“AspenTech’s first quarter results were solid in the context of the challenging economic environment,” said Antonio Pietri, President and Chief Executive Officer of Aspen Technology. “Customers continued to make significant investments in AspenTech’s solutions as an essential part of their digitalization and sustainability initiatives, which we believe will be a primary focus for the process and other capital intensive industries in the coming years.”
Pietri continued, “With the recent introduction of aspenONE v12 and the Aspen AIoT Hub, we are dramatically extending the bounds of what is possible in plant operations. By embedding AI across our product portfolio, we are laying the foundation for the delivery of our self-optimizing plant vision. We believe these product announcements will drive substantial incremental value for customers and be an important long-term growth driver for AspenTech.”
Selected First Quarter Fiscal 2021 Business Highlights
Annual spend, which the company defines as the annualized value of all term license and maintenance contracts at the end of the quarter, is expected to be in the range of $596 million to $597 million at the end of the first quarter of fiscal 2021, which represents at the midpoint of the range an increase of 8.8% compared to the first quarter of fiscal 2020 and 0.6% sequentially.
AspenTech had cash and cash equivalents of $317.5 million and total borrowings, net of debt issuance costs, of $423.7 million at September 30, 2020.
Update on 10-K and 10-Q Filing
As previously announced, the company will be delaying the release of its full financial results for the first fiscal quarter due to the additional time needed to complete the process of filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2020. On September 1, 2020, AspenTech filed a notification with the Securities and Exchange Commission on Form 12b-25 of its inability to timely file the 2020 Form 10-K due to AspenTech’s need for additional time to complete its procedures to finalize the 2020 Form 10-K, which has taken longer than anticipated as a result of additional errors identified by AspenTech in the transition adjustment recorded in the prior fiscal year related to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“Topic 606”). Based on what is known today, the company does not expect the errors to be material to its previously reported financial information.
Because of the delay in filing its 2020 Form 10-K, AspenTech will be unable to timely file its Quarterly Report on Form 10-Q for the first quarter of fiscal 2021. AspenTech estimates that it will be able to complete and file the first quarter Form 10 Q within several weeks after filing the 2020 Form 10-K.
Business Outlook
Based on information as of today, November 5, 2020, Aspen Technology is reiterating guidance for the following metrics for fiscal year 2021:
Annual spend growth of 6-9% year-over-year
Free cash flow of $260 to $270 million
Total bookings of $770 to $850 million
Total revenue of $704 to $754 million
GAAP total expense of $372 to $377 million
Non-GAAP total expense of $330 to $335 million
GAAP operating income of $332 to $377 million
Non-GAAP operating income of $374 to $420 million
GAAP net income of $290 to $327 million
Non-GAAP net income of $324 to $360 million
GAAP net income per share of $4.29 to $4.83
Non-GAAP net income per share of $4.78 to $5.32
