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Aspen Technology Announces Financial Results For The First Quarter Of

The following excerpt is from the company's SEC filing.

Fiscal 2016

Bedford, Mass. October 29, 2015

Aspen 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.

Antonio 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 trend s from owner-operator customers and continued best-in-class profitability, despite a challenging macro environment.

Pietri 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 Highlights

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

AspenTechs total revenue of $

120.3 million increased 12.3% from $107.1 million in the first quarter of the prior fiscal year.

Subscription 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.

Services 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.

For 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 30, 2014.

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.

Non-GAAP income 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.

AspenTech 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.

During the 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

This press 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...


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