Aspen Technology AZPN reported second-quarter fiscal 2021 non-GAAP earnings of $2.04 per share that surpassed the Zacks Consensus Estimate by 64.5%. The company reported non-GAAP earnings of 68 cents in the year-ago quarter.Revenues of $233.7 million beat the Zacks Consensus Estimate by 26.9%. The company reported revenues of $126.01 million in the year-ago quarter.Increases in total bookings, as economies reopened, aided year-over-year growth. In the quarter under review, the company signed one of its biggest renewal contracts worth $75 million with one of the largest global oil companies. Total bookings were $274.4 million, up 144% year over year, driven by higher renewal activity.Aspen Technology, Inc. Price, Consensus and EPS Surprise Aspen Technology, Inc. price-consensus-eps-surprise-chart | Aspen Technology, Inc. Quote Quarter in DetailLicense revenues (77.1% of revenues) skyrocketed 148.7% year over year to $180.2 million.Maintenance revenues (20%) increased 5.1% year over year to $46.8 million.Services and other revenues (2.9%) declined 25.5% from the year-ago quarter’s figure to $6.7 million.As of Dec 31, 2020, the annual spend (which Aspen Technology defines as the annualized value of all term license and maintenance contracts at the end of the quarter) amounted to $604 million, up 7% year over year and 1.3% quarter over quarter.MarginsGross profit increased 98.6% year over year to $219.4 million. As a percentage of total revenues, the figure expanded 620 basis points (bps) on a year-over-year basis to 93.9%.Total operating expenses climbed 3.6% from the year-ago quarter’s figure to $70 million due to increase in general & administrative expenses.Non-GAAP operating income of $162.2 million compared with $52.1 million reported in the prior-year quarter. Non-GAAP operating margin was 69.4% compared with 41.4% operating margin reported in the year-ago quarter.Balance Sheet & Cash FlowAs of Dec 31, 2020, cash and cash equivalents were $217.5 million compared with $317.5 million as of Sep 30, 2020.The company’s total borrowings, net of debt issuance costs, stood at $300.8 million. The company also repaid $119.2 million on the outstanding balance on its revolving credit facility in the quarter under review.The company generated $37.8 million cash from operations during the quarter under review compared with $36.5 million in the previous quarter. Free cash flow was $38 million for the second quarter of fiscal 2021.The company did not repurchase any shares in first half of fiscal 2021. However, the company intends to buy back $200 million worth of stock in the second half of fiscal 2021.Encouraging Fiscal 2021 ViewFor fiscal 2021, Aspen Technology expects revenues in the range of $731-$760 million. The Zacks Consensus Estimate for revenues is pegged at $729.04 million.Further, annual spend growth rate for fiscal 2021 is expected to be between 6% and 8%, while total bookings are expected in the range of $805-$850 million.Non-GAAP net income is anticipated in the range of $5.29-$5.58 per share. The consensus mark for earnings is pegged at $5.04.Management projects non-GAAP operating income in the range of $418-$442 million. Free cash flow is anticipated between $265 million and $275 million.Zacks Rank & Stocks to ConsiderCurrently, Aspen Technology carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Qorvo QRVO, Synaptics Incorporated SYNA and Microchip MCHP. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Qorvo is set to report its quarterly results on Feb 3, while Synaptics and Microchip are scheduled to report their quarterly results on Feb 4.Long-term earnings growth rate of Qorvo, Synaptics and Microchip is pegged at 15.8%, 10% and 14.9%, respectively.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot stocks we're targeting >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report Synaptics Incorporated (SYNA): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report Aspen Technology, Inc. (AZPN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research