Aspen Technology, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2014. For the quarter, the company reported total revenue of $107,790,000 compared to $98,769,000 a year ago. Income from operations was $46,521,000 compared to $36,112,000 a year ago. Income before provision for income taxes was $46,401,000 compared to $35,880,000 a year ago. Net income was $30,464,000 compared to $23,263,000 a year ago. Diluted and basic net income per share was $0.34 compared to $0.25 a year ago. Net cash provided by operating activities were $33,832,000 compared to $46,343,000 a year ago. Purchase of property, equipment and leasehold improvements were $1,437,000 compared to $809,000 a year ago. Non-GAAP income from operations was $50,207,000 compared to $39,494,000 a year ago. Non-GAAP net income was $32,823,000 compared to $25,427,000 a year ago. Non-GAAP diluted income per share was $0.36 compared to $0.27 a year ago. Non-GAAP cash flows from operating activities was $41,444,000 against $46,385,000 a year ago. Capital expenditures totaled approximately $1.4 million in the second quarter, of which $1.3 million was related to the build-out of new headquarters.

For the six months, the company reported total revenue of $214,916,000 compared to $186,334,000 a year ago. Income from operations was $91,155,000 compared to $60,961,000 a year ago. Income before provision for income taxes was $91,356,000 compared to $60,294,000 a year ago. Net income was $59,432,000 compared to $38,262,000 a year ago. Diluted net income per share was $0.65 compared to $0.41 a year ago. Net cash provided by operating activities were $73,775,000 compared to $72,256,000 a year ago. Purchase of property, equipment and leasehold improvements were $4,328,000 compared to $1,724,000 a year ago. Non-GAAP income from operations was $99,269,000 compared to $68,976,000 a year ago. Non-GAAP net income was $64,625,000 compared to $43,392,000 a year ago. Non-GAAP diluted income per share was $0.71 compared to $0.46 a year ago. Non-GAAP cash flows from operating activities was $81,459,000 against $72,339,000 a year ago.

The company provided earnings guidance for the third quarter of fiscal year 2015. For the quarter, the company expects revenue in the range of $107 million to $109 million, non-GAAP operating income of $42 million to $44 million and non-GAAP EPS of $0.30 to $0.31. On a GAAP basis, the company expects third quarter operating income of $38 million to $40 million and EPS of $0.27 to $0.29. The company currently expects to spend additional capital expenditures of $3.4 million on new headquarters in the third quarter, which is in line with its $8 million full-year forecast.

Turning to the full year, the company adjusted revenue guidance to $434 million to $440 million from its previous guidance of $432 million to $440 million. Taken together, the company expects GAAP operating income in the range of $167 million to $173 million, net income in the range of $107 million to $111 million and GAAP EPS of $1.18 to $1.23. This is up from its previous guidance of GAAP operating income of $159 million to $167 million, net income of approximately $102 million to $107 million and GAAP EPS of $1.11 to $1.17. From a non-GAAP perspective, the company now expects non-GAAP operating income in the range of $182 million to $188 million, which is up from its previous guidance of $175 million to $183 million for full year fiscal 2015. This would lead to non-GAAP earnings per share in the range of $1.29 to $1.33, which is an increase from its previous guidance of $1.22 to $1.27 for the fiscal year. From a cash flow perspective, the company reiterated fiscal 2015 guidance of approximately $215 million of free cash flow. Consistent with prior years, the company expects free cash flow to be weighted to the back half of the fiscal year with the third quarter being the contributor to free cash flow. This is due to the timing of when its invoice customers and their payments become due.