Earnings and Guidance: The company recently announced its second quarter financial results in which President and CEO Mark Fusco said the Burlington, Massachusetts – based company “delivered strong second quarter results that exceeded our estimates on all key metrics.” AspenTech reported revenue of $77.3 million, an increase of 16% year over year, for the last three months of 2012. The company’s net income for the second quarter was nearly $10 million, or 10 cents a share, more than two-and-a-half times the net income of $3.8 million, or 4 cents a share, for the same quarter a year ago.
The company’s operational execution remains at a high level, which is evidenced by free cash flow generation of $34.5 million during the latest quarter. Aspen Technology didn’t provide any specific guidance. However, Fusco said, “With over $50 million of free cash flow generated during the first half of our fiscal year, we feel very good about the company’s position as we are heading into our seasonally strongest cash flow quarter.”
Growth Driver: In 2012 Aspen Technology has acquired software assets from Houston, Texas-based Refining Advantage Inc., which is located not far from Aspen Techology’s Manufacturing and Supply Chain Center of Excellence in Houston.
Aspen Technology purchased the company’s Pipeline Scheduling System (PSS) and Dock Scheduling System (DSS) software. While the company did not disclose financial details of the purchase, it did say acquiring the assets would enable Aspen Technology to add tools that would enable its customers to manage and schedule entire facilities including docs and pipelines.
The PSS software is a scheduling tool for enabling pipeline companies and refineries, while DSS is used by refineries and terminals to schedule their docks, enabling them to save on carrying costs that are incurred because of delays in on-loading or off-loading cargo.
The article These IT Stocks to Rise in 2013, Says Pacific Crest originally appeared on Fool.com and is written by Anindya Batabyal.
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