Symyx Technologies Reports Second Quarter 2008 Financial Results and Updates Outlook
2008-07-30 15:37:00
Symyx Technologies Reports Second Quarter 2008 Financial Results and Updates Outlook
Symyx Technologies Reports Second Quarter 2008 Financial Results and Updates Outlook
Full-Year Net Loss per Share Revised to ($0.29) – ($0.23) From Previous Range of ($0.34) – ($0.28)
SANTA CLARA, CA–(EMWNews – July 30, 2008) – Symyx Technologies, Inc. (
today announced financial results for the second quarter ended June 30,
2008.
Symyx’s second quarter results include:
-- Revenue: $40.7 million -- Loss per share: ($0.05) -- Cash and cash equivalents: $88 million
Commenting on the quarter, Isy Goldwasser, Symyx’s Chief Executive Officer,
said, “We are pleased with our second quarter performance, highlighted by
continuing revenue growth and a narrowing of our second quarter loss to a
better than expected ($0.05) per share. We continue to execute in 2008 and
to maintain our focus on returning Symyx to sustained profitability as we
drive to deliver a strong second half of 2008 and build momentum for 2009.”
“We are also pleased with the increase in our cash balance from $71 million
at the close of the first quarter to $88 million for the second quarter,
driven primarily by solid renewals in Symyx Software, higher revenue,
generally lower expenses and capital expenditures, good collections and
effective cash management,” added Chief Financial Officer Rex Jackson. “We
will continue our efforts to improve our cost structure in the second half
of the year.”
Symyx Second Quarter 2008 Financial Results
Second quarter 2008 revenue includes, by business area: Three Months Ended June 30, --------------------------- 2008 2007 ------------- ------------- Symyx Research $ 10,030 $ 13,341 Symyx Tools 6,545 6,924 Symyx Software 24,076 5,292 ------------- ------------- Total $ 40,651 $ 25,557 ============= =============
Symyx’s second quarter results do not include approximately $2.0 million of
second quarter 2008 deferred revenue related to MDL Information Systems,
Inc. (MDL), acquired in the fourth quarter of 2007, which Symyx cannot
recognize under generally accepted accounting principles (GAAP). If
included as revenue, this deferred revenue would have contributed
approximately $0.04 per share to Symyx’s operating results. Expenses
include non-cash amortization of intangibles from acquisitions of
approximately $0.06 per share, and non-cash, stock-based compensation
expense of approximately $0.02 per share.
Symyx Third Quarter and Full Year 2008 Financial Outlook
For the third quarter of 2008, Symyx forecasts revenue of $40-$44 million,
and net income (loss) per share of ($0.02)-$0.03. Symyx’s forecast does not
include approximately $1 million of MDL’s third quarter 2008 deferred
revenue Symyx cannot recognize under GAAP. If included as revenue, this
deferred revenue would contribute approximately $0.02 per share to Symyx’s
operating results. Expenses include approximately $0.06 per share of
amortization of acquisition-related intangibles, and non-cash, stock-based
compensation expenses of approximately $0.02 per share.
Symyx confirms its full year 2008 projected GAAP revenue range of $165-175
million, and is improving its net loss outlook to $(0.29)-$(0.23) per
share; the previous range was an estimated loss of ($0.34)-$(0.28) per
share. Symyx’s full year projections do not include an estimated $7
million of MDL’s 2008 deferred revenue Symyx cannot recognize under GAAP,
which if included as revenue, would contribute approximately $0.14 per
share to Symyx’s operating results for the year. Symyx’s estimates of
non-cash amortization of intangibles from acquisitions (approximately $0.23
per share), and non-cash stock-based compensation expenses (approximately
$0.08 per share) for the full year are included.
Conference Call and Webcast
Messrs. Goldwasser and Jackson will host a live audio webcast to discuss
Symyx’s financial results and 2008 outlook today at 5 p.m. Eastern, 2 p.m.
Pacific. The webcast and an accompanying slide show presentation will be
available through the investors section of Symyx’s website at
www.symyx.com. For audio only, the dial-in numbers are 877-591-4956 (U.S.
and Canada) and
719-325-4874 (international). Interested parties may access a replay,
which will be available for approximately two weeks on Symyx’s website or
by dialing 888-203-1112 (U.S. and Canada) and 719-457-0820 (international),
reservation 2453996. The webcast and audio are open to all interested
parties.
