Industry Summary Articles

Aspen Technology, Inc. today announced financial results for its third quarter of fiscal year 2017, ended March 31, 2017.

Antonio Pietri, President and Chief Executive Officer of AspenTech, said “AspenTech reported third quarter fiscal 2017 financial results that exceeded expectations from a revenue and profitability perspective. The demand from our owner-operator customers offset the impact of continued macroeconomic challenges facing engineering and construction and upstream customers.”

Pietri continued, “Last week we hosted our biennial OPTIMIZE 2017 user conference, which was focused on Asset Optimization. Customers showed strong interest in the direction of our engineering and manufacturing and supply chain products and the significant value those solutions can capture from increased asset efficiency. A highlight of the conference was the positive customer reaction to our new Asset Performance Maintenance (APM) suite, which expands AspenTech’s capabilities into the maintenance of the physical asset by leveraging reliability analysis, machine-based learning, and prescriptive analytics. We are excited by the opportunity for APM and believe it can be an important contributor to growth in the coming years.”

Pietri concluded, “At the same time, we continued to utilize our strong cash flow to generate value for shareholders via our share buyback program, which in the third quarter surpassed $1 billion in cumulative repurchases since the program began in fiscal year 2011.”

Third Quarter Fiscal 2017 Business Highlights

Annual spend, which the company defines as the annualized value of all term license and maintenance contracts at the end of the quarter, was approximately $452 million at the end of the third quarter of fiscal 2017, which increased 4.9% compared to the third quarter of fiscal 2016 and 0.3% sequentially.

GAAP operating margin was 43.8%, compared to 42.5% in the third quarter of fiscal 2016. Non-GAAP operating margin was 48.1%, compared to 49.7% in the third quarter of fiscal 2016.

AspenTech repurchased 1.7 million shares of its common stock for $100.0 million in the third quarter of fiscal 2017.

Summary of Third Quarter Fiscal Year 2017 Financial Results

AspenTech’s total revenue of $119.3 million included:

Subscription and software revenue was $111.7 million in the third quarter of fiscal 2017, consistent with $111.7 million in the third quarter of fiscal 2016.

Services and other revenue was $7.6 million in the third quarter of fiscal 2017, an increase from $7.5 million in the third quarter of fiscal 2016.

For the quarter ended March 31, 2017, AspenTech reported income from operations of $52.3 million, compared to income from operations of $50.7 million for the quarter ended March 31, 2016.

Net income was $35.8 million for the quarter ended March 31, 2017, leading to net income per share of $0.47, compared to net income per share of $0.40 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 $57.4 million for the third quarter of fiscal 2017, compared to non-GAAP income from operations of $59.3 million in the same period last fiscal year. Non-GAAP net income was $39.4 million, or $0.52 per share, for the third quarter of fiscal 2017, compared to non-GAAP net income of $40.9 million, or $0.49 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 $101.7 million and borrowings of $140.0 million at March 31, 2017.

During the third quarter, the company generated $55.6 million in cash flow from operations and $56.2 million in free cash flow.

To view the original press release, please click here.

Search for Aspen Technology on CIMdata.com