Published: September 02, 2010
INSERTING and REPLACING Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2010
BURLINGTON, Mass. - (BUSINESS WIRE) - In the Condensed Consolidated Statements of Operations table, insert two
columns for the Three Months Ended June 30, 2010 and 2009.
The corrected release reads:
ASPEN TECHNOLOGY ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER
AND FISCAL YEAR 2010
Aspen 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 2010, ended June 30, 2010.
Mark Fusco, Chief Executive Officer of AspenTech, said, "The fourth
quarter was a strong finish to our fiscal year. The combination of
customers moving to our new aspenONE licensing model and new and
expanded usage drove record quarterly and annual product related
bookings that were well above our expectations. Most important, strong
growth in our customer relationships during the fourth quarter
contributed to double digit full year growth in the license portion of
our total contract value during fiscal 2010. This reflects the
underlying growth of our business, and we are optimistic that AspenTech
is well positioned to continue growing its over a billion dollar total
contract value in fiscal 2011 and beyond."
Fusco added, "In addition to validating market acceptance of our new
aspenONE licensing model during fiscal 2010, we also made significant
progress putting in place the foundation to grow the company's
subscription cash flow model. We have not sold receivables to raise cash
in nearly three years and we have steadily increased the portion of our
business where customers have elected annual payment terms over the
course of our multi-year contracts. We believe continued execution of
this strategy will lead to strong growth in our free cash flow beginning
in fiscal 2011."
Fourth Quarter Business Highlights
-
Total contract value at the end of fiscal 2010 was approximately $1.2
billion, an increase of approximately 17% compared to the end of
fiscal 2009. Approximately 10 percentage points of the growth in total
contract value during fiscal 2010 was driven by increased license
fees, with approximately 7 percentage points of the year-over-year
growth related to including maintenance with the company's new
aspenONE licensing model, which was launched at the beginning of
fiscal 2010.
-
Record product related bookings were approximately $138 million for
the fourth quarter, leading to record full year product related
bookings of approximately $366 million.
-
Billings backlog was $389 million at the end of the fourth quarter, an
increase from $270 million at the end of last quarter and $101 million
at the end of fiscal 2009.
-
The value of contractually committed, future cash collections
associated with the company's subscription and multi-year term
contracts was $625 million at the end of the fourth quarter, an
increase from $537 million at the end of last quarter and $466 million
at the end of fiscal 2009.
-
The company closed 20 product related bookings of over $1 million
during the fourth quarter, and 50 product related bookings between
$250,000 and $1 million.
-
Average deal size for product related bookings over $100,000 was $1.1
million in the fourth quarter.
Summary of Fourth Quarter Financial Results
AspenTech's total revenue of $38.2 million decreased from $71.3 million
in the fourth quarter of the prior year, due primarily to the ratable
revenue recognition associated with the company's new aspenONE licensing
model.
-
Subscription revenue includes all revenue associated with the
company's new aspenONE licensing model. Subscription revenue was
approximately $5.9 million in the fourth quarter of fiscal 2010, an
increase from $4.0 million last quarter. No subscription revenue was
recorded in the year ago period as the company's new aspenONE
licensing model was launched during the first quarter of fiscal 2010.
Subscription revenue is recognized over the course of the multi-year
agreement, and recognition begins when the first payment is due, which
is typically 30 days after the contract is signed.
-
Software revenue includes all non-subscription-based license
revenue, including term-based contracts for point products as well as
perpetual licenses. Software revenue was $8.1 million in the fourth
quarter of fiscal 2010, compared to $41.6 million in the year ago
period. In fiscal year 2010, software revenue related to term
contracts is generally recognized over the contract term as payments
become due. In prior fiscal year periods, the company recognized term
license revenue predominantly on an up-front basis, and the majority
of license bookings were recognized as license revenue in the same
period.
-
Services & other revenue, which includes professional
services, maintenance and other revenue, was $24.2 million in the
fourth quarter of fiscal 2010, a decrease compared to $29.6 million in
the year ago period.
For the quarter ended June 30, 2010, AspenTech reported a loss from
operations of $35.6 million due primarily to the ratable revenue
recognition associated with the company's new aspenONE licensing model.
For the quarter ended June 30, 2009, the company reported income from
operations of $2.3 million. Net loss was $34.0 million for the fourth
quarter of fiscal 2010, leading to net loss per basic and diluted share
of $0.37, compared to net income per diluted share of $0.11 in the same
period last year.
AspenTech had a cash balance of $124.9 million at June 30, 2010, an
increase of $5.9 million from the end of the prior quarter. The company
did not sell any installments receivable to raise cash during the fourth
quarter of fiscal 2010 and it continued to reduce its secured borrowings
balance, which was $76.1 million at the end of the quarter, down $11.3
million compared to $87.4 million at the end of the third quarter of
fiscal 2010.
