Altium posts profit jump amid Renesas takeover
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The news: Altium has reported an 11.4% profit jump for the six months to December 2023, two weeks after the ASX-listed software company announced that it will be acquired by Japanese semiconductor business Renesas in a $9.1 billion deal.
The numbers: Altium's half-year net profit climbed from USD29.6 million ($45.3 million) to USD33 million year on year, as revenue rose 15.9% to USD138 million.
Altium declared an interim dividend of 30 cents per share, up 20% compared to a year ago.
The electronic design company attributed the strong first-half performance to growth in enterprise revenue from its design products, which was up 20.7% to USD110.6 million following heightened demand in Europe, the Middle East and Africa.
Altium shares dropped 1.1% to $64.38 at market open.
The context: The American-Australian multinational said that the growth of its subscriber base, rapid adoption of higher value products, and a shift from perpetual to term-based licensing helped boost the company's revenue results.
The largest detractor to Altium's first-half performance was its subsidiary Octopart, which was hampered by weak cyclical conditions within the electronics supply chain.
What they said: UBS analysts said the company's overall result was a miss.
"The key divisions that missed consensus were recurring design software and Octopart (where volume trends are continuing to normalise)," they said.
"In core recurring design software, subscription numbers were softer at 62,768 versus the expectation of 64,100 to 63,400 with the key regions missing in Americas and China."
Altium CEO Aram Mirkazemi said: "Despite intense engagement by Altium with Renesas during the crucial close period leading up to the proposed acquisition announcement, our first-half performance stands as a testament to our core strength".
"Altium delivered a strong business performance in the enterprise market and in the adoption of our cloud platform," he added.
"The announcement of Renesas' proposed acquisition of Altium marks a significant milestone that promises to propel our enterprise business to new heights."
The source: ASX announcement
