Quarterly Financial Data (Unaudited)

12 Months Ended

Jun. 30, 2019

The following tables present quarterly consolidated statement of operations data for fiscal 2019 and 2018. The below data is unaudited but, in our opinion, reflects all adjustments necessary for a fair presentation of this data in accordance with GAAP:



	Three Months Ended
	June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018
	(Dollars and Shares in Thousands, Except per Share Data)
Total revenue	$	195,769	$	147,984	$	140,423	$	114,169
Gross profit	180,279		133,624		125,684		100,942
Income from operations	111,223		70,831		63,758		36,990
Net income	103,865		61,587		59,217		38,066
Net income per common share:
Basic	$	1.51	$	0.89	$	0.84	$	0.54
Diluted	$	1.49	$	0.88	$	0.83	$	0.53
Weighted average shares outstanding:
Basic	68,839		69,423		70,428		70,988
Diluted	69,638		70,160		71,148		72,015



	Three Months Ended
	June 30, 2018		March 31, 2018		December 31, 2017		September 30, 2017
	As Adjusted
	(Dollars and Shares in Thousands, Except per Share Data)
Total revenue	$	159,084	$	127,759	$	105,529	$	126,487
Gross profit	146,037		114,983		93,440		113,755
Income from operations	79,784		53,620		30,104		55,714
Net income	76,646		44,506		132,030		40,521
Net income per common share:
Basic	$	1.07	$	0.62	$	1.83	$	0.55
Diluted	$	1.06	$	0.61	$	1.81	$	0.55
Weighted average shares outstanding:
Basic	71,349		71,828		72,342		73,024
Diluted	72,315		72,663		73,036		73,609

Restatement of the Fiscal 2019 Unaudited Quarterly Financial Statements

As previously described in our Current Report on Form 8-K filed on September 10, 2019, we concluded that our unaudited interim financial statements previously issued for the quarterly and year-to-date periods ended September 30, 2018, December 31, 2018 and March 31, 2019 should not be relied upon due to errors identified in such financial statements related to the contract asset balances recorded upon the adoption of Topic 606 and the related impact to deferred tax liabilities, as well as the classification of contract cost assets and related deferred tax assets and liabilities on the consolidated balance sheets. The following summarizes the errors corrected in the restatement of the unaudited quarterly financial statements.

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	June 30, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	96,165	$	—		$	96,165
Accounts receivable, net	41,810		—			41,810
Current contract assets	304,378		(66,841		)	237,537
Current contract costs	20,500		(20,500		)	—
Prepaid expenses and other current assets	10,509		—			10,509
Prepaid income taxes	2,601		—			2,601
Total current assets	475,963		(87,341		)	388,622
Property, equipment and leasehold improvements, net	9,806		—			9,806
Computer software development costs, net	646		—			646
Goodwill	75,590		—			75,590
Intangible assets, net	35,310		—			35,310



Non-current contract assets	340,622			(20,782		)	319,840
Non-current contract costs	—			20,500			20,500
Non-current deferred tax assets	11,090			(9,858		)	1,232
Other non-current assets	1,297			—			1,297
Total assets	$	950,324		$	(97,481	)	$	852,843
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,230		$	—		$	4,230
Accrued expenses and other current liabilities	39,515			—			39,515
Income taxes payable	1,698			—			1,698
Borrowings under credit agreement	170,000			—			170,000
Current deferred revenue	15,150			—			15,150
Total current liabilities	230,593			—			230,593
Non-current deferred revenue	12,354			—			12,354
Deferred income taxes	214,125			(29,224		)	184,901
Other non-current liabilities	17,068			—			17,068
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of June 30, 2018 and 2017 Issued and outstanding—none as of June 30, 2018 and 2017	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,130,300 shares at June 30, 2018 and 102,567,129 shares at June 30, 2017 Outstanding—71,186,701 shares at June 30, 2018 and 73,421,153 shares at June 30, 2017	10,313			—			10,313
Additional paid-in capital	715,475			—			715,475
Retained earnings	1,065,507			(68,257		)	997,250
Accumulated other comprehensive income	1,388			—			1,388
Treasury stock, at cost— 31,943,599 shares of common stock at June 30, 2018 and 29,145,976 shares at June 30, 2017	(1,316,499		)	—			(1,316,499		)
Total stockholders' equity	476,184			(68,257		)	407,927
Total liabilities and stockholders' equity	$	950,324		$	(97,481	)	$	852,843

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	September 30, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	52,048	$	—		$	52,048
Accounts receivable, net	53,999		(3,653		)	50,346



