[January 28, 2015] |
|
Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2015
Aspen Technology, Inc. (NASDAQ: AZPN), a leading provider of software
and services to the process industries, today announced financial
results for its second quarter of fiscal year 2015, ended December 31,
2014.
Antonio Pietri, President and Chief Executive Officer of AspenTech,
said, "AspenTech reported strong second quarter financial results that
exceeded expectations from both a revenue and profitability perspective,
highlighted by TLCV growth of nearly 13%. We continue to see positive
demand trends for the aspenONE platform as customers focus on driving
increased efficiency across their operations. This remains a top
strategic priority for customers even in an uncertain and volatile
economic and oil price environment."
Pietri continued, "We are also maintaining expense discipline that is
driving increased levels of profitability and cash generation. During
the quarter we repurchased $72 million of our common stock and today our
Board of Directors has authorized a new $450 million share repurchase
program. We are focused on driving continued top and bottom line growth
and utilizing our financial strength to generate long-term shareholder
value."
Second Quarter Fiscal 2015 and Recent Business Highlights
-
The license portion of total contract value was $1.97 billion at the
end of the second quarter of fiscal 2015, which increased 12.8%
compared to the second quarter of fiscal 2014 and 4.5% sequentially.
-
Total contract value, including the value of bundled maintenance, was
$2.33 billion at the end of the second quarter of fiscal 2015, which
increased 13.9% compared to the second quarter of fiscal 2014 and 4.6%
sequentially.
-
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 $399.9 million at the end of the second quarter of fiscal
2015, which increased 12.3% compared to the second quarter of fiscal
2014 and 3.9% sequentially.
-
GAAP operating margin was 43.2%, compared to 36.6% in the second
quarter of fiscal 2014. Non-GAAP operating margin was 46.6%, compared
to 40.0% in the second quarter of fiscal 2014.
-
We repurchased approximately two million shares of our common stock
for $72.0 million in the second quarter of fiscal 2015.
Summary of Second Quarter Fiscal Year 2015 Financial Results
AspenTech's total revenue of $107.8 million increased 9.1% from $98.8
million in the second quarter of the prior year.
-
Subscription and software revenue was $98.7 million in the
second quarter of fiscal 2015, an increase from $88.9 million in the
second quarter of fiscal 2014.
-
Services and other revenue was $9.1 million in the second
quarter of fiscal 2015, compared to $9.8 million in the second quarter
of fiscal 2014.
For the quarter ended December 31, 2014, AspenTech reported income from
operations of $46.5 million, compared to income from operations of $36.1
million for the quarter ended December 31, 2013.
Net income was $30.5 million for the quarter ended December 31, 2014,
leading to net income per share of $0.34, compared to net income per
share of $0.25 in the same period last fiscal year.
Non-GAAP income from operations, which adds back stock-based
compensation expense, restructuring charges, amortization of intangibles
associated with acquisitions and non-capitalized acquired technology,
was $50.2 million for the second quarter of fiscal 2015, compared to
non-GAAP income from operations of $39.5 million in the same period last
fiscal year. Non-GAAP net income was $32.8 million, or $0.36 per share,
for the second quarter of fiscal 2015, compared to non-GAAP net income
of $25.4 million, or $0.27 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 and marketable securities balance of $256.5 million
at December 31, 2014, a decrease of $32.7 million from the end of the
prior quarter after repurchasing $72.0 million of common stock, of which
$70.9 million settled in the quarter. During the second quarter, the
company generated $41.4 million in non-GAAP cash flow from operations
and $40.0 million in free cash flow after taking into consideration $1.4
million in capital expenditures and capitalized software.
Board of Directors Approves $450 Million Share Repurchase Program
AspenTech's Board of Directors approved a share repurchase program for
up to $450 million. This program replaces the company's existing share
repurchase program, which had approximately $58 million remaining as of
December 31, 2014. 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," which 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 a number of AspenTech's
performance indicators based on GAAP, including revenue, gross profit,
operating income and net income, should be viewed in conjunction with
certain non-GAAP and other business measures in assessing AspenTech's
performance, growth and financial condition. Accordingly, management
utilizes a number of 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, January 28,
2015, at 4:30 p.m. (Eastern Time), to discuss the company's financial
results for the second quarter fiscal year 2015 as well as the company's
business outlook.
The live dial-in number is (866) 604-6127 or (706) 634-5625, conference
ID code 65776046. 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 65776046,
through February 28, 2015.
