The Altium Limited (ASX: ALU) share price tumbled 12% today following the release of its half-year report.
Here are the key takeaways:
- Revenue rose 14% to $49 million
- Profit rose 8% to $10 million
- An unfranked dividend of 11 cents per share was declared
- Board and systems revenue increased 10% to $US 39.4 million
"Altium's 'line and length strategy' which is designed to create consistent revenue growth and profitability again delivered an industry-leading performance," CEO Aram Mirkazemi said.
"What is remarkable is that we have achieved these results while building further capacity in the America's to keep up with market demand after explosive growth in fiscal 2016 and considering US$1.9m in one-off costs related to restructuring, and acquisition expenses incurred in going direct in EMEA."
The group reported 27% revenue growth in China. "This could be an early sign of Altium finally breaking through to realise Altium's immense opportunity in China," Mr Mirkazemi added.
Looking ahead, he said the company is on track for $US 100 million in revenue for the full year.
Should you buy Altium shares?
Altium shares were priced for exceptional growth. If I were to guess why shares have fallen, I'd say the market got ahead of itself. Indeed, today's result appears quite robust, and the company is in great shape with $36 million in cash.
In my opinion, investors could do worse than run the ruler over Altium shares today.
