Breaking News

Morgan Stanley to Pay $275 Million to Settle Subprime SEC Charges
Tweet TWEET

Aspen Technology Announces Financial Results for the First Quarter of Fiscal 2013

  Aspen Technology Announces Financial Results for the First Quarter of Fiscal
  2013

               Announces $100 million share repurchase program

Business Wire

BURLINGTON, Mass. -- November 01, 2012

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 2013, ended September 30, 2012.

Mark Fusco, Chief Executive Officer of AspenTech, said, “AspenTech began
fiscal 2013 on a strong note, highlighted by mid-teens year-over-year growth
in total license contract value. We continue to expand the capabilities of our
industry leading aspenONE suite, and believe that we remain well positioned to
drive increased product adoption and usage levels over the long-term. At the
same time, our focus on expense management contributed to strong growth in
profitability and free cash flow generation.”

First Quarter Fiscal 2013 and Recent Business Highlights

  *The license portion of total contract value was $1.5 billion for the first
    quarter of fiscal 2013, which increased 2.3% sequentially and 14.7%
    compared to the first quarter of fiscal 2012.
  *Total contract value, including the value of bundled maintenance, was
    $1.72 billion at the end of the first quarter of fiscal 2013, which
    increased 2.6% sequentially and 17.6% compared to the first quarter of
    fiscal 2012.
  *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 $312 million at the end of the first quarter of fiscal
    2013, which increased 2.5% sequentially and 13.9% compared to the first
    quarter of fiscal 2012.
  *The company announced today that its Board of Directors has approved a
    $100 million share repurchase program. This replaces the prior share
    repurchase program, which had approximately $49 million of remaining
    capacity as of the end of the first quarter.

Summary of First Quarter Fiscal Year 2013 Financial Results

AspenTech’s total revenue of $71.5 million increased 40% from $51.2 million in
the first quarter of the prior year.

  *Subscription and software revenue was $54.1 million in the first quarter
    of fiscal 2013, an increase from $31.9 million in the first quarter of
    fiscal 2012.
  *Services & other revenue was $17.4 million in the first quarter of fiscal
    2013, compared to $19.3 million in the first quarter of fiscal 2012.

For the quarter ended September 30, 2012, AspenTech reported income from
operations of $9.0 million, compared to a loss from operations of $15.6
million for the quarter ended September 30, 2011.

Net income was $4.4 million for the quarter ended September 30, 2012, leading
to EPS of $0.05, compared to a net loss per share of ($0.12) in the same
period last fiscal year.

Non-GAAP income from operations, which adds back stock-based compensation
expense, restructuring charges and amortization of intangibles associated with
acquisitions, was $13.4 million for the first quarter of fiscal 2013, compared
to a non-GAAP loss from operations of $12.0 million in the same period last
fiscal year. Non-GAAP net income was $7.3 million, or $0.08 per share, for the
first quarter of fiscal 2013, compared to a non-GAAP net loss of $9.2 million,
or ($0.09) 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 balance of $163.4 million at September 30, 2012, a
decrease of $1.9 million from the end of the prior quarter after using $17.2
million in cash to repurchase shares of common stock and reducing secured
borrowings by $5.4 million. During the first quarter, the company generated
$18.5 million in cash flow from operations and $18.9 million in free cash flow
after taking into consideration $1.8 million in capital expenditures and
capitalized software, which was more than offset by $2.2 million of insurance
proceeds related to prior period damage suffered at the company’s Houston
facility.

Board of Directors Approves $100 Million Share Repurchase Program

As mentioned above, AspenTech's Board of Directors approved a share repurchase
program for up to $100 million. The timing and amount of any shares
repurchased will be determined by AspenTech based on its evaluation of market
conditions and other factors. Repurchases may also be made under a Rule 10b5-1
plan, which would permit shares to be repurchased when AspenTech might
otherwise be precluded from doing so under applicable insider trading laws and
regulations. The repurchase program may be suspended or discontinued at any
time.

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
non-GAAP results is included in the financial tables included in this press
release.

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, for the next few years, a number of AspenTech’s
performance indicators based on GAAP, including revenue, gross profit,
operating income (loss) and net income (loss), will be of limited value in
assessing AspenTech’s performance, growth and financial condition.
Accordingly, management instead is focusing on certain 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.

Conference Call and Webcast

AspenTech will host a conference call and webcast today, November 1, 2012, at
8:00 a.m. (Eastern Time), to discuss the company's financial results for the
first quarter fiscal year 2013 as well as the company’s business outlook.

The live dial-in number is (877) 245-0126, conference ID code 59815504.
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 (855) 859-2056 or (404) 537-3406,
conference ID code 59815504, through December 1, 2012.

