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. (NASDAQ: SMMX)

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