Aspen Technology, Inc. (AZPN) has reported a 0.89 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $37.01 million, or $0.48 a share in the quarter, compared with $36.68 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.19 million, or $0.52 a share compared with $39.60 million or $0.47 a share, a year ago.
Revenue during the quarter went up marginally by 0.66 percent to $119.93 million from $119.15 million in the previous year period. Gross margin for the quarter expanded 32 basis points over the previous year period to 90.35 percent. Total expenses were 53.25 percent of quarterly revenues, up from 52.75 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 46.75 percent.
Operating income for the quarter was $56.06 million, compared with $56.30 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $60.89 million when compared with the prior year period. At the same time, adjusted operating margin contracted 31 basis points in the quarter to 50.77 percent from 51.08 percent in the last year period.
Antonio Pietri, president and chief executive officer of AspenTech, said "AspenTech reported second quarter fiscal 2017 financial results that exceeded expectations from both a financial and operational perspective. We also achieved a major milestone in our Asset Optimization strategy with the release of the new aspenONE Asset Performance Management (APM) suite. We are pleased with the positive feedback and strong interest we have received from early customers, and believe this new suite represents a significant opportunity and important growth driver for our business."
Operating cash flow improves significantly
Aspen Technology, Inc. has generated cash of $53.42 million from operating activities during the first half, up 36.37 percent or $14.25 million, when compared with the last year period.
The company has spent $108.01 million cash to meet investing activities during the first half as against cash inflow of $30.27 million in the last year period
The company has spent $196.50 million cash to carry out financing activities during the first six months as against cash outgo of $54.70 million in the last year period.
Cash and cash equivalents stood at $67.03 million as on Dec. 31, 2016, down 60.72 percent or $103.60 million from $170.62 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Aspen Technology, Inc. was negative $226.59 million on Dec. 31, 2016 compared with negative $4.43 million on Dec. 31, 2015. Current ratio was at 0.43 as on Dec. 31, 2016, down from 0.98 on Dec. 31, 2015.
Days sales outstanding went up to 16 days for the quarter compared with 15 days for the same period last year.
At the same time, days payable outstanding went down to 16 days for the quarter from 26 for the same period last year.
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