Accelrys Inc. (ACCL, Financial) filed Quarterly Report for the period ended 2009-06-30.
Accelrys Inc. provides scientific innovation and technology leadership in delivering software and service solutions that span the continuum of discovery and development research. A unique combination of expertise in life and materials science informatics and scientific operating platform technology lets Accelrys serve a diverse range of clients including some of the world\'s leading pharmaceutical biotechnology chemical and nanotechnology research organizations. Accelrys is headquartered in San Diego California. Accelrys Inc. has a market cap of $158.4 million; its shares were traded at around $5.81 with a P/E ratio of 64.6 and P/S ratio of 2.
General and Administrative Expenses. General and administrative expenses increased 6% to $3.7 million for the three months ended June 30, 2009, as compared to $3.5 million for the three months ended June 30, 2008. As a percentage of revenue, general and administrative expenses increased to 19% for the three months ended June 30, 2009, as compared to 17% for the three months ended June 30, 2008. The increase was primarily attributable to an increase in relocation expenses of $0.2 million as well as an increase in professional services fees of $0.2 million. These amounts were partially offset by overhead cost savings of $0.1 million and favorable foreign currency fluctuations of $0.1 million.
Net interest and other income and (expense) was ($5,000) for the three months ended June 30, 2009, as compared to $0.3 million for the three months ended June 30, 2008. The decrease in net interest and other income and (expense) was primarily attributable to lower interest income of approximately $0.4 million due to a decrease in interest rates obtained on our cash and marketable securities balances during the quarter ended June 30, 2009 and foreign currency exchange losses of $0.1 million. These items were partially offset by a gain of $0.2 million related to our auction rate securities (ARS) portfolio.
We had cash, cash equivalents, marketable securities, and restricted cash of $83.7 million as of June 30, 2009, as compared to $81.8 million as of March 31, 2009, an increase of $1.9 million. The increase in cash, cash equivalents, marketable securities and restricted cash during the three months ended June 30, 2009 was primarily attributable to favorable foreign currency fluctuations of $1.0 million, as well as cash provided by operations of $0.3 million and a gain on our ARS of $0.2 million. Our operating cash flows on a quarterly basis 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 used in investing activities was $3.3 million for the three months ended June 30, 2009, as compared to $1.1 million for the three months ended June 30, 2008. 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. Significant components of cash flows from investing activities for the three months ended June 30, 2008 included net purchases of property and equipment of $0.4 million, purchases of software licenses of $1.9 million, and a net decrease in our marketable securities portfolio of $1.1 million.
On January 5, 2009, Mr. Mark Emkjer resigned as our President, Chief Executive Officer and as a member of the Board of Directors (the Board). In connection with Mr. Emkjers resignation, on January 6, 2009, we entered into a Separation Agreement and Release (the Separation Agreement). Pursuant to the Separation Agreement: (i) Mr. Emkjer remained employed by the Company through January 31, 2009 to assist with transitioning his duties; (ii) on February 1, 2009, we paid Mr. Emkjer $315,000, less applicable withholdings; (iii) through June 30, 2009 we paid Mr. Emkjer an additional $420,000, less applicable withholdings; (iv) on August 15, 2009, we will pay Mr. Emkjer $560,000, less applicable withholdings; (v) each month for a period of 5 months following August 15, 2009, we will pay Mr. Emkjer the amount of $140,000, less applicable withholdings; and (vi) we will pay Mr. Emkjers COBRA benefits for a maximum of 24 months following the date of the termination of Mr. Emkjers employment. Our obligations to Mr. Emkjer pursuant to the Separation Agreement are contingent upon Mr. Emkjers abiding by certain non-competition, non-solicitation and non-disparagement obligations for a period of 24 months following the date of the termination of his employment, all as set forth in the Separation Agreement
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Accelrys Inc. provides scientific innovation and technology leadership in delivering software and service solutions that span the continuum of discovery and development research. A unique combination of expertise in life and materials science informatics and scientific operating platform technology lets Accelrys serve a diverse range of clients including some of the world\'s leading pharmaceutical biotechnology chemical and nanotechnology research organizations. Accelrys is headquartered in San Diego California. Accelrys Inc. has a market cap of $158.4 million; its shares were traded at around $5.81 with a P/E ratio of 64.6 and P/S ratio of 2.
