CIMdata PLM Industry Summary Online Archive
30 October 2008
Financial News
Aspen Technology Announces Selected Preliminary Financial Results for the First Quarter of Fiscal Year 2009
Aspen Technology, Inc. announced selected preliminary financial results for the first quarter of fiscal year 2009, ended September 30, 2008.
Mark Fusco, Chief Executive Officer of AspenTech, said, “During the first quarter, we continued to close deals with blue chip customers across each of our target markets in the process manufacturing industry. Our license bookings of approximately $35 million in the first quarter were largely consistent with the year ago period and reflect the fact that the September quarter is typically a seasonally slower quarter. While we had a sizeable opportunity that pushed out of the September quarter, we were pleased to see continued strength in the volume of license bookings over $250,000 in the quarter.”
Fusco added, “We continue to monitor the health of the global economy and how that may impact the investment decisions of our customers. While no company is completely immune to the growing economic crisis, from a long-term perspective, we believe that AspenTech is well positioned as a result of our proven ROI, unique value proposition, long-standing customer relationships with recurring term-based contracts, and proven ability to manage expenses closely.”
The Company’s cash balance at the end of the first quarter was approximately $134 million, as compared to approximately $135 million at the end of the fourth quarter of fiscal 2008. The Company did not sell any installments receivable during the first quarter, marking the third consecutive quarter that it has not done so. At the same time, the Company increased its company-owned installments receivable by over $10 million and used cash flows to reduce its secured borrowing balance by over $10 million during the first quarter.
Brad Miller, Chief Financial Officer of AspenTech, said, “We are pleased with the ongoing performance of our business as we focus on the completion of our quarterly financial statement filings with the SEC. As we continue to use customer collections to pay down our secured borrowing account and grow the Company-owned balance of installments receivable, we are strengthening our balance sheet and moving toward a financial model that we believe will be characterized by better visibility into operating cash flows over the long term. Our large existing cash balance is invested conservatively, which is important considering recent events in the financial markets.”
Conference Call and Webcast
AspenTech will host a conference call and webcast today, October 30, 2008, at 8:00 am (Eastern Time) to discuss the Company's selected preliminary financial results, business outlook, and related corporate and financial matters. The live dial-in number is (877) 239-3024, conference ID code 68673560. 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 (800) 642-1687 or (706) 645-9291, conference ID code 68673560 through November 6, 2008.
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