Aspen Technology Reports Third Quarter Fiscal 2001 Financial Results

Management implements expense reductions to respond to current

economic environment



Apr 24, 2001, 01:00 ET from Aspen Technology, Inc.

    CAMBRIDGE, Mass., April 24 /PRNewswire Interactive News Release/ --
 Aspen Technology, Inc. (Nasdaq:   AZPN) today reported financial results for its
 fiscal 2001 third quarter ended March 31, 2001.
     ( Photo:   http://www.newscom.com/cgi-bin/prnh/20000811/ASPENLOGO )
     Total revenues for the third quarter were $76.4 million, up 11 percent
 from the same period last year.  AspenTech's license revenues for the third
 quarter totaled $34.2 million, while services revenues were $42.2 million for
 the quarter ending March 31, 2001.  Excluding expenses relating to
 PetroVantage and amortization of goodwill, an AspenTech subsidiary providing
 software to optimize the trading and logistics of crude oil and refined
 products, the company reported a pro forma net loss of $3.2 million or $0.11
 per basic share.
     In light of near-term economic uncertainty, AspenTech has recently taken a
 series of actions to curtail spending, which it believes should enable the
 company to at least breakeven in its fourth fiscal quarter, excluding expenses
 relating to PetroVantage, amortization of goodwill and restructuring charges,
 and report an operating profit in the fiscal year ending June 30, 2002.  These
 steps include a five percent reduction in worldwide headcount, a substantial
 decrease in discretionary spending and a sharpening of its e-business focus to
 emphasize its marketplace solutions and PetroVantage.  These actions are
 expected to reduce operating expenses by approximately ten percent from
 previously anticipated levels.  Additionally, AspenTech expects to report a
 restructuring charge that will have a non-material impact on its fourth
 quarter results.
     In a separate news release issued earlier today, AspenTech announced that
 PetroVantage has signed agreements for several companies to pilot its software
 as part of its Foundation Client Program.  The company believes these
 agreements demonstrate enthusiasm among potential customers for the cost
 savings and improved efficiencies the collaborative software solution is
 designed to offer.
     "We saw a number of customers make significant investments in our
 technology during the quarter because of the tremendous value our solutions
 provide, closing ten deals that were greater than $1 million with customers
 such as Air Liquide, ConAgra Beef, Dupont, Mitsui Chemicals and PetroCanada,"
 said Larry Evans, Chairman & CEO of AspenTech.  "However, due to the
 uncertainty surrounding the economy, we saw a number of customers delay making
 software purchasing decisions at the end of March, which caused a shortfall in
 license revenues.
     "In response to the current economic environment, we are taking steps to
 reduce our expenses, which we believe will help us to return to profitability
 in the near-term.  We will continue to focus on initiatives that will drive
 our future growth, further our technology leadership position and advance our
 excellence in customer support.  We expect to resume higher levels of
 investment when growth rates return to more attractive levels.  Over the long
 term, AspenTech remains strategically positioned to deliver solutions that
 drive extraordinary value for our customers in the process industries because
 of the breadth of our solutions, our unparalleled domain expertise and the
 dramatic and the proven returns-on-investment our technology provides."
     AspenTech has revised its financial outlook for the fourth quarter of
 fiscal year 2001, ending June 30, 2001 and for fiscal year ending June 30,
 2002.  The company expects revenues to increase sequentially in the fourth
 quarter of fiscal 2001 and anticipates earnings in the range of $0.01 to $0.02
 per share, excluding expenses relating to PetroVantage, amortization of
 goodwill and restructuring charges.  For fiscal year 2002, AspenTech expects
 revenue growth in the range of 10-15 percent and earnings per share in the
 range of $0.40 to $0.42, excluding expenses related to PetroVantage and
 amortization of goodwill.
     For the nine months ending March 31, 2001, AspenTech reported total
 revenues of $227.6 million, compared with $184.7 million for the same period
 in fiscal 2000.  Excluding amortization of goodwill, in-process research and
 development and charge for an impaired investment, the company reported a pro
 forma net loss of $1.8 million or $0.06 per basic share.  Excluding
 amortization of goodwill, in-process research and development, charge for an
 impaired investment and expenses relating to PetroVantage, the company
 reported pro forma net income of $1.8 million or $0.06 per diluted share.
     As previously announced, the company will be holding a conference call
 discussing its financial results and business outlook at 4:45 p.m. EDT.
 Interested parties may listen to a live Webcast of the call by logging on to
 AspenTech's website:  http://www.aspentech.com and clicking on the "Conference
 Call" link under the Investor Relations section of the site.  A replay of the
 call will be archived on AspenTech's website for ten days and will also be
 available for forty-eight hours via telephone, beginning at 8:00 p.m. EDT on
 4/24/01, by dialing 719-457-0820 and entering in confirmation code 500907.
 
