CIMdata PLM Industry Summary Online Archive
11 February 2008
Financial News
Aspen Technology Updates Status of Outstanding Filing Requirements
Aspen Technology, Inc. announced that it did not file its Form 10-K for the fiscal year ended June 30, 2007 or its Form 10-Q for the quarterly period ended September 30, 2007 by February 8, 2008, which was the extension date previously granted by the Nasdaq Listing Qualifications Panel. However, the Company believes it has made substantial progress and is in the final stages of completing the comprehensive reviews necessary to meet its outstanding filing requirements, and it has requested a further extension in order to complete its work. There is no assurance that such extension request will be granted.
As previously disclosed in a Form 8-K filed on June 11, 2007, the Company originally identified errors in its accounting for sales of installments receivable. The Company subsequently reviewed thousands of installments receivable transactions, dating back to fiscal 2003, as part of a process to determine period-end balances for two new balance sheet accounts, a collateral asset for secured borrowings and a secured borrowing liability. As announced on September 12, 2007, the Company estimates the balances of these two new related balance sheet items to be as follows:
- approximately $230 million as of June 30, 2005;
- approximately $200 million as of June 30, 2006; and
- approximately $200 million as of June 30, 2007.
In addition to reviewing the historical accounting of installments receivable transactions, the Company’s Audit Committee and management also engaged in a detailed review of accounts in the Company’s financial statements, including a comprehensive review of historic positions reported on income tax returns and the related reporting in the Company’s financial statements. The Company’s income taxes are complex given the global nature of the Company’s operations, prior period acquisitions and historic net operating loss positions.
As a result of the detailed review, the Company currently expects to record charges for additional tax liabilities totaling approximately $20 million over the fiscal periods from 2002 through 2007. The estimated charges primarily relate to income taxes arising from transactions between entities within the consolidated subsidiaries of the Company including transfer pricing, capitalization, and foreign currency.
As announced on January 16, 2008, the Company expects to report cash and cash equivalents of $131 million at December 31, 2007, which is an increase from $128 million at September 30, 2007.
As previously disclosed by the Company, the Nasdaq Listing Qualifications Panel (the “Panel”) issued a Staff Determination Letter on October 1, 2007 regarding the continued listing of the Company’s common stock due to failure to file a Form 10-K for the fiscal year ended June 30, 2007. On November 14, 2007, the Company received a Staff Determination Letter from the Panel indicating that the Company was not in compliance with the Nasdaq requirements for continued listing set forth in Marketplace Rule 4310(c)(14) as a result of the Company’s failure to file its Form 10-Q for the quarterly period ended September 30, 2007, and that the failure to file the Form 10-Q served as an additional basis for delisting the Company’s common stock.
At the Company’s request, a hearing took place on November 15, 2007 before the Panel at which time the Company requested an extension to comply with Nasdaq listing requirements. In the hearing, the Company presented the status of the prior period restatement and the preparation of the Form 10-K for the period ending June 30, 2007, and Form 10-Q for the quarterly period ended September 30, 2007. The Company requested an extension to January 18, 2008, and subsequently requested a further extension to February 8, 2008, as previously announced on January 16, 2008. The Company has now requested an additional extension to bring its filings current. There is no assurance that such extension request will be granted.
The Company also announced today that it expects to file a notification of late filing Form 12b-25 relating to its Form 10-Q for the quarterly period ended December 31, 2007, which quarterly report is due on February 11, 2008.
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.