AspenTech: Optimizing Process Manufacturing
 
  • Press Release

    Aspen Technology Announces Financial Results for the First Quarter of Fiscal 2014

    BURLINGTON, MA — October 29, 2013 — 

    Aspen Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to the process industries, today announced financial results for its first quarter of fiscal year 2014, ended September 30, 2013.

    Antonio Pietri, President and Chief Executive Officer of AspenTech, said, “AspenTech’s performance in the first quarter was a strong start to fiscal 2014 and was highlighted by low-teens year-over-year growth in total license contract value.  We continue to experience positive adoption trends for our industry leading aspenONE suite on a worldwide basis. As we look ahead to the remainder of the fiscal year, we believe that AspenTech is well positioned to continue driving an attractive combination of solid growth along with strong profitability and free cash flow.”   

    First Quarter Fiscal 2014 and Recent Business Highlights

    - The license portion of total contract value was $1.69 billion at the end of the first quarter of fiscal 2014, which increased 13.2% compared to the first quarter of fiscal 2013 and 2.5% sequentially.

    - Total contract value, including the value of bundled maintenance, was $1.98 billion at the end of the first quarter of fiscal 2014, which increased 15.3% compared to the first quarter of fiscal 2013 and 2.8% sequentially.

    - Annual spend, which the company defines as the annualized value of all term license and maintenance revenue contracts at the end of the quarter, was approximately $346 million at the end of the first quarter of fiscal 2014, which increased 11.0% compared to the first quarter of fiscal 2013 and 2.5% sequentially.

    Summary of First Quarter Fiscal Year 2014 Financial Results

    AspenTech’s total revenue of $87.6 million increased 22.5% from $71.5 million in the first quarter of the prior year. 

    - Subscription and software revenue was $78.7 million in the first quarter of fiscal 2014, an increase from $63.8 million in the first quarter of fiscal 2013. 

    - Services & other revenue was $8.9 million in the first quarter of fiscal 2014, compared to $7.7 million in the first quarter of fiscal 2013. 

    For the quarter ended September 30, 2013, AspenTech reported income from operations of $24.8 million, compared to income from operations of $9.0 million for the quarter ended September 30, 2012. 

    Net income was $15.0 million for the quarter ended September 30, 2013, leading to net income per share of $0.16, compared to net income per share of $0.05 in the same period last fiscal year. 

    Non-GAAP income from operations, which adds back stock-based compensation expense, restructuring charges and amortization of intangibles associated with acquisitions, was $29.5 million for the first quarter of fiscal 2014, compared to non-GAAP income from operations of $13.4 million in the same period last fiscal year.  Non-GAAP net income was $18 million, or $0.19 per share, for the first quarter of fiscal 2014, compared to non-GAAP net income of $7.3 million, or $0.08 per share, in the same period last fiscal year.  A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.

    AspenTech had a cash and marketable securities balance of $221.5 million at September 30, 2013, a decrease of $3.3 million from the end of the prior quarter after using $28.9 million in cash to repurchase shares of common stock. During the first quarter, the company generated $25.9 million in cash flow from operations and $24.8 million in free cash flow after taking into consideration $1.1 million in capital expenditures and capitalized software.

    Use of Non-GAAP Financial Measures

    This press release contains “non-GAAP financial measures” under the rules of the U.S. Securities and Exchange Commission. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP.  Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP.  A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.

    Management considers both GAAP and non-GAAP financial results in managing AspenTech’s business.  As the result of adoption of new licensing models, management believes that a number of AspenTech’s performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing AspenTech’s performance, growth and financial condition. Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this press release, to track AspenTech’s business performance. None of these non-GAAP metrics should be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.

    Conference Call and Webcast

    AspenTech will host a conference call and webcast today, October 29, 2013, at 4:30 p.m. (Eastern Time), to discuss the company's financial results for the first quarter fiscal year 2014 as well as the company’s business outlook. 

    The live dial-in number is (877) 245-0126 or (706) 634-5625, conference ID code 80555103. Interested parties may also listen to a live webcast of the call by logging on to the Investor Relations section of AspenTech’s website, http://www.aspentech.com/corporate/investor.cfm, and clicking on the “webcast” link. A replay of the call will be archived on AspenTech’s website and will also be available via telephone at (855) 859-2056 or (404) 537-3406, conference ID code 80555103, through November 29, 2013.

    About AspenTech
    AspenTech is a leading supplier of software that optimizes process manufacturing – for energy, chemicals, engineering and construction, and other industries that manufacture and produce products from a chemical process. With integrated aspenONE solutions, process manufacturers can implement best practices for optimizing their engineering, manufacturing and supply chain operations. As a result, AspenTech customers are better able to increase capacity, improve margins, reduce costs and become more energy efficient. To see how the world’s leading process manufacturers rely on AspenTech to achieve their operational excellence goals, visit www.aspentech.com.

    © 2013 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, and OPTIMIZE are trademarks of Aspen Technology, Inc. All rights reserved. All other trademarks are property of their respective owners.

    Forward-Looking Statements

    The second paragraph of this press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Actual results may vary significantly from AspenTech’s expectations based on a number of risks and uncertainties, including, without limitation: AspenTech’s failure to develop new software products, enhance existing products and services, or penetrate new vertical markets; demand for, or usage of, aspenONE software declines for any reason; unfavorable economic and market conditions or a lessening demand in the market for process optimization software; and other risk factors described from time to time in AspenTech’s periodic reports filed with the Securities and Exchange Commission. AspenTech cannot guarantee any future results, levels of activity, performance, or achievements. AspenTech expressly disclaims any current intention to update forward-looking statements after the date of this press release.

    Source: Aspen Technology, Inc.

     

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