Accelrys officials said this week that acquisitions within the last year, ongoing integration activities, and improvements to the company's product portfolio will enable the company to focus on growth in 2012.
During a conference call to discuss the company's fourth-quarter earnings, President and CEO Max Carnecchia said that Accelrys is "optimistic about future growth" based on its software development pipeline as well as conversations it is holding with prospective and current customers.
Building on its current portfolio, the company intends to focus on organic orders and revenue growth; invest in areas that align with its strategy; and complete additional acquisitions that will strengthen its position in development and quality assurance and control. The company is also looking to expand its footprint in industries like chemicals, materials, and manufacturing.
Michael Piraino, Accelrys’ chief financial officer, said the company expects to report non-GAAP revenue of between $164 million and $170 million for 2012, which would represent growth of between 6 percent and 10 percent over 2011. Accelrys expects Velquest, acquired in January for $35 million, to contribute approximately $10 million to full-year 2012 revenue.
The company reported GAAP revenue of $39.8 million for the fourth quarter ended Dec. 31, 2011, a 27 percent increase over $31.3 million for the previous year.
GAAP revenue for the year ended Dec. 31, 2011, jumped 43 percent to $144.3 million from $101 million.
The company reported a fourth-quarter profit of $14.2 million compared to a net loss of $15.6 million for the same quarter of the previous year.
For the full year, net income was $1.8 million, versus a net loss of $23 million for 2010.
Net income for Q4 and the full year was impacted by a net gain of about $19 million from the sale of its equity interest in Intermolecular — a semiconductor and clean energy technology platform company (BI 8/12/2011).
During the call, company officials said that Accelrys has begun integrating products from Velquest into its lineup and expects to complete these activities by the middle of this year.
At the time of the purchase, Carnecchia told BioInform that the company plans to build on an existing integration between Symyx Notebook by Accelrys and VelQuest's SmartLab software, as well as to explore methods of integrating Accelrys' Pipeline Pilot with SmartLab and other tools in VelQuest's portfolio (BI 01/6/2012).
During this week's call, Carnecchia said that Accelrys sees "a significant opportunity" to take the solutions beyond the life sciences by leveraging Accelrys' presence in other industries.
Accelrys also intends to make further acquisitions this year, Carnecchia said during the call, but he did not provide additional details.
During the firm's Q3 earnings call, Carnecchia said that Accelrys continues to evaluate acquisition candidates “that add important product capabilities, move us further down the value chain from research towards commercialization, and support our growth agenda (BI 11/04/2011)."
Renewal rates for Accelrys' recurring revenue sources — term license subscriptions, perpetual licenses, and content subscriptions — were 89 percent, 88 percent, and 79 percent respectively, officials said.
In Q4, 14 orders exceeded $1 million and overall orders for the quarter were up slightly when compared to the same period a year ago.
Orders for the company’s modeling and simulation products were flat compared to Q4 2010, though full-year orders for these products increased 7 percent year-over-year.
Orders for enterprise lab management tools rose 70 percent while orders for data management and informatics products fell about 15 percent versus 2010 results.
For the full year, orders for Accelrys Pipeline Pilot were flat compared to 2010 while orders for professional services for the platform doubled in 2011.
Revenue breakout for the quarter by geography was 48 percent for North America; 29 percent for Europe, the Middle East, and Africa; and 23 percent for Asia Pacific.
Non-GAAP operating expenses for Q4 2011 were $25.7 million compared to $23.6 million a year ago.
Accelrys had $143.6 million in cash and investments at year's end compared to $141.1 million for the previous year.
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