Aspen Technology, Inc.(NASDAQ:AZPN) reported an annual spend growth of 4.2% yoy to $469 million, while the total revenue reached $124.9 million, which is the high-end of their guidance range of $120 million to $122 million
Aspen Technology’s subscription software revenue reached $117.7 million for the second quarter of 2018, while Services and other revenue reached $7.2 million against $7 million in pcp.
Gross profit improved to $112.8 million during the quarter with a gross margin of 90.3%, which compares to $108.4 million in the prior-year period. Operating income reached $54.5 million during the second quarter of fiscal 2018 against the $56.1 million in pcp. Net income rose to $38.1 million or $0.52 per share against the net income of $37 million or $0.48 per share in the second quarter of fiscal 2017.
Aspen Technology bought back over $756,000 shares of their stocks or $50 million. The group is on-track to repurchase $200 million of stock in fiscal 2018. They acquired the Cipher industrial Internet Of Things software and edge connectivity assets of Architect Software. The group extended their asset optimization strategy by offering a sophisticated cloud and edge computing technology that captures and aggregates critical data from assets to other plants and across the enterprise. Cipher is a cloud native with multitenant capabilities leveraging a modern architecture design based on Microsoft Azure Internet Of Things platform which can also be used on premise.
On the other hand, the stock lost over 1.4% this morning (as of 9:56AM EST on Jan 25th, 2018; Source: Google finance). Concerns persist on the conditions for their E&C customers which is flat with signs of nascent rise in activities in most parts of the world except for North America and Southeast Asia where the business remains challenged. Despite the rise in oil prices, most energy companies need to declare their CapEx budgets for calendar 2018. The group forecasts only a modest overall growth from 2017 budgets that are still 40% to 50% below the peak levels.
For FY18, the group expects a revenue in the range of $490 million to $495 million and continue to forecast subscription and software to comprise more than 90% of revenue with their services and other revenue representing the remainder.