Aspen Technology Announces Financial Results for the First Quarter of Fiscal 2013

CIMdata PLM Industry Summary Online Archive

1 November 2012

Financial News

Aspen Technology Announces Financial Results for the First Quarter of Fiscal 2013

Aspen Technology, Inc. announced financial results for its first quarter of fiscal year 2013, ended September 30, 2012.

Mark Fusco, Chief Executive Officer of AspenTech, said, “AspenTech began fiscal 2013 on a strong note, highlighted by mid-teens year-over-year growth in total license contract value. We continue to expand the capabilities of our industry leading aspenONE suite, and believe that we remain well positioned to drive increased product adoption and usage levels over the long-term. At the same time, our focus on expense management contributed to strong growth in profitability and free cash flow generation.”

First Quarter Fiscal 2013 and Recent Business Highlights

The license portion of total contract value was $1.5 billion for the first quarter of fiscal 2013, which increased 2.3% sequentially and 14.7% compared to the first quarter of fiscal 2012.
Total contract value, including the value of bundled maintenance, was $1.72 billion at the end of the first quarter of fiscal 2013, which increased 2.6% sequentially and 17.6% compared to the first quarter of fiscal 2012.
Annual spend, which the company defines as the annualized value of all term license and maintenance revenue contracts at the end of the quarter, was approximately $312 million at the end of the first quarter of fiscal 2013, which increased 2.5% sequentially and 13.9% compared to the first quarter of fiscal 2012.
The company announced today that its Board of Directors has approved a $100 million share repurchase program. This replaces the prior share repurchase program, which had approximately $49 million of remaining capacity as of the end of the first quarter.

Summary of First Quarter Fiscal Year 2013 Financial Results

AspenTech’s total revenue of $71.5 million increased 40% from $51.2 million in the first quarter of the prior year.

Subscription and software revenue was $54.1 million in the first quarter of fiscal 2013, an increase from $31.9 million in the first quarter of fiscal 2012.
Services & other revenue was $17.4 million in the first quarter of fiscal 2013, compared to $19.3 million in the first quarter of fiscal 2012.

For the quarter ended September 30, 2012, AspenTech reported income from operations of $9.0 million, compared to a loss from operations of $15.6 million for the quarter ended September 30, 2011.

Net income was $4.4 million for the quarter ended September 30, 2012, leading to EPS of $0.05, compared to a net loss per share of ($0.12) in the same period last fiscal year.

Non-GAAP income from operations, which adds back stock-based compensation expense, restructuring charges and amortization of intangibles associated with acquisitions, was $13.4 million for the first quarter of fiscal 2013, compared to a non-GAAP loss from operations of $12.0 million in the same period last fiscal year. Non-GAAP net income was $7.3 million, or $0.08 per share, for the first quarter of fiscal 2013, compared to a non-GAAP net loss of $9.2 million, or ($0.09) per share, in the same period last fiscal year. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.

AspenTech had a cash balance of $163.4 million at September 30, 2012, a decrease of $1.9 million from the end of the prior quarter after using $17.2 million in cash to repurchase shares of common stock and reducing secured borrowings by $5.4 million. During the first quarter, the company generated $18.5 million in cash flow from operations and $18.9 million in free cash flow after taking into consideration $1.8 million in capital expenditures and capitalized software, which was more than offset by $2.2 million of insurance proceeds related to prior period damage suffered at the company’s Houston facility.

Conference Call and Webcast
AspenTech will host a conference call and webcast today, November 1, 2012, at 8:00 a.m. (Eastern Time), to discuss the company's financial results for the first quarter fiscal year 2013 as well as the company’s business outlook.

The live dial-in number is (877) 245-0126, conference ID code 59815504. 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 (855) 859-2056 or (404) 537-3406, conference ID code 59815504, through December 1, 2012.

To view an unabridged version of this press release, visit: http://aspentech.com/_ThreeColumnLayout.aspx?pageid=2147485680&id=15032387142

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