Coronavirus and China trade war slow Altium's growth
Summary
Prior to the results being released after market on Monday, the company hit a new share price high of $42.76, before edging lower to close at $42.63. Altium chief financial officer Jo Bedewi said it was too early to tell how significant the impact of the coronavirus would be, but it was employing mitigating strategies, like running online training sessions for customers, to try and limit it. The company has been scaling up its operations in China in recent years and the region was a standout performer in the first half, with the highest revenue growth by geography of 27 per cent. Of concern to analysts on the investor call on Monday was the status of Altiums ongoing negotations with Dassault Systèmes over a potentially partnership to bring to market a joint product. Mr Mirkazemi likened the establishment of the commercial partnership to climbing Everest, saying the companies had made it through the ascent, but the greatest chance of death came on the descent.
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