SYDNEY, Australia – 5 April 2011 – Electronics design software group Altium (ASX:ALU) has announced it intends to relocate its global headquarters, including its core software development activities, corporate office and executive management team, to its existing office in Shanghai, China.
Earlier this year, Altium launched the latest release of its electronics design solution Altium Designer, which added the foundation for electronics design data management; and AltiumLive, built using Morfik technology, as Altium’s own embryonic web-based ecosystem.
Altium has long considered that there is a need for the electronics design industry to move from designing standalone devices to designing ecosystems of devices that deliver better customer experiences.
Altium considers that creating cloud-based software applications, engineered to harness the power of Internet-enabled intelligent devices, is a key part of this future. Altium also believes that its electronic design solutions, combined with the web-based application development capabilities of its Morfik web development technology, provide a powerful platform for Altium in this area. More information and background context about Altium’s view of device-based ecosystems can be seen in this paper published two years ago: What’s Next For Electronic Devices?
(Altium acquired Morfik Technology in November 2010. Details are in the announcements to the ASX dated 3 November 2010 and 16 September 2010.)
The primary motivation for the move is the group’s belief that China represents the best location and opportunity for the execution of Altium’s plan for the development of the market for tools, methodologies and systems that will help customers (companies designing and building electronic products) to transform their businesses from product-based models to a service-based approach where web-based ecosystems enable direct relationships between device end-users and device manufacturers.
Altium considers that the relocation of the group’s global headquarters and core R&D team to China will allow Altium to both contribute to, and benefit from, the next stage in the evolution of the Internet, the “Internet of Things”.
Altium plans to expand its R&D team over time by drawing on the talent pool in China. The relocation of executive and development talent will also enhance its Shanghai sales and support functions, to grow its presence and revenue in the Chinese market.
Timing and operational impact of the move
The move is not expected to have a material effect on profitability in the current financial year as cost savings are expected to be balanced by relocation costs and restructuring costs.
Subject to the completion of various formalities and due diligence, the majority of the physical move is expected to occur during the later part of Q4, 2010-2011 FY and Q1, 2011-2012 FY.The first stage of the move will involve a reorganization of the Sydney office operations including a significant reduction in staff.
This will be followed by a team of core executive, management and senior development staff relocating to Shanghai. This team will combine with the group’s existing Shanghai regional operations team to form the new global headquarters. The new headquarters is expected to become the centre of Altium’s global R&D team.
Altium will retain its Australian and New Zealand regional sales and support function in Sydney, along with a small software development team.
Altium Limited intends to retain its ASX listing along with an Australia-based company secretarial team. Altium does not expect its other regional operations in the Americas, EMEA and the rest of Asia will be materially affected by the move.
Note on forward-looking statements
Information in this announcement includes “forward-looking statements” such as statements regarding Altium’s future financials, prospects or returns. Such forward-looking statements are by their nature subject to significant uncertainties and contingencies.
