Aspen Technology Inc (AZPN) has reported an 8.03 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $35.83 million, or $0.47 a share in the quarter, compared with $33.17 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $39.39 million, or $0.52 a share compared with $40.86 million or $0.49 a share, a year ago. Revenue during the quarter went up marginally by 0.05 percent to $119.28 million from $119.22 million in the previous year period. Gross margin for the quarter contracted 20 basis points over the previous year period to 89.72 percent. Total expenses were 56.18 percent of quarterly revenues, down from 57.49 percent for the same period last year. This has led to an improvement of 131 basis points in operating margin to 43.82 percent.
Operating income for the quarter was $52.27 million, compared with $50.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $57.39 million compared to $59.26 million in the prior year period. At the same time, adjusted operating margin contracted 160 basis points in the quarter to 48.11 percent from 49.71 percent in the last year period.
Antonio Pietri, president and chief executive officer of AspenTech, said “AspenTech reported third quarter fiscal 2017 financial results that exceeded expectations from a revenue and profitability perspective. The demand from our owner-operator customers offset the impact of continued macroeconomic challenges facing engineering and construction and upstream customers.”
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $109.04 million, when compared with the previous year period The company has spent $52.98 million cash to meet investing activities during the nine month period as against cash outgo of $204.63 million in the last year period.
The company has spent $289.75 million cash to carry out financing activities during the nine month period as against cash inflow of $36.62 million in the last year period.
Cash and cash equivalents stood at $84.55 million as on Mar. 31, 2017, down 12.75 percent or $12.36 million from $96.91 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Aspen Technology Inc was negative $280.22 million on Mar. 31, 2017 compared with negative $21.31 million on Mar. 31, 2016. Current ratio was at 0.34 as on Mar. 31, 2017, down from 0.95 on Mar. 31, 2016.
Days sales outstanding went up to 19 days for the quarter compared with 14 days for the same period last year.
At the same time, days payable outstanding went up to 31 days for the quarter from 30 for the same period last year.
Debt remains stable
Total debt remained stable at $140 million as on Mar. 31, 2017, when compared with the last year. Short-term debt remained stable at $140 million as on Mar. 31, 2017, when compared with the last year. Total debt was 57.39 percent of total assets as on Mar. 31, 2017, compared with 31.86 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 54.51 for the quarter from 153.58 for the same period last year.
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