According to a MarketsandMarkets report, the global Enterprise Asset Management (EAM) software market is expected to grow 12% annually over the next few years to become a $6.05 billion industry by 2022 from $3.44 billion in 2017. A leading player in the EAM market is Aspen Technology (Nasdaq: AZPN), which recently hit an all-time high.

Aspen Technology’s Financials

Aspen Technology was founded in 1981 after MIT’s chemical engineering group received a US Department of Energy grant to study technological innovation in the process industries. The company used that funding to develop its first product called Aspen Plus to develop modeling for chemical processes. Soon the company expanded into other software products within the chemical industry to help customers with planning, scheduling, and other asset management capabilities. Its products like aspenONE was developed for companies in the energy, chemicals, pharmaceuticals, and engineering and construction industries. Overall, Aspen’s products enable its customers to improve their competitiveness and financials by increasing throughput and productivity, reducing operating costs, enhancing capital efficiency, and decreasing working capital requirements.

Aspen Technology’s earns revenues primarily through subscription services for its software solutions. It recently reported its fourth quarter revenues which grew 2% over the year to $126 million, in line with the market estimates. Non-GAAP EPS of $0.59 was also better than the market’s forecast of $0.56. The company reported $38 million in net income for the quarter, compared with $54 million a year ago.

By segment, subscription and software revenues grew 4% over the year to $119.5 million and accounted for 95% of total revenues. Services and other revenues fell 21.7% from the year ago to $6.5 million. During the quarter, deferred revenues increased 4.9% over the year to $315.1 million.

It ended the year with revenues growing 3% to $500 million. Earnings have slipped from $162.2 million to $148.7 million. EPS of $2.31 was 0.4% higher than previous year. Non-GAAP operating income came in at $237.0 million compared with $235.8 million a year ago. in fiscal year 2017.