Highlight of Business Operations:
Revenue decreased 1% to $20.1 million for the three months ended June 30, 2009, as compared to $20.3 million for the three months ended June 30, 2008. The decrease was due to a decrease in maintenance revenue of approximately $0.4 million, partially offset by an increase in software revenue of approximately $0.3 million.General and Administrative Expenses. General and administrative expenses increased 6% to $3.7 million for the three months ended June 30, 2009, as compared to $3.5 million for the three months ended June 30, 2008. As a percentage of revenue, general and administrative expenses increased to 19% for the three months ended June 30, 2009, as compared to 17% for the three months ended June 30, 2008. The increase was primarily attributable to an increase in relocation expenses of $0.2 million as well as an increase in professional services fees of $0.2 million. These amounts were partially offset by overhead cost savings of $0.1 million and favorable foreign currency fluctuations of $0.1 million.
Net interest and other income and (expense) was ($5,000) for the three months ended June 30, 2009, as compared to $0.3 million for the three months ended June 30, 2008. The decrease in net interest and other income and (expense) was primarily attributable to lower interest income of approximately $0.4 million due to a decrease in interest rates obtained on our cash and marketable securities balances during the quarter ended June 30, 2009 and foreign currency exchange losses of $0.1 million. These items were partially offset by a gain of $0.2 million related to our auction rate securities (ARS) portfolio.
We had cash, cash equivalents, marketable securities, and restricted cash of $83.7 million as of June 30, 2009, as compared to $81.8 million as of March 31, 2009, an increase of $1.9 million. The increase in cash, cash equivalents, marketable securities and restricted cash during the three months ended June 30, 2009 was primarily attributable to favorable foreign currency fluctuations of $1.0 million, as well as cash provided by operations of $0.3 million and a gain on our ARS of $0.2 million. Our operating cash flows on a quarterly basis 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 used in investing activities was $3.3 million for the three months ended June 30, 2009, as compared to $1.1 million for the three months ended June 30, 2008. 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. Significant components of cash flows from investing activities for the three months ended June 30, 2008 included net purchases of property and equipment of $0.4 million, purchases of software licenses of $1.9 million, and a net decrease in our marketable securities portfolio of $1.1 million.
On January 5, 2009, Mr. Mark Emkjer resigned as our President, Chief Executive Officer and as a member of the Board of Directors (the Board). In connection with Mr. Emkjers resignation, on January 6, 2009, we entered into a Separation Agreement and Release (the Separation Agreement). Pursuant to the Separation Agreement: (i) Mr. Emkjer remained employed by the Company through January 31, 2009 to assist with transitioning his duties; (ii) on February 1, 2009, we paid Mr. Emkjer $315,000, less applicable withholdings; (iii) through June 30, 2009 we paid Mr. Emkjer an additional $420,000, less applicable withholdings; (iv) on August 15, 2009, we will pay Mr. Emkjer $560,000, less applicable withholdings; (v) each month for a period of 5 months following August 15, 2009, we will pay Mr. Emkjer the amount of $140,000, less applicable withholdings; and (vi) we will pay Mr. Emkjers COBRA benefits for a maximum of 24 months following the date of the termination of Mr. Emkjers employment. Our obligations to Mr. Emkjer pursuant to the Separation Agreement are contingent upon Mr. Emkjers abiding by certain non-competition, non-solicitation and non-disparagement obligations for a period of 24 months following the date of the termination of his employment, all as set forth in the Separation Agreement
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