Aspen Technology Announces Financial Results for the First Quarter of Fiscal 2016
Bedford, MA -
Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to
the process industries, today announced financial results
for its first quarter of fiscal year 2016, ended September 30, 2015.
Pietri, President and Chief Executive Officer of AspenTech, said, “AspenTech delivered
solid first quarter results highlighted by 50% non-GAAP operating margin and
10% year-over-year annual spend growth. Our first quarter performance reflects
the strength of our business model, including long-term contracts, positive
demand trends from owner-operator customers and continued best-in-class
profitability, despite a challenging macro environment.”
added, “We remain focused on operational excellence and working with customers
to drive increased usage across the aspenONE suite. At the same time we continued to generate
shareholder value through our financial and operational performance and by
returning $55 million to shareholders through our stock repurchase program.”
First Quarter Fiscal 2016 and Recent Business
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 $423 million at the end of the first
quarter of fiscal 2016, which increased 10.0% compared to the first quarter of
fiscal 2015 and 1.0% sequentially.
GAAP operating margin was 46.1%, compared to 41.7%
in the first quarter of fiscal 2015.
Non-GAAP operating margin was 50.1%, compared to 45.8% in the first
quarter of fiscal 2015.
AspenTech repurchased 1.3 million shares of its common
stock for $55.1 million in the first quarter of fiscal 2016.
Summary of First Quarter Fiscal
Year 2016 Financial Results
AspenTech’s total revenue of $120.3 million
increased 12.3% from $107.1 million in the first quarter of the prior fiscal
and software revenue was $111.9 million in the first quarter of fiscal
2016, an increase from $98.7 million in the first quarter of fiscal 2015.
and other revenue was $8.4 million in the first quarter of
fiscal 2016, compared to $8.4 million in the first quarter of fiscal 2015.
the quarter ended September 30, 2015,
AspenTech reported income from operations of $55.4 million,
compared to income from operations of $44.6 million for the quarter ended September
Net income was $36.8 million for the quarter ended September 30, 2015, leading to net
income per share of $0.44, compared to net income per share of $0.32 in the same period
last fiscal year.
from operations, which adds back stock-based compensation expense, amortization
of intangibles associated with acquisitions and non-capitalized acquired
technology, was $60.2 million
for the first quarter of fiscal 2016, compared to non-GAAP income from
operations of $49.1 million in the same period last fiscal year. Non-GAAP net income was $39.8 million, or $0.47 per share, for the first quarter
of fiscal 2016, compared to non-GAAP net income of $31.8 million, or $0.35 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.
had a cash and marketable securities balance of $181.5 million at September 30, 2015, a decrease of $37.0 million from the end of the prior
quarter after using $55.0 million
in cash to repurchase shares of common stock.
first quarter, the company generated $18.4
million in cash flow from operations and $20.2 million in free cash flow
after taking into consideration the net impact of $1.1 million in capital expenditures and capitalized software, $1.6
million in excess tax benefits from stock-based compensation and $1.3 million
in non-capitalized acquired technology (including a $1 million final payment related
to non-capitalized acquired technology from fiscal year 2014).
Use of Non-GAAP Financial Measures
release contains “non-GAAP financial measures” under the rules of the U.S.
Securities and Exchange Commission. Non-GAAP financial measures are not based
on a comprehensive set of accounting rules or principles. This non-GAAP
information supplements, and is not intended to represent a measure of
performance in accordance with, disclosures required by generally accepted
accounting principles, or GAAP. Non-GAAP
financial measures should be considered in addition to, not as a substitute for
or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results
is included in the financial tables included in this press release.
considers both GAAP and non-GAAP financial results in managing AspenTech’s business. As the result of adoption of new licensing
models, management believes that a number of AspenTech’s performance indicators
based on GAAP, including revenue, gross profit, operating income and net
income, should be viewed in conjunction with certain non-GAAP and other
business measures in assessing AspenTech’s performance, growth and financial
condition. Accordingly, management utilizes a number of non-GAAP and other
business metrics, including the non-GAAP metrics set forth in this press
release, to track AspenTech’s business performance. None of these non-GAAP
metrics should be considered as an alternative to any measure of financial
performance calculated in accordance with GAAP.
Conference Call and Webcast
will host a conference call and webcast today, October 29, 2015, at 4:30 p.m.
(Eastern Time), to discuss the company's financial results for the first quarter
fiscal year 2016 as well as the company’s business outlook.
The live dial-in number is (866) 604-6127 or
(706) 634-5625, conference ID code 61971015. 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 61971015,
through November 29, 2015.
AspenTech is a leading supplier of software that
optimizes process manufacturing – for energy, chemicals, engineering and
construction, and other industries that manufacture and produce products from a
chemical process. With integrated aspenONE solutions, process manufacturers can
implement best practices for optimizing their engineering, manufacturing and
supply chain operations. As a result, AspenTech customers are better able to
increase capacity, improve margins, reduce costs and become more energy
efficient. To see how the world’s leading process manufacturers rely on
AspenTech to achieve their operational excellence goals, visit www.aspentech.com.
The third paragraph of this press release contains forward-looking
statements for purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Actual
results may vary significantly from AspenTech’s expectations based on a number
of risks and uncertainties, including, without limitation: AspenTech’s failure to increase usage and
product adoption of aspenONE offerings, and failure to continue to provide
innovative, market-leading solutions; demand for, or usage of, aspenONE
software declines for any reason; unfavorable economic and market conditions or
a lessening demand in the market for process optimization software; and other
risk factors described from time to time in AspenTech’s periodic reports filed
with the Securities and Exchange Commission.
AspenTech cannot guarantee any future results, levels of activity, performance,
or achievements. AspenTech expressly
disclaims any obligation to update forward-looking statements after the date of
this press release.
© 2015 Aspen
Technology, Inc. AspenTech, aspenONE and
the Aspen leaf logo are registered trademarks of Aspen Technology, Inc. All
rights reserved. All other trademarks are property of their respective owners.