CIMdata PLM Industry Summary Online Archive
6 October 2004
Financial News
Aspen Technology Estimates Fiscal 2005 First Quarter Financial Results
Aspen Technology, Inc. announced that, based upon preliminary data, it expects to report, under generally accepted accounting principles in the United States or GAAP, total revenues of approximately $66.0 million, including approximately $27.5 million in software license revenues, for the first quarter of fiscal 2005. Total expenses are expected to be approximately $69.0 million. Excluding amortization of intangible assets, the preferred stock dividend and discount accretion, and $18 million in restructuring and legal charges, the company now expects to report a (non-GAAP) net loss per share for the quarter of $0.02 to $0.04. Approximately $13 million of the restructuring charge relates to the reduction of excess leased facilities, which is expected to reduce the company's quarterly expenses by approximately $1.0 million. The company expects to report a GAAP loss in the first quarter that will range between $0.59 and $0.65 per share.
In a conference call on August 4, 2004, the company had estimated first quarter total revenues under GAAP to total between $72 and $74 million, including software license revenues of between $31 million and $33 million. Additionally, total expenses under GAAP were projected to be between $69 million and $70 million under GAAP and (non-GAAP) earnings per share were forecasted to be between $0.02 and $0.04.
"We are very disappointed with our first quarter results," said David McQuillin, President and CEO of AspenTech. "Our performance was negatively impacted by the distraction caused by the ongoing uncertainty of the FTC proceeding, which was more pronounced that we had anticipated in the quarter. Additionally, we were unable to close several large, manufacturing/supply chain deals at the end of our seasonally weak first quarter.
"Looking ahead, we remain excited about the opportunity available to Aspen Tech in fiscal 2005 and beyond. The fundamentals of our business remain solid, we have a stable financial profile, and we have the broadest and deepest product suite in the process manufacturing sector. With the FTC proceeding now behind us (as disclosed in a separate press release issued today), we are optimistic that confusion in the marketplace will be eliminated, sales cycles will return to historical levels, and our close rates will improve over the course of the next several quarters. We are increasingly confident that our Enterprise Operations Management vision and solutions are being well received by customers, and we plan on building on this momentum next week at our AspenWorld conference."
AspenTech expects to report final results for the first quarter of 2005 on October 28, 2004, following the close of the Nasdaq stock market.
Conference Call and Webcast
The company will hold a conference call and webcast to discuss these preliminary results, as well as the pending resolution of the FTC proceeding, tomorrow morning at 8:30 a.m. EDT. A replay of the call will be available on AspenTech's website and will also be available for 48 hours via telephonic replay, beginning at 11:00 a.m. EDT tomorrow, and can be accessed by dialing (800) 642-1687, and entering confirmation code 1394279.
Pro Forma (non-GAAP) Results
AspenTech reports pro forma financial results, which exclude certain non-operational, non-cash and other specified charges that management generally does not consider in evaluating the Company's ongoing operations. These results are provided as a complement to results provided in accordance with accounting principles generally accepted in the United States, known as "GAAP". Management believes this pro forma measure helps indicate underlying trends in the Company's business, and uses this pro forma measure to establish budgets and operational goals that are communicated internally and externally, to manage the Company's business and to evaluate its performance. A preliminary reconciliation of pro forma to GAAP is included in the attached table.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.