TROY, Mich. - Altair (NASDAQ:ALTR), a prominent computational intelligence company valued at $8.97 billion, has announced a collaboration with Auburn University's Samuel Ginn College of Engineering to advance aerospace technology through a $1.25 million AFWERX Phase II STTR contract. According to InvestingPro data, Altair has demonstrated strong momentum with a 25.13% year-to-date return, though current analysis suggests the stock may be trading above its Fair Value. The partnership will focus on developing and analyzing models for cyclonic flows and vortex engines, aiming to overcome challenges faced by aerospace organizations in both public and private sectors.
The contract will build on the work of Research in Flight, a company acquired by Altair in April 2024, and its technology now integrated into the Altair® FlightStream™ tool, part of the Altair® HyperWorks® platform. With a robust financial health score rated as "GOOD" by InvestingPro analysts and revenue growth of 7.15% in the last twelve months, Altair continues to strengthen its market position through strategic acquisitions and innovations. Get access to over 30 additional financial metrics and exclusive ProTips with an InvestingPro subscription. Pietro Cervellera, senior vice president of aerospace and defense at Altair, emphasized the significance of this collaboration in continuing Altair's innovation legacy in the aerospace industry and highlighted the efficiency, accuracy, and speed that FlightStream brings to the table.
Dr. Joe Majdalani of Auburn University, along with his team, will utilize FlightStream to optimize vortex engine conditions, significantly reducing the time required for predictions. Where previous methods took approximately two weeks for each test, FlightStream can deliver predictions in minutes, marking a substantial improvement in the design and testing process.
AFWERX, the innovation arm of the United States Department of the Air Force, awarded the contract. AFWERX has been instrumental since 2019 in connecting the Air Force with innovative solutions from small businesses and startups, with over 6,200 contracts valued at more than $4.7 billion.
This collaboration is expected to yield next-generation solutions for vortex engines, enhancing the capability and stability of these systems. The partnership between Altair and Auburn University represents a significant step forward in aerospace technology, leveraging decades of experience and cutting-edge tools to transform the industry. Detailed analysis of Altair's growth potential, competitive position, and comprehensive financial metrics are available in the exclusive Pro Research Report, one of 1,400+ deep-dive reports available to InvestingPro subscribers.
The results of this project will be showcased at the American Aerospace & Defense Summit in Glendale, Arizona. For more information on FlightStream and the involved organizations, interested parties can visit Altair's and AFWERX's respective websites.
This article is based on a press release statement.
In other recent news, Altair Engineering Inc. has made significant strides in its operations. The company's Q2 2024 earnings showed a substantial increase with total revenue reaching $148.8 million and software revenue hitting $135.4 million, marking a 10.6% year-over-year increase. Additionally, Altair has entered a definitive agreement to be acquired by Siemens (ETR:SIEGn) for $10.6 billion. Following this announcement, RBC Capital increased its price target for Altair to $113, while William Blair downgraded Altair's stock from Outperform to Market Perform.
Altair has also partnered with Moya Aero to develop electric vertical takeoff and landing vehicles and unmanned aerial vehicles. This collaboration is part of Altair's Aerospace Startup Acceleration Program. Moreover, the company has teamed up with the European Space Agency to provide its aerospace technology to various European entities, aiming to support startups, companies, research centers, and universities involved with ESA in developing aerospace technologies.
These are recent developments that continue to shape Altair's trajectory in the engineering software solutions market.
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