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Why Altium and these exciting ASX tech shares are on the move today

The big four banks have been stealing the headlines on Wednesday, but they’re not only companies on the move.

A number of popular shares in the tech sector have been making a splash on the market after releasing announcements.

Here’s what has been happening:

Altium Limited (ASX: ALU)

The Altium share price is pushing higher on Wednesday after releasing a COVID-19 update. According to the release, the electronic design software company advised that market conditions are expected to be relatively resilient during the pandemic. It notes that engineers are using excess time and capacity from the slowdown in manufacturing and supply chain to revert back to prototype designs. In addition to this, it is accelerating the rollout of its new cloud platform Altium 365. This is in response to worldwide demand growing rapidly for cloud-based collaborative tools across all sectors and all regions. However, given the uncertainty caused by COVID-19, it has withdrawn its FY 2020 guidance.

ELMO Software Ltd (ASX: ELO)

The ELMO share price is up 5% to $6.09 after the release of a third quarter update by the cloud-based HR and payroll platform provider. ELMO has continued to perform strongly during the coronavirus pandemic and recorded quarterly cash receipts of $13.3 million. This was up an impressive 39.4% on the prior corresponding period. It brought its 12-month trailing cash receipts to $56.2 million, up 42.3% on the 12 months to March 2019. In light of this positive performance, it has reaffirmed its revenue and pro forma EBITDA guidance for FY 2020.

Megaport Ltd (ASX: MP1)

The Megaport share price has fallen 4% to $10.01 after returning from a trading halt. The shares of the leading provider of elastic interconnection services returned today after it raised $50 million via a fully underwritten share placement to institutional, sophisticated, and professional investors. These funds were raised at $9.50 per share, which was an 8.9% discount to its last close price. Megaport intends to use the proceeds to accelerate sales, product development, and platform expansion opportunities in the near and medium term. In addition to this, management advised that it will give the company some funding capacity for future strategic opportunities.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Elmo Software and MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.