Aspen Technology Reports Fiscal Year 2003 Second Quarter Financial Results
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 30, 2003--
License revenues grow 24 percent sequentially; expenses decline
Aspen Technology, Inc. (NASDAQ: AZPN) today reported financial results for its fiscal 2003 second quarter and six months ending December 31, 2002.
Total revenues for the second quarter grew to $83.0 million, with license revenues of $36.8 million, up 24 percent from the previous quarter, and services revenue of $46.2 million. On a Generally Accepted Accounting Principles (GAAP) basis, the company reported a second quarter net loss of $136.9 million, or $3.59 per share, which, after adjustment for restructuring and other charges, and preferred stock dividend and discount accretion, resulted in net income of $0.6 million, or $0.02 per share in the second quarter. The restructuring and other charges, which totaled $135.2 million, were primarily related to the write-down of certain assets due to the declining market values of businesses AspenTech acquired or invested in. Also included, was the impact of previously announced headcount reductions and related facilities consolidations, which constituted a much smaller proportion of the restructuring and other charges.
"We met or exceeded all of our key operational objectives in the December quarter, which enabled us to restore the company to operating profitability, excluding charges, a quarter earlier than we anticipated," said David McQuillin, President and CEO of AspenTech. "Solid customer demand, particularly in the refining and oil & gas sectors, coupled with improved execution, led to sequential top-line growth. Expenses were down substantially from last quarter, as we realized the benefit of headcount reductions and cost control measures implemented earlier in the year.
"In addition, we ended the quarter with more cash than we had forecasted, due to an increase in the sale of installment receivables and improved collection activity. Our success in the second quarter was an important milestone for the company and gives us confidence that we can sustain this improved execution, as we move toward achieving our revenue and profitability targets for the rest of this fiscal year."
During the second fiscal quarter, AspenTech signed significant license transactions with bp, UOP, PetroCanada, ConocoPhillips, Ameriven, TotalFinaElf, Fluor Daniel and Bristol Myers Squibb. The company saw strong demand for its Engineering solutions, and Manufacturing/Supply Chain product line revenues were in line with expectations.
Also during the second quarter, over 2000 attendees from more than 600 companies and 48 countries attended AspenWorld, the pre-eminent global conference for the process industries. This forum brought together industry analysts and executives from a wide range of process manufacturing sectors to discuss business issues currently facing the industry. The event enabled AspenTech to showcase its newest offerings and communicate the company's vision and strategy for Enterprise Operations Management.
The company recently secured a new $25 million commercial line of credit with Silicon Valley Bank, which will replace its previous line of credit with Fleet Bank. The two-year, secured credit facility will carry an interest of the prime rate plus 0.5 percent.
The company will be holding a conference call to discuss its financial results, business outlook, and related corporate and financial matters at 4:45 p.m. EST on Thursday, January 30, 2003. Interested parties may listen to a live Webcast of the call by logging on to AspenTech's website: http://www.aspentech.com and clicking on the "Webcast" link under the Investor Relations section of the site. A replay of the call will be archived on AspenTech's website for ten days and will also be available for forty-eight hours via telephone, beginning at 8:00 p.m. EST on January 30, 2003, by dialing 719-457-0820 and entering in confirmation code 463511.
Aspen Technology, Inc. is a leading supplier of enterprise software to the process industries, enabling its customers to increase their margins and optimize their business performance. AspenTech's engineering solutions, including Hyprotech's technologies, help companies design and improve their plants and processes, maximizing returns throughout their operational life. AspenTech's manufacturing/supply chain solutions allow companies to run their plants and supply chains more profitably, from customer demand through to the delivery of the finished products. Over 1,200 leading companies rely on AspenTech's software every day to drive improvements across their most important engineering and operational processes. AspenTech's customers include: Air Liquide, AstraZeneca, Bayer, BASF, BP, ChevronTexaco, Dow Chemical, DuPont, ExxonMobil, GlaxoSmithKline, Lyondell Equistar, Merck, Mitsubishi Chemical, Shell, Southern Company, TXU Energy and Unilever. For more information, visit www.aspentech.com.
The third and fourth paragraphs of this press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statement using the term "will," "should," "could," "anticipates," "believes" or a comparable term is a forward-looking statement. Actual results may vary significantly from AspenTech's expectations based on a number of risks and uncertainties, including: AspenTech's lengthy sales cycle which makes it difficult to predict quarterly operating results; fluctuations in AspenTech's quarterly operating results; AspenTech's dependence on customers in the cyclical chemicals, petrochemicals and petroleum industries; AspenTech's need to hire additional qualified personnel and its dependence on key current employees; intense competition; AspenTech's dependence on systems integrators and other strategic partners; and other risk factors described from time to time in AspenTech's periodic reports and registration statements filed with the Securities and Exchange Commission. AspenTech cannot guarantee any future results, levels of activity, performance, or achievements. Moreover, neither AspenTech nor anyone else assumes responsibility for the accuracy and completeness of any forward-looking statements. AspenTech undertakes no obligation to update any of the forward-looking statements after the date of this press release.
