Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2015

 BEDFORD, MA — April 28, 2015 — Aspen Technology, Inc. (NASDAQ: AZPN), a leading provider of software and services to the process industries, today announced financial results for its third quarter of fiscal year 2015, ended March 31, 2015.

"AspenTech delivered strong third quarter financial results that exceeded our guidance across all key metrics. Total license contract value grew 13.2% year-over-year in the third quarter, which underscores the continued need of customers to improve the efficiency of their operations," said Antonio Pietri, President and Chief Executive Officer of AspenTech.

Pietri added, "Our disciplined approach to expense management is driving strong profit margins and cash flow generation, which provided the flexibility to repurchase approximately $108 million of our common stock. We believe the combination of continued top and bottom line growth and returning capital to shareholders can generate long-term value."

Third Quarter Fiscal 2015 and Recent Business Highlights
The license portion of total contract value was $2.03 billion at the end of the third quarter of fiscal 2015, which increased 13.2% compared to the third quarter of fiscal 2014 and 3.1% sequentially.

Total contract value, including the value of bundled maintenance, was $2.41 billion at the end of the third quarter of fiscal 2015, which increased 14.1% compared to the third quarter of fiscal 2014 and 3.2% 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 $411.6 million at the end of the third quarter of fiscal 2015, which increased 11.9% compared to the third quarter of fiscal 2014 and 2.9% sequentially.

GAAP operating margin was 37.5%, compared to 30.3% in the third quarter of fiscal 2014. Non-GAAP operating margin was 43.7%, compared to 38.6% in the third quarter of fiscal 2014.

We repurchased nearly three million shares of our common stock for $107.7 million in the third quarter of fiscal 2015.

Summary of Third Quarter Fiscal Year 2015 Financial Results
AspenTech's total revenue of $111.3 million increased 7.4% from $103.6 million in the third quarter of the prior fiscal year.

•Subscription and software revenue was $102.5 million in the third quarter of fiscal 2015, an increase from $91.3 million in the third quarter of fiscal 2014.

•Services & other revenue was $8.8 million in the third quarter of fiscal 2015, compared to $12.3 million in the third quarter of fiscal 2014.

For the quarter ended March 31, 2015, AspenTech reported income from operations of $41.7 million, compared to income from operations of $31.4 million for the quarter ended March 31, 2014.

Net income was $28.2 million for the quarter ended March 31, 2015, leading to net income per share of $0.32, compared to net income per share of $0.22 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 $48.7 million for the third quarter of fiscal 2015, compared to non-GAAP income from operations of $40.0 million in the same period last fiscal year. Non-GAAP net income was $32.6 million, or $0.37 per share, for the third quarter of fiscal 2015, compared to non-GAAP net income of $26.4 million, or $0.28 per share, in the same period last fiscal year.

AspenTech had cash and marketable securities of $225.0 million at March 31, 2015, a decrease of $31.5 million from the end of the prior quarter after using $107.0 million in cash to repurchase shares of common stock.

During the third quarter, the company generated $64.6 million in cash flow from operations. On a non-GAAP basis, cash flow from operations was $81.4 million and free cash flow was $79.7 million after taking into consideration $1.8 million in capital expenditures and capitalized software.

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 .