Aspen Technology Announces Financial Results for the Third 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 third quarter of fiscal year 2016, ended March 31, 2016.
Pietri, President and Chief Executive Officer of AspenTech, said, “AspenTech
delivered third quarter results that exceeded expectations on both the top and
bottom line, highlighted by a 50% non-GAAP operating margin. Although certain market and geographic
segments continue to be challenging, overall we believe we remain well
positioned to deliver a year of positive growth in the current environment.”
added, “Today we are also announcing that AspenTech’s Board of Directors has
approved a $400 million dollar expansion to our share repurchase program, which
we intend to use in its entirety during fiscal 2017. This announcement demonstrates the strength
and predictability of our cash flow and balance sheet, and underscores our
commitment to deploy our substantial financial resources to produce value for
Third 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 $431 million at the end of the third
quarter of fiscal 2016, which increased 4.6% compared to the third quarter of
fiscal 2015 and was flat sequentially.
GAAP operating margin was 42.5%, compared to 37.5%
in the third quarter of fiscal 2015.
Non-GAAP operating margin was 49.7%, compared to 43.7% in the third
quarter of fiscal 2015.
We repurchased approximately 1.4 million shares of
our common stock for $50.0 million in the third quarter of fiscal 2016.
Summary of Third Quarter Fiscal
Year 2016 Financial Results
AspenTech’s total revenue of $119.2 million
increased 7.1% from $111.3 million in the third quarter of the prior fiscal
the quarter ended March 31, 2016, AspenTech
reported income from operations of $50.7 million,
compared to income from operations of $41.7 million for the quarter ended March
Net income was $33.2 million for the quarter ended March 31, 2016, leading to net
income per share of $0.40, compared to net income per share of $0.32 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 $59.3 million for the third quarter of
fiscal 2016, compared to non-GAAP income from operations of $48.7 million in
the same period last fiscal year.
Non-GAAP net income was $40.9
million, or $0.49 per share, for
the third quarter of fiscal 2016, compared to non-GAAP net income of $32.6
million, or $0.37 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 $105.9 million at March 31, 2016, a decrease of $94.6 million from the end of the prior
During the third
quarter, the company generated $69.7 million
in cash flow from operations and $77.2 million in free cash flow.
Board of Directors Approves $400
Million Expansion of Share Repurchase Program
AspenTech's Board of Directors has approved a $400 million
expansion to our existing share repurchase program. This expansion is in
addition to the $196 million that remained on the plan as of March 31, 2016.
Based on current market conditions and business outlook, it is the Company’s current
intent to repurchase $400 million worth of stock during fiscal 2017. 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
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 28, 2016, at 4:30 p.m.
(Eastern Time), to discuss the company's financial results for the third quarter
fiscal year 2016 as well as the company’s business outlook.
The live dial-in number is (866) 604-6127or
(706) 634-5625, conference ID code 90329492.
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 90329492, through May 27, 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 second and third paragraphs (as well as the first paragraph
under “Board of Directors
Approves $400 Million Expansion of Share Repurchase Program”) of this press release contain 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.
© 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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