Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2017
Aspen 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 2017, ended December 31, 2016.
Antonio Pietri, President and Chief Executive Officer of
AspenTech, said “AspenTech reported second quarter fiscal 2017 financial
results that exceeded expectations from both a financial and operational perspective.
We also achieved a major milestone in our
Asset Optimization strategy with the release of the new aspenONE®
Asset Performance Management™ (APM) suite. We are pleased with the positive feedback and
strong interest we have received from early customers, and believe this new
suite represents a significant opportunity and important growth driver for our
Pietri continued, “We also see strong early demand for our
recently acquired Mtell product, whose
machine learning-based functionality enables prescriptive analytics for maximizing asset
availability. We expect the Mtell product together with our Fidelis Reliability
and Aspen Asset Analytics solutions to serve as core components of our asset performance
management offerings going forward. We believe
our expanding product portfolio will add to the long-term
value we deliver to our shareholders.”
Second Quarter Fiscal
2017 Business Highlights
GAAP operating margin was 46.7%, compared to 47.3% in the second quarter
of fiscal 2016. Non-GAAP operating
margin was 50.8%, compared to 51.1% in the second quarter of fiscal 2016.
Second Quarter Fiscal Year 2017 Financial Results
total revenue of $119.9
For the quarter ended December 31, 2016, AspenTech reported income from operations of $56.1 million, compared
to income from operations of $56.3 million for the quarter ended December 31, 2015.
Net income was $37.0 million for the quarter ended December 31, 2016,
leading to net income per share of $0.48, compared to net income per share of $0.44 in the
same period last fiscal year.
Non-GAAP income from operations, which adds back the impact of stock-based compensation expense,
amortization of intangibles associated with acquisitions, acquisition-related
expenses and non-capitalized acquired technology was $60.9 million for the second quarter of fiscal 2017, compared to
non-GAAP income from operations of $60.9 million in the same period last fiscal
year. Non-GAAP net income was $40.2 million, or $0.52 per share, for the second quarter
of fiscal 2017, compared to non-GAAP net income of $39.6 million, or $0.47 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.
AspenTech had cash and marketable securities of $140.0 million and borrowings of $140.0
million at December 31, 2016.
During the second quarter, the company generated $27.2 million in cash flow from
operations and $27.5 million in free cash flow.
Use of Non-GAAP
This press 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.
Management 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
AspenTech will host a conference call and webcast today, January 26,
2017, at 4:30 p.m. (Eastern Time), to discuss the company's financial results
for the second quarter fiscal year 2017 as well as the company’s business
dial-in number is (866) 604-6127 or (443) 961-0460, conference ID code 54181526. 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
54181526, through February 26,
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 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,
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.
© 2017 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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