Aconex Limited (ASX: ACX)

Solid Revenue Growth for 1HFY18: Aconex released its first half results for FY 18 and reflected a strong international performance, particularly in the high-growth markets of Asia and Americas. Total revenue for the half-year ended 31 December 2017 grew 13% and amounted to $86.9 million as compared to $77.0 million in six months to 31 December 2016. New business wins and the ongoing conversion of project customers to enterprise agreements drove a 10% uplift in Australia and New Zealand (ANZ) revenue which increased to $27.8 million in 1HFY18. On a constant currency basis, revenues generated outside of the ANZ region increased by 16% and amounted to $59.1 million and represented 69% of the total revenue for six months ending 31 December 17. EBITDA from core operations, excluding acquisition and integration cost increased by 23% and amounted to $9.1 million as compared to $7.4 million in the prior corresponding period. Gross cash receipts from customers were $87.7 million for the first half that is an uplift of 5% on the prior corresponding period. First half revenue from enterprise agreements accounted to 69% of ANZ revenue as compared to 65% in 1H17. ACX also entered into a binding Scheme Implementation Deed with Oracle under which it proposed that Oracle will acquire 100% of the issued shares of Aconex for A$7.80 per share in cash. The shareholder meeting to vote on the proposed acquisition of ACX by Oracle Corporation, through its wholly owned subsidiary Vantive Australia Pty Ltd, via a scheme of arrangement has been scheduled on 14 March 2018. While the stock trades at a higher level, we give an “Expensive” recommendation at the current market price of $7.75
 

Performance Trend (Source: Company Reports)
 

Altium Limited (ASX: ALU)

Growing Momentum continues: Up 26.7% on February 20, 2018, Altium achieved a record revenue growth of 30% for the first half of FY18 that reached US$63.2 million and expanded profit margins to record levels with EBITDA over 30%. There was a 51% increase in net profit after tax to US$14.9 million. Octopart continued to perform well and delivered 42% of growth in revenue. EPS grew by 50% from US 7.64 cents in first half of 2018 to US11.48 cents. Interim Dividend was AU13 cents that is up by 18% on pcp basis. Its strong operating cash flow enabled Altium to end the half year with a cash balance of US$36 million after completing the Upverter acquisition for US$2.8 million in August. The Company will continue to drive its new licenses and subscription pool aggressively in its core PCB business that is supported by the company’s next generation products and further systematization of its direct sales methodology. Moreover, 1H 2018 results are in line with the company’s expectations and has built momentum towards the achievement of the 2020 revenue target of US$200 million and a margin of 35% or better. The company’s share prices increased by 72% in the past six months and the stock looks “Expensive” at the current price of $18.88
 

Revenue Trend (Source: Company Reports)

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