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Accelrys Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:
10qk

10qk

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Accelrys Inc. (ACCL) filed Quarterly Report for the period ended 2010-06-30.

Accelrys Inc. has a market cap of $184.09 million; its shares were traded at around $6.63 with a P/E ratio of 94.71 and P/S ratio of 2.22. ACCL is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenue decreased 2% to $19.8 million for the three months ended June 30, 2010, as compared to $20.1 million for the three months ended June 30, 2009. The decrease in revenue during the quarter ended June 30, 2010 was primarily attributable to a decrease in software revenues of $0.5 million and maintenance and other revenues of $0.3 million, partially offset by an increase in service revenues of $0.4 million.

Cost of revenue increased 11% to $3.8 million for the three months ended June 30, 2010, as compared to $3.5 million for the three months ended June 30, 2009. As a percentage of revenue, cost of revenue increased to 19% for the three months ended June 30, 2010 as compared to 17% for the three months ended June 30, 2009. The increase in cost of revenue was primarily due to an increase in personnel and related costs of approximately $0.4 million, consulting costs of approximately $0.3 million, and software royalty costs of approximately $0.1 million, partially offset by a decrease in purchased intangible asset amortization of $0.3 million.

General and Administrative Expenses. General and administrative expenses decreased 9% to $3.3 million for the three months ended June 30, 2010, as compared to $3.7 million for the three months ended June 30, 2009. As a percentage of revenue, general and administrative expenses decreased to 17% for the three months ended June 30, 2010, as compared to 18% for the three months ended June 30, 2009. The decrease in general and administrative expenses was primarily attributable to a decrease in personnel costs of approximately $0.3 million.

We had cash, cash equivalents, marketable securities, and restricted cash of $92.9 million as of June 30, 2010, as compared to $93.1 million as of March 31, 2010, a decrease of $0.2 million. The slight decrease in cash, cash equivalents, marketable securities and restricted cash during the three months ended June 30, 2010 was primarily attributable to an increase in cash used in operations of $1.2 million, partially offset by proceeds from the sale of common stock of $0.4 million, net of shares tendered for payment of withholding tax, as well as an increase in the fair value of our ARS of $0.7 million. Our quarterly operating cash flows are significantly impacted by changes in accounts receivable balances. Due to the seasonality of our business, accounts receivable balances have historically increased significantly in the third quarter of each fiscal year as a result of higher order intake. The collection of these accounts receivable balances has generally resulted in positive cash flows from operations in the fourth quarter of each fiscal year, while we have historically experienced negative cash flows from operations in the other three fiscal quarters.

Net cash provided by investing activities was $5.6 million for the three months ended June 30, 2010, as compared to net cash used in investing activities of $3.3 million for the three months ended June 30, 2009. Significant components of cash flows from investing activities for the three months ended June 30, 2010 included redemptions of marketable securities of $6.2 million, and net purchases of property and equipment of $0.6 million. Significant components of cash flows from investing activities for the three months ended June 30, 2009 included net purchases of property and equipment of $0.1 million, and a net increase in our marketable securities portfolio of $3.3 million.

In July 2010, ARS with a par value of $2.9 million were called by the respective issuers. Additionally, in July 2010, we exercised the Put Option on ARS with an aggregate par value of $2.5 million. We continue to monitor and evaluate our ARS to determine whether we will continue to hold our remaining of ARS with an aggregate par value of $0.3 million or exercise our Put Option.

Read the The complete Report

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