     About AspenTech
     Aspen Technology, Inc. is the leading supplier of integrated software and
 solutions that enable process manufacturers to automate and optimize their
 plants and extended supply chains, while enabling e-business.  With deep
 process knowledge, best-in-class technology, and strategic alliances with
 leading business and technology partners, AspenTech offers the industry's
 broadest family of scaleable solutions, allowing process manufacturers to
 achieve competitive advantage in the Internet economy.  AspenTech's
 Plantelligence(TM) solutions automate and optimize critical business processes
 at the plant level.  AspenTech's Enterprise Optimization(TM) solutions extend
 the scope of optimization across the enterprise and extended supply chain.
 AspenTech eSupply Chain solutions enable manufacturers to link seamlessly to
 customers, suppliers and on-line trading exchanges, creating a collaborative,
 flexible extended enterprise.  AspenTech employs more than 1,900 people
 worldwide.  For more information, visit http://www.aspentech.com.
 
     Paragraphs 3, 4, 6, and 7 of this press release contain forward-looking
 statements for purposes of the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  These statements involve factors
 that may cause AspenTech's actual results, levels of activity, performance or
 achievements to be materially different from any future results, levels of
 activity, performance or achievements expressed or implied by such forward-
 looking statements.  Specifically, by way of example and without limitation,
 the statements in the first, third and fourth  sentences of the third
 paragraph, the second sentence of the fourth  paragraph, the first, second,
 third and fourth  sentences of the sixth paragraph, and the second and third
 sentences of the seventh paragraph are forward-looking statements and their
 achievement is subject to a number of factors including:  AspenTech's lengthy
 sales cycle which makes it difficult to predict quarterly operating results;
 fluctuations in AspenTech's quarterly operating results; AspenTech's
 dependence on customers in the cyclical chemicals, petrochemicals and
 petroleum industries; AspenTech's dependence on key employees; intense
 competition; AspenTech's dependence on systems integrators and other strategic
 partners; and other risk factors described from time to time in AspenTech's
 periodic reports and registration statements filed with the Securities and
 Exchange Commission.  AspenTech cannot guarantee any future results, levels of
 activity, performance, or achievements. Moreover, neither AspenTech nor anyone
 else assumes responsibility for the accuracy and completeness of any forward-
 looking statements.  AspenTech undertakes no obligation to update any of the
 forward-looking statements after the date of this press release.
 
     AspenTech, Aspen eSupply Chain Suite, Enterprise Optimization,
 Plantelligence, and the aspen logo are trademarks of Aspen Technology, Inc.,
 Cambridge, Mass.
 
