Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2014
Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to
the process industries, today announced financial results
for its third quarter of fiscal year 2014, ended March 31, 2014.
delivered a strong third quarter performance that exceeded our guidance across
all key metrics. Total license contract
value growth year-over-year was over 13% in the third quarter as we continued
to see solid customer demand and usage patterns,” said Antonio Pietri, President
and Chief Executive Officer of AspenTech.
added, “Our solid top-line performance and continued expense discipline enabled
us to scale our free cash flow generation, which was a quarterly record at over
$70 million in the third quarter. We are
focused on continuing to use our free cash flow to enhance shareholder value
through share buybacks and targeted M&A.”
Third Quarter Fiscal 2014 and Recent Business
The license portion of total contract value was $1.79
billion at the end of the third quarter of fiscal 2014, which increased 13.6% compared
to the third quarter of fiscal 2013 and 2.7% sequentially.
Total contract value, including the value of bundled
maintenance, was $2.1 billion at the end of the third quarter of fiscal 2014, which
increased 15.4% compared to the third quarter of fiscal 2013 and 3.0% 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 $368 million at the end of the third
quarter of fiscal 2014, which increased 14.2% compared to the third quarter of fiscal
2013 and 3.3% sequentially.
Summary of Third Quarter Fiscal
Year 2014 Financial Results
AspenTech’s total revenue of $103.6 million
increased 30.5% from $79.4 million in the third quarter of the prior fiscal year.
the quarter ended March 31, 2014, AspenTech
reported income from operations of $31.4 million,
compared to income from operations of $16.3 million for the quarter ended March
Net income was $20.8 million for the quarter ended March 31, 2014, leading to net
income per share of $0.22, compared to net income per share of $0.11 in the same period
last fiscal year.
from operations, which adds back stock-based compensation expense, restructuring
charges, amortization of intangibles associated with acquisitions and
non-capitalized acquired technology, was $40.0 million for the third quarter of fiscal 2014, compared to non-GAAP
income from operations of $20.0 million in the same period last fiscal
year. Non-GAAP net income was $26.4 million,
or $0.28 per share, for the third
quarter of fiscal 2014, compared to non-GAAP net income of $12.9 million, or $0.14
per share, in the same period last fiscal year.
had cash and marketable securities of $274.9
million at March 31, 2014, an increase of $39.2 million from the end of the
prior quarter after using $30.0 million in cash to repurchase shares of common
stock. During the third quarter, the
company generated $69.6 million
in cash flow from operations. On a non-GAAP basis, cash flow from operations
was $73.5 million and free cash flow was $72.5 million after taking into
consideration $1.0 million in
capital expenditures and capitalized software. Both non-GAAP figures exclude
the $3.9 million cash payment associated with the purchase of non-capitalized
acquired technology. A reconciliation of GAAP to non-GAAP results is included
in the financial tables included in this press release.
Board of Directors Approves $200 Million Share
AspenTech's Board of Directors approved a share
repurchase program for up to $200 million. This program replaces the company’s
existing share repurchase program, which had approximately $45 million
remaining as of March 31, 2014. The timing and amount of any shares repurchased
will be determined by AspenTech based on its evaluation of market conditions
and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which
would permit shares to be repurchased when AspenTech might otherwise be
precluded from doing so under applicable insider trading laws and regulations.
The repurchase program may be suspended or discontinued at any time.
Use of Non-GAAP Financial Measures
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.
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
will host a conference call and webcast today, April 29, 2014, at 4:30 p.m.
(Eastern Time), to discuss the company's financial results for the third 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 27742389.
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 27742389,
through May 29, 2014.
a leading supplier of software that optimizes process manufacturing – for
energy, chemicals, pharmaceuticals, 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.
The third 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.
© 2014 Aspen
Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, Aspen Plus and Aspen
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