CIMdata PLM Industry Summary Online Archive
9 May 2007
Financial News
Aspen Technology Announces Financial Results for Third-Quarter Fiscal Year 2007
Aspen Technology, Inc. announced financial results for its third quarter of fiscal 2007, ended March 31, 2007.
Mark Fusco, President and CEO of AspenTech, stated, "We are pleased with the company's performance in the third quarter, which was highlighted by revenue and profitability that were at or above the high-end of our guidance. The underlying drivers to our revenue continue to be strong and balanced, including new customer wins and expanded usage and renewal activity with existing customers." Fusco added, "The energy, chemicals and E&C markets that we serve remain strong, and companies in these verticals are increasing their investments in systems that help to optimize their operations. AspenTech is benefiting from these positive industry fundamentals due to our industry leading domain expertise, unique breadth and depth of our aspenONE product suite, and focus on delivering a significant ROI for each of our customers."
For the quarter ended March 31, 2007, AspenTech reported total revenue of $80.3 million, an increase of 4% from the third quarter of the prior fiscal year. Within total revenue, license revenue was $43.6 million, an increase of 3%, and services revenue was $36.7 million, an increase of 6%, compared to the third quarter of fiscal 2006, respectively. As previously disclosed, the comparable third quarter of fiscal 2006 was unusually strong due to the positive impact of large deals.
AspenTech's income from operations, determined in accordance with generally accepted accounting principles (GAAP), was $7.7 million in the third quarter of fiscal 2007, representing an operating margin of 10%. This compares to operating income of $7.9 million in the third quarter of fiscal 2006, which also represented an operating margin of 10%.
GAAP operating expenses in the third quarter of fiscal 2007 included $3.2 million of non-cash stock-based compensation, $1.6 million of non-cash amortization of intangibles associated with previous acquisitions, $1.6 million in restructuring charges due to the company's continued office consolidations, and a $0.7 million loss on sales of assets - the combination of which reduced the company's operating margin by approximately 9 percentage points. These items reduced the prior year's operating margin by approximately 7 percentage points.
Net income applicable to common shareholders was $8.6 million in the third quarter of fiscal 2007, including the impact of $146,000 in preferred stock dividends and discount. This represents an increase of over 200% compared to net income applicable to common shareholders of $2.7 million in the same period last year, which included the impact of $3.9 million in preferred stock dividends and discount. As previously disclosed, the company's Series D-1 and D-2 preferred shares converted to common stock in December 2006 and January 2007, respectively.
Net income per share applicable to common shareholders was $0.10 for the quarter ended March 31, 2007, an increase of 100% compared to $0.05 in the same period last year. Weighted shares outstanding were 91.6 million in the third quarter of fiscal 2007, an increase compared to 55.5 million in the same period last year due to the previously mentioned conversion of preferred shares to common shares. The above mentioned stock-based compensation, amortization of intangibles associated with previous acquisitions, loss on sales of assets and restructuring charges, in addition to a $0.6 million non-cash foreign exchange loss on inter-company balances offset by the benefit of approximately $1.2 million of interest income associated with the accretion of retained interest in sold receivables, had a net, negative impact of $0.07 per share in the quarter ended March 31, 2007. In the prior year period, the combination of these items had a net, negative impact of $0.07 per share.
AspenTech had cash and cash equivalents of $100.8 million at March 31, 2007, an increase of approximately $8 million from $92.5 million at the end of the previous quarter. The increase in cash was primarily the result of positive cash flow from operations of approximately $12.8 million, offset by the cash payment of approximately $6.6 million in consideration for the accumulated preferred dividends associated with the conversion of the company's Series D-2 preferred stock.
Conference Call and Webcast
AspenTech will host a conference call and webcast today, May 9, at 8:30 pm (EST) to discuss the company's financial results, business outlook, and related corporate and financial matters. A replay of will be available via telephone at (800) 642-1687 or (706) 645-9291, conference ID code 5774680 through May 16, 2007.
For more detailed financials, please visit http://ir.aspentech.com/phoenix.zhtml?c=86692&p=irol-newsArticle&ID=997689&highlight =.
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