CONSOLIDATED STATEMENT OF OPERATIONS  Aspen Technology, Inc. and Subsidiaries Consolidated Statements of Operations Years Ended June 30 2001 2002 2003 (In thousands, except per share data) Revenues: Software licenses $147,448 $133,913 $139,859 Service and other 179,476 186,691 182,862 326,924 320,604 322,721 Expenses: Cost of software licenses 11,856 11,830 13,916 Cost of service and other 114,595 119,972 106,868 Selling and marketing1 13,608 115,225 105,883 Research and development 68,913 74,458 65,086 General and administrative 30,643 34,258 36,681 Goodwill impairment charge — — 74,715 Restructuring and other charges 6,969 16,083 81,162 Charges for in-process research and development 9,915 14,900 — 356,499 386,726 484,311 Income (loss) from operations (29,575) (66,122) (161,590) Interest income 10,268 6,768 8,485 Interest expense (5,469) (5,591) (7,132) Write-off of investments (5,000) (8,923) — Foreign currency exchange loss (81) (1,073) (134) Income (loss) on equity in joint ventures and realized gain on sale of investments 750 180 (462) Income (loss) before provision for  (benefit from) income taxes (29,107) (74,761) (160,833) Provision for (benefit from) income taxes (8,732) 2,404 — Net income (loss) (20,375) (77,165) (160,833) Accretion of preferred stock discount and dividend — (6,301) (9,184) Net income (loss) attributable to common shareholders $ (20,375) $(83,466) $(170,017) Basic and diluted net income (loss) attributable to common shareholders per share $ (0.68) $ (2.58) $ (4.42) Basic and diluted weighted average shares outstanding 29,941 32,308 38,476 The accompanying notes are an integral part of these consolidated financial statements. 32