About AspenTech

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.

© 2012 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

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 develop new software
products, enhance existing products and services, or penetrate new vertical
markets; 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; unforeseen difficulties or uncertainties in
the application of accounting standards; weaknesses in AspenTech’s 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per share data)
                                                             
                                                    Three Months Ended
                                                    September 30,
                                                    2012           2011
Revenue:
Subscription and software                           $ 54,080       $ 31,910
Services and other                                   17,377       19,315  
Total revenue                                        71,457       51,225  
Cost of revenue:
Subscription and software                             3,190          2,724
Services and other                                   9,148        11,097  
Total cost of revenue                                12,338       13,821  
Gross profit                                         59,119       37,404  
Operating expenses:
Selling and marketing                                 21,591         23,446
Research and development                              15,766         13,769
General and administrative                            12,768         15,887
Restructuring charges                                40           (73     )
Total operating expenses                             50,165       53,029  
Income (loss) from operations                         8,954          (15,625 )
Interest income                                       1,099          2,231
Interest expense                                      (257   )       (1,092  )
Other expense, net                                   (277   )      (2,032  )
Income (loss) before provision for (benefit           9,519          (16,518 )
from) income taxes
Provision for (benefit from) income taxes            5,106        (4,782  )
Net income (loss)                                   $ 4,413       $ (11,736 )
Net income (loss) per common share:
Basic                                               $ 0.05         $ (0.12   )
Diluted                                             $ 0.05         $ (0.12   )
Weighted average shares outstanding:
Basic                                                 93,428         94,065
Diluted                                               95,670         94,065
                                                                             
                                                                             

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share data)
                                                            
                                                September 30,     June 30,
                                                2012              2012
                                                                  
ASSETS
Current assets:
Cash and cash equivalents                       $  163,363        $ 165,242
Accounts receivable, net                           22,923           31,450
Current portion of installments                    27,920           33,184
receivable, net
Collateralized receivables                         4,875            6,297
Unbilled services                                  1,576            1,592
Prepaid expenses and other current assets          9,979            16,219
Prepaid income taxes                               132              283
Current deferred tax assets                       7,199          7,196    
Total current assets                              237,967        261,463  
Non-current installments receivable, net           10,042           14,046
Property, equipment and leasehold                  7,881            7,037
improvements, net
Computer software development costs, net           1,445            1,689
Goodwill                                           19,995           19,399
Non-current deferred tax assets                    54,383           58,559
Other non-current assets                          7,117          6,142    
Total assets                                    $  338,830       $ 368,335  
                                                                  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Secured borrowings                              $  5,616          $ 10,756
Accounts payable                                   1,446            2,566
Accrued expenses and other current                 26,774           37,989
liabilities
Income taxes payable                               489              598
Current deferred revenue                           137,640          143,578
Current deferred tax liabilities                  232            232      
Total current liabilities                         172,197        195,719  
Non-current deferred revenue                       42,890           43,595
Other non-current liabilities                      15,545           15,429
Commitments and contingencies
Series D redeemable convertible preferred
stock, $0.10 par value—
Authorized— 3,636 shares at September 30,
2012 and June 30, 2012
Issued and outstanding— none at September          -                -
30, 2012 and June 30, 2012
Stockholders’ equity:
Common stock, $0.10 par value—
Authorized—210,000,000 shares
Issued— 97,453,004 shares at September
30, 2012 and 96,663,580 shares at June
30, 2012
Outstanding— 93,538,774 shares at
September 30, 2012 and 93,465,955 shares           9,745            9,666
at June 30, 2012
Additional paid-in capital                         553,855          547,546
Accumulated deficit                                (390,666 )       (395,079 )
Accumulated other comprehensive income             9,063            8,095
Treasury stock, at cost—3,914,230 shares
of common stock at September 30, 2012 and         (73,799  )      (56,636  )
3,197,625 at June 30, 2012
Total stockholders’ equity                        108,198        113,592  
Total liabilities and stockholders'             $  338,830       $ 368,335  
equity
                                                                             
                                                                             

