Electronics design software company, Altium Limited (ASX: ALU), today announced another strong set of quarterly sales results.
During the third quarter reporting period ending 31 March 2015, Altium reported revenue of $US18.5 million, an increase of 10% over the prior corresponding period, with sales climbing to $US20.5 million, up 13%.
Revenue by region was impressive, with Americas and European revenues climbing 29% and 25%, respectively.
Commenting on the results Altium Chief Financial Officer, Richard Leon, said the company continued to see solid growth in the Americas and pointed to robust European sales, despite adverse currency movements.
Mr Leon said: “We expect the EMEA region to continue to operate at a level of sales and revenue that will reduce the impact from a weakened Euro currency.”
Revenues from China fell 10% (off a small base) during the period but the company continues to see “significant opportunity” in the super-sized economy, and the broader Asia region.
Pleasingly, Altium’s operating costs were in line with expectations, with strong cash flow from operations increasing cash on hand by 5% to $US61.9 million, or approximately 15% of the company’s current market capitalisation.
Should you buy Altium shares?
Despite Altium’s share price almost doubling in the past year and rising an incredible 1,700% in the past five years, there are reasons to believe it could climb higher. Indeed, the company today said: “We remain confident of achieving our full year FY15 objective of delivering double digit growth in sales and revenue.”
So whilst shares trade at 33 times last year’s profits, long-term investors should look to capitalise on any meaningful setback in share price to take advantage of its consistent growth trend. It is also currently offering a dividend yield of 3.3%!