Software

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Symyx Has 'A Lot of Drivers'

05/26/05 - 03:48 PM EDT

TSC Staff

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 and Dow Chemical DOW; 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.





Headlines & Perspectives

Software

Go To Section Home


05/26/05
Xbox Chief Talks Up Games Mass Appeal

J Allard on the new Xbox, beating Sony, and when games will make money consistently for Microsoft.


05/25/05
Novell Swings to a Loss

Shares fall in late trading after the company misses estimates.


05/25/05
FileNet CEO Sees 'Huge Market Opportunity'

Lee Roberts says demand for the company's ECM software is the highest it's been in the past five years.


05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas
Premium Products
DOW was an pick on 2004-06-23