ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Revenue | ||||||||||||||||
| License | $ | 51,018 | $ | 56,653 | $ | 128,561 | $ | 133,274 | ||||||||
| Maintenance and other services | 30,815 | 27,755 | 61,715 | 54,425 | ||||||||||||
| Total software | 81,833 | 84,408 | 190,276 | 187,699 | ||||||||||||
| Software related services | 5,444 | 7,907 | 12,378 | 17,679 | ||||||||||||
| Total software and related services | 87,277 | 92,315 | 202,654 | 205,378 | ||||||||||||
| Client engineering services | 9,640 | 12,412 | 23,518 | 24,462 | ||||||||||||
| Other | 1,644 | 2,046 | 3,852 | 4,792 | ||||||||||||
| Total revenue | 98,561 | 106,773 | 230,024 | 234,632 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| License | 2,851 | 2,954 | 8,374 | 8,775 | ||||||||||||
| Maintenance and other services | 8,502 | 9,430 | 18,957 | 17,961 | ||||||||||||
| Total software * | 11,353 | 12,384 | 27,331 | 26,736 | ||||||||||||
| Software related services | 4,656 | 6,612 | 10,145 | 13,130 | ||||||||||||
| Total software and related services | 16,009 | 18,996 | 37,476 | 39,866 | ||||||||||||
| Client engineering services | 7,789 | 10,033 | 19,107 | 19,833 | ||||||||||||
| Other | 1,283 | 1,994 | 2,995 | 4,209 | ||||||||||||
| Total cost of revenue | 25,081 | 31,023 | 59,578 | 63,908 | ||||||||||||
| Gross profit | 73,480 | 75,750 | 170,446 | 170,724 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development * | 28,970 | 29,829 | 60,437 | 57,345 | ||||||||||||
| Sales and marketing * | 25,806 | 26,221 | 53,905 | 52,672 | ||||||||||||
| General and administrative * | 20,248 | 19,851 | 42,594 | 40,180 | ||||||||||||
| Amortization of intangible assets | 3,692 | 3,600 | 7,532 | 7,128 | ||||||||||||
| Other operating income, net | (944 | ) | (549 | ) | (1,835 | ) | (1,166 | ) | ||||||||
| Total operating expenses | 77,772 | 78,952 | 162,633 | 156,159 | ||||||||||||
| Operating (loss) income | (4,292 | ) | (3,202 | ) | 7,813 | 14,565 | ||||||||||
| Interest expense | 2,843 | 590 | 5,656 | 860 | ||||||||||||
| Other expense (income), net | 320 | (505 | ) | (1,070 | ) | (115 | ) | |||||||||
| (Loss) income before income taxes | (7,455 | ) | (3,287 | ) | 3,227 | 13,820 | ||||||||||
| Income tax expense (benefit) | 2,768 | (167 | ) | 7,420 | 3,921 | |||||||||||
| Net (loss) income | $ | (10,223 | ) | $ | (3,120 | ) | $ | (4,193 | ) | $ | 9,899 | |||||
| (Loss) income per share: | ||||||||||||||||
| Net (loss) income per share attributable to common
stockholders, basic | $ | (0.14 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | 0.14 | |||||
| Net (loss) income per share attributable to common
stockholders, diluted | $ | (0.14 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | 0.13 | |||||
| Weighted average shares outstanding: | ||||||||||||||||
| Weighted average number of shares used in computing
net (loss) income per share, basic | 72,999 | 71,373 | 72,811 | 71,081 | ||||||||||||
| Weighted average number of shares used in computing
net (loss) income per share, diluted | 72,999 | 71,373 | 72,811 | 77,017 | ||||||||||||
* Amounts include stock-based compensation expense as follows (in thousands):
