CIMdata PLM Industry Summary Online Archive
15 May 2009
Financial News
Aspen Technology Announces Selected Preliminary Financial Results for the Third Quarter of Fiscal Year 2009
Aspen Technology, Inc. announced selected preliminary financial results for the third quarter of fiscal year 2009, ended March 31, 2009.
Mark Fusco, Chief Executive Officer of AspenTech, said “During the third quarter, the company’s renewal rates and overall deal flow were solid. However, several of the largest transactions we were pursuing did not close during the quarter, which combined with the difficult economic environment, led to down year-over-year license bookings of approximately $41 million.”
Fusco added, “During the quarter we closed 27 license transactions between $250,000 and $1 million, which was an increase of 35% year-over-year and 29% sequentially. In addition, we closed 9 license transactions of greater than $1 million during the third quarter, which was generally consistent with both the year ago quarter and the second quarter of fiscal 2009. Our average deal size of over $490,000 in the third quarter was lower than the over $650,000 level in the year ago quarter and reflected the absence of larger multi-seven figure transactions in the current period.”
Fusco concluded, “Many of AspenTech’s process manufacturing customers are facing increased economic pressures, and it remains unclear how this may ultimately impact our business. Interest levels in our aspenONE suite of solutions remain very high and we continue to believe that AspenTech is well positioned as a result of our proven ROI, unique value proposition and long-standing customer relationships with recurring term-based contracts. We believe our focus on running highly efficient operations and further strengthening the overall financial profile of the company will benefit AspenTech over the long term.”
The Company’s cash balance at March 31, 2009 was approximately $127 million, an increase compared to approximately $123 million at the end of the second quarter of fiscal 2009. The company did not sell any installments receivable during the third quarter of fiscal 2009, and it reduced its total secured borrowings balance by approximately $15 million, bringing the nine month fiscal year-to-date reduction to approximately $35 million. This is consistent with the company’s plan to build a subscription cash flow model and improve its balance sheet.
Conference Call and Webcast
AspenTech will host a conference call and webcast today, May 15, 2009, at 8:00 am (Eastern Time) to discuss the Company's selected preliminary financial results, business outlook, and related corporate and financial matters.
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 98997560 through May 22, 2009.
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