Based on this strong top-line performance and a tightly managed cost base (unpartnered R&D expenses -71%, SG&A cost -4%), Evotec recorded its first ever full year operating profit of € 1.7m (+104%) compared to an operating loss of € 42.3m in 2009. The operating loss in 2009 included impairments and restructuring charges of € 22.7m, while no impairment or restructuring charges were recorded in 2010.Unpartnered R&D expenditure decreased as planned to € 6.1m (2009: € 20.9m). This reduction is mainly a consequence of focusing R&D spending on fewer core programmes, reducing the number of unfunded research and development projects and increased funding from partners. Evotec signed important development partnerships to externally fund a number of its core assets which are not reflected in the reported R&D expenses (see below Progress in development partnerships). The decrease in R&D now also reflects the full-year impact of the decision that was taken in May 2009 to close the former Renovis site in the U.S. Despite successful acquisition processes Evotec ended 2010 with a liquidity of € 70.4m (2009: € 70.6m) which is composed of cash and cash equivalents (€ 21.1m) and of investments (€ 49.3m) and thereby well above its liquidity target of > EUR 64 m. Evotec reported a strong Q4 results with 21% improvement in revenues of € 16.4m (2009: € 13.5m) and a positive operating result of € 0.7m (compared to € 9.4m loss in Q4 2009). 2. Update on discovery alliances Evotec's strategy is to build sustainable, performance-based drug discovery alliances. Consequently, Evotec focuses on high value, revenue generating partnerships with pharmaceutical and biotechnology companies. The Company is working with more than 70 partners on a global scale. In 2010, new and extended collaborations were announced with Active Biotech, Almirall, Apeiron Biologics, Cardioxyl, CHDI, Cubist Pharmaceuticals, Genentech, MedImmune, Merck KGaA, Shionogi and Vifor Pharma (in alphabetical order). With these deals the Company further strengthened its customer and revenue base and improved the foundation for future growth.