TROY, Mich., Feb. 28, 2019 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global technology company providing solutions in product development, high-performance computing and data intelligence, today released its financial results for the fourth quarter and full year ended December 31, 2018.

“Altair delivered better than expected revenue and profitability in the fourth quarter, capping a very strong year for the company,” said James Scapa, founder, chairman and chief executive officer. “We believe our strong performance across the business reflects the market’s growing recognition that our modeling, visualization and solver solutions bring significant value to the product design process.”

“The recent expansion into the data intelligence market through the Datawatch acquisition has further expanded our market opportunity and Altair’s value proposition. We believe the convergence of data and simulation in the coming years will provide new growth opportunities. In addition, we are incredibly excited by the opportunity with SimSolid, which represents a major step forward in generating fast and highly accurate design simulations. Altair enters 2019 with significant momentum, and we believe we are uniquely positioned to deliver another year of strong revenue growth and expanding profitability.”

Note: We adopted ASC 606 on January 1, 2018, which impacted our financial results. The year ended December 31, 2018 has been reported under ASC 606. The year ended December 31, 2017 has been reported under ASC 605 and has not been adjusted under the modified retrospective approach. For ease of comparison, in the commentary below all amounts used to calculate differences between 2017 and 2018 results are reported under ASC 605, unless otherwise indicated.

Fourth Quarter 2018 Financial Highlights under ASC 606

• Software product revenue was $79.9 million.
• Total revenue was $103.0 million.
• Net loss was $(10.8) million. The fourth quarter of 2018 included non-cash stock-based compensation expenses of $2.1 million. Diluted net loss per share was $(0.15), based on 70.5 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $12.9 million. Adjusted EBITDA represents net income (loss) adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management.
• Non-GAAP net income was $4.0 million. Non-GAAP diluted net income per share was $0.05, based on 77.7 million non-GAAP diluted common shares outstanding. Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, non-recurring adjustments, and certain tax adjustments.
• Cash flow metrics are not impacted by our adoption of 606 and we can compare them to the same period in 2017. Cash flow from operations was an outflow of $(4.2) million, compared to an outflow of $(1.4) million for the fourth quarter of 2017.
• Free cash flow, which consists of cash flow from operations less capital expenditures, was an outflow of $(5.5) million compared to an outflow of $(4.5) million for the fourth quarter of 2017.

For Reference, we compare Fourth Quarter 2018 Financial Highlights under ASC 605 (as if previous revenue recognition guidance was in effect) to those in Fourth Quarter 2017

• Software product revenue was $80.8 million, an increase of 19% from $67.9 million for the fourth quarter of 2017.
• Total revenue was $103.9 million, an increase of 16% from $89.9 million for the fourth quarter of 2017.
• Net loss was $(9.8) million, compared to net loss of $(60.3) million for the fourth quarter of 2017. The fourth quarter of 2018 included non-cash stock-based compensation expenses of $2.1 million, while the fourth quarter of 2017 included non-cash stock-based compensation expenses of $8.0 million. In addition, $56.6 million in tax expenses were recognized in the fourth quarter on 2017, substantially due to the recording of a valuation allowance on U.S. deferred tax assets based, in part, upon the actual or potential exercise value tax benefit of non-qualified stock options in the U.S., and to a lesser degree as a result of recent tax law changes. Diluted net loss per share was $(0.14), based on 70.5 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(1.03) for the fourth quarter of 2017, based on 58.7 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $14.1 million, compared to $8.4 million for the fourth quarter of 2017.
• Non-GAAP net income was $5.0 million, compared to $12.6 million for the fourth quarter of 2017. Non-GAAP diluted net income per share was $0.06, based on 77.7 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.18 for the fourth quarter of 2017, based on 68.2 million non-GAAP diluted common shares outstanding.

