- Published: 30 April 2014
- Written by Editor
Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2014
Aspen Technology, Inc. (AZPN), a leading provider of software and services to the process industries, today announced financial results for its third quarter of fiscal year 2014, ended March 31, 2014.
“AspenTech delivered a strong third quarter performance that exceeded our guidance across all key metrics. Total license contract value growth year-over-year was over 13% in the third quarter as we continued to see solid customer demand and usage patterns,” said Antonio Pietri, President and Chief Executive Officer of AspenTech.
Pietri added, “Our solid top-line performance and continued expense discipline enabled us to scale our free cash flow generation, which was a quarterly record at over $70 million in the third quarter. We are focused on continuing to use our free cash flow to enhance shareholder value through share buybacks and targeted M&A.”
Third Quarter Fiscal 2014 and Recent Business Highlights
- The license portion of total contract value was $1.79 billion at the end of the third quarter of fiscal 2014, which increased 13.6% compared to the third quarter of fiscal 2013 and 2.7% sequentially.
- Total contract value, including the value of bundled maintenance, was $2.1 billion at the end of the third quarter of fiscal 2014, which increased 15.4% compared to the third quarter of fiscal 2013 and 3.0% 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 approximately $368 million at the end of the third quarter of fiscal 2014, which increased 14.2% compared to the third quarter of fiscal 2013 and 3.3% sequentially.
Summary of Third Quarter Fiscal Year 2014 Financial Results
AspenTech’s total revenue of $103.6 million increased 30.5% from $79.4 million in the third quarter of the prior fiscal year.
- Subscription and software revenue was $91.3 million in the third quarter of fiscal 2014, an increase from $70.0 million in the third quarter of fiscal 2013.
- Services & other revenue was $12.3 million in the third quarter of fiscal 2014, compared to $9.4 million in the third quarter of fiscal 2013.
For the quarter ended March 31, 2014, AspenTech reported income from operations of $31.4 million, compared to income from operations of $16.3 million for the quarter ended March 31, 2013.
Net income was $20.8 million for the quarter ended March 31, 2014, leading to net income per share of $0.22, compared to net income per share of $0.11 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 $40.0 million for the third quarter of fiscal 2014, compared to non-GAAP income from operations of $20.0 million in the same period last fiscal year. Non-GAAP net income was $26.4 million, or $0.28 per share, for the third quarter of fiscal 2014, compared to non-GAAP net income of $12.9 million, or $0.14 per share, in the same period last fiscal year.
AspenTech had cash and marketable securities of $274.9 million at March 31, 2014, an increase of $39.2 million from the end of the prior quarter after using $30.0 million in cash to repurchase shares of common stock. During the third quarter, the company generated $69.6 million in cash flow from operations. On a non-GAAP basis, cash flow from operations was $73.5 million and free cash flow was $72.5 million after taking into consideration $1.0 million in capital expenditures and capitalized software. Both non-GAAP figures exclude the $3.9 million cash payment associated with the purchase of non-capitalized acquired technology. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.
Board of Directors Approves $200 Million Share Repurchase Program
AspenTech's Board of Directors approved a share repurchase program for up to $200 million. This program replaces the company’s existing share repurchase program, which had approximately $45 million remaining as of March 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” under the rules of the U.S. Securities and Exchange Commission. Non-GAAP financial measures 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, April 29, 2014, at 4:30 p.m. (Eastern Time), to discuss the company's financial results for the third quarter fiscal year 2014 as well as the company’s business outlook.
The live dial-in number is (877) 245-0126 or (706) 634-5625, conference ID code 27742389. 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 27742389, through May 29, 2014.
About AspenTech
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
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 develop new software products, enhance existing products and services, or penetrate new vertical markets; 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 current intention to update forward-looking statements after the date of this press release.
