CIMdata PLM Industry Summary Online Archive
30 June 2009
Financial News
Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2008
Aspen Technology, Inc. announced financial results for the fourth quarter and fiscal year 2008, ended June 30, 2008.
Mark Fusco, Chief Executive Officer of AspenTech, said “The company delivered a strong operational performance in fiscal 2008, highlighted by annual license bookings growth of over 15% and record cash flows from operations.” Fusco added, “We are pleased to achieve another milestone related to bringing the company’s financial statements current. We have now completed our first audit process and Annual Report on Form 10-K with KPMG, and we are executing against plans to finish our fiscal 2009 reports as quickly as possible.”
Income Statement for Fourth Quarter of Fiscal 2008
For the fourth quarter ended June 30, 2008, AspenTech reported total revenue of $98.3 million, a decrease of 3% compared to the fourth quarter of fiscal 2007. Within total revenue, license revenue was $59.7 million, a decrease of 12%, and services revenue was $38.6 million, an increase of 15%, both compared to the fourth quarter of fiscal 2007.
During the fourth quarter of fiscal 2008, the company entered into three contracts with a net present value totaling $12.5 million that did not meet all of the criteria for revenue recognition as of the end of the quarter. There was not a comparable impact on the prior year period. As previously disclosed, license bookings were approximately $70 million in the fourth quarter of fiscal 2008, up slightly compared to the fourth quarter of fiscal 2007.
AspenTech's income from operations, determined in accordance with generally accepted accounting principles (GAAP), was $21.1 million in the fourth quarter of fiscal 2008, representing an operating margin of 21.4%, compared to $24.0 million in the fourth quarter of fiscal 2007.
Net income was $20.7 million for the fourth quarter of fiscal 2008, compared to $17.9 million for the fourth quarter of fiscal 2007. Diluted income per share attributable to common shareholders was $0.22 for the quarter ended June 30, 2008, three cents better than the fourth quarter of fiscal 2007.
Income Statement for the Full Year Fiscal 2008
For the fiscal year ended June 30, 2008, AspenTech reported total revenue of $311.6 million, a decrease of 9% compared to fiscal 2007. Within total revenue, license revenue was $168.4 million, a decrease of 16%, and services revenue was $143.2 million, an increase of 1%, both compared to the full fiscal year 2007.
During fiscal 2008, the company entered into seven contracts with a net present value totaling approximately $57.5 million that did not meet all of the criteria for revenue recognition as of the end of the fiscal year. There was no comparable impact on the prior fiscal year period.
AspenTech's income from operations, determined in accordance with generally accepted accounting principles (GAAP), was $18.6 million for fiscal 2008, representing an operating margin of 6%, compared to $55.4 million for fiscal 2007.
Net income was $24.9 million for fiscal 2008, compared to $45.5 million for fiscal 2007. Diluted income per share attributable to common shareholders was $0.27 for fiscal 2008, compared to $0.50 for fiscal 2007.
Balance Sheet and Cash Flow
The company’s cash balance at the end of fiscal 2008 was approximately $134 million, an increase compared to approximately $132 million at the end of fiscal 2007. Cash flow from operations was $70.8 million during fiscal 2008, offset by cash used in investing activities of $9.8 million and cash used in financing activities of $59.8 million.
Total company-owned accounts and installments receivable balances were $221.2 million at the end of fiscal 2008, an increase of $131.1 million from $90.0 million at the end of fiscal 2007. The company’s secured borrowings balance at the end of fiscal 2008 was $147.2 million, a reduction of $58.9 million from $206.1 million at the end of fiscal 2007.
The company’s total deferred revenue balance at June 30, 2008, was $106.9 million, an increase of 59% compared to the end of fiscal 2007.
Conference Call and Webcast
AspenTech will host a conference call and webcast tomorrow, July 1, 2009, at 8:30 am (Eastern Time) to discuss the Company's fourth quarter 2008 financial results and related corporate and financial matters. The live dial-in number is (877) 239-3024, conference ID code 17469720. 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 17469720 through July 8, 2009.
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