Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2016
Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to
the process industries,today announced financial results for its fourth quarter and fiscal year
ended June 30, 2016.
reported a solid fourth quarter and fiscal year 2016,” said Antonio Pietri,
President and Chief Executive Officer of AspenTech. “We saw strong demand among
our owner-operator customers during the quarter, including a significant upsell
and a large renewal with two of the top oil and chemicals companies in the
world. These transactions show the value we deliver for customers and our
ability to generate growth in a challenging economic environment.”
added, “Our scalable business model and disciplined approach to investing for
growth while prudently managing expenses delivered another year of solid profitability
and free cash flow. Our balance sheet and cash flow are strategic assets that
we are leveraging to invest in areas that drive growth in the business and to fund
our share repurchase program to deliver significant value to our shareholders.”
Fourth Quarter and Fiscal Year 2016
Annual spend, which the company defines as the
annualized value of all term license and maintenance contracts at the end of
the quarter, was $441 million at the end of fiscal 2016, an increase of 2.5%
from March 31, 2016 and 5.3% from the end of fiscal 2015.
GAAP operating margin was 43.1% in the fourth
quarter of fiscal 2016, compared to 41.1% in the fourth quarter of fiscal 2015. Non-GAAP operating margin was 46.1% in the
fourth quarter of fiscal 2016, compared to 44.2% in the fourth quarter of
GAAP operating margin was 44.8% for fiscal year 2016,
compared to 40.8% for fiscal year 2015.
Non-GAAP operating margin was 49.3% for fiscal year 2016, compared to 45.1%
for fiscal year 2015.
AspenTech repurchased nearly 2.0 million shares of
our common stock for $75.0 million in the fourth quarter of fiscal 2016.
AspenTech repurchased nearly 4.8 million shares of
common stock for $180.0 million in fiscal year 2016.
Summary of Fourth Quarter
Fiscal Year 2016 Financial Results
AspenTech’s total revenue of $113.7 million
decreased 0.4% from $114.2 million in the fourth quarter of the prior fiscal year.
the quarter ended June 30, 2016, AspenTech
reported income from operations of $49.0
million, compared to income from operations of $46.9 million for the quarter
ended June 30, 2015.
Net income was $33.3 million for the quarter ended June 30, 2016,
leading to net income per share of $0.41, compared to net income per share of $0.36
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 $52.4 million for the fourth quarter of fiscal 2016, compared to
non-GAAP income from operations of $50.5 million in the same period last fiscal
year. Non-GAAP net income was $35.5
million, or $0.44 per share, for
the fourth quarter of fiscal 2016, compared to non-GAAP net income of $33.1
million, or $0.39 per share, in the same period last fiscal year.
had cash and marketable securities of $321.3
million at June 30, 2016, compared to $105.9 million at the end of the
fourth quarter, the company generated $44.8
million in cash flow from operations and $47.5 million in free cash
Summary of Fiscal Year 2016
AspenTech’s total revenue of $472.3
million increased 7.3% from $440.4 million for fiscal year 2015.
the fiscal year ended June 30, 2016, AspenTech
reported income from operations of $211.4 million, an improvement from income
from operations of $179.8 million for fiscal year 2015.
Net income was $140.0 million for the fiscal year ended June 30, 2016,
leading to net income per share of $1.68, compared to net income per share of $1.33
for fiscal year 2015.
income from operations was $232.7 million for fiscal year 2016, an improvement
compared to non-GAAP income from operations of $198.4 million for fiscal year 2015. Non-GAAP net income was $155.8 million, or $1.87
per share, for fiscal year 2016, an improvement compared to non-GAAP net income
of $130.3 million, or $1.46 per share, for fiscal year 2015.
fiscal year ended June 30, 2016, the company generated $153.7 million in cash
flow from operations and $165.1 million in free cash flow.
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, August 11, 2016, at 4:30 p.m. (Eastern Time), to
discuss the company's financial results for the fourth quarter and fiscal year 2016
as well as the company’s business outlook.
The live dial-in number is (866) 604-6127 or (443)
961-0460, conference ID code 56375102. Interested parties may also listen to a
live webcast of the call by logging on to the Investor Relations section of
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
September 11, 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.
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,
including declines due to adverse changes in the process industries;
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.
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