Quick Update: AspenTech, Trimble

Day 4 of no power and spotty connectedness to the Interwebs, but earnings season rolls on so it’s time for another quick update: AspenTech exceeds targets for FQ1 AspenTech yesterday reported results for its first fiscal quarter that were up nicely by most metrics and show that the company’s reinvented business model is gaining traction. Total FQ1 revenue of $51 million was up 19% from a year ago, subscription and software revenue was $32 million, up 68% over last year and up 11% sequentially. Services revenue of $19 million was down about 20% both sequentially and year/year. But the news was not al rosy: the company reported a loss from operations of $16 million due primarily to the change to a ratable revenue recognition offering — but, this, too is an improvement: the loss from operations was $20 million a year ago. AspenTech still has plenty of cash on the books, with a cash balance of $145.4 million at September 30, 2011, a decrease of only $4.6 million from the end of the prior quarter as the company generated $5.3 million in cash flow from operations. In other news, AspenTech’s Board of Directors approved a share repurchase program for up to $100 million. Trimble benefits from Tekla, cautious about Q4 Trimble also announced results yesterday, reporting third quarter 2011 revenue of $417 million, up 31% percent over the third quarter of 2010 but issued a cautious guidance for Q4. with CEO Steven Berglund saying that “the economy remains uncertain, [but] we are encouraged by the progress we are making in integrating our acquisitions, expanding geographies and extending our reach into new adjacencies.” For Q4, Trimble expects revenue between $415 million and $420 million. Trimble operates in four business units; the one that acquired Tekla is Engineering and Construction, which reported Q3 revenue of $241 million, up 27%, driven by “strength across most product lines, the positive effects of the SITECH dealer channel and the acquisition of Tekla”, according to the company. I still need to parse the results, but Tekla contributed about $15 million for the quarter, which would be a bit short of expectations. The Field Solutions unit reported revenue of $91 million, up 35%; Mobile Solutions revenue was $58 million, up 54% and Advanced Devices revenue was $27 million, up 15%, all year/year. — And, since I’m sure some of you want to know, Halloween in Andover is now postponed to Saturday. I didn’t know a town could postpone a holiday tied to a date (October 31 is pretty specific, after all), but they’ve done it. Good thing, too — lots of candy still awaiting kids in costumes! National Grid crews have been sighted in my neighborhood. This is progress.