Altair released its financial results for the second quarter ended June 30, 2018.
"Altair's strong second quarter results exceeded our revenue and profitability expectations and reflect continued business momentum," said James Scapa, Founder, Chairman and CEO. "Our performance is benefitting from growing market demand for CAE solutions that greatly enhance product design across a growing number of industries."
Scapa continued, "We are seeing the positive impact our organic and inorganic investments are having across the business. As we move into the second half of 2018 and beyond, we are confident Altair is well positioned to generate a compelling combination of strong revenue growth and expanding profitability."
Second Quarter 2018 Financial Highlights
- Software product revenue was $72.8 million, an increase of 22% from $59.6 million for the second quarter of 2017.
- Total revenue was $95.6 million, an increase of 17% compared to $81.6 million for the second quarter of 2017.
- GAAP net income was $1.5 million, compared to net loss of $(7.2) million for the second quarter of 2017. Diluted net income per share was $0.02, based on 73.4 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.14) for the second quarter of 2017, based on 50.4 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $7.3 million, compared to $4.1 million for the second quarter of 2017. Adjusted EBITDA represents net income (loss) adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management.
- Non-GAAP net income was $3.9 million, compared to $5.1 million for the second quarter of 2017. Non-GAAP net income per share was $0.05, based on 77.0 million non-GAAP diluted common shares outstanding, compared to $0.08 for the second quarter of 2017, based on 62.1 million non-GAAP diluted common shares outstanding. Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions and certain tax adjustments.
- Cash flow from operations was $10.6 million, compared to $6.9 million for the second quarter of 2017.
- Free cash flow, which consists of cash flow from operations less capital expenditures, was $9.2 million compared to $5.5 million for the second quarter of 2017.
