CIMdata PLM Industry Summary Online Archive
8 November 2005
Financial News
Aspen Technology Announces Financial Results for First-Quarter 2006
Aspen Technology, Inc. announced its financial results for its fiscal 2006 first quarter, ended September 30, 2005.
For the quarter ended September 30, 2005, AspenTech reported total revenue of $60.1 million. Within total revenue, software license revenue was $24.4 million and services revenue was $35.7 million.
For the quarter ended September 30, 2005, AspenTech's loss from operations and net loss applicable to common shareholders, determined in accordance with generally accepted accounting principles (GAAP), was ($4.0) million and ($8.9) million, respectively. This compares to a GAAP loss from operations of ($30.7) million and net loss applicable to common shareholders of ($33.6) million in the same period last year. GAAP loss per share applicable to common shareholders was ($0.21) for the quarter ended September 30, 2005, compared with a loss of ($0.80) in the same period last year.
For the quarter ended September 30, 2005, pro forma income from operations and net income, which exclude items covered in the attached non-GAAP reconciliation table, were $2.6 million and $1.5 million, respectively. This represented an improvement when compared with pro forma losses of ($4.3) million and ($3.7) million in the same period last year, respectively.
Pro forma earnings per share were $0.02 for the quarter ended September 30, 2005, compared to a pro forma loss per share of ($0.04) in the prior year period.
A reconciliation of GAAP to pro forma results has been provided in the financial statement tables included in the press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Mark Fusco, President and CEO of AspenTech, stated "We were pleased that our efforts to improve the operational efficiency of the Company enabled us to deliver profitability, on a pro-forma basis. In the past three quarters, we have improved our services margins, eliminated our convertible debt, and created an infrastructure that we believe can deliver improved performance over the long-term."
Fusco added, "Our total revenue was flat compared to the prior year, excluding the operator training services business we divested as part of the FTC settlement. With our infrastructure priorities addressed, management's focus is squarely on restoring top line growth during FY06 and beyond."
Other Quarterly Highlights:
• Services gross margins increased by 9% sequentially to 52%, the highest quarterly services margin since the Company went public in Fiscal 1995. This was the result of improved services revenue and utilization, combined with a lower cost base.
• Pro forma total costs and expenses came in at $57.4 million in the quarter, a reduction of 19% on a sequential basis and 15% on a year-over-year basis.
• The energy industry represented the highest percentage of the Company's revenue, while the chemicals industry also made a solid contribution, delivering seven of the top ten deals closed during the quarter.
Conference Call and Webcast
AspenTech will host a conference call and webcast November 8, 2005, at 4:45 pm (EST) to discuss the Company's financial results, business outlook, and related corporate and financial matters. A replay of the call will be archived on http://www.aspentech.com and is accessible by clicking on the "webcast" link under the "Investor Relations" and will also be available via telephone at: 800-642-1687, confirmation code 1991434 for four days, beginning at 8:00 pm EST on November 8, 2005.
Detailed financials are available: http://aspentech.com/publication_files/pr-11-08-2005.pdf .
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