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
                                                             
                                                   Three Months Ended
                                                   September 30,
                                                   2012            2011
Cash flows from operating activities:
Net income (loss)                                  $ 4,413         $ (11,736 )
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization                        1,317           1,412
Net foreign currency (gain) loss                     (121    )       1,275
Stock-based compensation                             4,315           3,708
Deferred income taxes                                4,222           (5,354  )
Provision for bad debts                              97              150
Other non-cash operating activities                  3               13
Changes in assets and liabilities:
Accounts receivable                                  8,895           5,594
Unbilled services                                    38              611
Prepaid expenses, prepaid income taxes, and          4,443           1,187
other assets
Installments and collateralized receivables          11,030          8,329
Accounts payable, accrued expenses and other         (13,253 )       (6,898  )
liabilities
Deferred revenue                                    (6,938  )      6,982   
Net cash provided by operating activities           18,461        5,273   
Cash flows from investing activities:
Purchase of property, equipment and                  (1,800  )       (386    )
leasehold improvements
Insurance proceeds                                   2,222           -
Purchase of technology intangibles                   (527    )       -
Capitalized computer software development           -             (200    )
costs
Net cash used in investing activities               (105    )      (586    )
Cash flows from financing activities:
Exercise of stock options                            4,048           2,232
Proceeds from secured borrowings                     -               1,408
Repayments of secured borrowings                     (5,394  )       (2,232  )
Repurchases of common stock                          (17,163 )       (9,172  )
Payment of tax withholding obligations              (1,976  )      (1,187  )
related to restricted stock
Net cash used in financing activities                (20,485 )       (8,951  )
Effects of exchange rate changes on cash and        250           (365    )
cash equivalents
Decrease in cash and cash equivalents                (1,879  )       (4,629  )
Cash and cash equivalents, beginning of             165,242       149,985 
period
Cash and cash equivalents, end of period           $ 163,363      $ 145,356 
                                                                   
Supplemental disclosure of cash flow
information:
Income tax paid, net                               $ 1,034         $ 631
Interest paid                                        257             1,092
                                                                             
                                                                             

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
GAAP Results Reconciled to Non-GAAP Results
The following table reflects selected Aspen Technology GAAP results reconciled
to Non-GAAP results.

(Unaudited and in thousands, except per share data)
                                                     
                                    Three Months Ended
                                    September 30,
                                    2012                     2011
Total expenses
GAAP total expenses (a)             $   62,503               $   66,850
Less:
Stock-based                             (4,315   )               (3,708    )
compensation (b)
Restructuring charges                   (40      )               73
Amortization of                         (103     )               -
purchased intangibles
                                                      
Non-GAAP total expenses          $   58,045            $   63,215    
                                                             
Income (loss) from
operations
GAAP income (loss) from             $   8,954                $   (15,625   )
operations
Plus:
Stock-based                             4,315                    3,708
compensation (b)
Restructuring charges                   40                       (73       )
Amortization of                         103                      -
intangible assets
                                                      
Non-GAAP income (loss)           $   13,412            $   (11,990   )
from operations
                                                             
Net income (loss)
GAAP net income (loss)              $   4,413                $   (11,736   )
Plus:
Stock-based                             4,315                    3,708
compensation (b)
Restructuring charges                   40                       (73       )
Amortization of                         103                      -
intangible assets
Less:
Income tax effect on                    (1,609   )               (1,068    )
Non-GAAP items (c)
                                                      
Non-GAAP net income              $   7,262             $   (9,169    )
(loss)
                                                             
Diluted income (loss)
per share
GAAP diluted income                 $   0.05                 $   (0.12     )
(loss) per share
Plus:
Stock-based                             0.05                     0.04
compensation (b)
Restructuring charges                   -                        -
Amortization of                         -                        -
intangible assets
Less:
Income tax effect on                    (0.02    )               (0.01     )
Non-GAAP items (c)
                                                      
Non-GAAP diluted income          $   0.08              $   (0.09     )
(loss) per share
                                                             
Shares used in
computing Non-GAAP                      95,670                   94,065
diluted income (loss)
per share
                                                             
(a) GAAP total expenses
                                    Three Months Ended
                                    September 30,
                                    2012                     2011
Total costs of revenue              $   12,338               $   13,821
Total operating                        50,165                 53,029    
expenses
GAAP total expenses                 $   62,503               $   66,850
                                                             
(b) Stock-based
compensation expense
was as follows:
                                    Three Months Ended
                                    September 30,
                                    2012                     2011
Cost of service and                 $   343                  $   303
other
Selling and marketing                   977                      1,170
Research and                            741                      348
development
General and                            2,254                  1,887     
administrative
Total stock-based                   $   4,315                $   3,708
compensation
                                                             
(c) The income tax effect on the first quarter of fiscal 2013 Non-GAAP items
is calculated utilizing an estimate of our future effective tax rate.

Contact:

Media Contact
AspenTech
Erik Mason, +1 781-221-8386
erik.mason@aspentech.com
or
Investor Contact
ICR
Brian Denyeau, +1 646-277-1251
brian.denyeau@icrinc.com