Aspen Tech case study
Aspen Technology,Inc.:
Currency Hedging Review
History and Overview
• Specialized in the development of simulation software for customer in process manufacturing industries
• Advanced System for Process Engineering (ASPEN) project conducted at the Massachusetts Intitutes of Technology (MIT) in
Cambridge Massachusetts, from 1976 to 1981
• Founded in 1981 by Dr. Larry Evans, a professor of chemical engineering at MIT
• Larry Evans"leadership in the development and application of integrated systems for modeling, simulation and optimization of industrial chemical process
History and Overview
• In 1982 its first year of operations, AspenTech lost USD565,000 on sales of USD182,000
• Over next 13 years AspenTech’s sales grew rapidly as it became a major payer in the process simulation segment of the software industry. • 1995 company earned net income $5.4 million on sales $57.5 million. AspenTech estimated that it commanded 50% of the simulation market for chemical sector.
• 1995, it employed 417 people of which 265 ware based in the US and the remainder in office in 5 countries.
History and Overview
• AspenTech went public in USDD31 million IPO which included a
USD 18 Million primary offering and USD 13 Million secondary offering :
– to finance further R&D
– to acquire externally developed technologies
– to allow early investors to monetize their holdings in the company,
• Feb1995, Aspentech conducted a $23 million public offering, which included a USD 1 million primary offering and USD 22 million secondary offering.
• 1995, AspenTech was the only one of the firms that specialized in simulation programs for chemical petroleum, and petrochemicals industries that was publicly traded.
Products (versi makalah)
•
Aspen Plus
Aspen Plus is the most popular product a steady state modeling system built around the core technology
This product accounted 48% of sales in 1995
•
Speed UP
It was
Currency Hedging Review
History and Overview
• Specialized in the development of simulation software for customer in process manufacturing industries
• Advanced System for Process Engineering (ASPEN) project conducted at the Massachusetts Intitutes of Technology (MIT) in
Cambridge Massachusetts, from 1976 to 1981
• Founded in 1981 by Dr. Larry Evans, a professor of chemical engineering at MIT
• Larry Evans"leadership in the development and application of integrated systems for modeling, simulation and optimization of industrial chemical process
History and Overview
• In 1982 its first year of operations, AspenTech lost USD565,000 on sales of USD182,000
• Over next 13 years AspenTech’s sales grew rapidly as it became a major payer in the process simulation segment of the software industry. • 1995 company earned net income $5.4 million on sales $57.5 million. AspenTech estimated that it commanded 50% of the simulation market for chemical sector.
• 1995, it employed 417 people of which 265 ware based in the US and the remainder in office in 5 countries.
History and Overview
• AspenTech went public in USDD31 million IPO which included a
USD 18 Million primary offering and USD 13 Million secondary offering :
– to finance further R&D
– to acquire externally developed technologies
– to allow early investors to monetize their holdings in the company,
• Feb1995, Aspentech conducted a $23 million public offering, which included a USD 1 million primary offering and USD 22 million secondary offering.
• 1995, AspenTech was the only one of the firms that specialized in simulation programs for chemical petroleum, and petrochemicals industries that was publicly traded.
Products (versi makalah)
•
Aspen Plus
Aspen Plus is the most popular product a steady state modeling system built around the core technology
This product accounted 48% of sales in 1995
•
Speed UP
It was