Net Income Per Share (Notes)

9 Months Ended

Jun. 30, 2022

Basic income per share is determined by dividing net income by the weighted average common shares outstanding during the period. Diluted income per share is determined by dividing net income by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted net income per share based on the treasury stock method.

The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the fiscal years ended June 30, 2022 and September 30, 2021 and 2020 are as follows:


	Nine-Month Period Ended June 30,		Year Ended September 30,
(Dollars and Shares in Thousands, Except per Share Data)	2022		2021		2020

Net income (loss)	$	53,146	$	(20,608)	$	(20,317)

Weighted average shares outstanding	40,931		36,308		36,308
Dilutive impact from:
Employee equity awards	77		—		—
Dilutive weighted average shares outstanding	41,008		36,308		36,308
Income per share
Basic	$	1.30	$	(0.57)	$	(0.56)
Dilutive	$	1.30	$	(0.57)	$	(0.56)

Prior to the Transactions and Merger, the Industrial Software Business did not have any shares of common stock outstanding. Accordingly, net loss per share for fiscal 2021 and 2020 has been calculated using weighted average shares outstanding (basic and diluted), which represents the number of shares of New AspenTech common stock issued to Emerson on the Closing Date of the Transactions and Merger. When determining net income per share for fiscal 2022, the calculation of weighted average shares outstanding assumes that those shares of New AspenTech common stock were issued to Emerson at the beginning of fiscal 2022.

For fiscal year 2022, certain employee equity awards were anti-dilutive based on the treasury stock method. 65,257 shares were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of the balance sheet date.

Options to purchase 8,258 shares of the Company's common stock as of June 30, 2022 were not included in the computation of dilutive weighted average shares outstanding, because their exercise prices ranged from $144.86 per share to $201.70 per share and were greater than the average market price of its common stock during the period then ended. These options were outstanding as of June 30, 2022 and expire at various dates through June 27, 2032.