ENP Newswire - 15 August 2014
Release date- 14082014 - BURLINGTON, Mass. - 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 ended June 30, 2014.
'We are pleased to report a strong finish to fiscal 2014, with fourth quarter results that exceeded our expectations across all key financial metrics,' said Antonio Pietri, President and Chief Executive Officer of AspenTech. 'During fiscal 2014 AspenTech grew total license contract value in excess of 12% year-over-year and generated $200 million of free cash flow. AspenTech continues to deliver new innovation through the aspenONE subscription software offering and we are confident about the runway for growth through increased adoption levels across our customer base.'
Fourth Quarter and Fiscal Year 2014 Business Highlights
The license portion of total contract value was $1.85 billion at the end of fiscal 2014, which increased 3.4% from March 31, 2014 and 12.2% compared to the end of fiscal 2013.
Total contract value, including the value of bundled maintenance, was $2.2 billion at the end of fiscal 2014, which increased 3.9% from March 31, 2014 and 13.7% compared to the end of fiscal 2013.
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 $380 million at the end of fiscal 2014, which increased 3.1% from March 31, 2014 and 12.3% compared to the end of fiscal 2013.
Summary of Fourth Quarter Fiscal Year 2014 Financial Results
AspenTech's total revenue of $101.5 million increased 21.9% from $83.3 million in the fourth quarter of the prior year.
Subscription and software revenue was $91.6 million in the fourth quarter of fiscal 2014, an increase from $73.8 million in the fourth quarter of fiscal 2013.
Services and other revenue was $10.0 million in the fourth quarter of fiscal 2014, an increase from $9.5 million in the fourth quarter of fiscal 2013.
For the quarter ended June 30, 2014, AspenTech reported income from operations of $37.4 million, compared to income from operations of $15.4 million for the quarter ended June 30, 2013.
Net income was $26.7 million for the quarter ended June 30, 2014, leading to net income per share of $0.29, compared to net income per share of $0.21 in the same period last fiscal year.
Non-GAAP income from operations, which adds back stock-based compensation expense, restructuring charges, amortization of intangibles associated with acquisitions and non-capitalized acquired technology, was $40.5 million for the fourth quarter of fiscal 2014, compared to a non-GAAP income from operations of $18.9 million in the same period last fiscal year. Non-GAAP net income was $28.7 million, or $0.31 per share, for the fourth quarter of fiscal 2014, compared to non-GAAP net income of $22.7 million, or $0.24 per share, in the same period last fiscal year.
AspenTech had cash and marketable securities of $298.4 million at June 30, 2014, an increase of $23.5 million from the end of the prior quarter. During the fourth quarter, the company generated $58.2 million in cash flow from operations. On a non-GAAP basis, cash flow from operations was $58.8 million and free cash flow was $57.4 million after taking into consideration $1.5 million in capital expenditures and capitalized software. Both non-GAAP figures include $0.6 million of excess tax benefits from stock-based compensation.
Summary of Fiscal Year 2014 Financial Results
AspenTech's total revenue of $391.5 million increased 25.7% from $311.4 million for fiscal year 2013.
Subscription and software revenue was $350.5 million, an increase from $276.6 million for fiscal year 2013.
Services and other revenue was $41.0 million, compared to $34.8 million for fiscal year 2013.
For the fiscal year ended June 30, 2014, AspenTech reported income from operations of $129.7 million, an improvement from income from operations of $55.6 million for fiscal year 2013.
Net income was $85.8 million for the fiscal year ended June 30, 2014, leading to net income per share of $0.92, compared to net income per share of $0.47 for fiscal year 2013.
Non-GAAP income from operations was $149.5 million for fiscal year 2014, an improvement compared to non-GAAP income from operations of $70.9 million for fiscal year 2013. Non-GAAP net income was $98.5 million, or $1.05 per share, for fiscal year 2014, an improvement compared to non-GAAP net income of $55.1 million, or $0.58 per share, for fiscal year 2013.
For the fiscal year ended June 30, 2014, the company generated $200.1 million in cash flow from operations, $204.7 million in non-GAAP cash flow from operations and $200 million in free cash flow. Both non-GAAP figures exclude the $3.9 million cash payment associated with the purchase of non-capitalized acquired technology and include $0.7 million of excess tax benefits from stock-based compensation.
Use of Non-GAAP Financial Measures
This press release contains 'non-GAAP financial measures,' which 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.
Management considers both GAAP and non-GAAP financial results in managing AspenTech's business. As the result of adoption of new licensing models, management believes that a number of AspenTech's performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing AspenTech's performance, growth and financial condition.
Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this press release, to track AspenTech's business performance. None of these non-GAAP metrics should be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.
AspenTech is a leading supplier of software that optimizes process manufacturing - for energy, chemicals, 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.
The second paragraph of this press release contains 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: AspenTech's failure to increase usage and product adoption of aspenONE offerings, and failure to continue to provide innovative, market-leading solutions; demand for, or usage of, aspenONE software declines for any reason; unfavorable economic and market conditions or a lessening demand in the market for process optimization software and other risk factors described from time to time in AspenTech's periodic reports filed with the Securities and Exchange Commission.