Shortly after the release of its half-year report, Altium Limited— the Australian ASX-listed printed circuit board design software company— saw a decline in their share prices by 12%

The half-year report revealed that worldwide revenue went up 14.1% to US$48 million; sales increased by 14% to US$47.0 million, Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) is up to 18.3%, amounting to US$12 million; and Earnings Before Interest and Tax (EBIT) amounts to US$10 million. Lastly, a dividend was declared at 11 cents per share.

According to the half-year report, Altium achieved a record result for the first half of fiscal 2017. Altium credits this top-line growth to disciplined fiscal management, resulting in profit before tax (PBT) of US$10.8 million (up 11%). The company further increased its EBITDA margin to 25.8% in the first half of fiscal 2017 from 25.0% in the first half of fiscal 2016.

It was also noteworthy that at the beginning of this year, Altium acquired Transfer B.V., a Netherlands-based reseller of Altium products that operates in Belgium and Luxemburg. It also acquired its reseller in the United Kingdom— Premier EDA Solutions Ltd.

Altium’s strong financial performance sets the stage for the company to achieve market leadership by 2020. The company is moving towards its goals of achieving US$150 million in revenue and US$200 million in total revenue.

CEO of Altium Aram Mirkazemi comments on the growth strategy of the company by stating:

Altium’s ‘line and length strategy’ which is designed to create consistent revenue growth and profitability again delivered an industry-leading performance. What is remarkable is that we have achieved these results while building further capacity in America 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 Europe, Middle East, and Africa.

Altium recognizes that China is a leading market in the electronic circuit board design and has reported a 27% revenue growth in China. Mirkazemi concludes,

This could be an early sign of Altium finally breaking through to realize Altium’s immense opportunity in China.

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