 
 
 
 
                                       Three Months Ended   Nine Months Ended
                                                  March                March
                                      March 31,     31,   March 31,      31,
                                        2001       2000      2001       2000
     REVENUES:
       Software licenses               $34,224    $34,746  $107,436    $85,571
       Services                         42,201     34,158   120,164     99,169
         Total revenues                 76,425     68,904   227,600    184,740
 
     EXPENSES:
       Cost of software licenses         3,141      2,467     8,705      6,730
       Cost of services                 25,697     21,546    72,561     62,489
       Selling and marketing            29,340     22,819    81,762     62,967
       Research and development         18,590     12,942    50,150     36,438
       General and administrative        8,289      6,012    22,454     17,328
       Charge for in-process research
        and development                    -          -       7,615        -
         Total costs and expenses       85,057     65,786   243,247    185,952
 
       Income (loss) from operations    (8,632)     3,118   (15,647)    (1,212)
 
       Other income (expense), net         (99)      (106)       19       (107)
       Write-off of investment             -          -      (5,000)       -
       Interest income, net              1,052      1,100     3,921      3,096
 
       Income (loss) before provision
        for
       (benefit from) income taxes      (7,679)     4,112   (16,707)     1,777
 
       Provision for (benefit from)
       income taxes                     (2,304)     1,507    (5,012)       913
 
 
         Net income (loss)             $(5,375)    $2,605  $(11,695)      $864
 
 
       Diluted earnings (loss) per
        share                           $(0.18)     $0.08    $(0.39)     $0.03
       Weighted average shares
        outstanding - diluted           30,186     32,303    29,729     30,433
 
       Basic earnings (loss) per share  $(0.18)     $0.09    $(0.39)     $0.03
       Weighted average shares
        outstanding - basic             30,186     28,469    29,729     28,027
 
       Pro Forma excluding charge for
        in-process R&D, write-off of
        investment and amortization of
        goodwill:
 
       Net Income (loss)               $(4,953)    $2,697   $(1,799)    $1,075
 
       Diluted (basic) earnings (loss)
        per share                       $(0.16)     $0.08    $(0.06)     $0.04
 
       Pro Forma excluding charge for
        in-process R&D, write-off of
        investment, amortization of
        goodwill and PetroVantage:
 
       Net Income (loss)               $(3,216)    $2,697    $1,827     $1,075
 
       Diluted (basic) earnings (loss)
        per share                       $(0.11)     $0.08     $0.06      $0.04
 
 
                                               March  31,        June 30,
                                                  2001             2000
     ASSETS
     Current Assets:
       Cash, cash equivalents and short-term
        investments                                  $76,403         $113,532
       Accounts receivable and unbilled
        services, net                                104,843          103,675
       Current portion of long-term
        installments receivable, net                  27,965           24,873
       Deferred tax asset                              3,300            3,300
       Prepaid expenses and other current
        assets                                        19,082           16,175
 
          Total current assets                       231,593          261,555
 
     Long-term installments receivable, net           41,742           28,301
     Equipment and leasehold improvements,
      net                                             42,322           36,093
     Computer software development costs,
      net                                              8,007            7,026
     Intangible assets, net                           28,000            8,856
     Deferred tax asset                                3,005           10,130
     Other assets                                     20,642           12,984
 
       Total assets                                 $375,311         $364,945
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Current portion of long-term debt              $2,503           $1,327
       Accounts payable and accrued expenses          40,501           53,392
       Unearned revenue                               17,834           13,903
       Deferred revenue                               20,679           23,553
         Total current liabilities                    81,517           92,175
 
     Long-term debt, less current maturities          88,326           88,173
     Deferred revenue, less current portion           13,592           14,374
     Other liabilities                                   625            1,025
 
     Total stockholders' equity                      191,251          169,198
       Total liabilities and stockholders'
        equity                                      $375,311         $364,945
 
 
           Contacts:
 
           For Media:
 
           Peter Watt                    Carin Warner
           Aspen Technology, Inc.        Warner Communications
           +44 (0) 1223 819 752          (978) 526-1960
                                         carin@warnerpr.com
 
 
           For Investors:
           Joshua Young
           Aspen Technology, Inc.
           (617) 949-1274
           joshua.young@aspentech.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X92383271
 