Current contract assets	317,967			(79,472		)	238,495
Current contract costs	21,296			(21,296		)	—
Prepaid expenses and other current assets	12,992			—			12,992
Prepaid income taxes	1,422			—			1,422
Total current assets	459,724			(104,421		)	355,303
Property, equipment and leasehold improvements, net	9,006			—			9,006
Computer software development costs, net	695			—			695
Goodwill	75,649			—			75,649
Intangible assets, net	34,192			—			34,192
Non-current contract assets	357,947			(4,498		)	353,449
Non-current contract costs	—			21,296			21,296
Non-current deferred tax assets	1,176			—			1,176
Other non-current assets	1,279			—			1,279
Total assets	$	939,668		$	(87,623	)	$	852,045
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,501		$	—		$	2,501
Accrued expenses and other current liabilities	32,000			—			32,000
Income taxes payable	46,869			—			46,869
Borrowings under credit agreement	170,000			—			170,000
Current deferred revenue	23,737			—			23,737
Total current liabilities	275,107			—			275,107
Non-current deferred revenue	15,046			—			15,046
Deferred income taxes	159,563			(19,366		)	140,197
Other non-current liabilities	16,833			—			16,833
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of September 30, 2018 and June 30, 2018 Issued and outstanding—none as of September 30, 2018 and June 30, 2018	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,279,138 shares at September 30, 2018 and 103,130,300 shares at June 30, 2018 Outstanding—70,862,163 shares at September 30, 2018 and 71,186,701 shares at June 30, 2018	10,328			—			10,328
Additional paid-in capital	724,752			—			724,752
Retained earnings	1,103,573			(68,257		)	1,035,316
Accumulated other comprehensive income	965			—			965
Treasury stock, at cost— 32,416,975 shares of common stock at September 30, 2018 and 31,943,599 shares at June 30, 2018	(1,366,499		)	—			(1,366,499		)
Total stockholders' equity	473,119			(68,257		)	404,862
Total liabilities and stockholders' equity	$	939,668		$	(87,623	)	$	852,045

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	December 31, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	54,428	$	—		$	54,428
Accounts receivable, net	56,586		(3,653		)	52,933
Current contract assets	321,135		(55,449		)	265,686
Current contract costs	23,046		(23,046		)	—
Prepaid expenses and other current assets	10,330		—			10,330
Prepaid income taxes	921		—			921
Total current assets	466,446		(82,148		)	384,298
Property, equipment and leasehold improvements, net	8,311		—			8,311
Computer software development costs, net	691		—			691
Goodwill	74,802		—			74,802
Intangible assets, net	32,889		—			32,889
Non-current contract assets	366,581		(28,521		)	338,060
Non-current contract costs	—		23,046			23,046
Non-current deferred tax assets	1,651		—			1,651
Other non-current assets	1,075		—			1,075
Total assets	$	952,446	$	(87,623	)	$	864,823
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,249	$	—		$	5,249
Accrued expenses and other current liabilities	36,688		—			36,688
Income taxes payable	43,573		—			43,573
Borrowings under credit agreement	220,000		—			220,000
Current deferred revenue	23,145		—			23,145
Total current liabilities	328,655		—			328,655
Non-current deferred revenue	18,167		—			18,167
Deferred income taxes	157,238		(19,366		)	137,872
Other non-current liabilities	16,192		—			16,192
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of December 31, 2018 and June 30, 2018 Issued and outstanding—none as of December 31, 2018 and June 30, 2018	—		—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,395,683 shares at December 31, 2018 and 103,130,300 shares at June 30, 2018 Outstanding—69,803,177 shares at December 31, 2018 and 71,186,701 shares at June 30, 2018	10,340		—			10,340
Additional paid-in capital	725,493		—			725,493
Retained earnings	1,162,790		(68,257		)	1,094,533



Accumulated other comprehensive income	70			—			70
Treasury stock, at cost— 33,592,506 shares of common stock at December 31, 2018 and 31,943,599 shares at June 30, 2018	(1,466,499		)	—			(1,466,499		)
Total stockholders' equity	432,194			(68,257		)	363,937
Total liabilities and stockholders' equity	$	952,446		$	(87,623	)	$	864,823

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	March 31, 2019
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	65,592	$	—		$	65,592
Accounts receivable, net	45,293		(3,653		)	41,640
Current contract assets	314,745		(44,013		)	270,732
Current contract costs	24,325		(24,325		)	—
Prepaid expenses and other current assets	11,124		—			11,124
Prepaid income taxes	1,573		—			1,573
Total current assets	462,652		(71,991		)	390,661
Property, equipment and leasehold improvements, net	7,589		—			7,589
Computer software development costs, net	1,452		—			1,452
Goodwill	73,534		—			73,534
Intangible assets, net	31,756		—			31,756
Non-current contract assets	358,709		(39,957		)	318,752
Non-current contract costs	—		24,325			24,325
Non-current deferred tax assets	1,696		—			1,696
Other non-current assets	1,279		—			1,279
Total assets	$	938,667	$	(87,623	)	$	851,044
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,023	$	—		$	4,023
Accrued expenses and other current liabilities	42,746		—			42,746
Income taxes payable	35,582		—			35,582
Borrowings under credit agreement	220,000		—			220,000
Current deferred revenue	24,415		—			24,415
Total current liabilities	326,766		—			326,766
Non-current deferred revenue	19,312		—			19,312
Deferred income taxes	154,901		(19,366		)	135,535
Other non-current liabilities	12,403		—			12,403



Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of March 31, 2019 and June 30, 2018 Issued and outstanding—none as of March 31, 2019 and June 30, 2018	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,478,590 shares at March 31, 2019 and 103,130,300 shares at June 30, 2018 Outstanding—69,108,515 shares at March 31, 2019 and 71,186,701 shares at June 30, 2018	10,348			—			10,348
Additional paid-in capital	730,830			—			730,830
Retained earnings	1,224,377			(68,257		)	1,156,120
Accumulated other comprehensive income	1,229			—			1,229
Treasury stock, at cost— 34,370,075 shares of common stock at March 31, 2019 and 31,943,599 shares at June 30, 2018	(1,541,499		)	—			(1,541,499		)
Total stockholders' equity	425,285			(68,257		)	357,028
Total liabilities and stockholders' equity	$	938,667		$	(87,623	)	$	851,044