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Qaspentech Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2021 January 27 , 2021 BEDFORD , Mass .-- ( BUSINESS WIRE ) -- Jan . 27 , 2021-- Aspen Technology , Inc. ( NASDAQ : AZPN ) , a global leader in asset optimization software , today announced financial results for its second quarter of fiscal year 2021 ended December 31 , 2020 . " AspenTech's second quarter results were solid in the context of the current economic environment and support our outlook for a strong performance in the fiscal year . The quarter results were also highlighted by strong free cash flow generation , " said Antonio Pietri , President and Chief Executive Officer of Aspen Technology . " Customers continued to make substantial long - term commitments with AspenTech , including a renewal in excess of $ 75 million with one of the largest global oil companies making it one of the biggest transactions in our history . " Pietri continued , “ Demand activity remains strong across our product portfolio and we believe we are on track to have a good second half of the fiscal year . The increasing importance of digitalization and sustainability in the process and other capital intensive industries , as well as customer feedback on recent product announcements like the Aspen AloT Hub and aspenONE v12 , give us confidence in our ability to return to double - digit annual spend growth once the economy normalizes . " Second Quarter Fiscal Year 2021 Recent Business Highlights • Annual spend , which the company defines as the annualized value of all term license and maintenance contracts at the end of the quarter , was approximately $ 604 million at the end of the second quarter of fiscal 2021 , which increased 7.0 % compared to the second quarter of fiscal 2020 and 1.3 % sequentially . Summary of Second Quarter Fiscal Year 2021 Financial Results Aspen Tech's total revenue of $ 233.7 million included : • License revenue , which represents the portion of a term license agreement allocated to the initial license , was $ 180.2 million in the second quarter of fiscal 2021 , compared to $ 72.4 million in the second quarter of fiscal 2020 . • Maintenance revenue , which represents the portion of the term license agreement related to on - going support and the right to future product enhancements , was $ 46.8 million in the second quarter of fiscal 2021 , compared to $ 44.5 million in the second quarter of fiscal 2020 . • Services and other revenue was $ 6.7 million in the second quarter of fiscal 2021 , compared to $ 9.0 million in the second quarter of fiscal 2020 . For the quarter ended December 31 , 2020 , AspenTech reported income from operations of $ 149.5 million , compared to income from operations of $ 42.9 million for the quarter ended December 31 , 2019 . Net income was $ 129.2 million for the quarter ended December 31 , 2020 , leading to net income per share of $ 1.89 , compared to net income per share of $ 0.58 in the same period last fiscal year . Non - GAAP income from operations was $ 162.2 million for the second quarter of fiscal 2021 , compared to non - GAAP income from operations of $ 52.1 million in the same period last fiscal year . Non - GAAP net income was $ 139.3 million , or $ 2.04 per share , for the second quarter of fiscal 2021 , compared to non - GAAP net income of $ 47.1 million , or $ 0.68 per share , in the same period last fiscal year . These non - GAAP results add back the impact of stock - based compensation expense , amortization of intangibles and acquisition - related fees . A reconciliation of GAAP to non - GAAP results is presented in the financial tables included in this press release . AspenTech had cash and cash equivalents of $ 217.5 million and total borrowings , net of debt issuance costs , of $ 300.8 million at December 31 , 2020 . During the second quarter the company paid down approximately $ 119.2 million on the outstanding balance on its revolving credit facility . During the second quarter , the company generated $ 37.8 million in cash flow from operations and $ 38.0 million in free cash flow . Free cash flow is calculated as net cash provided by operating activities adjusted for the net impact of : purchases of property , equipment and leasehold improvements ; payments for capitalized computer software development costs , and other nonrecurring items , such as acquisition - related payments . Business Outlook Based on information as of today , January 27 , 2021 , Aspen Technology is issuing the following guidance for fiscal year 2021 : • Annual spend growth of 6-8 % year - over - year • Free cash flow of $ 265 to $ 275 million • Total bookings of $ 805 to $ 850 million • Total revenue of $ 731 to $ 760 million • GAAP total expense of $ 356 to $ 361 million • Non - GAAP total expense of $ 313 to $ 318 million • GAAP operating income of $ 375 to $ 399 million