Aspen Technology Announces Financial Results for Fourth-Quarter Fiscal Year 2006 and Completion of Stock Option Review and Restatement.CAMBRIDGE, Mass. -- Aspen Technology Aspen Technology (NASDAQ: AZPN) provides software and professional services to the manufacturing and process industries which allows companies to model, manage, and control their operations. AspenTech was founded in 1981 by MIT professor Dr. , Inc. (Nasdaq: AZPN), a leading provider of software and services to the process industries, today announced financial results for its quarter and fiscal year ended June 30, 2006. "Our fourth quarter financial results demonstrate that we finished fiscal 2006 with strong revenue, profitability and cash flow," stated Mark Fusco Mark Fusco (born March 12, 1961 in Burlington, Massachusetts) is a retired ice hockey player. Fusco won the Hobey Baker Award in 1983. He would also be a member of the American 1984 Winter Olympics ice hockey team. , chief executive officer of AspenTech. "We were pleased that we were able to complete our internal stock option review and related restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. process and to file our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. with the SEC today, as previously anticipated. We remain focused on executing against our growth strategies, bringing our aspenONE solutions to market and delivering value to our customers." Fourth Quarter Fiscal 2006 Results For the quarter ended June 30, 2006, AspenTech reported total revenue of $79.2 million, an increase of 10% from the prior year period. Top line results were driven by license revenue of $44.4 million, which increased 20% from the prior year period. Services revenue was even with the prior year period at $34.8 million. For the quarter ended June 30, 2006, AspenTech's income from operations, determined in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), was $8.3 million, or an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 11%. GAAP operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the fourth quarter fiscal 2006 included $1.7 million of non-cash stock-based compensation, $1.5 million of payroll tax-related charges resulting from the stock option review, $1.7 million of non-cash amortization of intangibles associated with previous acquisitions and $0.7 million of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and loss on sales and disposals of assets, all of which combined to reduce the company's GAAP operating margin by approximately 700 basis points. For the quarter ended June 30, 2005, the company reported a GAAP loss from operations of $22.8 million. GAAP operating expenses in the fourth quarter fiscal 2005 included $0.7 million of non-cash stock-based compensation, $1.8 million of non-cash amortization of intangibles associated with previous acquisitions and $17.9 million of restructuring charges and loss on sales and disposals of assets GAAP income applicable to common shareholders was $2.9 million in the fourth quarter of fiscal 2006, compared to a loss of $30.0 million in the same period last year. GAAP income applicable to common shareholders included the impact of $3.9 million of accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend and discount in the fourth quarter of fiscal 2006, and $3.7 million in the prior year period. GAAP diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. income per share applicable to common shareholders was $0.05 for the quarter ended June 30, 2006, compared with a diluted loss per share applicable to common shareholders of $0.70 in the same period last year. Of note, fourth quarter fiscal 2006 GAAP earnings per share were adversely impacted by $0.03 due to payroll tax-related charges resulting from the stock option review. As previously reported, AspenTech had cash and cash equivalents of $86.3 million at June 30, 2006, an increase of 23% compared to the end of the prior quarter, and the company remains essentially debt-free. The increase in cash was primarily the result of strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses during the quarter. Full Year Fiscal 2006 Results For the fiscal year ended June 30, 2006, AspenTech reported total revenue of $293.3 million, an increase of 9% from the prior fiscal year. Top line growth was driven by license revenue of $152.7 million, which increased 18% from the prior fiscal year. Services revenue was even with the prior fiscal year at $140.6 million. For the fiscal year ended June 30, 2006, AspenTech's GAAP income from operations was $21.9 million, or an operating margin of 7%. GAAP operating expenses in fiscal 2006 included $6.9 million of non-cash stock-based compensation, $2.3 million of payroll tax-related charges resulting from the stock option review, $7.1 million of non-cash, amortization of intangibles associated with previous acquisitions, and $4.9 million of restructuring charges and loss on sales and disposals of assets - all of which combined to reduce the company's operating margin by approximately 700 basis points. For the fiscal year ended June 30, 2005, AspenTech's GAAP loss from operations was $68.8 million. GAAP operating expenses in fiscal 2005 included $1.5 million of non-cash stock-based compensation, $0.2 million of payroll tax-related charges resulting from the stock option review, $7.1 million of non-cash, amortization of intangibles associated with previous acquisitions, and $39.3 million of restructuring charges and loss on sales and disposals of assets. GAAP income applicable to common shareholders was $3.0 million in fiscal 2006, compared to a loss of $85.2 million in the prior fiscal year. GAAP income applicable to common shareholders includes the impact of $15.4 million for the accretion of preferred stock dividend and discount in fiscal 2006, and $14.5 million in the prior fiscal year. GAAP diluted income per share applicable to common shareholders was $0.06 for the fiscal year ended June 30, 2006, compared with a diluted loss per share applicable to common shareholders of $2.01 in the prior fiscal year. Restatement of certain prior period financials completed As previously disclosed, in connection with the preparation of AspenTech's financial statements for the fiscal year ended June 30, 2006, a subcommittee of independent directors reviewed the company's accounting treatment for stock option grants since its initial public offering in fiscal 1995. Based upon the subcommittee's review, the Audit Committee and company management determined that certain option grants during fiscal years 1995 through 2004 were accounted for improperly, and concluded that stock-based compensation associated with the grants was misstated in fiscal years 1995 through 2005 and in the nine months ended March 31, 2006. The restatement effects of stock-based compensation charges resulted in charges totaling $1.0 million for the nine months ended March 31, 2006, $0.5 million for the year ended June 30, 2005, and $7.2 million for the year ended June 30, 2004. The restatement also resulted in $50.1 million of charges for periods prior to fiscal 2004, which is reflected in the July 1, 2003 beginning accumulated deficit. As previously disclosed, the restated financial statements also reflect the correction of errors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc prior periods that were not previously recorded because the company believed they were not material either individually or in the aggregate. These adjustments increased net income by approximately $2.5 million for the first three quarters of fiscal 2006, while increasing net loss by an aggregate of $1.9 million in fiscal years 2003, 2004 and 2005. The effects of the restatement of financial results for prior fiscal periods are described in further detail in the company's annual report on Form 10-K filed with the SEC earlier today. Conference Call and Webcast AspenTech will host a conference call and webcast today, September 28, 2006, at 6:00 pm (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) to discuss the company's financial results, business outlook, and related corporate and financial matters. The live dial-in number is 877-239-3024, conference ID code 7759540. Interested parties may also listen to a live webcast of the call by logging on to the Investor Relations Investor relations The process by which the corporation communicates with its investors. 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 800-642-1687 or 706-645-9291, conference ID code 7759540, through October 5, 2006. About AspenTech Aspen Technology, Inc. provides industry-leading software and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The new generation of integrated aspenONE solutions is aligned with the key industry business processes, providing manufacturers the capabilities they need to optimize operational performance, make real-time decisions and synchronize See synchronization. the plant and supply chain. Over 1,500 leading companies already rely on AspenTech's software, including Bayer, BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida , BP, Chevron Corporation “CVX” redirects here. For the United States Navy future aircraft carrier program, see United States Navy CVN-21 program. Chevron Corporation (NYSE: CVX) is one of the world's largest global energy companies. , DuPont, ExxonMobil, Fluor, GlaxoSmithKline, Sanofi-Aventis, Shell and Total. For more information, visit www.aspentech.com. AspenTech, aspenONE and the aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. leaf logo are trademarks of Aspen Technology, Inc., Cambridge, Mass. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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