, allow us to increase our recurring revenue beyond our current rate of 60% of total revenue, and complement our high-end products, which are only sold on a term-basis.
“The current conditions and the accelerated rollout of Altium 365 is evolving Altium revenue away from perpetual licensing and maintenance subscriptions toward term-based licensing and SaaS subscriptions. This transition is being planned carefully and is not expected to have a material impact on short-term revenue, as a significant part of Altium’s current revenue is already subscription-based and prorated on a linear basis.
“Altium remains firmly committed to its long-term targets. We are on track to achieve 100,000 subscribers by 2025, having just passed the halfway mark. Due to Covid-19, however, we may take an additional six to 12 months to achieve our 2025 goal of $500 million in revenue."
For the year, sales of Altium Designer, Circuit Studio and SolidWorks PCB were up 4% to $132 million. The number of Altium Designer seats rose 15% to 9,251.
By region, sales in the Americas was up 6% to $53.7 million; EMEA rose 2% to $45.6 million; China was up 7% to $21.3 million; and rest of world generated revenues of $11.7 million, up 1%.
For the year, Altium’s NEXUS subsidiary saw revenue grow 133% to $15.5 million. Tasking was flat at $19.8 million, and Octopart rose 6% to $19 million. Altium’s EMS unit saw revenue climb 328% to $2.6 million.
Register now for PCB West Virtual 2020, the leading conference and exhibition for the printed circuit board industry, coming this September. pcbwest.com