Full Year 2018 Financial Highlights under ASC 606

• Software product revenue was $304.4 million.
• Total revenue was $396.4 million.
• Net Income was $13.7 million. The full year of 2018 included non-cash stock-based compensation expenses of $3.3 million. Diluted net income per share was $0.18, based on 74.9 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $50.2 million. Adjusted EBITDA represents net income (loss) adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management.
• Non-GAAP net income was $31.6 million. Non-GAAP diluted net income per share was $0.41, based on 77.7 million non-GAAP diluted common shares outstanding. Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, non-recurring adjustments, and certain tax adjustments.
• Cash flow from operations was $36.2 million, compared to $16.1 million for 2017.
• Free cash flow, which consists of cash flow from operations less capital expenditures, was $29.6 million, compared to $8.6 million for 2017.

For Reference, we compare Full Year 2018 Financial Highlights under ASC 605 (as if previous revenue recognition guidance was in effect) to Full Year 2017

• Software product revenue was $293.0 million, an increase of 20% from $244.8 million for 2017.
• Total revenue was $385.1 million, an increase of 16% from $333.3 million for 2017.
• Net income was $2.9 million, compared to net loss of $(99.4) million for 2017. 2018 included the impact of $3.3 million in non-cash stock-based compensation expenses, while 2017 included the impact of $47.3 million in non-cash stock-based compensation expenses, as well as $63.0 million in tax expenses. Diluted net income per share was $0.04, based on 74.9 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(1.89) for 2017, based on 52.5 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $38.5 million, an increase of 71% from $22.5 million for 2017.
• Non-GAAP net income was $20.8 million, compared to $16.1 million for 2017. Non-GAAP net income per share was $0.27, based on 77.7 million diluted weighted average common shares outstanding, compared to $0.26 for 2017, based on 62.6 million diluted weighted average common shares outstanding.

Business Outlook under ASC 606

Based on information available as of today, Altair is issuing guidance for the first quarter and full year 2019 under the ASC 606 standard as indicated below.

	First Quarter 2019					Full Year 2019
Software Product Revenue	$99.0		to	$101.0		$373.0		to	$377.0
Non-GAAP Software Product Revenue	$101.2			$103.2		$382.0			$386.0
Total Revenue	$123.0			$125.0		$470.0			$474.0
Non-GAAP Total Revenue	$125.2			$127.2		$479.0			$483.0
Net Income	$10.5			$12.5		$18.0			$22.0
Adjusted EBITDA	$23.0			$25.0		$61.0			$65.0
Non-GAAP Net Income	$15.8			$17.8		$40.2			$44.2

(All figures in millions)

Conference Call Information

What:	Altair Fourth Quarter and Full Year 2018 Financial Results Conference Call
When:	Thursday, February 28, 2019
Time:	4:30 p.m. EST
Live Call:	(866) 754-5204, domestic
	(636) 812-6621, international
Replay:	(855) 859-2056, passcode 2093538, domestic
	(404) 537-3406, passcode 2093538, international
Webcast:	http://investor.altair.com (live & replay)

Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair Altair is a global technology company that provides software and cloud solutions in the areas of product design and development, high-performance computing (HPC) and data intelligence. Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future. To learn more, please visit www.altair.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our business outlook, statements regarding the comparative business outlook under ASC 605, potential growth, potential impact of the SimSolid and Datawatch transactions and expanded product offerings, and our reconciliations of projected non-GAAP financial measures. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.

Investor RelationsBrian DenyeauICR248-614-2400 ext. 346[email protected]

Media RelationsDave SimonAltair248-614-2400 ext. 332[email protected]