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.
Forward-Looking Statements
The third 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
increase usage and product adoption of aspenONE offerings, and failure
to continue to provide innovative, market-leading solutions; 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; 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 obligation to update forward-looking statements after the
date of this press release.
© 2015 Aspen Technology, Inc. AspenTech, aspenONE and the Aspen leaf
logo are registered trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS*
|
(Unaudited in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and software
|
|
|
|
$
|
98,716
|
|
|
|
|
$
|
88,924
|
|
|
|
|
$
|
197,459
|
|
|
|
|
$
|
167,607
|
|
Services and other
|
|
|
|
|
9,074
|
|
|
|
|
|
9,845
|
|
|
|
|
|
17,457
|
|
|
|
|
|
18,727
|
|
Total revenue
|
|
|
|
|
107,790
|
|
|
|
|
|
98,769
|
|
|
|
|
|
214,916
|
|
|
|
|
|
186,334
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and software
|
|
|
|
|
5,208
|
|
|
|
|
|
5,022
|
|
|
|
|
|
10,409
|
|
|
|
|
|
9,642
|
|
Services and other
|
|
|
|
|
7,057
|
|
|
|
|
|
7,421
|
|
|
|
|
|
14,237
|
|
|
|
|
|
14,879
|
|
Total cost of revenue
|
|
|
|
|
12,265
|
|
|
|
|
|
12,443
|
|
|
|
|
|
24,646
|
|
|
|
|
|
24,521
|
|
Gross profit
|
|
|
|
|
95,525
|
|
|
|
|
|
86,326
|
|
|
|
|
|
190,270
|
|
|
|
|
|
161,813
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
|
|
22,821
|
|
|
|
|
|
24,178
|
|
|
|
|
|
44,439
|
|
|
|
|
|
47,109
|
|
Research and development
|
|
|
|
|
15,957
|
|
|
|
|
|
15,016
|
|
|
|
|
|
32,225
|
|
|
|
|
|
30,850
|
|
General and administrative
|
|
|
|
|
10,226
|
|
|
|
|
|
11,020
|
|
|
|
|
|
22,451
|
|
|
|
|
|
22,893
|
|
Total operating expenses
|
|
|
|
|
49,004
|
|
|
|
|
|
50,214
|
|
|
|
|
|
99,115
|
|
|
|
|
|
100,852
|
|
Income from operations
|
|
|
|
|
46,521
|
|
|
|
|
|
36,112
|
|
|
|
|
|
91,155
|
|
|
|
|
|
60,961
|
|
Interest income
|
|
|
|
|
132
|
|
|
|
|
|
307
|
|
|
|
|
|
268
|
|
|
|
|
|
694
|
|
Interest expense
|
|
|
|
|
(4
|
)
|
|
|
|
|
(8
|
)
|
|
|
|
|
(7
|
)
|
|
|
|
|
(26
|
)
|
Other income (expense), net
|
|
|
|
|
(248
|
)
|
|
|
|
|
(531
|
)
|
|
|
|
|
(60
|
)
|
|
|
|
|
(1,335
|
)
|
Income before provision for income taxes
|
|
|
|
|
46,401
|
|
|
|
|
|
35,880
|
|
|
|
|
|
91,356
|
|
|
|
|
|
60,294
|
|
Provision for income taxes
|
|
|
|
|
15,937
|
|
|
|
|
|
12,617
|
|
|
|
|
|
31,924
|
|
|
|
|
|
22,032
|
|
Net income
|
|
|
|
$
|
30,464
|
|
|
|
|
$
|
23,263
|
|
|
|
|
$
|
59,432
|
|
|
|
|
$
|
38,262
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
0.25
|
|
|
|
|
$
|
0.66
|
|
|
|
|
$
|
0.41
|
|
Diluted
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
0.25
|
|
|
|
|
$
|
0.65
|
|
|
|
|
$
|
0.41
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
89,942
|
|
|
|
|
|
92,839
|
|
|
|
|
|
90,562
|
|
|
|
|
|
93,124
|
|
Diluted
|
|
|
|
|
90,471
|
|
|
|
|
|
93,816
|
|
|
|
|
|
91,196
|
|
|
|
|
|
94,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)- Certain items in prior period Consolidated Statements of
Operations have been reclassified to conform to the current period
presentation.
