Symyx Technologies, Inc. (SMMX)

F1Q11 (Qtr End 06/30/2010) Earnings Call

August 5, 2010 5:00 pm ET

Executives

Todd Kehrli - IR, MKR Group

Max Carnecchia - President and CEO, Accelrys

Michael Piraino - CFO, Accelrys

Analysts

Chad Bennett - Northland Capital

Raghavan Sarathy - Dougherty

Bryan Long - Chesapeake Partners

Presentation

Operator

At this time, I would like to welcome everyone to the first quarter earnings conference call. (Operator instructions) I would now turn the call over to today's host, Mr. Todd Kehrli.

Todd Kehrli

Thank you. Good afternoon and welcome to Accelrys's first quarter fiscal 2011 conference call. A press release was issued this afternoon detailing these financial results and may be accessed on the company's website at accelrys.com under the Investor Relations section.

Speaking today will be Max Carnecchia, Accelrys's President and Chief Executive Officer; and Michael Piraino, Accelrys's Chief Financial Officer.

Before they begin, I'd like to remind you that the follow discussion, including the company's responses to questions at the end of the formal remarks, contains forward-looking statements relating to the company's future results, including future earnings, revenue, financial position, profit, expenses, orders and bookings.

Our actual results may differ from these forward-looking statements due to a number of factors, including macroeconomic conditions, lack of demand for our products and ability to execute on our strategic product roadmap, integration plans, sales and marketing plans, or other factors which may cause actual results to differ from these projections.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements are contained in our SEC filings, including the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2010; quarterly reports on Form 10-Q; and current reports on Form 8-K. The company disclaims any intention or obligation to revise any forward-looking statement whether as a result of new information, future events or otherwise.

Before I turn the call over to Max, I want to make everyone aware of the fact that we're experiencing some power outage issues in our area. And in the event of an outage, we may lose sound service. In that event, we will dial back into the call as soon as possible to make sure we finish our prepared remarks and answering the questions.

With that said, I'll now turn the call over to Max.

Max Carnecchia

Thank you, Todd. Let me start by providing a snapshot of highlights of our first quarter before turning it over to Michael who'll comment on the financial performance in more detail.

This was a milestone quarter in which we announced our merger with Symyx Technologies. A significant amount of planning occurred over the course of the quarter, culminating with the merger closing on July 1 following the approval of shareholders of both companies. I would like to take a moment and welcome our Symyx colleagues as well as our new shareholders.

We are excited about the combination. As a merged entity, we are the clear leader in scientific informatics software and services. We've expanded the breadth and depth of our product portfolio and team, putting us in a strong position to execute on the opportunity ahead of us.

Each company carries with them a rich heritage and each has made significant contributions for the development of scientific informatics. After careful consideration, we've decided to move forward with Accelrys Inc. as the name of the combined entity and over time we will be consolidating our products and services under that single brand.

Our results this quarter demonstrate that while integration planning was a key priority, we did not lose sight of our day-to-day operational responsibilities. We delivered important product releases, held our user group meetings in North America and Asia Pacific and our order results tracked the expectations.

This call focuses on early integration activities and the Q1 results of the pre-merger Accelrys Inc. But I would like to take a moment and thank Isy Goldwasser, his leadership team and the Symyx employees for their commitment and focus during the quarter.

At this point, I will turn the call over to Michael to take us through the financial results.

Michael Piraino

Thank you, Max, and thanks to everyone for joining us this afternoon and allowing us to update you on our Q1 performance. I would also like to welcome Symyx shareholders and colleagues to the company. We're delighted to have you with us and are excited to kick off our inaugural call for the combined company.

This afternoon, I'll be providing some color on the company's decision to change its fiscal reporting period to December 31, detailing some key financial highlights from our first quarter, updating you on the progress of our integration with Symyx as well as providing initial combined guidance for the next six months.

In prior quarters, the company has made reference to certain seasonality trends or financial policies of Accelrys. These trends include the impact of seasonality on orders, expenses, cash flow, billings and collections, and explain how subscription accounting differs revenue from orders received to subsequent quarters. We believe this information can be helpful to investors in understanding Accelrys on a quarterly basis. This information can be located on our website in the Investor Relations section under financial modeling.

First off, I'm pleased to announce that our Board has approved the change of our fiscal year from March 31 to December 31 effective for the period ending December 31, 2010. We believe that aligning our financial reporting cycle with the calendar year will make it easier for our stakeholders to track our financial results in the timeframe that is consistent with our peers.

Read the rest of this transcript for free on seekingalpha.com

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