Altium Posts 23% Revenue Growth in Fiscal 2019

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Altium achieved double digit revenue growth and expanded its profit margins in the year ended 30 June 2019.  This is robust confirmation of the underlying power of the Group’s "Line and Length" strategy to simultaneously:

• Increase revenue by 20% per annum
• Expand EBITDA margins
• Invest in strategic growth opportunities

Operating revenue was a record $171.8 million (growth of 23.1%) for the financial year ended 30 June 2019.  Altium profit margins achieved record levels with a 41.1% increase in net profit after tax to $52.9 million, generating earnings per share (EPS) of US 40.57 cents.  EBITDA margin was 36.5% for the fiscal year (36.6% on an underlying basis).

Altium’s revenue and EBITDA growth is on target to achieve the Group’s fiscal year 2020 commitment of $200 million in revenue and 35% EBITDA or better. All segments experienced double digit revenue growth which contributed to increased profits through the strong operating leverage inherent in Altium’s business model. The Group further enhanced the performance of the Altium Designer transactional sales engine and  invested in solution selling capability for the Altium Nexus product line.

The Altium balance sheet is strong. Operating cash flow contributed US$69.1 million (2018: US$48.5 million) and the Group ended the year with a cash balance of US$80.5 million after dividend payments of US$28.1 million (2018: US$25.6 million), acquisition of Gumstix Inc for upfront consideration of US$2.5 million and contingent consideration payments of US$5.5 million (2018: US$7.5 million) relating to prior period acquisitions. Cash management is an important focus area as we optimize investments in our long-term vision whilst delivering a meaningful return to shareholders.

On the 30 April 2019, Altium completed the acquisition of Gumstix Inc, an American based company specialising in embedded hardware development and manufacturing and conducts its research and development from Gumstix Research (Canada) Ltd. Gumstix will contribute to the Altium transformative vision for a Platform to support design to product realization.

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