Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2014
Burlington, Mass. -
Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to
the process industries,today announced financial results for its fourth quarter and fiscal year
ended June 30, 2014.
are pleased to report a strong finish to fiscal 2014, with fourth quarter
results that exceeded our expectations across all key financial metrics,” said
Antonio Pietri, President and Chief Executive Officer of AspenTech. “During fiscal 2014 AspenTech grew total
license contract value in excess of 12% year-over-year and generated $200
million of free cash flow. AspenTech
continues to deliver new innovation through the aspenONE subscription software
offering and we are confident about the runway for growth through increased
adoption levels across our customer base.”
Fourth Quarter and Fiscal Year 2014
The license portion of total contract value was
$1.85 billion at the end of fiscal 2014, which increased 3.4% from March 31,
2014 and 12.2% compared to the end of fiscal 2013.
Total contract value, including the value of bundled
maintenance, was $2.2 billion at the end of fiscal 2014, which increased 3.9%
from March 31, 2014 and 13.7% compared to the end of fiscal 2013.
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 $380 million at the end of fiscal 2014,
which increased 3.1% from March 31, 2014 and 12.3% compared to the end of
Summary of Fourth Quarter
Fiscal Year 2014 Financial Results
AspenTech’s total revenue of $101.5 million
increased 21.9% from $83.3 million in the fourth quarter of the prior
and software revenue was $91.6 million in the fourth quarter of
fiscal 2014, an increase from $73.8 million in the fourth quarter of
and other revenue was $10.0 million in the fourth quarter of
fiscal 2014, an increase from $9.5 million in the fourth quarter of fiscal
the quarter ended June 30, 2014, AspenTech
reported income from operations of $37.4
million, compared to income from operations of $15.4 million for the quarter
ended June 30, 2013.
Net income was $26.7 million for the quarter ended June 30, 2014, leading to net
income per share of $0.29, compared to net income per share of $0.21 in the same period
last fiscal year.
income from operations, which adds back stock-based compensation expense,
restructuring charges, amortization of intangibles associated with acquisitions
and non-capitalized acquired technology, was $40.5 million for the fourth quarter of fiscal 2014, compared to a
non-GAAP income from operations of $18.9 million in the same period last fiscal
year. Non-GAAP net income was $28.7
million, or $0.31 per share, for
the fourth quarter of fiscal 2014, compared to non-GAAP net income of $22.7
million, or $0.24 per share, in the same period last fiscal year.
had cash and marketable securities of $298.4
million at June 30, 2014, an increase of $23.5 million from the end of the prior quarter. During the fourth quarter, the company
generated $58.2 million in cash
flow from operations. On a non-GAAP
basis, cash flow from operations was $58.8 million and free cash flow was $57.4 million after taking into
consideration $1.5 million in
capital expenditures and capitalized software.
Both non-GAAP figures include $0.6 million of excess tax benefits from
reconciliation of GAAP to non-GAAP results is provided in the financial tables
included in this press release.
Summary of Fiscal Year 2014
AspenTech’s total revenue of
$391.5 million increased 25.7% from $311.4 million for fiscal year 2013.
and software revenue was $350.5 million, an increase from $276.6
million for fiscal year 2013.
and other revenue was $41.0 million, compared to $34.8 million for
fiscal year 2013.
the fiscal year ended June 30, 2014, AspenTech
reported income from operations of $129.7 million, an improvement from income
from operations of $55.6 million for fiscal year 2013.
Net income was $85.8 million for the fiscal year ended June 30, 2014,
leading to net income per share of $0.92, compared to net income per share of
$0.47 for fiscal year 2013.
income from operations was $149.5 million for fiscal year 2014, an improvement
compared to non-GAAP income from operations of $70.9 million for fiscal year
2013. Non-GAAP net income was $98.5
million, or $1.05 per share, for fiscal year 2014, an improvement compared to
non-GAAP net income of $55.1 million, or $0.58 per share, for fiscal year 2013.
fiscal year ended June 30, 2014, the company generated $200.1 million in cash
flow from operations, $204.7 million in non-GAAP cash flow from operations and
$200 million in free cash flow. Both
non-GAAP figures exclude the $3.9 million cash payment associated with the
purchase of non-capitalized acquired technology and include $0.7 million of
excess tax benefits from stock-based compensation.
Use of Non-GAAP Financial Measures
release contains “non-GAAP financial measures,” which 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, August 13, 2014, at 4:30 p.m. (Eastern Time), to
discuss the company's financial results for the fourth quarter and fiscal year
2014 as well as the company’s business outlook.
The live dial-in number is (877) 245-0126 or
(706) 634-5625, conference ID code 68139397. Interested parties may also listen to a live webcast of
the call by logging on to the Investor Relations section of AspenTech’s
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
September 13, 2014.
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 second 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
© 2014 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.