INSERTING and REPLACING Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2010
BURLINGTON, Mass., Sep 02, 2010 (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
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.
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.
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.
© 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.
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,|
|(In thousands, except per share data)|
|Total subscription and software||14,021||41,612||53,991||179,591|
|Services and other||24,223||29,643||112,353||131,989|
|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|
|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|
|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|
|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||)||$||52,924|
|(Loss) earnings per common share:|
|Weighted average shares outstanding:|
|(1) Certain costs previously recorded as selling and marketing expense in fiscal 2009 have been reclassified to research and development expense and general and administrative expense.|
|ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(In Thousands, except per share data)|
|Cash and cash equivalents||$||124,945||$||122,213|
|Accounts receivable, net||31,738||49,882|
|Current portion of installments receivable, net||51,729||64,531|
|Current portion of collateralized receivables, net||25,675||38,695|
|Prepaid expenses and other current assets||5,236||9,413|
|Prepaid income taxes||7,468||13,159|
|Deferred tax assets||1,632||3,795|
|Total current assets||250,283||301,986|
|Non-current installments receivable, net||76,869||113,390|
|Non-current collateralized receivables, net||25,755||57,671|
|Property, equipment and leasehold improvements, net||8,057||9,604|
|Computer software development costs||2,367||3,918|
|Non-current deferred tax assets||11,597||10,788|
|Other non-current assets||2,424||1,933|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current portion of secured borrowing||$||30,424||$||83,885|
|Income taxes payable||1,161||1,888|
|Current deferred tax liability||398||2,481|
|Total current liabilities||155,817||204,072|
|Long-term secured borrowing||45,711||28,211|
|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||-||-|
|Common stock, $0.10 par value-- Authorized--210,000,000 shares|
|Issued-- 92,668,280 shares in 2010 and 90,326,513 shares in 2009|
|Outstanding-- 92,434,816 shares in 2010 and 90,093,049 shares in 2009||9,267||9,033|
|Additional paid-in capital||515,729||497,478|
|Accumulated other comprehensive income||7,525||7,005|
|Treasury stock, at cost--233,464 shares of common stock in 2010 and 2009||(513||)||(513||)|
|Total stockholders' equity||140,970||229,410|
|Total liabilities and stockholders' equity||$||394,713||$||515,976|
SOURCE: Aspen Technology, Inc.
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