SUNNYVALE, Calif., July 29, 2009 (GLOBE NEWSWIRE) -- Symyx Technologies, Inc. (Nasdaq:SMMX) today reported financial results for the second quarter ended June 30, 2009.
Second Quarter 2009:
-- Revenue: $36.6 million
-- GAAP loss per share: $0.04
-- Non-GAAP diluted earnings per share: $0.03
-- EBITDA: $3.6 million
-- Cash and cash equivalents: $84.9 million, a sequential increase of
$3.1 million
Second quarter revenue was $36.6 million, compared with $40.7 million for the second quarter of 2008. Symyx Software revenue decreased 14% compared with the same quarter a year ago due to significantly lower consulting services revenue, and to a lesser degree, lower content subscription and licensing revenue. Symyx High Productivity Research (HPR) revenue declined 4%, due principally to lower research services revenue.
GAAP net loss for the second quarter of 2009 was $1.2 million, or $0.04 per share, compared with a net loss of $1.5 million, or $0.05 per share, for the comparable quarter last year. Results for the second quarter of 2009 reflect continued cost management and expense reductions.
Non-GAAP net income for the second quarter of 2009 was $1.0 million, or $0.03 per diluted share, compared with non-GAAP net income for the same period a year ago of $0.5 million, or $0.02 per diluted share. Second quarter 2009 EBITDA was $3.6 million, or 10% of revenue, an improvement over $1.7 million, or 4% of revenue, for the second quarter of 2008. Reconciliations of Symyx's non-GAAP and GAAP results and the company's EBITDA calculations are provided in the financial statements portion of this news release.
Symyx ended the second quarter of 2009 with cash and cash equivalents of $84.9 million, up from $66.4 million at December 31, 2008. Cash improved by $3.1 million from the prior quarter.
"While business conditions continue to be challenging, we are pleased that second quarter revenue exceeded the high end of our forecasted revenue range. Our efforts to extract greater operating efficiencies yielded better-than-anticipated non-GAAP diluted earnings per share," said Isy Goldwasser, Symyx's chief executive officer.
"Sales of our enterprise Electronic Lab Notebook (ELN) continue to expand. During the quarter, we secured a multi-million dollar commitment from a third top 15 pharmaceutical company for our ELN platform. Bookings for Symyx Software were healthy in the second quarter, and we are steadily building backlog for a strong 2010 for our largest business unit."
"Symyx continues to hold the line on expenses and is focusing on achieving its bottom line goals despite a tough environment," said Rex Jackson, Symyx's chief financial officer. "For the six months ended June 30, 2009, total operating expenses decreased $20.4 million, or 28%, compared with the same period of 2008. This decrease enabled Symyx to reach breakeven on a non-GAAP basis at mid-year. We remain committed to delivering improvements in operating results and positive cash flow."
Revenue by Business Area (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
Change Change
over over
Previous Previous
2009 Year 2008 2009 Year 2008
------------------------ ------------------------
Symyx Software $20,775 -14% $24,076 $42,525 -4% $44,101
Symyx HPR 15,852 -4% 16,575 27,496 -18% 33,457
------------------------ ------------------------
Total $36,627 -10% $40,651 $70,021 -10% $77,558
Third Quarter and Full-Year 2009 Financial Outlook
For the third quarter of 2009, Symyx forecasts revenue of $33 million to $37 million and non-GAAP earnings of $0.01 loss per share to $0.03 diluted earnings per share. For full-year 2009, Symyx continues to forecast revenue of $145 million to $155 million and is raising its non-GAAP diluted earnings per share range from the previous range of $0.00-$0.10 to a range of $0.08-$0.16.
Non-GAAP Information
Symyx has prepared non-GAAP data applicable to the three- and six-month periods ended June 30, 2009 and 2008 to supplement the company's results determined under U.S. generally accepted accounting principles (GAAP). The company uses non-GAAP financial measures in analyzing financial results and believes they are useful to investors in evaluating Symyx's ongoing operational performance. These financial measures facilitate making period-to-period comparisons exclusive of the impact of certain events which might otherwise obscure the results of the company's core business operations when compared to historical performance. In addition, these non-GAAP financial measures enable investors to evaluate Symyx's performance under both the GAAP and non-GAAP measures the company's management and board of directors use to evaluate Symyx's performance.
Symyx's calculations of non-GAAP earnings include stock-based compensation expenses under FAS 123R, but exclude amortization of intangibles and other acquisition-related items, as well as significant non-recurring items such as impairments and restructuring expenses. Symyx calculates EBITDA by adding to operating income or loss expenses for depreciation, excluding the same items excluded from the calculation of non-GAAP earnings, and further excluding FAS 123R expenses.
Reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures are set forth in the text of, and in the accompanying exhibits to, this press release. Non-GAAP amounts are not meant as a substitute for financial data determined under GAAP, but are included solely for informational purposes. Symyx's non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Symyx's non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Today's Teleconference and Webcast
Symyx plans to hold a teleconference to discuss its second quarter results at 5:00 p.m. ET (2:00 p.m. PT) today. To participate, please dial 800-967-7149 (U.S.
