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Daspentech Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2021 April 28 , 2021 BEDFORD , Mass .-- ( BUSINESS WIRE ) -- Apr . 28 , 2021-- Aspen Technology , Inc. ( NASDAQ : AZPN ) , a global leader in asset optimization software , today announced financial results for its third quarter of fiscal year 2021 ended March 31 , 2021 . " Aspen Tech's third quarter performance was highlighted by strong free cash flow generation and demand activity in each of our core end - markets that was at or above pre - pandemic levels , " said Antonio Pietri , President and Chief Executive Officer of Aspen Technology . " At the same time , the continued uncertainty in the global macro environment due to COVID , coupled with the significant and costly disruptions in the energy and chemicals markets related to the winter storm in the US during the quarter , made it more challenging to close transactions than we expected . " Pietri continued , “ Our high levels of engagement with customers regarding Aspen Tech's critical role in their long - term digitalization and sustainability initiatives give us confidence that we will drive faster growth as market conditions normalize . " Third 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 $ 609.9 million at the end of the third quarter of fiscal 2021 , which increased 6.0 % compared to the third quarter of fiscal 2020 and 1.0 % sequentially . Summary of Third Quarter Fiscal Year 2021 Financial Results Aspen Tech's total revenue of $ 162.7 million included : • License revenue , which represents the portion of a term license agreement allocated to the initial license , was $ 110.1 million in the third quarter of fiscal 2021 , compared to $ 78.2 million in the third 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 $ 45.9 million in the third quarter of fiscal 2021 , compared to $ 44.2 million in the third quarter of fiscal 2020 . • Services and other revenue was $ 6.7 million in the third quarter of fiscal 2021 , compared to $ 8.2 million in the third quarter of fiscal 2020 . For the quarter ended March 31 , 2021 , AspenTech reported income from operations of $ 68.9 million , compared to income from operations of $ 44.7 million for the quarter ended March 31 , 2020 . Net income was $ 62.5 million for the quarter ended March 31 , 2021 , leading to net income per share of $ 0.91 , compared to net income per share of $ 0.61 in the same period last fiscal year . Non - GAAP income from operations , was $ 80.9 million for the third quarter of fiscal 2021 , compared to non - GAAP income from operations of $ 53.9 million in the same period last fiscal year . Non - GAAP net income was $ 72.0 million , or $ 1.05 per share , for the third quarter of fiscal 2021 , compared to non - GAAP net income of $ 49.1 million , or $ 0.72 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 . Aspen Tech had cash and cash equivalents of $ 317.1 million and total borrowings , net of debt issuance costs , of $ 297.0 million at March 31 , 2021 . During the third quarter , the company generated $ 98.7 million in cash flow from operations and $ 100.0 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 , April 28 , 2021 , Aspen Technology is issuing the following guidance for fiscal year 2021 : • Annual spend growth of 4-5.5 % year - over - year • Free cash flow of $ 265 to $ 275 million • Total bookings of $ 771 to $ 809 million • Total revenue of $ 705 to $ 729 million • GAAP total expense of $ 355 to $ 360 million • Non - GAAP total expense of $ 310 to $ 315 million • GAAP operating income of $ 350 to $ 369 million • Non - GAAP operating income of $ 395 to $ 415 million