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2014
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
|
158,443
|
|
|
|
|
|
$
|
199,526
|
|
Short-term marketable securities
|
|
|
|
|
|
|
72,675
|
|
|
|
|
|
|
67,619
|
|
Accounts receivable, net
|
|
|
|
|
|
|
19,578
|
|
|
|
|
|
|
38,532
|
|
Current portion of installments receivable, net
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
640
|
|
Unbilled services
|
|
|
|
|
|
|
639
|
|
|
|
|
|
|
1,656
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
9,015
|
|
|
|
|
|
|
10,567
|
|
Prepaid income taxes
|
|
|
|
|
|
|
696
|
|
|
|
|
|
|
605
|
|
Current deferred tax assets
|
|
|
|
|
|
|
4,920
|
|
|
|
|
|
|
10,537
|
|
Total current assets
|
|
|
|
|
|
|
265,966
|
|
|
|
|
|
|
329,682
|
|
Long-term marketable securities
|
|
|
|
|
|
|
25,334
|
|
|
|
|
|
|
31,270
|
|
Non-current installments receivable, net
|
|
|
|
|
|
|
498
|
|
|
|
|
|
|
811
|
|
Property, equipment and leasehold improvements, net
|
|
|
|
|
|
|
18,327
|
|
|
|
|
|
|
7,588
|
|
Computer software development costs, net
|
|
|
|
|
|
|
1,153
|
|
|
|
|
|
|
1,390
|
|
Goodwill
|
|
|
|
|
|
|
18,045
|
|
|
|
|
|
|
19,276
|
|
Non-current deferred tax assets
|
|
|
|
|
|
|
11,265
|
|
|
|
|
|
|
12,765
|
|
Other non-current assets
|
|
|
|
|
|
|
2,766
|
|
|
|
|
|
|
5,190
|
|
Total assets
|
|
|
|
|
|
$
|
343,354
|
|
|
|
|
|
$
|
407,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
$
|
2,250
|
|
|
|
|
|
$
|
412
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
|
31,984
|
|
|
|
|
|
|
34,984
|
|
Income taxes payable
|
|
|
|
|
|
|
1,983
|
|
|
|
|
|
|
2,168
|
|
Current deferred revenue
|
|
|
|
|
|
|
197,778
|
|
|
|
|
|
|
228,940
|
|
Total current liabilities
|
|
|
|
|
|
|
233,995
|
|
|
|
|
|
|
266,504
|
|
Non-current deferred revenue
|
|
|
|
|
|
|
40,634
|
|
|
|
|
|
|
45,942
|
|
Other non-current liabilities
|
|
|
|
|
|
|
31,005
|
|
|
|
|
|
|
11,850
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Series D redeemable convertible preferred stock, $0.10 par value-
|
|
|
|
|
|
|
|
|
|
|
|
Authorized- 3,636 shares as of December 31, 2014 and June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding- none as of December 31, 2014 and June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.10 par value- Authorized-210,000,000 shares
|
|
|
|
|
|
|
|
|
|
|
|
Issued- 101,283,764 shares at December 31, 2014 and 101,033,740
shares at June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding- 88,867,557 shares at December 31, 2014 and 91,661,850
shares at June 30, 2014
|
|
|
|
|
|
|
10,128
|
|
|
|
|
|
|
10,103
|
|
Additional paid-in capital
|
|
|
|
|
|
|
605,455
|
|
|
|
|
|
|
591,324
|
|
Accumulated deficit
|
|
|
|
|
|
|
(204,602
|
)
|
|
|
|
|
|
(264,034
|
)
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
6,819
|
|
|
|
|
|
|
9,372
|
|
Treasury stock, at cost-12,416,207 shares of common stock at
December 31, 2014 and 9,371,890 shares at June 30, 2014
|
|
|
|
|
|
|
(380,080
|
)
|
|
|
|
|
|
(263,089
|
)
|
Total stockholders' equity
|
|
|
|
|
|
|
37,720
|
|
|
|
|
|
|
83,676
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
$
|
343,354
|
|
|
|
|
|
$
|
407,972
|
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS*
|
(Unaudited in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
$
|
30,465
|
|
|
|
|
$
|
23,263
|
|
|
|
|
$
|
59,432
|
|
|
|
|
$
|
38,262
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
1,506
|
|
|
|
|
|
1,277
|
|
|
|
|
|
2,858
|
|
|
|
|
|
2,479
|
|
|
Net foreign currency (gains) losses
|
|
|
|
|
|
|
(719
|
)
|
|
|
|
|
