Aspen Technology Announces Selected Preliminary Financial Results for the Fourth Quarter and Fiscal Year 2009
The company’s cash balance at
New aspenONE subscription-based commercial model
AspenTech today announced a new subscription-based commercial model for its aspenONE suite of solutions. While the company previously offered customers access to specific sets of products on a term-token basis, the new commercial model will provide customers with flexible access to all engineering and manufacturing/supply chain solutions within the overall aspenONE suite. Each subscription-based license will also provide customers with bundled maintenance and access to new aspenONE products that are introduced over time.
Fusco added, “In addition to providing significant benefits to our customers, the introduction of a subscription-based commercial model for aspenONE represents both an evolutionary and milestone event for the company. There is close alignment between our aspenONE solutions, go-to-market strategy and business model, which we believe will further strengthen our competitive position and long-term financial profile.”
Sullivan added, “This change from predominantly up-front revenue recognition is expected to result in the company reporting significantly lower revenue and large GAAP operating losses in the near-term. However, we expect revenue and profitability will catch up and exceed the results that would be generated by our traditional commercial model over the long-term. We also expect our newly introduced commercial model to favorably impact the company’s cash flow from both a short and long-term perspective. We believe this is the most important financial characteristic of the new commercial model as improved cash flow has a real, positive impact on a company’s economic position.”
As we previously announced, AspenTech will host a webcast today,
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.
Forward Looking Statements
Each of the last four paragraphs under “New subscription-based commercial model” in this press release contains 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 financial results and operational benefits of AspenTech’s new subscription-based commercial 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 commercial model at the rate expected by AspenTech or at all; AspenTech’s failure to realize the anticipated financial and operational benefits of the new commercial model; 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; a continued economic downturn in the highly cyclical oil and gas, chemicals, petrochemicals and petroleum industries from which AspenTech derives a majority of its total revenues; failure to manage international operations effectively or 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 adversely affect AspenTech’s operating results; and other risk factors described from time to time in AspenTech’s periodic reports filed with the
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.
David Grip, +1 781-221-5273
Kori Doherty, +1 617-956-6730