 

SOURCE Aspen Technology, Inc.
    CAMBRIDGE, Mass., April 24 /PRNewswire Interactive News Release/ --
 Aspen Technology, Inc. (Nasdaq:   AZPN) today reported financial results for its
 fiscal 2001 third quarter ended March 31, 2001.
     ( Photo:   http://www.newscom.com/cgi-bin/prnh/20000811/ASPENLOGO )
     Total revenues for the third quarter were $76.4 million, up 11 percent
 from the same period last year.  AspenTech's license revenues for the third
 quarter totaled $34.2 million, while services revenues were $42.2 million for
 the quarter ending March 31, 2001.  Excluding expenses relating to
 PetroVantage and amortization of goodwill, an AspenTech subsidiary providing
 software to optimize the trading and logistics of crude oil and refined
 products, the company reported a pro forma net loss of $3.2 million or $0.11
 per basic share.
     In light of near-term economic uncertainty, AspenTech has recently taken a
 series of actions to curtail spending, which it believes should enable the
 company to at least breakeven in its fourth fiscal quarter, excluding expenses
 relating to PetroVantage, amortization of goodwill and restructuring charges,
 and report an operating profit in the fiscal year ending June 30, 2002.  These
 steps include a five percent reduction in worldwide headcount, a substantial
 decrease in discretionary spending and a sharpening of its e-business focus to
 emphasize its marketplace solutions and PetroVantage.  These actions are
 expected to reduce operating expenses by approximately ten percent from
 previously anticipated levels.  Additionally, AspenTech expects to report a
 restructuring charge that will have a non-material impact on its fourth
 quarter results.
     In a separate news release issued earlier today, AspenTech announced that
 PetroVantage has signed agreements for several companies to pilot its software
 as part of its Foundation Client Program.  The company believes these
 agreements demonstrate enthusiasm among potential customers for the cost
 savings and improved efficiencies the collaborative software solution is
 designed to offer.
     "We saw a number of customers make significant investments in our
 technology during the quarter because of the tremendous value our solutions
 provide, closing ten deals that were greater than $1 million with customers
 such as Air Liquide, ConAgra Beef, Dupont, Mitsui Chemicals and PetroCanada,"
 said Larry Evans, Chairman & CEO of AspenTech.  "However, due to the
 uncertainty surrounding the economy, we saw a number of customers delay making
 software purchasing decisions at the end of March, which caused a shortfall in
 license revenues.
     "In response to the current economic environment, we are taking steps to
 reduce our expenses, which we believe will help us to return to profitability
 in the near-term.  We will continue to focus on initiatives that will drive
 our future growth, further our technology leadership position and advance our
 excellence in customer support.  We expect to resume higher levels of
 investment when growth rates return to more attractive levels.  Over the long
 term, AspenTech remains strategically positioned to deliver solutions that
 drive extraordinary value for our customers in the process industries because
 of the breadth of our solutions, our unparalleled domain expertise and the
 dramatic and the proven returns-on-investment our technology provides."
     AspenTech has revised its financial outlook for the fourth quarter of
 fiscal year 2001, ending June 30, 2001 and for fiscal year ending June 30,
 2002.  The company expects revenues to increase sequentially in the fourth
 quarter of fiscal 2001 and anticipates earnings in the range of $0.01 to $0.02
 per share, excluding expenses relating to PetroVantage, amortization of
 goodwill and restructuring charges.  For fiscal year 2002, AspenTech expects
 revenue growth in the range of 10-15 percent and earnings per share in the
 range of $0.40 to $0.42, excluding expenses related to PetroVantage and
 amortization of goodwill.
     For the nine months ending March 31, 2001, AspenTech reported total
 revenues of $227.6 million, compared with $184.7 million for the same period
 in fiscal 2000.  Excluding amortization of goodwill, in-process research and
 development and charge for an impaired investment, the company reported a pro
 forma net loss of $1.8 million or $0.06 per basic share.  Excluding
 amortization of goodwill, in-process research and development, charge for an
 impaired investment and expenses relating to PetroVantage, the company
 reported pro forma net income of $1.8 million or $0.06 per diluted share.
     As previously announced, the company will be holding a conference call
 discussing its financial results and business outlook at 4:45 p.m. EDT.
 Interested parties may listen to a live Webcast of the call by logging on to
 AspenTech's website:  http://www.aspentech.com and clicking on the "Conference
 Call" link under the Investor Relations section of the site.  A replay of the
 call will be archived on AspenTech's website for ten days and will also be
 available for forty-eight hours via telephone, beginning at 8:00 p.m. EDT on
 4/24/01, by dialing 719-457-0820 and entering in confirmation code 500907.
 
