Accelrys reports disappointing 2Q performance
of the year. Revenues were slightly down but the company saw a
substantial increase in net loss for this year, which it attributed
to 'change in revenue recognition.'
Revenues in the September 2004 quarter were $14.3 million (€11.2 million) compared to $17.7 million reported in the September 2003 quarter. Operating expenses, including cost of revenue, in the current quarter were $19.4 million compared to $20.8 million in the quarter of 2003.
Included in expenses in the second quarter was the write-off of in-process research and development costs totalling $700 000 resulting from the company's acquisition of SciTegic at the end of Sep 2004.
Accelrys' net loss of $5.1 million was reported compared to a net loss of $2.1 million reported in the comparable quarter in 2003.
The company stated that the change in revenue recognition to subscription accounting will continue to dramatically affect reported revenue through the next couple of quarters when compared to the equivalent periods in the prior year.
Mark Emkjer, president of Accelrys said: "With regard to top-line growth, we believe our recent merger with SciTegic, the successful launch of our Nanotechnology Consortium, and the numerous in-licensing agreements we have recently closed demonstrates our focus and commitment."
Accelrys first six months of fiscal 2005 reported a net loss of $11.3 million or $0.46 per share was reported for the six months ended September 30, 2004. Included in the loss was a charge of $1.1 million ($.04 per share) representing the net of discontinued operations at Pharmacopeia Drug Discovery (PDD) for the April period of 2004 at which time the division was separated from Accelrys.
In the six month period ended September 30, 2003 a net loss of $5.9 million or $0.25 per share was reported. Included in the loss was a charge of $0.4 million for discontinued operations at PDD, representing about $0.02 per share.
