Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2016
Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to
the process industries, today announced financial results
for its second quarter of fiscal year 2016, ended December 31, 2015.
Pietri, President and Chief Executive Officer of AspenTech, said, “AspenTech
delivered solid second quarter results highlighted by continued year-over-year non-GAAP
operating margin expansion and strong cash generation. Despite the macro
environment, we continued to perform well, particularly in the downstream
energy and chemicals businesses.”
added, “The Engineering & Construction and midstream and upstream energy
vertical markets have become more challenging, as decreasing oil prices and
continued market uncertainty have impacted demand due to lower CapEx and
operating budgets. However, because of
the mission-critical nature of our solutions and the significant value we
deliver for customers, we believe we remain well-positioned to continue to generate
growth in this environment. In addition, over the long term, we believe the
opportunity to drive increased usage of the aspenONE® suite combined
with our business model will position us to continue to generate strong levels
of profitability and cash flow.”
Second Quarter Fiscal 2016 and Recent Business
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 $430 million at the end of the second
quarter of fiscal 2016, which increased 7.6% compared to the second quarter of
fiscal 2015 and 1.6% sequentially.
GAAP operating margin was 47.3%, compared to 43.2%
in the second quarter of fiscal 2015.
Non-GAAP operating margin was 51.1%, compared to 46.6% in the second
quarter of fiscal 2015.
Summary of Second Quarter Fiscal
Year 2016 Financial Results
AspenTech’s total revenue of $119.2 million
increased 10.5% from $107.8 million in the second quarter of the prior
the quarter ended December 31, 2015, AspenTech
reported income from operations of $56.3 million,
compared to income from operations of $46.5 million for the quarter ended December
Net income was $36.7 million for the quarter ended December 31, 2015, leading to net
income per share of $0.44, compared to net income per share of $0.34 in the same period
last fiscal year.
from operations, which adds back stock-based compensation expense, amortization
of intangibles associated with acquisitions, acquisition-related costs and
non-capitalized acquired technology, was $60.9 million for the second quarter
of fiscal 2016, compared to non-GAAP income from operations of $50.2 million in
the same period last fiscal year.
Non-GAAP net income was $39.6
million, or $0.47 per share, for
the second quarter of fiscal 2016, compared to non-GAAP net income of $32.8
million, or $0.36 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.
had a cash and marketable securities balance of $200.6 million at December 31, 2015, an increase of $19.1 million from the end of the prior
During the second
quarter, the company generated $20.7 million
in cash flow from operations and $20.3 million in free cash flow after taking
into consideration the net impact of $0.7
million in capital expenditures and capitalized software and $0.3
million in excess tax benefits from stock-based compensation.
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, January 28, 2016, at 4:30 p.m.
(Eastern Time), to discuss the company's financial results for the second quarter
fiscal year 2016 as well as the company’s business outlook.
The live dial-in number is (877) 245-0126or
(706) 634-5625, conference ID code 24090138.
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 24090138, through February 28, 2016.
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.
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 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; AspenTech’s failure to
consummate its proposed acquisition of KBC Advanced Technologies plc, or
successfully integrate the business or realize the anticipated benefits if
consummated; 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.
© 2016 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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