Altair Engineering Inc. and Subsidiaries
Consolidated Balance Sheets
		December 31, 2018			December 31, 2017
(In thousands, except per share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	35,345		$	39,213
Accounts receivable, net		96,803			86,635
Inventory, net		1,964			1,980
Income tax receivable		4,431			6,054
Prepaid expenses and other current assets		15,491			10,006
Total current assets		154,034			143,888
Property and equipment, net		30,153			31,446
Goodwill		210,532			62,706
Other intangible assets, net		69,836			24,461
Deferred tax assets		1,373			8,351
Other long-term assets		17,288			17,019
TOTAL ASSETS		$	483,216		$	287,871
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt		$	331		$	232
Accounts payable		8,357			4,880
Accrued compensation and benefits		31,740			26,560
Obligations for acquisition of businesses		1,218			13,925
Other accrued expenses and current liabilities		26,347			21,744
Deferred revenue		59,765			130,122
Total current liabilities		127,758			197,463
Long-term debt, net of current portion		31,417			178
Deferred revenue, non-current		6,754			9,640
Other long-term liabilities		28,153			17,647
TOTAL LIABILITIES		194,082			224,928
Commitments and contingencies
MEZZANINE EQUITY		2,352			2,352
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding		—			—
Common stock ($0.0001 par value)
Class A common stock, authorized 513,797 shares, issued and outstanding 38,349 and 26,725 shares as of December 31, 2018 and December 31, 2017, respectively		4			2
Class B common stock, authorized 41,203 shares, issued and outstanding 32,171 and 36,508 shares as of December 31, 2018 and December 31, 2017, respectively		3			4
Additional paid-in capital		379,832			232,156
Accumulated deficit		(82,005)			(166,499)
Accumulated other comprehensive loss		(11,052)			(5,072)
TOTAL STOCKHOLDERS’ EQUITY		286,782			60,591
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY		$	483,216		$	287,871

Altair Engineering Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
		Three Months Ended December 31,									Twelve Months Ended December 31,
(in thousands, except per share data)		2018 606			2018 605			2017 605			2018 606			2018 605			2017 605
Revenue
Software		$	79,903		$	80,786		$	67,912		304,361			$	293,044		$	244,817
Software related services		10,073			10,073			9,648			36,945			36,945			35,397
Total software		89,976			90,859			77,560			341,306			329,989			280,214
Client engineering services		11,200			11,200			10,439			47,852			47,852			46,510
Other		1,835			1,835			1,868			7,221			7,221			6,609
Total revenue		103,011			103,894			89,867			396,379			385,062			333,333
Cost of revenue
Software*		13,038			13,038			9,561			45,774			45,774			36,360
Software related services		6,842			6,842			6,658			26,415			26,415			26,888
Total software		19,880			19,880			16,219			72,189			72,189			63,248
Client engineering services		9,002			9,002			8,931			38,979			38,979			38,131
Other		1,389			1,389			1,467			4,805			4,805			5,212
Total cost of revenue		30,271			30,271			26,617			115,973			115,973			106,591
Gross profit		72,740			73,623			63,250			280,406			269,089			226,742
Operating expenses:
Research and development*		25,844			25,844			24,036			97,592			97,592			93,234
Sales and marketing*		22,427			22,178			21,275			80,277			80,613			79,958
General and administrative*		28,114			28,114			21,514			79,751			79,751			87,979
Amortization of intangible assets		2,076			2,076			2,161			7,739			7,739			5,448
Other operating income		(2,164)			(2,164)			(2,555)			(9,597)			(9,597)			(6,620)
Total operating expenses		76,297			76,048			66,431			255,762			256,098			259,999
Operating income (loss)		(3,557)			(2,425)			(3,181)			24,644			12,991			(33,257)
Interest expense		108			108			367			200			200			2,160
Other (income) expense, net		(534)			(534)			156			(2,580)			(2,580)			994
Income (loss) before income taxes		(3,131)			(1,999)			(3,704)			27,024			15,371			(36,411)
Income tax expense		7,692			7,843			56,643			13,309			12,472			62,996
Net income (loss)		$	(10,823)		$	(9,842)		$	(60,347)		$	13,715		$	2,899		$	(99,407)
Income (loss) per share:
Net income (loss) per share attributable to common stockholders, basic		$	(0.15)		$	(0.14)		$	(1.03)		$	0.20		$	0.04		$	(1.89)
Net income (loss) per share attributable to common stockholders, diluted		$	(0.15)		$	(0.14)		$	(1.03)		$	0.18		$	0.04		$	(1.89)
Weighted average shares outstanding:
Weighted average number of shares used in computing net income (loss) per share, basic		70,548			70,548			58,674			67,468			67,468			52,466
Weighted average number of shares used in computing net income (loss) per share, diluted		70,548			70,548			58,674			74,878			74,878			52,466

The year ended December 31, 2018 has been reported under ASC 606, and the year ended December 31, 2017 has been reported under ASC 605 and has not been adjusted under the modified retrospective approach.

