SMMX has reported fourth quarter revenues of $45.9 million, comfortably exceeding the $40.9 million estimate from the one analyst following the company. Fourth quarter EPS came in at $.05, $.03 less than the analyst estimate of $.08. The company also announced that it is selling its HPR unit.
Symyx Technologies Reports Fourth Quarter and Full-Year 2009 Financial Results
Announces Full Transition to Software Business, and Agreement to Divest High Productivity Research Business Unit
Press Release Source: Symyx Technologies, Inc. On Thursday February 11, 2010, 4:05 pm
SUNNYVALE, Calif., Feb. 11, 2010 (GLOBE NEWSWIRE) -- Symyx Technologies, Inc. (Nasdaq:SMMX - News) today reported financial results for the fourth quarter and year ended December 31, 2009, and announced it will transition to a software-only business through the divestiture of its High Productivity Research (HPR) business unit.
2009 Financial Results
Fourth Quarter ended December 31, 2009:
-- Revenue: $45.5 million
-- GAAP net income: $1.7 million
-- GAAP diluted earnings per share: $0.05
-- Non-GAAP diluted earnings per share: $0.13
-- Adjusted EBITDA: $9.9 million
Year Ended December 31, 2009:
-- Revenue: $150.4 million
-- GAAP net loss: $1.1 million
-- GAAP loss per share: $0.03
-- Non-GAAP diluted earnings per share: $0.19
-- Adjusted EBITDA: $20.2 million
-- R&D and SG&A reductions: $32.5 million, or 25% year-over-year
-- Cash and cash equivalents: $81.8 million, up from $66.4 million from the prior year
HPR Divestiture and Full Transition to Software Business
Symyx also announced today it has executed a definitive agreement to divest its HPR business unit, consisting primarily of the company's automation tools operations. HPR president John Senaldi resigned his employment from Symyx effective February 10, 2010 to lead the acquisition as chief executive officer of the acquiring company. Pursuant to the definitive agreement, Symyx will transfer substantially all HPR assets and provide approximately $8.6 million of positive net working capital in return for a $10.0 million note and a 19.5% equity stake in the acquiring company. Symyx will retain existing rights to royalties and license fees previously in HPR. Symyx expects to complete the divestiture in early March 2010.
"The divestiture of HPR will allow Symyx to operate as a focused, positive cash-flow software business, and to capitalize on its strategic growth opportunities. We expect the HPR business, as a private company with a commensurately lower cost structure and solid backlog, will be better positioned to execute a successful long-term strategy," said Isy Goldwasser, Symyx's chief executive officer.
"Our Symyx Notebook platform grew solidly in terms of bookings and revenue in 2009, and we expect to continue building momentum in this growing market as a result of the January 2010 release of Symyx Notebook 6.4, our most feature-rich upgrade to date, which rounds out important functionality for analytical labs while also supporting other scientific disciplines, including biology," continued Goldwasser. "As we complete the divestiture and adjust our operations accordingly in the first half of 2010, we expect to drive our adjusted EBITDA percentage for the second half above 2009's 13%, and to reach and maintain 20% within fiscal 2011."
"During 2009, we took measured steps each quarter to decrease our overall cost structure toward improving profitability," said Rex S. Jackson, Symyx's chief financial officer. "As a result, we significantly reduced our R&D and SG&A expenses on both a quarter-over-quarter and year-over-year basis, while more than doubling our adjusted EBITDA, generating $20.2 million, or 13% of revenue, for the full year."
Fourth Quarter and Full Year Comparisons
Fourth quarter 2009 revenue was $45.5 million, compared with $42.6 million for the fourth quarter of 2008, driven primarily by higher tools revenue in HPR. Symyx Software was down 2% from the prior period as higher maintenance and licensing revenue were offset by lower contributions from services and content.
GAAP net income for the fourth quarter of 2009 was $1.7 million, or $0.05 per diluted share, compared with a net loss of $97.6 million, or a $2.87 loss per share, for the comparable quarter last year. GAAP net loss for the fourth quarter of 2008 included a $90.3 million charge for impairment of goodwill and other non-recurring items set forth in the financial statements portion of this release.
Non-GAAP net income for the fourth quarter of 2009 was $4.8 million, or $0.13 per diluted share, compared with non-GAAP net income of $886,000, or $0.03 per diluted share, for the comparable period for 2008. Fourth quarter 2009 Adjusted EBITDA (defined below) was $9.9 million, or 22% of revenue, up from $6.0 million, or 14% of revenue, for the comparable period last year. Fourth quarter 2009 improvements were driven by higher revenues and lower operating expenses compared to the prior quarter. The company reconciles its non-GAAP and GAAP results and its Adjusted EBITDA calculations in the financial statements portion of this release.
Full-year 2009 revenue was $150.4 million, compared with $159.0 million for fiscal 2008, primarily due to lower services revenue in both Symyx Software and HPR.
For full-year 2009, GAAP net loss was $1.1 million, or a $0.03 loss per share. This compared with a GAAP net loss of $106.6 million, or a $3.16 loss per share, for full-year 2008. GAAP net loss for 2008 included a $90.3 million charge for impairment of goodwill, and other non-recurring items set forth in the financial statements portion of this release.
Non-GAAP net income for full-year 2009 was $6.7 million, or $0.19 per diluted share, compared with a non-GAAP net loss of $5.3 million, or a $0.16 loss per share, for 2008. Full-year 2009 Adjusted EBITDA was $20.2 million, or 13% of revenue, up significantly from $7.4 million, or 5% of revenue, for full-year 2008. Year-over-year improvements reflect a $32.5 million, or 25%, reduction in research and development, sales, and general and administrative expenses from 2008 to 2009.
Symyx ended 2009 with cash and cash equivalents of $81.8 million, up $15.4 million from $66.4 million at December 31, 2008.
Fourth Quarter 2009 Charges
During the fourth quarter of 2009, Symyx recorded charges of $1.7 million associated with restructuring HPR's contract research operations and a $2.0 million loss in connection with exiting HPR's contract development and manufacturing operations.
The company is assessing the restructuring and other related charges it will incur in connection with the HPR divestiture.
Fiscal 2010 Financial Outlook
Due to the pending HPR divestiture, which the company expects to close during the first quarter of 2010, Symyx is not providing a financial outlook for the first quarter of 2010 at this time. For full-year 2010, and excluding the divestiture, Symyx forecasts revenue of $87.0 million to $92.0 million, non-GAAP diluted earnings per share of $0.06 to $0.14, and Adjusted EBITDA of 11-14% of revenue.
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Full SMMX press release, including financial statements |
