Aspen Technology Inc. (AZPN), a software provider to process industries, Tuesday reported a loss for the fourth quarter, hurt mainly by lower operating margin, notwithstanding a 22 percent growth in revenues. This compares with a profit last year, when results included hefty tax gains. Earnings for the quarter were in line with Street estimates, while revenues topped expectations.
Burlington, Massachusetts-based Aspen reported a fourth quarter net loss of $5.4 million or $0.06 per share, compared to net income of $41.7 million or $0.43 per share last year.
Results for the prior year quarter included a $57.3 million net tax benefit, primarily related to a valuation reversal against deferred tax assets.
Excluding items, loss for the quarter was $3.45 million or $0.04 per share, compared to a loss of $19 million or $0.20 per share a year ago. On average, 8 analysts polled by Thomson Reuters expected a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 22 percent to $64 million from $52.6 million in the prior year. Analysts expected revenues of $62.34 million.
By segment, subscription and software revenue jumped to $45.8 million from $28.7 million last year, while services & other revenue dropped to $18.2 million from $23.9 million.
At the end of the quarter, the annualized value of all term license and maintenance revenue contracts totaled about $304 million, up 12.7 percent from the prior year.
AZPN closed Tuesday's regular trade at $23.65, up 0.04%, on a volume of 0.8 million shares on the Nasdaq.
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