SAN DIEGO, Feb 04, 2010 (BUSINESS WIRE) -- Accelrys, Inc. (NASDAQ: ACCL) today reported financial results for the quarter ended December 31, 2009. Revenue for the quarter increased 7% to $22.1 million from $20.6 million for the same quarter of the previous year. Revenue for the nine months ended December 31, 2009 increased 2% to $62.2 million from $61.0 million for the same period of the previous year.

Non-GAAP net income was $2.1 million, or $0.08 per diluted share, for the current quarter compared to non-GAAP net income of $2.5 million, or $0.09 per diluted share, for the same quarter of the previous year. Non-GAAP net income was $7.2 million, or $0.26 per diluted share, for the nine months ended December 31, 2009 compared to non-GAAP net income of $7.4 million, or $0.27 per diluted share, for the same period of the previous year.

GAAP net income was $1.0 million, or $0.04 per diluted share, for both the current quarter and the same quarter of the previous year. GAAP net income was $3.6 million, or $0.13 per diluted share, for the nine months ended December 31, 2009 compared to GAAP net income of $2.3 million, or $0.09 per diluted share, for the same period of the previous year.

The Company's balance sheet as of December 31, 2009 included cash, cash equivalents, marketable securities and restricted cash of $77.6 million. Deferred revenue at the end of the third quarter was $56.9 million. The Company has no debt outstanding.

"This was a good quarter with solid increase in revenue growth and a sound performance across the business in this our traditionally biggest period," said Max Carnecchia, President and CEO, Accelrys, Inc. "Our software and services businesses performed well in spite of continuing soft economic conditions, with customers showing continuing support for our leading solutions. We look forward to welcoming many of them to our Global User Group meeting in Boston, May 4-6, 2010."

Other highlights for the quarter included:

• A strong performance in our Materials business;
• A highly successful launch of Materials Studio 5.0, our flagship materials modeling and simulation product; and
• The appointment of two senior executives, with the arrival of software veterans Michael Piraino as the new Chief Financial Officer, and Paul Burrin as Chief Marketing Officer.

Q3 Fiscal Year 2010 Conference Call

Accelrys will conduct a conference call to discuss its financial results at 5:00 p.m. ET, February 4, 2010. To participate, please dial (866) 393-7459 (+1 (706) 643-4624 outside the United States) and enter the access code, 51743050, approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accelrys website at http://www.accelrys.com.

A replay of the conference call will be available online at http://www.accelrys.com and via telephone by dialing (800) 642-1687 (+1 (706) 645-9291 outside the United States) and entering access code, 51743050, beginning 6:00 p.m. ET on February 4, 2010 through 11:59 p.m. ET on March 4, 2010.

Non-GAAP Financial Measures

This press release describes financial measures for operating income, net income, and net income per diluted share that exclude share-based compensation expense, purchased intangible assets amortization and restructuring charges (recoveries). These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles.

Management believes these non-GAAP financial measures provide a useful measure of the Company's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company's ongoing operating performance. Further, management and the Board of Directors utilize these measures, in addition to GAAP measures, when evaluating and comparing the Company's operating performance against internal financial forecasts and budgets. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

For additional information on the items excluded by the Company from its non-GAAP financial measures please refer to the Form 8-K regarding this release that was furnished today to the Securities and Exchange Commission.

The following table contains a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures (unaudited, amounts in thousands, including footnotes):

About Accelrys

Headquartered in San Diego, California, Accelrys develops scientific business intelligence software and solutions for the life sciences, energy, chemicals, aerospace, and consumer products industries. Our customers include many Fortune 500 companies and other commercial entities, as well as academic and government entities. We have a vast portfolio of computer-aided design modeling and simulation offerings which assist our customers in conducting scientific experiments 'in silico' in order to reduce the duration and cost of discovering and developing new drugs and materials. Our scientific business intelligence platform underlies most of our computer-aided design modeling and simulation offerings. Our platform can be used with our products, our competitors' products and our customers' proprietary predictive science products. Its flexibility, ease-of-use and advanced chemical, text and image analysis and reporting capabilities enable our customers to mine, aggregate, analyze and report scientific data from disparate sources, thereby better utilizing scientific data within their organizations. For more information about Accelrys, please visit our website at http://www.accelrys.com.

Forward-Looking Statements

Statements contained in this press release relating to the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Such forward-looking statements including, but not limited to, statements relating to the Company's products and prospects are subject to a number of risks and uncertainties. These include risks that the Company will not achieve its anticipated results due to, among other possibilities, an inability to withstand negative conditions in the global economy or a lack of demand for or market acceptance of the Company's products, as well as the risks and uncertainties that are contained from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended March 31, 2009, quarterly reports on Form 10-Q and current reports on Form 8-K. The Company's actual results could differ materially from those projected in such forward-looking statements due to these risks and uncertainties, and the Company disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future events or otherwise.

¹Cash, cash equivalents, and marketable securities consist of the following line items in our consolidated balance sheet: Cash and cash equivalents; Marketable securities; Marketable securities, net of current portion; and Restricted cash

²Other assets, net, consists of the following line items in our consolidated balance sheet: Prepaid expenses, deferred tax assets and other current assets; Property and equipment, net; Goodwill; Purchased intangible assets, net; and Other assets

³Total deferred revenue consists of the following line items in our consolidated balance sheet: Current portion of deferred revenue; and Deferred revenue, net of current portion

SOURCE: Accelrys, Inc.

Accelrys, Inc.
Michael A. Piraino
Senior Vice President and Chief Financial Officer
858-799-5200
or
Investor Relations
MKR Group
Charles Messman or Todd Kehrli
323-468-2300
accl@mkr-group.com