Conference Call and Webcast
AspenTech will host a conference call and webcast today, September 2, at
8:00 a.m. (Eastern Time), to discuss the company's financial results for
the fourth quarter and fiscal year 2010 as well as the company's
business outlook. The live dial-in number is (877) 245-0126, conference
ID code 97523083. Interested parties may also listen to a live webcast
of the call by logging on to the Investor Relations section of
AspenTech's website, http://www.aspentech.com/corporate/investor.cfm,
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 (800) 642-1687 or (706) 645-9291, conference ID code 97523083 through
September 9, 2010.
About AspenTech
AspenTech is a leading supplier of software that optimizes process
manufacturing - for energy, chemicals, pharmaceuticals, 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.
(c) 2010 Aspen Technology, Inc. AspenTech, aspenONE and the Aspen leaf
logo are trademarks of Aspen Technology, Inc. All rights reserved. All
other trademarks are property of their respective owners.
Forward-Looking Statements
This press release may contain forward-looking statements for purposes
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, including statements relating to the anticipated
benefits of AspenTech's new subscription-based licensing model. Actual
results may vary significantly from AspenTech's expectations based on a
number of risks and uncertainties, including, without limitation:
customers' failure to adopt the new aspenONE licensing model at the rate
expected by AspenTech; AspenTech's failure to realize the anticipated
financial and operational benefits of the new aspenONE licensing model;
unforeseen difficulties or uncertainties in the application of
accounting standards; weaknesses in our internal controls; 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 current
intention to update forward-looking statements after the date of this
press release.
|
|
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
Year Ended June 30,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
(In thousands, except per share data)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
5,873
|
|
|
$
|
-
|
|
|
|
$
|
11,071
|
|
|
$
|
-
|
|
|
Software
|
|
|
8,148
|
|
|
|
41,612
|
|
|
|
|
42,920
|
|
|
|
179,591
|
|
|
Total subscription and software
|
|
|
14,021
|
|
|
|
41,612
|
|
|
|
|
53,991
|
|
|
|
179,591
|
|
|
Services and other
|
|
|
24,223
|
|
|
|
29,643
|
|
|
|
|
112,353
|
|
|
|
131,989
|
|
|
Total revenue
|
|
|
38,244
|
|
|
|
71,255
|
|
|
|
|
166,344
|
|
|
|
311,580
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
Subscription and software
|
|
|
1,550
|
|
|
|
3,822
|
|
|
|
|
6,437
|
|
|
|
12,409
|
|
|
Services and other
|
|
|
15,948
|
|
|
|
16,272
|
|
|
|
|
59,673
|
|
|
|
63,411
|
|
|
Total cost of revenues
|
|
|
17,498
|
|
|
|
20,094
|
|
|
|
|
66,110
|
|
|
|
75,820
|
|
|
Gross profit
|
|
|
20,746
|
|
|
|
51,161
|
|
|
|
|
100,234
|
|
|
|
235,760
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing (1)
|
|
|
27,426
|
|
|
|
21,607
|
|
|
|
|
97,002
|
|
|
|
84,126
|
|
|
Research and development (1)
|
|
|
12,100
|
|
|
|
11,471
|
|
|
|
|
48,228
|
|
|
|
46,375
|
|
|
General and administrative (1)
|
|
|
15,956
|
|
|
|
15,333
|
|
|
|
|
63,246
|
|
|
|
58,256
|
|
|
Restructuring charges
|
|
|
868
|
|
|
|
421
|
|
|
|
|
1,128
|
|
|
|
2,446
|
|
|
Impairment of goodwill and intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
623
|
|
|
Total operating expenses
|
|
|
56,350
|
|
|
|
48,832
|
|
|
|
|
209,604
|
|
|
|
191,826
|
|
|
(Loss) income from operations
|
|
|
(35,604
|
)
|
|
|
2,329
|
|
|
|
|
(109,370
|
)
|
|
|
43,934
|
|
|
Interest income
|
|
|
4,208
|
|
|
|
5,652
|
|
|
|
|
19,324
|
|
|
|
22,698
|
|
|
Interest expense
|
|
|
(1,730
|
)
|
|
|
(2,689
|
)
|
|
|
|
(8,455
|
)
|
|
|
(10,516
|
)
|
|
Other (expense) income, net
|
|
|
(2,310
|
)
|
|
|
2,145
|
|
|
|
|
(2,407
|
)
|
|
|
(1,824
|
)
|
|
(Loss) income before provision for taxes
|
|
|
(35,436
|
)
|
|
|
7,437
|
|
|
|
|
(100,908
|
)
|
|
|
54,292
|
|
|
Provision for income taxes
|
|
|
1,464
|
|
|
|
2,777
|
|
|
|
|
(6,537
|
)
|
|
|
(1,368
|
)
|
|
Net (loss) income
|
|
$
|
(33,972
|
)
|
|
$
|
10,214
|
|
|
|
$
|
(107,445
|
)
|
|
$
|
52,924
|
|
|
(Loss) earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.37
|
)
|
|
$
|
0.11
|
|
|
|
$
|
(1.18
|
)
|
|
$
|
0.59
|
|
|
Diluted
|
|
$
|
(0.37
|
)
|
|
$
|
0.11
|
|
|
|
$
|
(1.18
|
)
|
|
$
|
0.57
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
92,222
|
|
|
|
90,087
|
|
|
|
|
91,247
|
|
|
|
90,053
|
|
|
Diluted
|
|
|
92,222
|
|
|
|
92,384
|
|
|
|
|
91,247
|
|
|
|
92,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain costs previously recorded as selling and marketing
expense in fiscal 2009 have been reclassified to research and
development expense and general and administrative expense.