     About AspenTech
     Aspen Technology, Inc. is the leading supplier of integrated software and
 solutions that enable process manufacturers to automate and optimize their
 plants and extended supply chains, while enabling e-business.  With deep
 process knowledge, best-in-class technology, and strategic alliances with
 leading business and technology partners, AspenTech offers the industry's
 broadest family of scaleable solutions, allowing process manufacturers to
 achieve competitive advantage in the Internet economy.  AspenTech's
 Plantelligence(TM) solutions automate and optimize critical business processes
 at the plant level.  AspenTech's Enterprise Optimization(TM) solutions extend
 the scope of optimization across the enterprise and extended supply chain.
 AspenTech eSupply Chain solutions enable manufacturers to link seamlessly to
 customers, suppliers and on-line trading exchanges, creating a collaborative,
 flexible extended enterprise.  AspenTech employs more than 1,900 people
 worldwide.  For more information, visit http://www.aspentech.com.
 
     Paragraphs 3, 4, 6, and 7 of this press release contain forward-looking
 statements for purposes of the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  These statements involve factors
 that may cause AspenTech's actual results, levels of activity, performance or
 achievements to be materially different from any future results, levels of
 activity, performance or achievements expressed or implied by such forward-
 looking statements.  Specifically, by way of example and without limitation,
 the statements in the first, third and fourth  sentences of the third
 paragraph, the second sentence of the fourth  paragraph, the first, second,
 third and fourth  sentences of the sixth paragraph, and the second and third
 sentences of the seventh paragraph are forward-looking statements and their
 achievement is subject to a number of factors including:  AspenTech's lengthy
 sales cycle which makes it difficult to predict quarterly operating results;
 fluctuations in AspenTech's quarterly operating results; AspenTech's
 dependence on customers in the cyclical chemicals, petrochemicals and
 petroleum industries; AspenTech's dependence on key employees; intense
 competition; AspenTech's dependence on systems integrators and other strategic
 partners; and other risk factors described from time to time in AspenTech's
 periodic reports and registration statements filed with the Securities and
 Exchange Commission.  AspenTech cannot guarantee any future results, levels of
 activity, performance, or achievements. Moreover, neither AspenTech nor anyone
 else assumes responsibility for the accuracy and completeness of any forward-
 looking statements.  AspenTech undertakes no obligation to update any of the
 forward-looking statements after the date of this press release.
 
     AspenTech, Aspen eSupply Chain Suite, Enterprise Optimization,
 Plantelligence, and the aspen logo are trademarks of Aspen Technology, Inc.,
 Cambridge, Mass.
 
