Circuit breaker- The Electronics design software company delivering Double- Digit EPS growth & Sales in FY15

Altium (ASX. ALU): Reported its 3Q15 result last week; announced 3Q15 revenue growth of 10% to US$18.5m, which compares favorably to our 2H15 target of 9%. Revenue is tracking to our expectations, whilst sales was ahead of forecast which points to ongoing momentum in 4Q15 and into FY16F. The company recorded good performances with license sales (new customers) and subscription sales (customer renewals/retention). By region, the Americas were strong with 29% growth and in line with our target for the region. EMEA bounced back to deliver 25% growth in local currency (12% 2Q15), although the translation to USD would have been a headwind (we estimate USD revenue growth was 3%). We have upgraded our EPS forecasts by ~2% & 5% in FY15 & FY16 respectively. We believe ongoing double digit revenue growth and good cost constraint will drive substantial earnings leverage for ALU. Acquisitions continue to be the focus - With ~$62m of cash on balance sheet for strategic acquisitions that will be EPS accretive. (VIEW LINK)