Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal Year 2015

 BEDFORD, MA — August 13, 2015 — 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 ended June 30, 2015.

"AspenTech reported solid fourth quarter results that exceeded our expectations from both a revenue and profitability perspective," said Antonio Pietri, President and Chief Executive Officer of AspenTech. "Our ability to deliver double-digit annual spend growth against the backdrop of an increasingly challenging macro environment reflects the strength of AspenTech's model and the mission critical nature of our solutions."

Pietri added, "Our strong balance sheet and significant free cash flow, driven in part by our expense discipline, enabled us to repurchase approximately 7.7 million shares of common stock during fiscal 2015. As we enter fiscal 2016, we will continue to focus on driving increased usage across the aspenONE suite in order to deliver continued top and bottom line growth and shareholder value."

Fourth Quarter and Fiscal Year 2015 Business Highlights 
The license portion of total contract value was $2.07 billion at the end of fiscal 2015, which increased 2.2% from March 31, 2015 and 11.8% compared to the end of fiscal 2014.

Total contract value, including the value of bundled maintenance, was $2.46 billion at the end of fiscal 2015, which increased 2.2% from March 31, 2015 and 12.3% compared to the end of fiscal 2014.

Annual spend, which the company defines as the annualized value of all term license and term maintenance contracts at the end of the quarter, was $419 million at the end of fiscal 2015, an increase of 1.9% from March 31, 2015 and 10.5% from the end of fiscal 2014.

GAAP operating margin was 41.1%, compared to 36.8% in the fourth quarter of fiscal 2014. Non-GAAP operating margin was 44.2%, compared to 39.9% in the fourth quarter of fiscal 2014.

We repurchased nearly 1.8 million shares of our common stock for $73.6 million in the fourth quarter of fiscal 2015.

Summary of Fourth Quarter Fiscal Year 2015 Financial Results
AspenTech's total revenue of $114.2 million increased 12.5% from $101.5 million in the fourth quarter of the prior fiscal year.

•Subscription and software revenue was $105.6 million in the fourth quarter of fiscal 2015, an increase from $91.6 million in the fourth quarter of fiscal 2014.

•Services and other revenue was $8.5 million in the fourth quarter of fiscal 2015, a decrease from $10.0 million in the fourth quarter of fiscal 2014.

For the quarter ended June 30, 2015, AspenTech reported income from operations of $46.9 million, compared to income from operations of $37.4 million for the quarter ended June 30, 2014.

Net income was $30.8 million for the quarter ended June 30, 2015, leading to net income per share of $0.36, compared to net income per share of $0.29 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 $50.5 million for the fourth quarter of fiscal 2015, compared to non-GAAP income from operations of $40.5 million in the same period last fiscal year. Non-GAAP net income was $33.1 million, or $0.39 per share, for the fourth quarter of fiscal 2015, compared to non-GAAP net income of $28.7 million, or $0.31 per share, in the same period last fiscal year.

AspenTech had cash and marketable securities of $218.5 million at June 30, 2015, compared to $225.0 million at the end of the prior quarter after using $74.4 million in cash to repurchase shares of common stock. During the fourth quarter, the company generated $53.6 million in cash flow from operations. On a non-GAAP basis, cash flow from operations was $68.7 million and free cash flow was $67.0 million after taking into consideration $1.8 million in capital expenditures and capitalized software. Both non-GAAP figures include $15.2 million of excess tax benefits from stock-based compensation.

Summary of Fiscal Year 2015 Financial Results
AspenTech's total revenue of $440.4 million increased 12.5% from $391.5 million for fiscal year 2014.

•Subscription and software revenue was $405.6 million, an increase from $350.5 million for fiscal year 2014.

•Services and other revenue was $34.8 million, compared to $41.0 million for fiscal year 2014.

For the fiscal year ended June 30, 2015, AspenTech reported income from operations of $179.8 million, an improvement from income from operations of $129.7 million for fiscal year 2014.

Net income was $118.4 million for the fiscal year ended June 30, 2015, leading to net income per share of $1.33, compared to net income per share of $0.92 for fiscal year 2014.

Non-GAAP income from operations was $198.4 million for fiscal year 2015, an improvement compared to non-GAAP income from operations of $149.5 million for fiscal year 2014. Non-GAAP net income was $130.3 million, or $1.46 per share, for fiscal year 2015, an improvement compared to non-GAAP net income of $98.5 million, or $1.05 per share, for fiscal year 2014.

For the fiscal year ended June 30, 2015, the company generated $192.0 million in cash flow from operations, $231.6 million in non-GAAP cash flow from operations and $223.6 million in free cash flow. Both non-GAAP figures include the $2.6 million cash payment associated with the purchase of non-capitalized acquired technology and include $37.0 million of excess tax benefits from stock-based compensation.

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 .