Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2008
June 30, 2009
Mark Fusco, Chief Executive Officer of AspenTech, said "The company delivered a strong operational performance in fiscal 2008, highlighted by annual license bookings growth of over 15% and record cash flows from operations." Fusco added, "We are pleased to achieve another milestone related to bringing the company’s financial statements current. We have now completed our first audit process and Annual Report on Form 10-K with KPMG, and we are executing against plans to finish our fiscal 2009 reports as quickly as possible."
Income Statement for Fourth Quarter of Fiscal 2008
For the fourth quarter ended June 30, 2008, AspenTech reported total revenue of $98.3 million, a decrease of 3% compared to the fourth quarter of fiscal 2007. Within total revenue, license revenue was $59.7 million, a decrease of 12%, and services revenue was $38.6 million, an increase of 15%, both compared to the fourth quarter of fiscal 2007.
During the fourth quarter of fiscal 2008, the company entered into three contracts with a net present value totaling $12.5 million that did not meet all of the criteria for revenue recognition as of the end of the quarter. There was not a comparable impact on the prior year period. As previously disclosed, license bookings were approximately $70 million in the fourth quarter of fiscal 2008, up slightly compared to the fourth quarter of fiscal 2007.
AspenTech's income from operations, determined in accordance with generally accepted accounting principles (GAAP), was $21.1 million in the fourth quarter of fiscal 2008, representing an operating margin of 21.4%, compared to $24.0 million in the fourth quarter of fiscal 2007.
Net income was $20.7 million for the fourth quarter of fiscal 2008, compared to $17.9 million for the fourth quarter of fiscal 2007. Diluted income per share attributable to common shareholders was $0.22 for the quarter ended June 30, 2008, three cents better than the fourth quarter of fiscal 2007.
Income Statement for the Full Year Fiscal 2008
For the fiscal year ended June 30, 2008, AspenTech reported total revenue of $311.6 million, a decrease of 9% compared to fiscal 2007. Within total revenue, license revenue was $168.4 million, a decrease of 16%, and services revenue was $143.2 million, an increase of 1%, both compared to the full fiscal year 2007.
During fiscal 2008, the company entered into seven contracts with a net present value totaling approximately $57.5 million that did not meet all of the criteria for revenue recognition as of the end of the fiscal year. There was no comparable impact on the prior fiscal year period.
AspenTech's income from operations, determined in accordance with generally accepted accounting principles (GAAP), was $18.6 million for fiscal 2008, representing an operating margin of 6%, compared to $55.4 million for fiscal 2007.
Net income was $24.9 million for fiscal 2008, compared to $45.5 million for fiscal 2007. Diluted income per share attributable Net income was $24.9 million for fiscal 2008, compared to $45.5 million for fiscal 2007. Diluted income per share attributable to common shareholders was $0.27 for fiscal 2008, compared to $0.50 for fiscal 2007.
Balance Sheet and Cash Flow
The company’s cash balance at the end of fiscal 2008 was approximately $134 million, an increase compared to approximately $132 million at the end of fiscal 2007. Cash flow from operations was $70.8 million during fiscal 2008, offset by cash used in investing activities of $9.8 million and cash used in financing activities of $59.8 million.
Total company-owned accounts and installments receivable balances were $221.2 million at the end of fiscal 2008, an increase of $131.1 million from $90.0 million at the end of fiscal 2007.
The company’s secured borrowings balance at the end of fiscal 2008 was $147.2 million, a reduction of $58.9 million from $206.1 million at the end of fiscal 2007.
The company’s total deferred revenue balance at June 30, 2008, was $106.9 million, an increase of 59% compared to the end of fiscal 2007.
Conference Call and Webcast
AspenTech will host a conference call and webcast tomorrow, July 1, 2009, at 8:30 am (Eastern Time) to discuss the Company's fourth quarter 2008 financial results and related corporate and financial matters. The live dial-in number is (877) 239-3024, conference ID code 17469720. Interested parties may also listen to a live webcast of the call by logging on to the Investor Relations section of AspenTech’s website 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 17469720 through July 8, 2009.
About AspenTech
AspenTech is a leading supplier of software that optimizes process manufacturing – including oil and gas, petroleum, chemicals, pharmaceuticals 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.
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. Actual results may vary significantly from AspenTech’s expectations based on a number of risks and uncertainties, including, without limitation: fluctuations in AspenTech’s quarterly revenues, operating results and cash flow; difficulty in predicting quarterly revenue levels and operating results due to AspenTech’s lengthy sales cycle; economic downturn in the highly cyclical oil and gas, chemicals, petrochemicals and petroleum industries from which AspenTech derives a majority of its total revenues; substantial damages and expenses AspenTech might incur as the result of securities and derivative litigation and government investigations based on AspenTech’s restatement of its consolidated financial statements due to AspenTech’s prior software accounting practices; a determination that AspenTech has failed to comply with its existing consent decree with the Federal Trade Commission; failure to remedy effectively material weaknesses identified by AspenTech in its internal control over financial reporting; risks associated with the delisting of AspenTech’s common stock from The NASDAQ Stock Market; failure to manage international operations effectively, or failure to address the challenges associated with transacting business internationally; competition from software offered by current competitors and new market entrants, as well as from internally developed solutions; failure to develop new software products or enhance existing products and services; new accounting standards or interpretations of existing accounting standards that could adversely affect AspenTech’s operating results; failure to develop or maintain strategic alliance relationships; failure to raise capital when needed; 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.
Source: Aspen Technology, Inc.