TROY, Mich. - Altair (Nasdaq: ALTR), a company specializing in computational intelligence, has announced a collaboration with the European Space Agency (ESA) to provide its aerospace technology to various European entities. This agreement, part of the ESA Partnership Initiative for Commercialisation (EPIC), aims to support startups, companies, research centers, and universities involved with ESA in developing aerospace technologies.
The collaboration was formalized through a letter of intent that grants access to Altair's HyperWorks and RapidMiner platforms. These tools, which offer simulation, artificial intelligence (AI), and data analytics capabilities, are expected to help organizations accelerate the development and testing of their products. The initiative particularly targets ESA-supported startups, allowing them to create minimum viable products (MVPs) more efficiently, a crucial step in securing funding and advancing toward commercialization.
Pietro Cervellera, Altair's senior vice president of aerospace and defense, expressed enthusiasm for the partnership, highlighting the shared pioneering spirit of Altair and ESA in the aerospace sector. The alliance is intended to facilitate the exploration of disruptive ideas and contribute to a safer and more sustainable aerospace industry.
Joana Kamenova, EPIC lead at ESA, underscored Altair's nearly four decades of industry expertise and the significance of making its technology accessible to organizations across Europe. The initiative is poised to help usher in a new era of space innovation.
EPIC, established in 2022, connects corporate, academic, and institutional partners with ESA-supported startups to encourage entrepreneurship and streamline the commercialization process. The network includes ESA Business Incubation Centres (ESA BICs), ESA Technology Brokers, and other innovation programs, supporting hundreds of startups.
This partnership reinforces Altair's role as an influential player in the aerospace industry and its commitment to fostering innovation. By offering its technology and consulting expertise, Altair aims to assist aerospace organizations in adapting to the digital landscape and scaling solutions across their operations.
For additional information on Altair's aerospace offerings and the EPIC program, interested parties can visit their respective websites. This collaboration is based on a press release statement issued by Altair.
In other recent news, Altair Engineering Inc. has been making significant strides in its business operations. The company's Q2 2024 earnings showed a notable increase, with total revenue reaching $148.8 million and software revenue hitting $135.4 million, marking a 10.6% year-over-year growth. This growth was primarily driven by a robust performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024.
Altair has entered a definitive agreement to be acquired by Siemens (ETR:SIEGn) for $10.6 billion, a move that RBC Capital believes warrants an increase in its stock price target to $113. William Blair, however, downgraded Altair's stock from Outperform to Market Perform following the acquisition announcement.
In the realm of technological advancements, Altair, in collaboration with the Technical University of Munich, achieved a breakthrough in quantum computing, particularly in computational fluid dynamics. This development could notably increase the model size and scalability of simulations compared to classical computing methods.
Matrix Capital Management has decided to maintain its full investment position in Altair, signaling confidence in the company's long-term strategic value. These are the recent developments that continue to shape Altair's trajectory in the engineering software solutions market.
InvestingPro Insights
Altair's collaboration with the European Space Agency underscores the company's commitment to innovation in the aerospace sector. This strategic move aligns well with Altair's recent financial performance and market position.
According to InvestingPro data, Altair's market capitalization stands at $8.86 billion, reflecting its significant presence in the computational intelligence space. The company's revenue growth of 13.02% in the most recent quarter (Q3 2024) demonstrates its ability to expand its business, which could be further bolstered by this new partnership with ESA.
Altair's gross profit margin of 81.29% for the last twelve months as of Q3 2024 indicates a strong ability to generate profit from its core business activities. This robust profitability could provide the financial flexibility needed to support innovative projects and partnerships like the one with ESA.
An InvestingPro Tip suggests that Altair's revenue growth has been accelerating, which aligns with the company's strategic moves to expand its reach in the aerospace sector. This partnership with ESA could potentially contribute to maintaining or even accelerating this growth trend.
Another relevant InvestingPro Tip notes that Altair's stock price has outperformed the S&P 500 in the past year. The company's one-year price total return of 48.51% as of the latest data point significantly outpaces the broader market, suggesting investor confidence in Altair's strategic direction and growth potential.
For readers interested in a deeper analysis, InvestingPro offers 14 additional tips for Altair, providing a comprehensive view of the company's financial health and market position.
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