AspenTech, Aspen ProfitAdvantage, Plantelligence, and the Aspen logo are trademarks of Aspen Technology, Inc., Cambridge, Mass.
ASPEN TECHNOLOGY, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2002 2001 2002 2001 REVENUES: Software licenses $36,781 $39,939 $66,427 $59,170 Services 46,192 47,057 93,796 94,017 Total revenues 82,973 86,996 160,223 153,187 EXPENSES: Cost of software licenses 3,511 3,054 6,846 5,498 Cost of services 26,823 30,261 54,831 60,403 Selling and marketing 27,031 28,451 56,185 55,075 Research and development 15,997 17,829 33,742 35,828 General and administrative 8,923 7,520 18,744 14,942 Restructuring and other charges 135,244 - 134,501 2,642 Total costs and expenses 217,529 87,115 304,849 174,388 Income (loss) from operations (134,556) (119) (144,626) (21,201) Other income (expense), net (313) (171) (814) (355) Interest income, net 268 144 849 897 Income (loss) before provision for (benefit from) income taxes (134,601) (146) (144,591) (20,659) Provision for (benefit from) income taxes - (44) - (6,198) Net income (loss) (134,601) (102) (144,591) (14,461) Accretion of preferred stock discount and dividend (2,287) - (4,521) - Net income (loss) applicable to common stockholders $(136,888) $(102) $(149,112) $(14,461) Basic and diluted earnings (loss) per share: Net income (loss) per share $(3.53) $(0.00) $(3.80) $(0.46) Accretion of preferred stock discount and dividend (0.06) - (0.12) - Net income (loss) per share applicable to common stockholders $(3.59) $(0.00) $(3.91) $(0.46) Weighted average shares outstanding - basic and diluted 38,128 31,748 38,092 31,740 Pro Forma before Restructuring and other charges, and Preferred stock discount and dividend accretion: Net income (loss) $643 $(102) $(10,090) $(12,612) Diluted earnings (loss) per share $0.02 $(0.00) $(0.26) $(0.40) Weighted average shares outstanding - diluted 39,560 31,748 38,092 31,740 Supplemental information - Reconciliation of net income (loss) to pro forma net income (loss) Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2002 2001 2002 2001 Net income (loss) $(136,888) $(102) $(149,112) $(14,461) Adjustments to net loss: Restructuring and other charges, net of tax effect 135,244 -- 134,501 1,849 Preferred stock discount and dividend accretion 2,287 -- 4,521 -- Pro forma net income (loss) $ 643 $(102) $ (10,090) $(12,612) ASPEN TECHNOLOGY, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) Dec. 31, June 30, 2002 2002 ASSETS Current assets: Cash, cash equivalents and short-term investments $ 53,665 $ 52,120 Accounts receivable and unbilled services, net 98,345 125,987 Current portion of long-term installments receivable, net 36,418 40,404 Deferred tax asset 2,929 2,929 Prepaid expenses and other current assets 20,676 18,699 Total current assets 212,033 240,139 Long-term installments receivable, net 69,296 68,318 Equipment and leasehold improvements, net 39,447 50,803 Computer software development costs, net 15,017 13,810 Intangible assets, net 43,081 125,363 Purchased intellectual property, net 2,143 27,626 Deferred tax asset 15,576 15,576 Other assets 6,036 6,708 Total assets $402,629 $548,343 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 4,807 $ 5,334 Amount owed to Accenture 8,300 11,100 Accounts payable and accrued expenses 93,258 94,987 Unearned revenue 17,730 20,983 Deferred revenue 35,612 38,624 Total current liabilities 159,707 171,028 Long-term debt, less current maturities 89,584 92,135 Obligation subject to common stock settlement 4,245 1,810 Deferred revenue, less current portion 15,797 9,548 Deferred tax liability 14,964 15,003 Other liabilities 5,268 5,031 Total stockholders' equity 113,064 253,788 Total liabilities and stockholders' equity $402,629 $548,343
|Aspen Technology, Inc.|
|Peter Watt, +44 (0) 1223 819 752|
|Aspen Technology, Inc.|
|Joshua Young, (617) 949-1274|