© 2014 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, Aspen Plus and Aspen HYSYS are 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 | Nine Months Ended | |||||||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Subscription and software | $ | 91,309 |
$ |
69,994 |
$ |
258,916 |
$ |
202,794 |
||||||||||||||||
| Services and other | 12,278 | 9,363 | 31,005 | 25,329 | ||||||||||||||||||||
| Total revenue | 103,587 | 79,357 | 289,921 | 228,123 | ||||||||||||||||||||
| Cost of revenue: | ||||||||||||||||||||||||
| Subscription and software | 5,332 | 4,998 | 14,974 | 15,244 | ||||||||||||||||||||
| Services and other | 9,956 | 7,651 | 24,835 | 22,116 | ||||||||||||||||||||
| Total cost of revenue | 15,288 | 12,649 | 39,809 | 37,360 | ||||||||||||||||||||
| Gross profit | 88,299 | 66,708 | 250,112 | 190,763 | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling and marketing | 24,267 | 22,958 | 71,376 | 67,852 | ||||||||||||||||||||
| Research and development | 21,791 | 15,772 | 52,641 | 46,577 | ||||||||||||||||||||
| General and administrative | 10,858 | 11,685 | 33,747 | 36,124 | ||||||||||||||||||||
| Restructuring charges | (19 | ) | (41 | ) | (15 | ) | (7 | ) | ||||||||||||||||
| Total operating expenses | 56,897 | 50,374 | 157,749 | 150,546 | ||||||||||||||||||||
| Income from operations | 31,402 | 16,334 | 92,363 | 40,217 | ||||||||||||||||||||
| Interest income | 275 | 807 | 969 | 2,861 | ||||||||||||||||||||
| Interest expense | (6 | ) | (12 | ) | (32 | ) | (385 | ) | ||||||||||||||||
| Other income (expense), net | (472 | ) | (18 | ) | (1,807 | ) | (352 | ) | ||||||||||||||||
| Income before provision for income taxes | 31,199 | 17,111 | 91,493 | 42,341 | ||||||||||||||||||||
| Provision for income taxes | 10,356 | 6,598 | 32,388 | 17,478 | ||||||||||||||||||||
| Net income |
$ |
20,843 |
$ | 10,513 | $ | 59,105 | $ | 24,863 | ||||||||||||||||
| Net income per common share: | ||||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.11 | $ | 0.64 | $ | 0.27 | ||||||||||||||||
| Diluted | $ | 0.22 | $ | 0.11 | $ | 0.63 | $ | 0.26 | ||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 92,414 | 93,730 | 92,891 | 93,556 | ||||||||||||||||||||
| Diluted | 93,365 | 95,400 | 93,951 | 95,475 | ||||||||||||||||||||
* Beginning with the first quarter of fiscal 2014, revenue from software maintenance support (SMS) is included within subscription and software revenue in our unaudited consolidated statements of operations. Prior to fiscal 2014, SMS revenue was included within services and other revenue. Additionally, beginning in the first quarter of fiscal 2014, the cost of providing SMS is included within subscription and software cost of revenue. Prior to fiscal 2014, the cost of providing SMS was included within services and other cost of revenue. Corresponding line items in the consolidated statements of operations for the three and nine months ended March 31, 2013 have been reclassified to conform to the current period presentation. Refer to the company’s Form 10-Q for the period ended March 31, 2014 for additional details.
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ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited in thousands, except share data) |
||||||||||||||
| March 31 | June 30, | |||||||||||||
| 2014 | 2013 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 181,483 | $ | 132,432 | ||||||||||
| Short-term marketable securities | 75,357 | 57,015 | ||||||||||||
| Accounts receivable, net | 31,031 | 36,988 | ||||||||||||
| Current portion of installments receivable, net | 2,243 | 13,769 | ||||||||||||
| Unbilled services | 1,282 | 1,965 | ||||||||||||
| Prepaid expenses and other current assets | 8,477 | 9,665 | ||||||||||||
| Prepaid income taxes | 323 | 288 | ||||||||||||
| Current deferred tax assets | 18,224 | 33,229 | ||||||||||||
| Total current assets | 318,420 | 285,351 | ||||||||||||
