This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Symyx Has 'A Lot of Drivers'

Symyx Technologies (SMMX) has "a lot of drivers to continue to grow revenue and the rate of profitability," CFO Jeri Hilleman said Thursday in an exclusive interview with TheStreet.com's "StreetWatch" Web cast.

Those drivers include research collaboration, expected to be 50% of revenue this year; discovery tools, approximately 33%; and the remainder from royalties, intellectual property and software licensing, Hilleman said. Over the long term, the company expects software to be an increasing portion of its overall revenue stream with a goal of $100 million in revenue in the next five years.

Recent acquisitions of IntelliChem and Synthematix have helped Symyx fill gaps in its software offerings, and while "there may be other opportunities" for M&A, Hilleman said, "we feel now we have the critical mass we need to build in that [software] arena."

In the interview, the CFO reaffirmed Symyx's forecast for 2005 revenue of $108 to $118 million. In addition to the $21.5 million of revenue recognized in the first quarter, Symyx has approximately $70 million currently under contract that it expects to recognize during the remaining three quarters.

Santa Clara, Calif.-based Symyx develops and applies high-throughput research methods, instrumentation and software to help enhance the productivity of research and development for companies in the chemical, pharmaceutical, energy, automotive and materials industries. Symyx's proprietary tools, materials and technologies can help scientists "gain one day of productivity because they are freed from all those administrative things and because discoveries happen faster," Hilleman said.

The CFO discussed Symyx's ongoing alliances with Exxon Mobil (XOM - Get Report) and Dow Chemical (DOW - Get Report); Symyx expects to receive $200 million in revenue over the five-year deal with Exxon and $120 million over the five-year agreement with Dow. Discussions with other existing customers are ongoing to create similar-type alliance agreements, Hilleman said, declining to specify.

Other issues discussed in the interview include the heavy short position in Symyx's stock, recently 4.8% of its float, according to Yahoo! Finance, which Hilleman expects will prove to be a "short-term spike."

The entire video interview can be found here.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DOW $50.79 0.00%
XOM $82.82 0.00%
AAPL $124.53 0.00%
FB $85.80 0.00%
GOOG $521.52 0.00%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs