Printed circuit boards are a hugely underappreciated technology. PCBs are, quite literally, at the heart of many of the electronic devices in our homes, things we use every day. If you open up a TV remote, look inside your doorbell, or even inside your kid’s calculator, you will find a PCB.
Given their ubiquity, it is not all that surprising that the PCB industry is huge. But it isn’t just the manufacturers and retailers that are making a killing in this market. Altium is a business that has established itself as perhaps the name in PCB design software.
The Altium Magic
CAD software is notoriously difficult to use without training or instruction, which makes it all the more impressive that Altium’s offering has become a firm favourite amongst businesses both large and small, in no small part because of how user-friendly it is.
Not only this, but because the majority of students who learn how to do PCB design at university are taught to use Altium, it has become the de-factoindustry standard.
However, in spite of Altium’s seemingly unassailable position, chief executive Aram Mirkazemi turned more than a few heads last year when he announced his company was shooting for annual revenue of $500 million by 2025 – a figure that would put Altium right at the top of their field.
But, here we are, one year on, and Mirkazemi’s ambitious goal is looking like an increasingly realistic target. Market analysts and investors alike have been rallying around the chief executive on the back of a very strong performance over the last year.
According to Stuart Turner, an analyst with Blue Ocean Equities, Altium is on target to hit a stock price of $53. Turner’s prediction is higher than most other analysts, Altium’s stock closed out last week at $36.17, but he is far from the only person predicting great successes for Altium in the near future.
The optimism around Altium has persisted in spite of the business missing the analysts’ consensus for the last financial year, with slightly lower revenue and profit growth than many had predicted. However, as important as these numbers are, they don’t tell the whole story about how a business is performing or what it’s potential for the future is.
Despite coming in below expectations, Altium grew by 23% last year, bringing its total revenue for the year up to $171.8 million. This represents $52.9 million net profit, a 41% increase on the year before. These figures are only just shy of the predicted $53.6 million net profits from $173.8 million in revenue.
As Mr. Turner pointed out – while missing these metrics, Altium has not had to alter its medium and long term plans and confidence in the business remains high. A fact evidenced by a 12% jump in the share price in the last week alone. Clearly, investors are not worried about a slight underperformance in terms of revenue.
If there is one business in the CAD software industry that could hit such ambitious targets, it is Altium. The business has continued to move from strength to strength and is showing no signs of slowing down.