| Long-term marketable securities | 18,092 | 35,353 | ||||||||||||
| Non-current installments receivable, net | 850 | 963 | ||||||||||||
| Property, equipment and leasehold improvements, net | 7,167 | 7,829 | ||||||||||||
| Computer software development costs, net | 1,536 | 1,742 | ||||||||||||
| Goodwill | 18,869 | 19,132 | ||||||||||||
| Non-current deferred tax assets | 13,821 | 25,250 | ||||||||||||
| Other non-current assets | 4,275 | 7,128 | ||||||||||||
| Total assets | $ | 383,030 | $ | 382,748 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 1,116 | $ | 846 | ||||||||||
| Accrued expenses and other current liabilities | 31,605 | 34,421 | ||||||||||||
| Income taxes payable | 2,319 | 1,697 | ||||||||||||
| Current deferred revenue | 207,303 | 178,341 | ||||||||||||
| Current deferred tax liabilities | 156 | 156 | ||||||||||||
| Total current liabilities | 242,499 | 215,461 | ||||||||||||
| Non-current deferred revenue | 42,337 | 53,012 | ||||||||||||
| Other non-current liabilities | 11,991 | 12,377 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Series D redeemable convertible preferred stock, $0.10 par value— | ||||||||||||||
| Authorized— 3,636 shares as of March 31, 2014 and June 30, 2013 | ||||||||||||||
| Issued and outstanding— none as of March 31, 2014 and June 30, 2013 | - | - | ||||||||||||
| Stockholders’ equity: | ||||||||||||||
| Common stock, $0.10 par value— Authorized—210,000,000 shares | ||||||||||||||
| Issued— 100,862,392 shares at March 31, 2014 and 99,945,545 shares at June 30, 2013 | ||||||||||||||
| Outstanding— 92,254,182 shares at March 31, 2014 and 93,683,769 shares at June 30, 2013 | 10,086 | 9,995 | ||||||||||||
| Additional paid-in capital | 588,458 | 575,770 | ||||||||||||
| Accumulated deficit | (290,712 | ) | (349,817 | ) | ||||||||||
| Accumulated other comprehensive income | 8,603 | 7,263 | ||||||||||||
|
Treasury stock, at cost—8,608,210 shares of common stock at March 31, 2014 and
6,261,776 shares of common stock at June 30, 2013 |
(230,232 | ) | (141,313 | ) | ||||||||||
| Total stockholders’ equity | 86,203 | 101,898 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 383,030 | $ | 382,748 | ||||||||||
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||
| Net income | $ | 20,843 | $ | 10,513 | $ | 59,105 | $ | 24,863 | ||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
| Depreciation and amortization | 1,376 | 1,427 | 3,855 | 4,114 | ||||||||||||||||||||
| Net foreign currency loss (gain) | 365 | (363 | ) | 1,444 | (667 | ) | ||||||||||||||||||
| Stock-based compensation | 3,564 | 3,527 | 11,102 | 11,295 | ||||||||||||||||||||
| Deferred income taxes | 9,036 | 5,810 | 25,827 | 15,668 | ||||||||||||||||||||
| Provision for bad debts | 358 | (131 | ) | 1,144 | 31 | |||||||||||||||||||
| Excess tax benefits from stock-based compensation | (54 | ) | - | (137 | ) | - | ||||||||||||||||||
| Other non-cash operating activities | 462 | 337 | 1,358 | 365 | ||||||||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||||||
| Accounts receivable | (1,428 | ) | 10,352 | 5,066 | 2,395 | |||||||||||||||||||
| Unbilled services | (504 | ) | (1,251 | ) | 667 | (645 | ) | |||||||||||||||||
| Prepaid expenses, prepaid income taxes, and other assets | 2,791 | (1,017 | ) | 4,327 | 4,888 | |||||||||||||||||||
| Installments receivable | 3,588 | 7,264 | 11,933 | 32,365 | ||||||||||||||||||||
| Accounts payable, accrued expenses, and other liabilities | 4,457 | (2,683 | ) | (1,111 | ) | (11,186 | ) | |||||||||||||||||
| Deferred revenue | 24,779 | 24,699 | 17,309 | 29,138 | ||||||||||||||||||||
| Net cash provided by operating activities | 69,633 | 58,484 | 141,889 | 112,624 | ||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||
| Purchase of marketable securities | (16,550 | ) | (75,713 | ) | (35,542 | ) | (75,713 | ) | ||||||||||||||||
| Maturities of marketable securities | 20,938 | - | 33,362 | - | ||||||||||||||||||||