*Amounts include stock-based compensation expense as follows (in thousands):
		(Unaudited)
		Three Months Ended December 31,						Twelve Months Ended December 31,
		2018			2017			2018			2017
Cost of revenue – software		$	7		$	8		$	31		$	350
Research and development		410			2,045			740			12,540
Sales and marketing		595			1,533			910			7,693
General and administrative		1,114			4,393			1,658			26,698
Total stock-based compensation expense		$	2,126		$	7,979		$	3,339		$	47,281

Altair Engineering Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
		Twelve Months Ended December 31,
(In thousands)		2018			2017
OPERATING ACTIVITIES:
Net income (loss)		$	13,715		$	(99,407)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		14,734			11,747
Provision for bad debt		394			610
Stock-based compensation expense		3,339			47,281
Gain on sale of assets held for sale and other		(4,503)			(244)
Impairment of intangible assets		608			—
Deferred income taxes		763			52,571
Other, net		(183)			542
Changes in assets and liabilities:
Accounts receivable		(1,394)			(10,397)
Prepaid expenses and other current assets		204			1,559
Other long-term assets		(1,660)			(11,288)
Accounts payable		1,647			(1,087)
Accrued compensation and benefits		5,678			2,060
Other accrued expenses and current liabilities		(6,667)			6,207
Deferred revenue		9,555			15,937
Net cash provided by operating activities		36,230			16,091
INVESTING ACTIVITIES:
Payments for acquisition of businesses, net of cash acquired		(203,438)			(15,582)
Capital expenditures		(6,659)			(7,522)
Proceeds from sale of assets held for sale and other		6,614			446
Payments for acquisition of developed technology		(2,727)			(2,120)
Other investing activities, net		—			(73)
Net cash used in investing activities		(206,210)			(24,851)
FINANCING ACTIVITIES:
Proceeds from issuance of Class A common stock in follow-on public offering, net of underwriters' discounts and commissions		135,572			—
Borrowings under revolving commitment		37,041			126,832
Payments on revolving commitment		(6,091)			(154,187)
Proceeds form issuance of common stock		2,077			1,792
Payments for follow-on public offering and IPO offering costs		(556)			(4,644)
Principal payments on long-term debt		(126)			(59,869)
Payments for redemption of common stock		(119)			(1,045)
Proceeds from issuance of Class A common stock in initial public offering, net of underwriters' commissions		—			119,268
Proceeds from issuance of debt		—			1,541
Other financing activities		(268)			(130)
Net cash provided by financing activities		167,530			29,558
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(1,443)			1,641
Net increase (decrease) in cash, cash equivalents and restricted cash		(3,893)			22,439
Cash, cash equivalents and restricted cash at beginning of year		39,578			17,139
Cash, cash equivalents and restricted cash at end of period		$	35,685		$	39,578
Supplemental disclosure of cash flow:
Interest paid		$	223		$	2,092
Income taxes paid		$	6,735		$	5,893
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock in connection with acquisitions		$	8,681		$	8,712
Promissory notes issued and deferred payment obligations for acquisitions		$	1,729		$	12,352
Capital leases		$	895		$	124
Property and equipment in accounts payable		$	330		$	582
Issuance of common stock with put rights		$	-		$	2,352
Initial public offering costs in other long-term assets		$	-		$	186

