BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 12, 2009--
Aspen Technology, Inc. (OTC: AZPN.PK), a leading provider of software
and services to the process industries, today announced that the Company
will host a conference call on February 19, 2009, with dial-in
instructions provided in a separate press release leading up the call.
The Company plans to review its selected preliminary financial results
for the second quarter of fiscal 2009, Quarterly Reports on Form 10-Q
for the second and third quarters of fiscal 2008, and restated Form 10-Q
for the first quarter of fiscal 2008, which quarterly reports are
expected to be filed with the Securities and Exchange Commission prior
to the call.
Company to Restate its Cash Flow
Statement and Balance Sheet for the First Quarter Fiscal 2008
Brad Miller, Chief Financial Officer of AspenTech, said “The review
process related to the Company’s second and third quarter fiscal 2008
results has taken significantly longer than originally expected
primarily as a result of extensive manual testing, including in areas
with internal control weaknesses. In the final stage of preparing our
required quarterly SEC filings, we discovered errors related to
classifications in the cash flow statement of our previously filed first
quarter fiscal 2008 results as well as the adjustment we made to the
accumulated deficit as of July 1, 2007.”
In restating cash flows for the first quarter of fiscal 2008, the
Company currently estimates that repayments of secured borrowings were
approximately $7.8 million lower than originally reported, while the
repayments were approximately $9.1 million higher than originally
reported in the first quarter fiscal 2007. Offsetting adjustments will
be reflected in cash flows from operations for both respective quarters.
This correction does not impact ending cash balances or any change in
total cash flows at the end of any reporting period. The Company also
expects to make adjustments to its consolidated statements of cash flows
to more appropriately reflect certain non-cash operating activities,
which will not have any impact on net cash flows from operations for any
period.
The Company also identified an error in adjustments made to the
accumulated deficit as of July 1, 2007, when it adopted FASB
Interpretation No. 48. The Company had previously recognized an increase
of $3.0 million in the liability for unrecognized tax benefits, with an
offsetting increase to the accumulated deficit upon adoption. The
Company currently believes it is appropriate to reverse this $3.0
million liability and the offsetting increase in accumulated deficit as
of July 1, 2007.
A current report on Form 8-K has been filed with the Securities and
Exchange Commission relating to the First Quarter of Fiscal 2008. The
Company will file an amendment to the First Quarter 10-Q for the three
months ended September 30, 2007 that will correct each of the errors
identified and discussed above.
About AspenTech
AspenTech is a leading global 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.
© 2009 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 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.
Media Contact
AspenTech
David Grip, +1 781-221-5273
david.grip@aspentech.com
or
Investor
Contact
ICR
Kori Doherty, +1 617-956-6730
kdoherty@icrinc.com