About Symyx
Symyx Technologies, Inc. is the scientific R&D integration partner to
companies in the life sciences, chemicals, energy, electronics and consumer
products industries. With scientific R&D under tremendous economic and
technical pressure, Symyx helps companies reduce R&D risk and enhance R&D
productivity to help them bring more and better products to market quickly
and cost-effectively. Symyx’s integrated technology platform combines
electronic laboratory notebooks, content, laboratory logistics and analysis
available from Symyx Software, software-driven integrated workflows
available from Symyx Tools and collaborative research and directed services
from Symyx Research to support the entire R&D process. Information about
Symyx, including reports and other information filed by Symyx with the
Securities and Exchange Commission, is available at www.symyx.com.
Forward-Looking Statements
The statements in this press release under the heading “Symyx Third Quarter
and Full Year 2008 Financial Outlook” are forward-looking statements under
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements are
based upon Symyx’s current expectations, and involve risks and
uncertainties. Symyx’s actual results could differ materially from those
anticipated in such forward-looking statements as a result of these risks
and uncertainties, which include, without limitation: (1) failure to
execute under existing contracts in order to recognize committed revenue as
planned; (2) inaccurate assessment of demand for existing and new offerings
or failure to close new contracts with customers as forecasted; (3) failure
to transition customers to the recently released Isentris platform and
Symyx electronic notebook products as quickly as estimated or to execute on
software development roadmaps as planned, (4) Symyx’s ability to close a
venture opportunity in the third quarter of 2008 on terms acceptable to us
or at all, (5) risks inherent in organization and leadership changes; (6)
risks inherent in acquisitions, significant restructurings and subsequent
integration efforts; (7) general economic conditions, in particular
downturns in the chemical, energy, life science or consumer products
industries; and (8) risks associated with international sales and
operations. These and other risk factors are discussed under “Risk
Factors” in Symyx’s Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2008 filed with the SEC on May 12, 2008. Symyx expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to these forward-looking statements, except as the law may
require.
Symyx is a registered trademark of Symyx Technologies, Inc. All rights
reserved. All other trademarks mentioned in this document are the property
of their respective owners.
SYMYX TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 2008 2007 2008 2007 -------- -------- -------- -------- Revenue: Service $ 20,240 $ 13,454 $ 38,755 $ 27,027 Product 5,016 5,864 9,584 10,482 License fees, content and royalties 15,395 6,239 29,219 13,015 -------- -------- -------- -------- Total revenue 40,651 25,557 77,558 50,524 -------- -------- -------- -------- Costs: Cost of service 5,174 1,843 9,840 3,523 Cost of products sold 2,112 3,247 4,299 4,913 Cost of license fees, content and royalties 1,315 - 2,918 - Amortization of intangible assets 1,786 700 3,567 1,399 -------- -------- -------- -------- Total costs 10,387 5,790 20,624 9,835 -------- -------- -------- -------- Gross profit 30,264 19,767 56,934 40,689 -------- -------- -------- -------- Operating expenses: Research and development 19,729 14,529 40,416 29,942 Sales, general and administrative 14,288 9,488 29,521 19,105 Amortization of intangible assets arising from business combinations 1,479 258 2,956 519 -------- -------- -------- -------- Total operating expenses 35,496 24,275 72,893 49,566 -------- -------- -------- -------- Loss from operations (5,232) (4,508) (15,959) (8,877) Interest and other income (expense), net 2,792 1,786 2,396 3,494 -------- -------- -------- -------- Loss before income tax benefit and equity in loss (2,440) (2,722) (13,563) (5,383) Income tax benefit 915 1,252 5,246 3,155 Equity in loss from investment in Visyx Technologies Inc. - - - (214) -------- -------- -------- -------- Net loss $ (1,525) $ (1,470) $ (8,317) $ (2,442) ======== ======== ======== ======== Basic and diluted net loss per share $ (0.05) $ (0.04) $ (0.25) $ (0.07) ======== ======== ======== ======== Shares used in computing basic and diluted net loss per share 33,720 33,316 33,631 33,192 ======== ======== ======== ======== SELECTED CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) June 30, December 31, 2008 2007 ------------- ------------ (unaudited) (Note 1) Cash, cash equivalents and marketable securities $ 88,164 $ 45,472 Accounts receivable $ 12,517 $ 23,047 Goodwill and other intangible assets, net $ 176,344 $ 180,515 Total assets $ 338,588 $ 314,982 Deferred revenue $ 45,948 $ 15,905 Stockholders' equity $ 247,626 $ 252,241 Note 1: The selected consolidated balance sheet information at December 31, 2007 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
For more information: Rex S. Jackson Executive Vice President and CFO Symyx Technologies, Inc. (408) 773-4000 |
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