Aspen Technology, Inc. reported a significant decline in financial performance for the first quarter of fiscal 2025, ending September 30, 2024. Total revenue decreased to $215.9 million, down 13.4% from $249.3 million in the same period of the previous year. This decline was primarily driven by a 31.6% drop in license and solutions revenue, which fell to $101.7 million from $148.6 million. However, maintenance revenue increased by 6.7% to $91.1 million, and services and other revenue surged by 50% to $23.4 million, reflecting increased customer engagement.
Gross profit also saw a decline, dropping to $120.4 million from $151.2 million, resulting in a gross profit margin of 55.8%, down from 60.7% in the prior year. The loss from operations widened to $96.0 million, compared to a loss of $60.2 million in the same quarter of 2023. The net loss for the quarter was $60.5 million, a 75.1% increase from the previous year's loss of $34.5 million, leading to a net loss per share of $0.96, compared to $0.54 in the prior year.
Total operating expenses increased to $216.4 million from $211.5 million, with restructuring costs rising to $7.7 million due to a corporate reorganization and the winding down of operations in Russia. The company suspended all commercial activities in Russia in the previous fiscal year, which has impacted its financials.
AspenTech's total assets decreased to $13.9 billion from $14.1 billion, while total current assets fell to $832.2 million. The accumulated deficit increased significantly to $111.6 million from $51.2 million. The company reported cash and cash equivalents of $221.1 million, down from $237.0 million as of June 30, 2024.
In terms of strategic developments, AspenTech announced an agreement to acquire Open Grid Systems Limited for $45 million, expected to close in the second fiscal quarter of 2025, pending regulatory approvals. The company also initiated a share repurchase program, repurchasing 92,819 shares for $20.5 million, with a remaining authorization of $79.5 million.
Overall, Aspen Technology's financial results reflect challenges in revenue generation and increased operational losses, alongside strategic moves to enhance its market position through acquisitions and restructuring efforts.
About Aspen Technology, Inc.
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