Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2015
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 2015, ended March 31, 2015.
delivered strong third quarter financial results that exceeded our guidance
across all key metrics. Total license
contract value grew 13.2% year-over-year in the third quarter, which
underscores the continued need of customers to improve the efficiency of their
operations,” said Antonio Pietri, President and Chief Executive Officer of
added, “Our disciplined approach to expense management is driving strong profit
margins and cash flow generation, which provided the flexibility to repurchase
approximately $108 million of our common stock. We believe the combination of
continued top and bottom line growth and returning capital to shareholders can
generate long-term value.”
Third Quarter Fiscal 2015 and Recent
The license portion of total contract value was
$2.03 billion at the end of the third quarter of fiscal 2015, which increased
13.2% compared to the third quarter of fiscal 2014 and 3.1% sequentially.
Total contract value, including the value of bundled
maintenance, was $2.41 billion at the end of the third quarter of fiscal 2015,
which increased 14.1% compared to the third quarter of fiscal 2014 and 3.2%
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 $411.6 million at the end of the third quarter of
fiscal 2015, which increased 11.9% compared to the third quarter of fiscal 2014
and 2.9% sequentially.
GAAP operating margin was 37.5%, compared to 30.3%
in the third quarter of fiscal 2014.
Non-GAAP operating margin was 43.7%, compared to 38.6% in the third
quarter of fiscal 2014.
We repurchased nearly three million shares of our
common stock for $107.7 million in the third quarter of fiscal 2015.
Summary of Third Quarter
Fiscal Year 2015 Financial Results
AspenTech’s total revenue of $111.3
million increased 7.4% from $103.6 million in the third quarter of the prior fiscal
the quarter ended March 31, 2015, AspenTech
reported income from operations of $41.7
million, compared to income from operations of $31.4 million for the quarter
ended March 31, 2014.
Net income was $28.2 million for the quarter ended March 31, 2015, leading to net
income per share of $0.32, compared to net income per share of $0.22 in the same period
last fiscal year.
income from operations, which adds back stock-based compensation expense,
restructuring charges, amortization of intangibles associated with acquisitions
and non-capitalized acquired technology, was $48.7 million for the third quarter of fiscal 2015, compared to
non-GAAP income from operations of $40.0 million in the same period last fiscal
year. Non-GAAP net income was $32.6 million, or $0.37 per share, for the third quarter
of fiscal 2015, compared to non-GAAP net income of $26.4 million, or $0.28 per
share, in the same period last fiscal year.
had cash and marketable securities of $225.0
million at March 31, 2015, a decrease of $31.5 million from the end of the prior quarter after using $107.0 million in cash to repurchase
shares of common stock.
third quarter, the company generated $64.6
million in cash flow from operations. On a non-GAAP basis, cash flow from
operations was $81.4 million and
free cash flow was $79.7 million
after taking into consideration $1.8
million in capital expenditures and capitalized software.
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
host a conference call and webcast today, April 28, 2015, at 4:30 p.m. (Eastern
Time), to discuss the company's financial results for the third quarter fiscal
year 2015 as well as the company’s business outlook.
The live dial-in number is (866) 604-6127 or
(706) 634-5625, conference ID code 21858768.
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 21858768,
through May 28, 2015.
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.
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 increase usage and product adoption of aspenONE
offerings, and failure to continue to provide innovative, market-leading
solutions; 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 obligation
to update forward-looking statements after the date of this press release.
© 2015 Aspen
Technology, Inc. AspenTech, aspenONE and
the Aspen leaf logo are registered trademarks of Aspen Technology, Inc. All
rights reserved. All other trademarks are property of their respective owners.
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