515
|
|
|
|
|
|
(1,379
|
)
|
|
|
|
|
1,079
|
|
|
Stock-based compensation
|
|
|
|
|
|
|
3,462
|
|
|
|
|
|
3,151
|
|
|
|
|
|
7,666
|
|
|
|
|
|
7,538
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
6,213
|
|
|
|
|
|
8,173
|
|
|
|
|
|
21,773
|
|
|
|
|
|
16,791
|
|
|
Provision for bad debts
|
|
|
|
|
|
|
694
|
|
|
|
|
|
785
|
|
|
|
|
|
338
|
|
|
|
|
|
805
|
|
|
Tax benefits from stock-based compensation
|
|
|
|
|
|
|
7,612
|
|
|
|
|
|
42
|
|
|
|
|
|
7,684
|
|
|
|
|
|
83
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
|
|
|
|
(7,612
|
)
|
|
|
|
|
(42
|
)
|
|
|
|
|
(7,684
|
)
|
|
|
|
|
(83
|
)
|
|
Other non-cash operating activities
|
|
|
|
|
|
|
320
|
|
|
|
|
|
823
|
|
|
|
|
|
782
|
|
|
|
|
|
896
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
|
4,450
|
|
|
|
|
|
5,323
|
|
|
|
|
|
18,519
|
|
|
|
|
|
6,475
|
|
|
Unbilled services
|
|
|
|
|
|
|
463
|
|
|
|
|
|
977
|
|
|
|
|
|
990
|
|
|
|
|
|
1,171
|
|
|
Prepaid expenses, prepaid income taxes, and other assets
|
|
|
|
|
|
|
1,672
|
|
|
|
|
|
666
|
|
|
|
|
|
2,914
|
|
|
|
|
|
1,536
|
|
|
Installments receivable
|
|
|
|
|
|
|
727
|
|
|
|
|
|
5,316
|
|
|
|
|
|
980
|
|
|
|
|
|
8,345
|
|
|
Accounts payable, accrued expenses, and other liabilities
|
|
|
|
|
|
|
2,707
|
|
|
|
|
|
3,867
|
|
|
|
|
|
(5,254
|
)
|
|
|
|
|
(5,651
|
)
|
|
Deferred revenue
|
|
|
|
|
|
|
(18,128
|
)
|
|
|
|
|
(7,793
|
)
|
|
|
|
|
(35,844
|
)
|
|
|
|
|
(7,470
|
)
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
33,832
|
|
|
|
|
|
46,343
|
|
|
|
|
|
73,775
|
|
|
|
|
|
72,256
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
|
|
|
(27,063
|
)
|
|
|
|
|
(11,018
|
)
|
|
|
|
|
(39,048
|
)
|
|
|
|
|
(18,992
|
)
|
|
Maturities of marketable securities
|
|
|
|
|
|
|
24,499
|
|
|
|
|
|
7,886
|
|
|
|
|
|
39,012
|
|
|
|
|
|
12,424
|
|
|
Purchases of property, equipment and leasehold improvements
|
|
|
|
|
|
|
(1,437
|
)
|
|
|
|
|
(809
|
)
|
|
|
|
|
(4,328
|
)
|
|
|
|
|
(1,724
|
)
|
|
Capitalized computer software development costs
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
(285
|
)
|
|
|
|
|
(137
|
)
|
|
|
|
|
(504
|
)
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(4,002
|
)
|
|
|
|
|
(4,226
|
)
|
|
|
|
|
(4,501
|
)
|
|
|
|
|
(8,796
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercises of stock options
|
|
|
|
|
|
|
465
|
|
|
|
|
|
1,497
|
|
|
|
|
|
1,515
|
|
|
|
|
|
4,430
|
|
|
Repurchases of common stock
|
|
|
|
|
|
|
(70,905
|
)
|
|
|
|
|
(30,000
|
)
|
|
|
|
|
(115,905
|
)
|
|
|
|
|
(58,919
|
)
|
|
Payments of tax withholding obligations related to restricted stock
|
|
|
|
|
|
|
(1,163
|
)
|
|
|
|
|
(1,788
|
)
|
|
|
|
|
(2,574
|
)
|
|
|
|
|
(4,237
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
|
|
|
|
7,612
|
|
|
|
|
|
42
|
|
|
|
|
|
7,684
|
|
|
|
|
|
83
|
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
(63,991
|
)
|
|
|
|
|
(30,249
|
)
|
|
|
|
|
(109,280
|
)
|
|
|
|
|
(58,643
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
|
(530
|
)
|
|
|
|
|
5
|
|
|
|
|
|
(1,077
|
)
|
|
|
|
|
228
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
|
|
|
|
(34,691
|
)
|
|
|
|
|
11,873
|
|
|
|
|
|
(41,083
|
)
|
|
|
|
|
5,045
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
|
193,134
|
|
|
|
|
|
125,604
|
|
|
|
|
|
199,526
|
|
|
|
|
|
132,432
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
|
$
|
158,443
|
|
|
|
|
$
|
137,477
|
|
|
|
|
$
|
158,443
|
|
|
|
|
$
|
137,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid, net
|
|
|
|
|
|
$
|
1,070
|
|
|
|
|
$
|
3,715
|
|
|
|
|
$
|
2,621
|