|
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
|
(In Thousands, except per share data)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
124,945
|
|
|
$
|
122,213
|
|
|
Accounts receivable, net
|
|
|
31,738
|
|
|
|
49,882
|
|
|
Current portion of installments receivable, net
|
|
|
51,729
|
|
|
|
64,531
|
|
|
Current portion of collateralized receivables, net
|
|
|
25,675
|
|
|
|
38,695
|
|
|
Unbilled services
|
|
|
1,860
|
|
|
|
298
|
|
|
Prepaid expenses and other current assets
|
|
|
5,236
|
|
|
|
9,413
|
|
|
Prepaid income taxes
|
|
|
7,468
|
|
|
|
13,159
|
|
|
Deferred tax assets
|
|
|
1,632
|
|
|
|
3,795
|
|
|
Total current assets
|
|
|
250,283
|
|
|
|
301,986
|
|
|
Non-current installments receivable, net
|
|
|
76,869
|
|
|
|
113,390
|
|
|
Non-current collateralized receivables, net
|
|
|
25,755
|
|
|
|
57,671
|
|
|
Property, equipment and leasehold improvements, net
|
|
|
8,057
|
|
|
|
9,604
|
|
|
Computer software development costs
|
|
|
2,367
|
|
|
|
3,918
|
|
|
Goodwill
|
|
|
17,361
|
|
|
|
16,686
|
|
|
Non-current deferred tax assets
|
|
|
11,597
|
|
|
|
10,788
|
|
|
Other non-current assets
|
|
|
2,424
|
|
|
|
1,933
|
|
|
Total assets
|
|
$
|
394,713
|
|
|
$
|
515,976
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Current portion of secured borrowing
|
|
$
|
30,424
|
|
|
$
|
83,885
|
|
|
Accounts payable
|
|
|
6,092
|
|
|
|
5,135
|
|
|
Accrued expenses
|
|
|
49,890
|
|
|
|
47,882
|
|
|
Income taxes payable
|
|
|
1,161
|
|
|
|
1,888
|
|
|
Deferred revenue
|
|
|
67,852
|
|
|
|
62,801
|
|
|
Current deferred tax liability
|
|
|
398
|
|
|
|
2,481
|
|
|
Total current liabilities
|
|
|
155,817
|
|
|
|
204,072
|
|
|
Long-term secured borrowing
|
|
|
45,711
|
|
|
|
28,211
|
|
|
Deferred revenue
|
|
|
19,427
|
|
|
|
16,070
|
|
|
Non-current deferred tax liability
|
|
|
956
|
|
|
|
2,354
|
|
|
Other non-current liabilities
|
|
|
31,832
|
|
|
|
35,859
|
|
|
Commitments and contingencies:
|
|
|
|
|
|
Series D redeemable convertible preferred stock, $0.10 par value-
|
|
|
|
|
|
Authorized- 3,636 shares in 2010 and 2009
|
|
|
|
|
|
Issued and outstanding- none in 2010 or 2009
|
|
|
-
|
|
|
|
-
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.10 par value- Authorized-210,000,000 shares
|
|
|
|
|
|
Issued- 92,668,280 shares in 2010 and 90,326,513 shares in 2009
|
|
|
|
|
|
Outstanding- 92,434,816 shares in 2010 and 90,093,049 shares in 2009
|
|
|
9,267
|
|
|
|
9,033
|
|
|
Additional paid-in capital
|
|
|
515,729
|
|
|
|
497,478
|
|
|
Accumulated deficit
|
|
|
(391,038
|
)
|
|
|
(283,593
|
)
|
|
Accumulated other comprehensive income
|
|
|
7,525
|
|
|
|
7,005
|
|
|
Treasury stock, at cost-233,464 shares of common stock in 2010 and
2009
|
|
|
(513
|
)
|
|
|
(513
|
)
|
|
Total stockholders' equity
|
|
|
140,970
|
|
|
|
229,410
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
394,713
|
|
|
$
|
515,976
|
|
Media Contact
AspenTech
David Grip, +1 781-221-5273
david.grip@aspentech.com
or
Investor
Contact
ICR
Kori Doherty, +1 617-956-6730
kdoherty@icrinc.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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