Altium (ASX: ALU) is holding its AGM today, as part of the proceedings it gave guidance for FY20.

Altium is an Australian multinational software business that was founded in 1985. It now has offices globally in places like San Diego, New York, Boston, Munich, Shanghai, Tokyo and Sydney. Its software focuses on electronics design systems for 3D PCB design and embedded system development. Its services include Altium Designer, Altium Vault, CircuitStudio, CircuitMaker, TASKING and Octopart.

Altium’s AGM

FY19 Recap

Altium management reminded investors of the long term growth that it has already achieved.

It’s also focused on the future with three clear goals:

Scale up its transactional sales capacity and expand its market reach in all geographies and to all segments of the market.

Aggressively grow and drive adoption of its new cloud platform, Altium 365.

Move from a mindset of “features and functions” to one of “user experience and productivity”.

In FY19 Altium grew revenue by 23% and net profit increased by 41%. It also grew its Altium Designer seats by 27% to 43,600 subscribers. Net cash improved 54% to US$80.5 million and the dividend increased by 26% to AU$0.34 per share.

Product Updates

Altium said that in regards to the ongoing trade war between the US and China, management “do not see any material risk to Altium at the present time.”

Management said that its NEXUS product, for the agile enterprise market, continues to ramp up in line with its expectations. It has rolled out implementation services specifically designed for customers to execute its NEXUS solution. It has a large number of important reference accounts in development in various industries. Altium believes NEXUS will have a significant revenue contribution from 2021.

TASKING has continued to perform well during FY20 and is benefiting from being the number one supplier of compiler software for Infineon (the large European semiconductor manufacturer) for its Aurix Tricore chip set for the automotive industry.

Altium said that Octopart is taking its electronic parts search engine to a position of market dominance. However, Altium warned this growth has “slowed down considerably” because of a global downturn and a temporary impact from a change to the Google search algorithm.

Altium 365 is important for Altium because it aims to conn

FY20 Guidance

Altium has long had a goal of US$200 million. This year it is guiding for revenue in the range of US$205 million to US$215 million. This compares to revenue of US$171.8 million in FY19, which is an increase of 19.3% to 25.1%.

The company is also guiding that the EBITDA margin will be in the range of 37% to 38%. In FY19 the EBITDA margin was 36.5%, so an improvement of at least 0.5% is expected.

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Disclosure: Jaz owns shares of Altium at the time of writing, but this could change at any time.