|
|
|
|
$
|
5,045
|
|
|
Supplemental disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landlord improvement allowance included in leasehold improvements and
deferred rent liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,064
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
6,064
|
|
|
|
|
$
|
-
|
|
|
Purchases of property, equipment and leasehold improvements
included in accounts payable and accrued expenses
|
|
|
|
|
|
|
2,184
|
|
|
|
|
|
-
|
|
|
|
|
|
2,184
|
|
|
|
|
|
-
|
|
|
Common stock repurchases included in accrued expenses
|
|
|
|
|
|
|
1,712
|
|
|
|
|
|
-
|
|
|
|
|
|
1,712
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)- Certain items for the three and six months ended December 31,
2013 and the three months ended September 30, 2014 presented in
the Consolidated Statements of Cash Flows have been reclassified
to conform to the current period presentation.
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
|
Reconciliation of GAAP to Non-GAAP Results of Operations and Cash
Flows
|
|
The following tables reflect a reconciliation of selected Aspen
Technology GAAP to Non-GAAP results of operations and cash flows. (unaudited
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total expenses (a)
|
|
|
|
|
|
$
|
61,269
|
|
|
|
|
$
|
62,657
|
|
|
|
|
$
|
123,761
|
|
|
|
|
$
|
125,373
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (b)
|
|
|
|
|
|
|
(3,462
|
)
|
|
|
|
|
(3,151
|
)
|
|
|
|
|
(7,666
|
)
|
|
|
|
|
(7,538
|
)
|
Restructuring charges
|
|
|
|
|
|
|
-
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(4
|
)
|
Amortization of purchased technology intangibles
|
|
|
|
|
|
|
(224
|
)
|
|
|
|
|
(224
|
)
|
|
|
|
|
(448
|
)
|
|
|
|
|
(473
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP total expenses
|
|
|
|
|
|
$
|
57,583
|
|
|
|
|
$
|
59,275
|
|
|
|
|
$
|
115,647
|
|
|
|
|
$
|
117,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
|
|
|
|
$
|
46,521
|
|
|
|
|
$
|
36,112
|
|
|
|
|
$
|
91,155
|
|
|
|
|
$
|
60,961
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (b)
|
|
|
|
|
|
|
3,462
|
|
|
|
|
|
3,151
|
|
|
|
|
|
7,666
|
|
|
|
|
|
7,538
|
|
Restructuring charges
|
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
Amortization of purchased technology intangibles
|
|
|
|
|
|
|
224
|
|
|
|
|
|
224
|
|
|
|
|
|
448
|
|
|
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
|
|
|
|
$
|
50,207
|
|
|
|
|
$
|
39,494
|
|
|
|
|
$
|
99,269
|
|
|
|
|
$
|
68,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
|
|
$
|
30,464
|
|
|
|
|
$
|
23,263
|
|
|
|
|
$
|
59,432
|
|
|
|
|
$
|
38,262
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (b)
|
|
|
|
|
|
|
3,462
|
|
|
|
|
|
3,151
|
|
|
|
|
|
7,666
|
|
|
|
|
|
7,538
|
|
Restructuring charges
|
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
Amortization of purchased technology intangibles
|
|
|
|
|
|
|
224
|
|
|
|
|
|
224
|
|
|
|
|
|
448
|
|
|
|
|
|
473
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect on Non-GAAP items (c)
|
|
|
|
|
|
|
(1,327
|
)
|
|
|
|
|
(1,218
|
)
|
|
|
|
|
(2,921
|
)
|
|
|
|
|
(2,885
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
|
|
|
$
|
32,823
|
|
|
|
|
$
|
25,427
|
|
|
|
|
$
|
64,625
|
|
|
|
|
$
|
43,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted income per share
|
|
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
0.25
|
|
|
|
|
$
|
0.65
|
|
|
|
|
$
|
0.41
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (b)
|
|
|
|
|
|
|
0.04
|
|
|
|
|
|
0.03
|
|
|
|
|
|
0.08
|
|
|
|
|
|
0.08
|
|
Restructuring charges