The following table presents the effect of the adoption of ASC 606 on the consolidated statement of operations (in thousands):
		Three Months Ended December 31,									Twelve Months Ended December 31,
(in thousands, except per share data)		As Reported 606			Adjustments for ASC 606			ASC 605			As Reported 606			Adjustments for ASC 606			ASC 605
Revenue
Software		$	79,903		$	883		$	80,786		$	304,361		$	(11,317)		$	293,044
Total software		89,976			883			90,859			341,306			(11,317)			329,989
Total revenue		103,011			883			103,894			396,379			(11,317)			385,062
Gross profit		72,740			883			73,623			280,406			(11,317)			269,089
Operating expenses:
Sales and marketing*		22,427			(249)			22,178			80,277			336			80,613
Total operating expenses		76,297			(249)			76,048			255,762			336			256,098
Operating income (loss)		(3,557)			1,132			(2,425)			24,644			(11,653)			12,991
Income (loss) before income taxes		(3,131)			1,132			(1,999)			27,024			(11,653)			15,371
Income tax expense		7,692			151			7,843			13,309			(837)			12,472
Net income (loss)		$	(10,823)		$	981		$	(9,842)		$	13,715		$	(10,816)		$	2,899
Income (loss) per share:
Net income (loss) per share attributable to common stockholders, basic		(0.15)			0.01			(0.14)			0.20			(0.16)			0.04
Net income (loss) per share attributable to common stockholders, diluted		(0.15)			0.01			(0.14)			0.18			(0.14)			0.04

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP diluted income per share to net income (loss) and income (loss) per share - diluted, the most comparable GAAP financial measures (in thousands, except per share amounts):
				(Unaudited)
				Three Months Ended December 31,									Twelve Months Ended December 31,
				2018 606			2018 605			2017 605			2018 606			2018 605			2017 605
Net income (loss)				$	(10,823)		$	(9,842)		$	(60,347)		$	13,715		$	2,899		$	(99,407)
Stock-based compensation expense				2,126			2,126			7,979			3,339			3,339			47,281
Amortization of intangible assets				2,076			2,076			2,161			7,739			7,739			5,448
Non-recurring adjustments				10,627			10,627			47,429			6,837			6,837			47,429
Income tax effect of non-GAAP adjustments*				-			-			15,366			-			-			15,366
		Non-GAAP net income		$	4,006		$	4,987		$	12,588		$	31,630		$	20,814		$	16,117
Income (loss) per share - diluted				$	(0.15)		$	(0.14)		$	(1.03)		$	0.18		$	0.04		$	(1.89)
Non-GAAP income per share - diluted				$	0.05		$	0.06		$	0.18		$	0.41		$	0.27		$	0.26
GAAP diluted shares outstanding:
	Weighted average number of shares used in computing net income (loss) per share, diluted			70,548			70,548			58,674			74,878			74,878			52,466
Non-GAAP diluted shares outstanding:
	Number of shares used in computing net income per share, diluted			77,700			77,700			68,156			77,700			77,700			62,632
*	The income tax effect of non-GAAP adjustments for 2018 is affected by the U.S. valuation allowance.

The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure (in thousands):
			(Unaudited)
			Three Months Ended December 31,									Twelve Months Ended December 31,
			2018 606			2018 605			2017 605			2018 606			2018 605			2017 605
Net income (loss)			$	(10,823)		$	(9,842)		$	(60,347)		$	13,715		$	2,899		$	(99,407)
Income tax expense			7,692			7,843			56,643			13,309			12,472			62,996
Stock-based compensation expense			2,126			2,126			7,979			3,339			3,339			47,281
Interest expense			108			108			367			200			200			2,160
Interest income and other(1)			9,986			9,986			(76)			4,882			4,882			(2,260)
Depreciation and amortization			3,839			3,839			3,852			14,734			14,734			11,747
Adjusted EBITDA			$	12,928		$	14,060		$	8,418		$	50,180		$	38,527		$	22,517
(1)	Includes for the year ended December 31, 2018 a) nonrecurring costs from the acquisition of Datawatch of $10.4 million, b) gain on the sale of a building of $4.4 million, c) impairment charges for royalty contracts and trade names resulting in $2.8 million of expense. Includes for the years ended December 31, 2018 and 2017, a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income in each year.

