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Accelrys Inc. Reports Operating Results (10-Q)

November 09, 2010 | About:
10qk

10qk

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Accelrys Inc. (ACCL) filed Quarterly Report for the period ended 2010-09-30.

Accelrys Inc. has a market cap of $448.3 million; its shares were traded at around $8.1 with a P/E ratio of 162 and P/S ratio of 5.4. ACCL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
This is the annual revenues and earnings per share of ACCL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ACCL.


Highlight of Business Operations:

Cost of Revenue. Cost of revenue increased to $9.1 million for the three months ended September 30, 2010, as compared to $3.1 million for the three months ended September 30, 2009. As a percentage of revenue, cost of revenue increased to 31% for the three months ended September 30, 2010 as compared to 16% for the three months ended September 30, 2009. The increase in cost of revenue during the quarter ended September 30, 2010 was primarily attributable to an increase in software and content royalties of approximately $2.0 million, an increase in personnel and related expenses in our services department of approximately $2.5 million, an increase in professional fees of approximately $0.4 million and an increase in overhead allocated expense of approximately $0.8 million, each as a result of the Merger.

Net interest and other income increased to $0.9 million for the three months ended September 30, 2010, as compared to $0.3 million for the three months ended September 30, 2009. Significant components of net interest and other income for the three months ended September 30, 2010 included interest income of $0.3 million, royalty revenue of $0.8 million, and a foreign currency exchange gain of $0.5 million, partially offset by royalty expense of $0.2 million and amortization of purchased intangible assets of $0.6 million. Significant components of net interest and other income for the three months ended September 30, 2009 included interest income of $0.1 million and a foreign currency exchange gain of $0.2 million.

Cost of Revenue. Cost of revenue increased to $13.1 million for the six months ended September 30, 2010, as compared to $6.3 million for the six months ended September 30, 2009. As a percentage of revenue, cost of revenue increased to 27% for the six months ended September 30, 2010 as compared to 16% for the six months ended September 30, 2009. The increase in cost of revenue during the quarter ended September 30, 2010 was primarily attributable to an increase in software and content royalties of approximately $2.3 million, an increase in personnel and related expenses in our services department of approximately $2.8 million, an increase in professional fees of approximately $0.6 million and an increase in overhead allocated expense of approximately $0.8 million, each as a result of the Merger.

Net interest and other income was $0.8 million for the six months ended September 30, 2010, as compared to $0.3 million for the six months ended September 30, 2009. Significant components of net interest and other income for the six months ended September 30, 2010 included interest income of $0.4 million, royalty revenue of $0.8 million, and a foreign currency exchange gain of $0.3 million, partially offset by royalty expense of $0.2 million and amortization of purchased intangible assets of $0.6 million. Significant components of net interest and other income for the six months ended September 30, 2009 included interest income of $0.2 million and a gain on our auction rate securities of $0.2 million, partially offset by a foreign currency exchange loss of $0.2 million.

We had cash, cash equivalents, marketable securities, and restricted cash of $148.5 million as of September 30, 2010, as compared to $93.1 million as of March 31, 2010, an increase of $55.4 million. The increase cash, cash equivalents, marketable securities and restricted cash during the six months ended September 30, 2010 was primarily attributable to a $74.5 million increase in cash acquired in the Merger, an increase in the fair value of our marketable securities balance of $1.3 million and proceeds from the sale of common stock of $0.2 million, net of shares tendered for payment of withholding tax, partially offset by cash used in operations of $19.3 million, as well as purchases of capital equipment of $1.1 million and equity issuance costs of $0.8 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 quarter ended December 31 as a result of higher order intake and bookings. The collection of these accounts receivable balances has generally resulted in positive cash flows from operations in the quarter ended March 31, while we have historically experienced negative cash flows from operations in the other three fiscal quarters.

Net cash provided by investing activities was $84.1 million for the six months ended September 30, 2010, as compared to $11.6 million for the six months ended September 30, 2009. Significant components of cash flows from investing activities for the six months ended September 30, 2010 included cash of $74.5 million acquired in the Merger and redemptions of marketable securities of $11.5 million, partially offset by net purchases of property and equipment of $1.1 million and equity issuance costs of $0.8 million. Significant components of cash flows from investing activities for the six months ended September 30, 2009 included a net decrease in our marketable securities portfolio of $11.8 million, partially offset by net purchases of property and equipment of $0.3 million.

Read the The complete Report

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