- Electronic design software company, Altium (ALU) has confirmed its strong operational and market position in the COVID-19 pandemic
- However, due to the uncertainty around the direction of the virus, the company has wisely withdrawn its 2020 financial year guidance
- The company will speed up the rollout of its new cloud platform Altium 365, as the worldwide demand for cloud-based collaborative tools is rapidly growing
- Altium 365 is relevant to the current circumstances as it allows engineers to work from anywhere, and connect with anyone
- Altium is up slightly on the market this morning and is trading for $30.58
Electronic design software company, Altium (ALU) has confirmed its strong operational and market position in the COVID-19 pandemic.
However, due to the uncertainty around the direction of the virus, the company has wisely withdrawn its 2020 financial year guidance.
Despite the uncertainty surrounding COVID-19, Altium is operationally and commercially well positioned, as electronic design is anticipated to be strong during this time.
However, this depends on how long and what impact the pandemic will have on the world.
Altium said its employees have been working from home for the last two months and the company is putting in operations to be productive in the setting.
“At an industry level, electronic design is holding up relatively well in the new environment as engineers use excess time and capacity from the slowdown in
manufacturing and supply chain to revert back to prototype designs,” CEO Aram Mirkazemi said.
The company will accelerate the rollout of its new cloud platform Altium 365, as a worldwide demand is rapidly growing for cloud-based collaborative tools.
“Altium 365 is particularly relevant to the circumstances that are unfolding under COVID-19, as it allows engineers to work from anywhere, and connect with anyone,” Aram said.
“We are also accelerating the rollout of our online high volume selling approach, which will dramatically extend our inside sales capacity to support our drive through Q4 and beyond,” he added.
Withdrawing Full Year Earning Guidance
In this pandemic Altium believes the best decision is to withdraw its 2020 earnings guidance.
“As a global software company, we are operationally geared to work well in a digital environment, our business model is highly adaptable to the new conditions and the electronic design industry is relatively robust. Altium is continuing to close sales and our pipeline is looking solid at this point,” Aram explained.
“Moreover, Altium is financially very strong with real earnings and profitability and a strong balance sheet. Altium’s cash reserves have continued to grow and are expected to remain strong”, he told the market.
Altium is up slightly on the market this afternoon and is trading for $30.58 apiece at 12:14 pm AEST.