Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2015
Bedford, MA -
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, 2015.
reported solid fourth quarter results that exceeded our expectations from both
a revenue and profitability perspective,” said Antonio Pietri, President and
Chief Executive Officer of AspenTech. “Our
ability to deliver double-digit annual spend growth against the backdrop of an
increasingly challenging macro environment reflects the strength of AspenTech’s
model and the mission critical nature of our solutions.”
added, “Our strong balance sheet and significant free cash flow, driven in part
by our expense discipline, enabled us to repurchase approximately 7.7 million
shares of common stock during fiscal 2015. As we enter fiscal 2016, we will
continue to focus on driving increased usage across the aspenONE suite in order
to deliver continued top and bottom line growth and shareholder value.”
Fourth Quarter and Fiscal Year 2015
The license portion of total contract value was $2.07
billion at the end of fiscal 2015, which increased 2.2% from March 31, 2015 and
11.8% compared to the end of fiscal 2014.
Total contract value, including the value of bundled
maintenance, was $2.46 billion at the end of fiscal 2015, which increased 2.2%
from March 31, 2015 and 12.3% compared to the end of fiscal 2014.
Annual spend, which the company defines as the
annualized value of all term license and term maintenance contracts at the end
of the quarter, was $419 million at the end of fiscal 2015, an increase of 1.9%
from March 31, 2015 and 10.5% from the end of fiscal 2014.
GAAP operating margin was 41.1%, compared to 36.8%
in the fourth quarter of fiscal 2014.
Non-GAAP operating margin was 44.2%, compared to 39.9% in the fourth
quarter of fiscal 2014.
We repurchased nearly 1.8 million shares of our
common stock for $73.6 million in the fourth quarter of fiscal 2015.
Summary of Fourth Quarter
Fiscal Year 2015 Financial Results
AspenTech’s total revenue of $114.2 million
increased 12.5% from $101.5 million in the fourth quarter of the prior fiscal year.
and software revenue was $105.6 million in the fourth quarter of
fiscal 2015, an increase from $91.6 million in the fourth quarter of
and other revenue was $8.5 million in the fourth quarter of
fiscal 2015, a decrease from $10.0 million in the fourth quarter of fiscal
the quarter ended June 30, 2015, AspenTech
reported income from operations of $46.9
million, compared to income from operations of $37.4 million for the quarter
ended June 30, 2014.
Net income was $30.8 million for the quarter ended June 30, 2015, leading to net
income per share of $0.36, compared to net income per share of $0.29 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 $50.5 million for the fourth quarter of fiscal 2015, compared to
non-GAAP income from operations of $40.5 million in the same period last fiscal
year. Non-GAAP net income was $33.1
million, or $0.39 per share, for
the fourth quarter of fiscal 2015, compared to non-GAAP net income of $28.7
million, or $0.31 per share, in the same period last fiscal year.
had cash and marketable securities of $218.5
million at June 30, 2015, compared to $225.0 million at the end of the
prior quarter after using $74.4 million in cash to repurchase shares of common
stock. During the fourth quarter, the
company generated $53.6 million
in cash flow from operations. On a
non-GAAP basis, cash flow from operations was $68.7 million and free cash flow
was $67.0 million after taking
into consideration $1.8 million
in capital expenditures and capitalized software. Both non-GAAP figures include $15.2 million
of excess tax benefits from stock-based compensation.
Summary of Fiscal Year 2015
AspenTech’s total revenue of $440.4
million increased 12.5% from $391.5 million for fiscal year 2014.
and software revenue was $405.6 million, an increase from $350.5
million for fiscal year 2014.
and other revenue was $34.8 million, compared to $41.0 million for
fiscal year 2014.
the fiscal year ended June 30, 2015, AspenTech
reported income from operations of $179.8 million, an improvement from income
from operations of $129.7 million for fiscal year 2014.
Net income was $118.4 million for the fiscal year ended June 30, 2015,
leading to net income per share of $1.33, compared to net income per share of
$0.92 for fiscal year 2014.
income from operations was $198.4 million for fiscal year 2015, an improvement
compared to non-GAAP income from operations of $149.5 million for fiscal year 2014. Non-GAAP net income was $130.3 million, or $1.46
per share, for fiscal year 2015, an improvement compared to non-GAAP net income
of $98.5 million, or $1.05 per share, for fiscal year 2014.
fiscal year ended June 30, 2015, the company generated $192.0 million in cash
flow from operations, $231.6 million in non-GAAP cash flow from operations and
$223.6 million in free cash flow. Both
non-GAAP figures include the $2.6 million cash payment associated with the
purchase of non-capitalized acquired technology and include $37.0 million of
excess tax benefits from stock-based compensation.
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, August 13, 2015, at 4:30 p.m. (Eastern Time), to
discuss the company's financial results for the fourth quarter and fiscal year 2015
as well as the company’s business outlook.
The live dial-in number is (877) 245-0126 or
(706) 634-5625, conference ID code 90931889. 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, 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.
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.