The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure (in thousands):
		(Unaudited)
		Three Months Ended December 31,						Twelve Months Ended December 31,
		2018			2017			2018			2017
Net cash (used in) provided by operating activities		$	(4,192)		$	(1,364)		$	36,230		$	16,091
Capital expenditures		(1,326)			(3,155)			(6,659)			(7,522)
Free cash flow		$	(5,518)		$	(4,519)		$	29,571		$	8,569

The following table provides a reconciliation of Non-GAAP Total Revenue to Total Revenue, the most comparable GAAP financial measure (in millions):
		(Unaudited)
		Three months ending						Year ending
		March 31, 2019						December 31, 2019
		low			high			low			high
Total Revenue (GAAP)		$	123.0		$	125.0		$	470.0		$	474.0
Software licenses deferred revenue fair value adjustment (1)		2.2			2.2			9.0			9.0
Non-GAAP Total Revenue		$	125.2		$	127.2		$	479.0		$	483.0
(1) Adjustment for revenue impact of the Datawatch deferred revenue purchase accounting haircut required by U.S. GAAP
The following table provides a reconciliation of Non-GAAP Software Product Revenue to Total Software Product Revenue, the most comparable GAAP financial measure (in millions):
		(Unaudited)
		Three months ending						Year ending
		March 31, 2019						December 31, 2019
		low			high			low			high
Total Software Product Revenue (GAAP)		$	99.0		$	101.0		$	373.0		$	377.0
Software licenses deferred revenue fair value adjustment (1)		2.2			2.2			9.0			9.0
Non-GAAP Total Software Product Revenue		$	101.2		$	103.2		$	382.0		$	386.0
(1) Adjustment for revenue impact of the Datawatch deferred revenue purchase accounting haircut required by U.S. GAAP
The following table provides a reconciliation of projected net income to projected Non-GAAP net income, the most comparable GAAP financial measure (in thousands):
		(Unaudited)
		Three months ending						Year ending
		March 31, 2019						December 31, 2019
		low			high			low			high
Net income		$	10,500		$	12,500		$	18,000		$	22,000
Stock-based compensation expense		1,500			1,500			7,000			7,000
Amortization of intangible assets		3,800			3,800			15,200			15,200
	Non-GAAP net income	$	15,800		$	17,800		$	40,200		$	44,200
The following table provides a reconciliation of projected Adjusted EBITDA to projected net income, the most comparable GAAP financial measure (in thousands):
		(Unaudited)
		Three months ending						Year ending
		March 31, 2019						December 31, 2019
		low			high			low			high
Net income		$	10,500		$	12,500		$	18,000		$	22,000
Income tax expense		2,500			2,500			3,900			3,900
Stock-based compensation expense		1,500			1,500			7,000			7,000
Interest expense		-			-			-			-
Depreciation and amortization		5,600			5,600			22,200			22,200
Interest income and other non-recurring adjustments		700			700			900			900
Software licenses deferred revenue fair value adjustment (1)		2,200			2,200			9,000			9,000
	Adjusted EBITDA	$	23,000		$	25,000		$	61,000		$	65,000
(1) Adjustment for revenue impact of the Datawatch deferred revenue purchase accounting haircut required by U.S. GAAP

Source: Altair Engineering Inc.

Press Releases

Altair Engineering (ALTR) PT Raised to $40 at Needham & CompanyMarch 1, 2019 8:43 AM Altair Engineering (ALTR) PT Raised to $38 at RBC CapitalMarch 1, 2019 6:37 AM Altair Engineering (ALTR) Misses Q4 EPS by 5c, Revs Beat; Guides Revs Above ViewsFebruary 28, 2019 4:20 PM