ASPEN TECHNOLOGY INC /DE/

CIK:0000929940|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Total revenue	$ 187,753	$ 162,726	$ 495,129	$ 511,415
Cost of revenue:
Total cost of revenue	13,622	16,055	43,401	45,836
Gross profit	174,131	146,671	451,728	465,579
Operating expenses:
Selling and marketing	33,977	30,345	94,088	82,092
Research and development	28,704	25,874	80,975	70,576
General and administrative	30,694	21,553	87,542	60,389
Total operating expenses	93,375	77,772	262,605	213,057
Income from operations	80,756	68,899	189,123	252,522
Interest income	8,287	8,410	25,646	26,383
Interest (expense)	(1,572)	(1,495)	(4,626)	(5,639)
Other income (expense), net	522	(5)	(2,107)	(1,807)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	87,993	75,809	208,036	271,459
Provision for income taxes	12,870	13,314	31,650	47,101
Net income	$ 75,123	$ 62,495	$ 176,386	$ 224,358
Net income per common share:
Basic (in dollars per share)	$ 1.13	$ 0.92	$ 2.64	$ 3.31
Diluted (in dollars per share)	$ 1.12	$ 0.91	$ 2.62	$ 3.28
Weighted average shares outstanding:
Basic (in shares)	66,594	67,920	66,791	67,809
Diluted (in shares)	67,014	68,608	67,241	68,439
License [Member]
Revenue:
Total revenue	$ 130,032	$ 110,104	$ 327,247	$ 352,133
Cost of revenue:
Total cost of revenue	489	2,485	5,291	6,859
Maintenance [Member]
Revenue:
Total revenue	50,017	45,885	146,615	139,561
Cost of revenue:
Total cost of revenue	4,760	5,174	13,674	14,066
Services and other
Revenue:
Total revenue	7,704	6,737	21,267	19,721
Cost of revenue:
Total cost of revenue	$ 8,373	$ 8,396	$ 24,436	$ 24,911

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 176,386	$ 224,358
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,151	7,545
Reduction in the carrying amount of right-of-use assets	7,566	7,037
Net foreign currency losses	2,238	2,027
Stock-based compensation	25,713	24,589
Deferred income taxes	(53,472)	7,029
Provision for receivables	2,276	6,800
Other non-cash operating activities	1,507	718
Changes in assets and liabilities:
Accounts receivable	805	4,115
Contract assets, net	(49,739)	(103,538)
Contract costs	(1,218)	198
Lease liabilities	(7,908)	(7,533)
Prepaid expenses, prepaid income taxes, and other assets	12,111	(6,959)
Accounts payable, accrued expenses, income taxes payable and other liabilities	36,036	(6,847)
Deferred revenue	(5,366)	13,410
Net cash provided by operating activities	155,086	172,949
Cash flows from investing activities:
Purchases of property, equipment and leasehold improvements	(1,138)	(733)
Payments for business acquisitions, net of cash acquired	0	(16,272)
Payments for equity method investments	(617)	(926)
Payments for capitalized computer software development costs	(361)	(895)
Net cash used in investing activities	(2,116)	(18,826)
Cash flows from financing activities:
Issuance of shares of common stock	15,923	12,508
Repurchases of common stock	(234,043)	0
Payments of tax withholding obligations related to restricted stock	(12,656)	(6,719)
Deferred business acquisition payments	1,220	0
Repayments of amounts borrowed	(14,000)	(131,182)
Payments of debt issuance costs	(402)	0
Net cash used in financing activities	(246,398)	(125,393)
Effect of exchange rate changes on cash and cash equivalents	(1,208)	573
Cash and Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(94,636)	29,303
Cash and cash equivalents, beginning of period	379,853	287,796
Cash and cash equivalents, end of period	285,217	317,099
Supplemental disclosure of cash flow information:
Income taxes paid, net	42,697	49,349
Interest paid	3,975	5,672
Supplemental disclosure of non-cash activities:
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses	(99)	77
Change in repurchases of common stock included in accounts payable and accrued expenses	(4,353)	0
Lease liabilities arising from obtaining right-of-use assets	4,860	1,488
Reconciliation to amounts within the unaudited consolidated balance sheets: [Abstract]
Payments to Acquire Businesses, Gross	$ (1,220)	$ 0

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 285,217	$ 379,853
Accounts receivable, net	49,182	52,502
Current contract assets, net	345,633	308,607
Prepaid expenses and other current assets	11,848	12,716
Prepaid income taxes	3,154	14,639
Total current assets	695,034	768,317
Property, equipment and leasehold improvements, net	4,650	5,610
Computer software development costs, net	1,003	1,461
Goodwill	157,855	159,852
Intangible assets, net	37,737	44,327
Non-current contract assets, net	416,604	407,180
Contract costs	30,274	29,056
Operating lease right-of-use assets	31,609	32,539
Deferred tax assets	2,157	2,121
Other non-current assets	4,094	3,537
Total assets	1,381,017	1,454,000
Current liabilities:
Accounts payable	7,176	4,367
Accrued expenses and other current liabilities	46,161	50,575
Current operating lease liabilities	7,119	6,751
Income taxes payable	33,649	3,444
Current borrowings	26,000	20,000
Current deferred revenue	50,569	56,393
Total current liabilities	170,674	141,530
Non-current deferred revenue	12,114	11,732
Deferred income tax liabilities	139,921	193,360
Non-current operating lease liabilities	27,761	29,699
Non-current borrowings, net	253,412	273,162
Other non-current liabilities	2,280	3,760
Commitments and contingencies (Note 16)
Series D redeemable convertible preferred stock
Temporary Equity, Carrying Amount, Attributable to Parent	0	0
Stockholders' equity:
Common Stock, Value, Issued	10,485	10,455
Additional paid-in capital	850,948	819,642
Retained earnings	1,954,519	1,778,133
Accumulated other comprehensive income	5,091	9,026
Treasury Stock, Value	(2,046,188)	(1,816,499)
Total stockholders’ equity	774,855	800,757
Total liabilities and stockholders’ equity	$ 1,381,017	$ 1,454,000
Series D redeemable convertible preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Series D redeemable convertible preferred stock, authorized	3,636	3,636
Series D redeemable convertible preferred stock, issued	0	0
Series D redeemable convertible preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized	210,000,000	210,000,000
Common stock, issued	104,845,904	104,543,414
Common stock, outstanding	66,607,779	67,912,160
Treasury stock, shares	38,238,125	36,631,254