 
 
 
 
                                       Three Months Ended   Nine Months Ended
                                                  March                March
                                      March 31,     31,   March 31,      31,
                                        2001       2000      2001       2000
     REVENUES:
       Software licenses               $34,224    $34,746  $107,436    $85,571
       Services                         42,201     34,158   120,164     99,169
         Total revenues                 76,425     68,904   227,600    184,740
 
     EXPENSES:
       Cost of software licenses         3,141      2,467     8,705      6,730
       Cost of services                 25,697     21,546    72,561     62,489
       Selling and marketing            29,340     22,819    81,762     62,967
       Research and development         18,590     12,942    50,150     36,438
       General and administrative        8,289      6,012    22,454     17,328
       Charge for in-process research
        and development                    -          -       7,615        -
         Total costs and expenses       85,057     65,786   243,247    185,952
 
       Income (loss) from operations    (8,632)     3,118   (15,647)    (1,212)
 
       Other income (expense), net         (99)      (106)       19       (107)
       Write-off of investment             -          -      (5,000)       -
       Interest income, net              1,052      1,100     3,921      3,096
 
       Income (loss) before provision
        for
       (benefit from) income taxes      (7,679)     4,112   (16,707)     1,777
 
       Provision for (benefit from)
       income taxes                     (2,304)     1,507    (5,012)       913
 
 
         Net income (loss)             $(5,375)    $2,605  $(11,695)      $864
 
 
       Diluted earnings (loss) per
        share                           $(0.18)     $0.08    $(0.39)     $0.03
       Weighted average shares
        outstanding - diluted           30,186     32,303    29,729     30,433
 
       Basic earnings (loss) per share  $(0.18)     $0.09    $(0.39)     $0.03
       Weighted average shares
        outstanding - basic             30,186     28,469    29,729     28,027
 
       Pro Forma excluding charge for
        in-process R&D, write-off of
        investment and amortization of
        goodwill:
 
       Net Income (loss)               $(4,953)    $2,697   $(1,799)    $1,075
 
       Diluted (basic) earnings (loss)
        per share                       $(0.16)     $0.08    $(0.06)     $0.04
 
       Pro Forma excluding charge for
        in-process R&D, write-off of
        investment, amortization of
        goodwill and PetroVantage:
 
       Net Income (loss)               $(3,216)    $2,697    $1,827     $1,075
 
       Diluted (basic) earnings (loss)
        per share                       $(0.11)     $0.08     $0.06      $0.04
 
 
                                               March  31,        June 30,
                                                  2001             2000
     ASSETS
     Current Assets:
       Cash, cash equivalents and short-term
        investments                                  $76,403         $113,532
       Accounts receivable and unbilled
        services, net                                104,843          103,675
       Current portion of long-term
        installments receivable, net                  27,965           24,873
       Deferred tax asset                              3,300            3,300
       Prepaid expenses and other current
        assets                                        19,082           16,175
 
          Total current assets                       231,593          261,555
 
     Long-term installments receivable, net           41,742           28,301
     Equipment and leasehold improvements,
      net                                             42,322           36,093
     Computer software development costs,
      net                                              8,007            7,026
     Intangible assets, net                           28,000            8,856
     Deferred tax asset                                3,005           10,130
     Other assets                                     20,642           12,984
 
       Total assets                                 $375,311         $364,945
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Current portion of long-term debt              $2,503           $1,327
       Accounts payable and accrued expenses          40,501           53,392
       Unearned revenue                               17,834           13,903
       Deferred revenue                               20,679           23,553
         Total current liabilities                    81,517           92,175
 
     Long-term debt, less current maturities          88,326           88,173
     Deferred revenue, less current portion           13,592           14,374
     Other liabilities                                   625            1,025
 
     Total stockholders' equity                      191,251          169,198
       Total liabilities and stockholders'
        equity                                      $375,311         $364,945
 
 
           Contacts:
 
           For Media:
 
           Peter Watt                    Carin Warner
           Aspen Technology, Inc.        Warner Communications
           +44 (0) 1223 819 752          (978) 526-1960
                                         carin@warnerpr.com
 
 
           For Investors:
           Joshua Young
           Aspen Technology, Inc.
           (617) 949-1274
           joshua.young@aspentech.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X92383271
 
 SOURCE  Aspen Technology, Inc.