UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE |
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For the quarterly period ended December 31, 2004 |
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE |
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For the transition period from to |
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Commission File Number: 0-27118
ACCELRYS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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33-0557266 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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10188 Telesis Court, Suite 100, San Diego, California |
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92121-1761 |
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(Address of principal executive offices) |
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(Zip code) |
(858) 799-5000
(Registrant’s telephone number, including area code)
Former address: 9685 Scranton Road, San Diego, California
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Class |
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Outstanding at January 31, 2005 |
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Common Stock, $.0001 par value |
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26,582,344 shares |
Form 10-Q
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Page |
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PART I. FINANCIAL INFORMATION |
3 |
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Item 1. |
Unaudited Consolidated Financial Statements: |
3 |
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Balance Sheets — December 31, 2004 and December 31, 2003 |
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Statements of Operations — Three and Nine Months Ended December 31, 2004 and 2003 |
4 |
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Statements of Cash Flows — Nine Months Ended December 31, 2004 and 2003 |
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Notes to Unaudited Consolidated Financial Statements |
6 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 |
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Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
28 |
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Item 4. |
Controls and Procedures |
28 |
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PART II. OTHER INFORMATION |
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Item 1. |
Legal Proceedings |
29 |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
29 |
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Item 3. |
Defaults Upon Senior Securities |
29 |
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Item 4. |
Submission of Matters to a Vote of Security Holders |
29 |
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Item 5. |
Other Information |
29 |
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Item 6. |
Exhibits |
29 |
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Signature |
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30 |
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Exhibit Index |
31 |
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2
PART I - - FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements
Accelrys, Inc.
Consolidated Balance Sheets
(Dollars and share amounts in thousands, except per share data)
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December 31, |
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December 31, |
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2004 |
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2003 |
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ASSETS |
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(unaudited) |
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(note 1) |
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Current assets: |
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Cash and cash equivalents |
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$ |
18,786 |
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$ |
26,985 |
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Restricted cash |
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7,133 |
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— |
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Marketable securities |
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33,162 |
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106,546 |
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Trade receivables, net of allowance for doubtful accounts of $93 and $505, respectively |
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32,830 |
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39,780 |
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Prepaid expenses and other current assets |
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8,590 |
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4,197 |
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Current assets of discontinued operations |
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— |
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3,994 |
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Total current assets |
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100,501 |
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181,502 |
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Property and equipment, net |
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8,910 |
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8,441 |
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Goodwill |
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43,298 |
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34,072 |
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Intangible assets, net of accumulated amortization of $621 and $0, respectively |
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10,879 |
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— |
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Software development costs, net of accumulated amortization of $30,087 and $26,555, respectively |
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8,565 |
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7,634 |
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Other assets |
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886 |
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960 |
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Long-term assets of discontinued operations |
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— |
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7,058 |
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Total assets |
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$ |
173,039 |
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$ |
239,667 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
1,153 |
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$ |
1,850 |
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Accrued liabilities |
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23,056 |
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18,819 |
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Deferred revenue, current portion |
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36,648 |
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24,595 |
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Current liabilities of discontinued operations |
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— |
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6,420 |
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Total current liabilities |
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60,857 |
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51,684 |
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Deferred revenue, long-term |
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6,719 |
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4,924 |
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Lease obligations, long-term |
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2,209 |
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— |
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Long-term liabilities of discontinued operations |
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— |
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325 |
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Stockholders' equity: |
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Preferred stock, $.0001 par value, 2,000 shares authorized, none issued and outstanding |
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— |
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— |
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Common stock, $.0001 par value, 40,000 shares authorized, 26,582 and 24,949 shares issued, respectively |
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2 |
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2 |
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Additional paid-in capital |
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253,078 |
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287,592 |
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Unearned compensation |
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(1,694 |
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(536 |
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Lease guarantee |
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(714 |
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— |
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Treasury stock, 644 shares |
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(8,340 |
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(8,340 |
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Accumulated deficit |
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(139,998 |
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(97,318 |
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Accumulated comprehensive income |
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920 |
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1,334 |
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Total stockholders' equity |
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103,254 |
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182,734 |
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Total liabilities and stockholders' equity |
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$ |
173,039 |
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$ |
239,667 |
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See accompanying notes to these unaudited consolidated financial statements.
3
Accelrys, Inc.
(Dollars and shares in thousands, except per share data, unaudited)
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For the Three Months |
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For the Nine Months |
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Ended December 31, |
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Ended December 31, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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$ |
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