| Purchase of property, equipment and leasehold improvements | (906 | ) | (451 | ) | (2,630 | ) | (3,018 | ) | ||||||||||||||||
| Insurance proceeds | - | - | - | 2,222 | ||||||||||||||||||||
| Purchase of technology intangibles | (400 | ) | (375 | ) | (400 | ) | (902 | ) | ||||||||||||||||
| Capitalized computer software development costs | (97 | ) | (158 | ) | (601 | ) | (593 | ) | ||||||||||||||||
|
Net cash provided by (used in) investing activities |
2,985 | (76,697 | ) | (5,811 | ) | (78,004 | ) | |||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||
| Exercise of stock options | 3,045 | 6,310 | 7,475 | 15,430 | ||||||||||||||||||||
| Repayments of secured borrowings | - | - | - | (11,010 | ) | |||||||||||||||||||
| Repurchases of common stock | (30,000 | ) | (22,399 | ) | (88,919 | ) | (59,251 | ) | ||||||||||||||||
| Payment of tax withholding obligations related to restricted stock | (1,698 | ) | (1,470 | ) | (5,935 | ) | (5,758 | ) | ||||||||||||||||
| Excess tax benefits from stock-based compensation | 54 | - | 137 | - | ||||||||||||||||||||
| Net cash used in financing activities | (28,599 | ) | (17,559 | ) | (87,242 | ) | (60,589 | ) | ||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (13 | ) | (410 | ) | 215 | (231 | ) | |||||||||||||||||
| Increase (decrease) in cash and cash equivalents | 44,006 | (36,182 | ) | 49,051 | (26,200 | ) | ||||||||||||||||||
| Cash and cash equivalents, beginning of period | 137,477 | 175,224 | 132,432 | 165,242 | ||||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 181,483 | $ | 139,042 | $ | 181,483 | $ | 139,042 | ||||||||||||||||
|
Supplemental disclosure of cash flow information: |
|
|||||||||||||||||||||||
|
Income taxes paid, net |
$ |
672 |
$ |
880 |
$ |
5,717 |
$ |
2,692 |
||||||||||||||||
|
Interest paid |
6 |
12 |
32 |
385 |
||||||||||||||||||||
| 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
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
|
Total expenses |
||||||||||||||||||||||||
| GAAP total expenses (a) | $ | 72,185 | $ | 63,023 |
$ |
197,558 |
$ | 187,906 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Stock-based compensation (b) | (3,564 | ) | (3,527 | ) | (11,102 | ) | (11,295 | ) | ||||||||||||||||
| Non-capitalized acquired technology | (4,856 | ) | - | (4,856 | ) | - | ||||||||||||||||||
| Restructuring charges | 19 | 41 | 15 | 7 | ||||||||||||||||||||
| Amortization of purchased technology intangibles | (224 | ) | (201 | ) | (698 | ) | (503 | ) | ||||||||||||||||
| Non-GAAP total expenses | $ | 63,560 | $ | 59,336 |
$ |
180,917 |
$ | 176,115 | ||||||||||||||||
|
Income from operations |
||||||||||||||||||||||||
| GAAP income from operations | $ | 31,402 | $ | 16,334 | $ | 92,363 | $ | 40,217 | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Stock-based compensation (b) | 3,564 | 3,527 | 11,102 | 11,295 | ||||||||||||||||||||
| Non-capitalized acquired technology | 4,856 | - | 4,856 | - | ||||||||||||||||||||
| Restructuring charges | (19 | ) | (41 | ) | (15 | ) | (7 | ) | ||||||||||||||||
| Amortization of purchased technology intangibles | 224 | 201 | 698 | 503 | ||||||||||||||||||||
| Non-GAAP income from operations | $ | 40,027 | $ | 20,021 |
$ |
109,004 |
$ | 52,008 | ||||||||||||||||
|
Net income |
||||||||||||||||||||||||
| GAAP net income | $ | 20,843 | $ | 10,513 | $ | 59,105 | $ | 24,863 | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Stock-based compensation (b) | 3,564 | 3,527 | 11,102 | 11,295 | ||||||||||||||||||||
| Non-capitalized acquired technology | 4,856 | - | 4,856 | - | ||||||||||||||||||||
| Restructuring charges | (19 | ) | (41 | ) | (15 | ) | (7 | ) | ||||||||||||||||
| Amortization of purchased technology intangibles | 224 | 201 | 698 | 503 | ||||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Income tax effect on Non-GAAP items (c) | (3,105 | ) | (1,331 | ) | (5,991 | ) | (4,257 | ) | ||||||||||||||||
