Shares of Altair Engineering (NASDAQ:ALTR) have gotten crushed today, down by 18% as of 1:40 p.m. EST, after the company reported third-quarter earnings. The engineering software and services provider also said it would be acquiring DEM Solutions.
Revenue in the third quarter increased 18% to $100.4 million, which led to an adjusted net loss of $7.2 million, or $0.09 per share. Analysts were expecting the company to post a profit of $0.05 per share. Altair has purchased DEM Solutions, which makes Discrete Element Method (DEM) software for bulk material simulation, but no financial terms were disclosed.
"Our core simulation and optimization technologies performed well during the quarter and we are highly encouraged by strong demand for our SimSolid product, which has had one of the fastest new product ramps in our history," CEO James Scapa said in a statement. "We are also pleased to see continued strong recurring software subscription revenues."
Altair issued guidance that was shy of analyst expectations, with total revenue in the fourth quarter expected to be $105 million to $109 million, which should result in adjusted net income of $2.2 million to $4.2 million. Wall Street was expecting the company to generate $126.2 million in sales.
Scapa added, "While we are seeing some macro headwinds in our automotive market and continue to be impacted by foreign exchange challenges, our diversification across multiple verticals and products provides us with optimism that our momentum will continue into 2020 and beyond."