A Lens over Information Technology Stock – Altium Limited

A Lens over Information Technology Stock – Altium Limited
Information Technology

The IT or Information Technology sector includes of entities generating, semiconductor equipment, hardware, software, cloud computing or other services linked to internet. IT sector help the organisations to cut down on their operational costs and time which ultimately lead them towards gaining larger profits.

The 3 significant industry groups that comes under the IT sector are as follows:

  • Technology Hardware and Equipment
  • Software and Services
  • Semiconductors and Semiconductor Equipment

The technology sector offers a wide range of products and services for both businesses and customers. Consumer discretionary sector goods like mobile devices, wearable technology, home appliances, televisions etc., are constantly being developed with the help of technology and offered to the customers with new features.

Technology’s contribution

Over the course of time, there have been an emergence of various technologies that have changed the work culture, day to day activities and has made our life simpler and easier. In the contemporary era, most of the companies would not survive without utilising technology.

Let us now discuss a few technologies that has evolved over the period:

Internet of things

Internet of things (IoT) is applied by the companies demonstrating all realms of human activity. IoT is an ecosystem of connected physical items that are accessible via the internet. IoT aids an organisation in decreasing its operational cost while increasing efficiency and productivity of the employees and the company as a whole.

Artificial Intelligence

Artificial Intelligence, commonly termed as AI can perform the complex task better than its human creators. AI has been used in various products such as mobile phones, banking industry, watches, laptops etc. AI can also be used to help diagnose and avoid any potentially deadly disease before they appear on the body of a human being. It is basically changing the way we are working in the different spheres of life.

Blockchain Technology

Blockchain technology uses decentralised consensus to maintain the network. The network is not controlled by any bank, government or corporation. In the present scenario, many people tend to think that blockchain technology is limited to bitcoin, but bitcoin is just one example of blockchain application. There are numerous sectors that have been reaping the benefits of blockchain technology.

Altium Limited (ASX: ALU)

Altium Limited is the leading provider of PCB component and data management software. The company has helped many companies in designing next-generation electronic products and systems. Altium also developed a fully collaborative electronic design cloud system.

Recently on 20 November 2019, the company notified the market that Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial shareholder of the company with effect from 15 November 2019.

Altium Limited

Ms Wendy Stop (Director) Resigned with Immediate effect

On 18 November 2019, Sam Weiss (Chairman) of the company advised on the change made to the Board of the Company. Ms Stops stepped down from the post of Chair of the Board Human Resources Committee and independent Non-Executive Director with immediate effect.

Ms Stops advised Mr Sam Weiss that it was becoming increasingly difficult to commit to the Altium Board schedule and Company events because of clashes with other Board commitments and that this had been made more difficult because most Altium meetings are in the United States. The company accepted Ms Stops resignation and wished her great success in future.

To know about the change of company’s director’s interest click here

Notice of Annual General Meeting FY 2019

In October this year, the company released a notice for Annual General Meeting of shareholders to be held on 6 December 2019. The resolutions mentioned below are to be considered during the meeting;

  • Resolution 1 – Financial statements and reports
  • Resolution 2 – Remuneration Report
  • Resolution 3 – Election of directors
  • Resolution 4 – Special Business
NPAT soared by 41 per cent during FY 2019

On 19 August 2019, the company declared the financial results for the period ended 30 June 2019, a few highlights of the results are as follows:

  • The company’s revenue increased by 23 per cent to US$171.8 million compared to the previous year corresponding period (pcp).
  • Altium reported Net Profit After Tax (NPAT) of US$52.9 million, and earnings per share rose by 41 per cent from pcp.
  • Cash in hand of the company soared by 54 per cent to US$8.5 million.
  • The total number of subscribers rose by 13 percent to 43,698.
  • All business segments delivered double-digit revenue growth.
  • China delivered record revenue growth and expanded beyond Shanghai and Shenzhen to Beijing.

NPAT soared by 41 per cent during FY 2019

Outlook
  • Rise of smart connected devices continues to drive growth for the business in the foreseeable future.
  • The company is confident of achieving its 2020 target of US$200 million revenue and commits to a higher EBITDA margin floor of 37 per cent.
  • ALU is committed to the achievement of 100,000 Altium Designer subscribers before 2025.
  • The company will continue to pursue partnership and M&A opportunities to support its long-term vision.
Stock Performance

The stock of ALU last traded at $35.850 on 29 November 2019, rising by 0.476 per cent from its previous close. The company has approximately 130.97 million outstanding shares and a market cap of $4.67 billion. ALU’s 52 weeks low and high value of the stock is at $38.490 and $19.730, respectively. The stock has generated a positive return of 13.56 per cent in the last six months and a positive return of 65.11 per cent on year to date basis.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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