Slightly before midday shares in electronics design software provider, Altium Limited (ASX: ALU) were trading as much as 8% lower following the announcement of its quarterly sales and revenue.
Despite the market’s reaction, much of the news contained within the release was quite positive.
Reporting in US dollars, compared to the prior corresponding period, revenue for the second quarter jumped 23% on a constant currency basis whilst sales rose 10%.
The latest results cap off a good half-year performance for the growing technology company, with overall revenues and sales for first half of financial year (FY) 2015 rising 21% and 12%, respectively.
Perhaps the part of the announcement which spooked the market was management’s commentary.
Altium Chief Financial Officer, Richard Leon, said, “Challenging economic conditions in Europe and the weakening of the Euro against the USD have created some headwind for Altium to contend with for the remainder of FY15.”
Last financial year Altium’s EMEA (Europe, Middle East and Africa) operating division accounted for approximately 41% of revenue, up from 37% a year earlier.
“Notwithstanding this, Altium delivered strong revenue growth in the second quarter and for the half year of 17% in both instances. We continue to remain confident that our full year performance with be consistent with our expectations.” Mr Leon said.
Operating cash flow was up 17% for the half. Total cash on the balance sheet stood at $US59.1 million as at 31 December 2014.