| Non-GAAP net income | $ | 26,363 | $ | 12,869 | $ | 69,755 | $ | 32,397 | ||||||||||||||||
|
Diluted income per share |
||||||||||||||||||||||||
| GAAP diluted income per share | $ | 0.22 | $ | 0.11 | $ | 0.63 | $ | 0.26 | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Stock-based compensation (b) | 0.04 | 0.04 | 0.12 | 0.12 | ||||||||||||||||||||
| Non-capitalized acquired technology | 0.05 | - | 0.05 | - | ||||||||||||||||||||
| Restructuring charges | - | - | - | - | ||||||||||||||||||||
| Amortization of purchased technology intangibles | - | - | 0.01 | 0.01 | ||||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Income tax effect on Non-GAAP items (c) | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||||||
| Non-GAAP diluted income per share | $ | 0.28 | $ | 0.14 | $ | 0.74 | $ | 0.35 | ||||||||||||||||
| Shares used in computing Non-GAAP diluted income per share | 93,365 | 95,400 | 93,951 | 95,475 | ||||||||||||||||||||
|
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
|
Non-GAAP Cash Flows from Operating Activities and Free Cash Flow |
||||||||||||||||||||||||
| GAAP cash flows from operating activities | $ | 69,633 | $ | 58,484 |
$ |
141,889 |
$ | 112,624 | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Non-capitalized acquired technology (d) | 3,856 | - | 3,856 | - | ||||||||||||||||||||
| Non-GAAP Cash Flows from Operating Activities | $ | 73,489 | $ | 58,484 |
$ |
145,745 |
$ | 112,624 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Purchase of property, equipment and leasehold improvements | (906 | ) | (451 | ) | (2,630 | ) | (3,018 | ) | ||||||||||||||||
| Capitalized computer software development costs | (97 | ) | (158 | ) | (601 | ) | (593 | ) | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Insurance proceeds | - | - | - | 2,222 | ||||||||||||||||||||
| Free Cash Flow | $ | 72,486 | $ | 57,875 |
$ |
142,514 |
$ | 111,235 | ||||||||||||||||
| (a) GAAP total expenses | ||||||||||||||||||||||||
|
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Total costs of revenue | $ | 15,288 | $ | 12,649 | $ | 39,809 | $ | 37,360 | ||||||||||||||||
| Total operating expenses | 56,897 | 50,374 | 157,749 | 150,546 | ||||||||||||||||||||
| GAAP total expenses | $ | 72,185 | $ | 63,023 |
$ |
197,558 |
$ | 187,906 | ||||||||||||||||
| (b) Stock-based compensation expense was as follows: | ||||||||||||||||||||||||
|
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Cost of services and other | $ | 282 | $ | 325 | $ | 910 | $ | 984 | ||||||||||||||||
| Selling and marketing | 832 | 994 | 2,653 | 2,943 | ||||||||||||||||||||
| Research and development | 1,523 | 770 | 3,267 | 2,253 | ||||||||||||||||||||
| General and administrative | 927 | 1,438 | 4,272 | 5,115 | ||||||||||||||||||||
| Total stock-based compensation | $ | 3,564 | $ | 3,527 | $ | 11,102 | $ | 11,295 | ||||||||||||||||
(c) The income tax effect on Non-GAAP items for the three and nine months ended March 31, 2014 and 2013 is calculated utilizing an estimate of our future effective tax rate.
(d) In the third quarter of fiscal 2014, we acquired certain technology that did not meet the accounting definition of having reached technological feasibility, and therefore, the cost of the acquired technology was expensed and is included in research and development. We have excluded the $3.9 million cash payment associated with the acquired technology (non-capitalized acquired technology) from non-GAAP cash flows from operating activities and free cash flow to be consistent with past treatment of other transactions where the acquired assets were capitalized. Refer to the company’s Form 10-Q for the period ending March 31, 2014 for additional details.
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AspenTech
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Brian Denyeau, 1-646-277-1251
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