Aspen Technology, Inc. provided earnings guidance for the third quarter of 2016 and revises earnings guidance for the full year 2017. In terms of profitability, for the third quarter, the company expects non-GAAP operating income of $49 million to $51 million and non-GAAP EPS of $0.40 to $0.42 per share. On a GAAP basis, it expects third quarter operating income of $45 million to $47 million and EPS of $0.36 to $0.38 per share.

The company is increasing free cash flow guidance to $165 million to $170 million for the year from its previous guidance of $160 million to $165 million. With respect to annual spend, it is maintaining guidance of 3% to 6% annual spend growth in fiscal 2017. The company is updating revenue guidance to $473 million to $477 million, which compares to previous guidance of $470 million to $477 million. It expects GAAP operating income in the range of $201 million to $206 million, net income in the range of $127 million to $131 million, and GAAP EPS of $1.63 to $1.67 per share. This compares to previous guidance of GAAP operating income of $199 million to $206 million, net income of $126 million to $131 million, and GAAP EPS of $1.58 to $1.64 per share. From a non-GAAP perspective, the company now expects non-GAAP operating income in the range of $218 million to $224 million, which is up from previous guidance of $217 million to $224 million for the full year fiscal 2017. This will lead to non-GAAP earnings per share in the range of $1.79 to $1.83, which is an increase from previous guidance of $1.73 to $1.78 per share for the fiscal year.