Altair Engineering (ALTR) Tops Q1 EPS by 2c; Guides Below

Altair Engineering (NASDAQ: ALTR) reported Q1 EPS of $0.16, $0.02 better than the analyst estimate of $0.14. Revenue for the quarter came in at $131.5 million versus the consensus estimate of $128.86 million.

We are pleased to report a strong first quarter with revenue above our guidance range and financial performance at the high end of our expectations, despite challenging market conditions as a result of COVID-19,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “We transitioned quickly to a remote work environment and are supporting our customers through innovative solutions such as hosted units, temporary licenses and online training and webinars. Moreover, we introduced two new product releases in the quarter and added 20% more customers than in the same period a year ago.” Scapa added, “Having been in business for over 35 years, we have been through multiple economic cycles. Not only have we performed well during those difficult times, but we have emerged with a stronger market position due to the value we bring to our customers.”

“While our software renewals are coming in as expected and we see many new and expansion opportunities as well as growing interest for our products, we are experiencing elongated sales cycles, particularly in the automotive and aerospace end markets, as well as currency headwinds as a result of COVID-19,” said Howard Morof, Chief Financial Officer of Altair. “In light of these factors and increasing uncertainty related to the economic impact of the pandemic, we believe it is prudent to temper our expectations for the year and are reducing our guidance for 2020. We maintain a strong balance sheet with a solid cash position and believe we are well positioned to resume above market growth when economic conditions normalize.”

GUIDANCE:

Altair Engineering sees Q2 2020 revenue of $91-96 million, versus the consensus of $114.65 million.

Altair Engineering sees FY2020 revenue of $440-460 million, versus the consensus of $485.23 million.

For earnings history and earnings-related data on Altair Engineering (ALTR) click here.

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