TROY, Mich., May 07, 2020 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global technology company that provides software and cloud solutions in the areas of product development, high performance computing (HPC) and data analytics, today released its financial results for the first quarter ended March 31, 2020.

“We are pleased to report a strong first quarter with revenue above our guidance range and financial performance at the high end of our expectations, despite challenging market conditions as a result of COVID-19,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “We transitioned quickly to a remote work environment and are supporting our customers through innovative solutions such as hosted units, temporary licenses and online training and webinars. Moreover, we introduced two new product releases in the quarter and added 20% more customers than in the same period a year ago.”  Scapa added, “Having been in business for over 35 years, we have been through multiple economic cycles. Not only have we performed well during those difficult times, but we have emerged with a stronger market position due to the value we bring to our customers.”

“While our software renewals are coming in as expected and we see many new and expansion opportunities as well as growing interest for our products, we are experiencing elongated sales cycles, particularly in the automotive and aerospace end markets, as well as currency headwinds as a result of COVID-19,” said Howard Morof, Chief Financial Officer of Altair. “In light of these factors and increasing uncertainty related to the economic impact of the pandemic, we believe it is prudent to temper our expectations for the year and are reducing our guidance for 2020.  We maintain a strong balance sheet with a solid cash position and believe we are well positioned to resume above market growth when economic conditions normalize.”  

First Quarter 2020 Financial Highlights

• Software product revenue was $108.4 million, an increase of 5% from $103.3 million for the first quarter of 2019.
• Total revenue was $131.5 million, an increase of 3% from $127.9 million for the first quarter of 2019.
• Net income was $6.0 million, compared to net income of $13.0 million for the first quarter of 2019. Diluted net income per share was $0.08 based on 77.0 million diluted weighted average common shares outstanding, compared to diluted net income per share of $0.17 for the first quarter of 2019, based on 76.7 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $21.7 million, compared to $24.0 million for the first quarter of 2019. 
• Non-GAAP net income was $12.7 million, compared to non-GAAP net income of $17.7 million for the first quarter of 2019. Non-GAAP diluted net income per share was $0.16 based on 78.4 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.23 for the first quarter of 2019, based on 77.0 million non-GAAP diluted common shares outstanding.
• Free cash flow was $26.4 million, compared to $20.7 million for the first quarter of 2019.

Business Outlook

Based on information available as of today, Altair is issuing guidance for the second quarter and full year 2020.