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Amortization of purchased technology intangibles
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.01
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect on Non-GAAP items (c)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted income per share
|
|
|
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.27
|
|
|
|
|
$
|
0.71
|
|
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing Non-GAAP diluted income per share
|
|
|
|
|
|
|
90,471
|
|
|
|
|
|
93,816
|
|
|
|
|
|
91,196
|
|
|
|
|
|
94,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Six Months Ended December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
Non-GAAP Cash Flows from Operating
Activities and Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cash flows from operating activities
|
|
|
|
|
|
$
|
33,832
|
|
|
|
|
$
|
46,343
|
|
|
|
|
$
|
73,775
|
|
|
|
|
$
|
72,256
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from stock-based compensation (d)
|
|
|
|
|
|
|
7,612
|
|
|
|
|
|
42
|
|
|
|
|
|
7,684
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Cash Flows from Operating Activities
|
|
|
|
|
|
$
|
41,444
|
|
|
|
|
$
|
46,385
|
|
|
|
|
$
|
81,459
|
|
|
|
#
|
$
|
72,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, equipment and leasehold improvements
|
|
|
|
|
|
|
(1,437
|
)
|
|
|
|
|
(809
|
)
|
|
|
|
|
(4,328
|
)
|
|
|
|
|
(1,724
|
)
|
Capitalized computer software development costs
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
(285
|
)
|
|
|
|
|
(137
|
)
|
|
|
|
|
(504
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
$
|
40,006
|
|
|
|
|
$
|
45,291
|
|
|
|
|
$
|
76,994
|
|
|
|
|
$
|
70,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Six Months Ended December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
Total costs of revenue
|
|
|
|
|
|
$
|
12,265
|
|
|
|
|
$
|
12,443
|
|
|
|
|
$
|
24,646
|
|
|
|
|
$
|
24,521
|
|
Total operating expenses
|
|
|
|
|
|
|
49,004
|
|
|
|
|
|
50,214
|
|
|
|
|
|
99,115
|
|
|
|
|
|
100,852
|
|
GAAP total expenses
|
|
|
|
|
|
$
|
61,269
|
|
|
|
|
$
|
62,657
|
|
|
|
|
$
|
123,761
|
|
|
|
|
$
|
125,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Stock-based compensation expense was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Six Months Ended December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
Cost of services and other
|
|
|
|
|
|
$
|
339
|
|
|
|
|
$
|
327
|
|
|
|
|
$
|
677
|
|
|
|
|
$
|
628
|
|
Selling and marketing
|
|
|
|
|
|
|
754
|
|
|
|
|
|
710
|
|
|
|
|
|
1,504
|
|
|
|
|
|
1,821
|
|
Research and development
|
|
|
|
|
|
|
973
|
|
|
|
|
|
889
|
|
|
|
|
|
1,964
|
|
|
|
|
|
1,745
|
|
General and administrative
|
|
|
|
|
|
|
1,396
|
|
|
|
|
|
1,225
|
|
|
|
|
|
3,521
|
|
|
|
|
|
3,344
|
|
Total stock-based compensation
|
|
|
|
|
|
$
|
3,462
|
|
|
|
|
$
|
3,151
|
|
|
|
|
$
|
7,666
|
|
|
|
|
$
|
7,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) The income tax effect on non-GAAP items for the three and six
months ended December 31, 2014 and 2013 is calculated utilizing the
Company's estimated federal and state tax rate of 36%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Excess tax benefits from stock-based compensation are included
in non-GAAP cash flows from operating activities and free cash flow
to be consistent with the treatment of other tax benefits. Refer to
the Company's Form 10-Q for the period ended December 31, 2014 for
additional details.
|
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