Accelrys to Restate Financials for Last Five Years, Says Revenue and Profits 'Unchanged'
Accelrys last week that its audit committee has recommended that it restate its financial statements for each quarter from Jan. 1, 2000, to Sept. 30, 2005.
Accelrys said that it decided to restate based on a review of its most recent annual report by the Corporation Finance Division of the US Securities and Exchange Commission, and that it is also "in discussions with the SEC with respect to the accounting treatment for certain contracts entered into after January 2004."
Accelrys changed its accounting model in January 2004 to recognize revenue over the length of a subscription rather than record a significant portion of revenue in the quarter in which the software was shipped.
The company said that the restatement "will include changes to the timing of revenue recognition on certain historical term-based contracts, substantially all of which were entered into prior to January 2004."
Accelrys added that total revenue and profits associated with these contracts "will remain unchanged over the life of the contracts" and that restatement adjustments "will have no effect on Accelrys' ongoing business or historical, current or future cash flows."
"We will complete our restated financials as quickly as possible and are committed to the highest level of financial reporting standards," said Mark Emkjer, Accelrys president and CEO, in a statement.
Prior to January 2004, Accelrys generally recognized 64 percent of the fee from one-year licenses at the time the software product was shipped, and the remaining 36 percent was amortized into revenue over the term of the contract. Accelrys and Ernst & Young "have now determined that both the license and the [post-contract customer support] revenue for the historical term-based contracts should have been recognized ratably over the term of the contract."
For those contracts signed after January 2004, in which revenues are recognized ratably over the term of the contract, Accelrys and Ernst & Young are in discussions with the SEC "regarding the accounting treatment for these contracts."
In addition, Accelrys said that it made "certain misclassifications" in its financial statements that resulted in an "overstated loss from continuing operations and a corresponding understated loss from discontinued operations for fiscal 2002, fiscal 2003, and the three month period ended March 31, 2004."
Accelrys said that the restatement process may delay the announcement of its third-quarter results for the period ending Dec. 31, 2005.
NLM to Offer $25M per Year in R01 Grants for Bioinformatics
The National Library of Medicine issued a program announcement last week outlining its plans to support research grants in bioinformatics over the next two years.
The program, "NLM Research Grants in Biomedical Informatics and Bioinformatics," will award $25 million per year in 20 to 25 new grants.
Individual awards typically fall in a range from $200,000 to $400,000 in direct costs, with an average of $280,000 in direct costs per year, for three years.
Awards are typically made three times per year, in December/January, March/April, and August/September.
NLM defines biomedical informatics as "the intersection of basic informational and computing sciences with an application domain in health care and biomedicine," and said that the term "encompasses the closely-aligned field of bioinformatics, which can be defined as the intersection of basic informational and computer sciences with an application domain in biological/biochemical sciences."
The program expires Nov. 2, 2007. Further information is available at http://grants.nih.gov/grants/guide/pa-files/PA-06-094.html.
Genedata Expands Screener Software Agreement with Roche
Genedata has extended an agreement with Roche to deploy its Screener software at all of Roche's high-throughput screening facilities in North America and Europe, Genedata said last week.
Under the terms of the original agreement, Roche used Genedata's software at its Basel, Switzerland-facility. The agreement expands the collaboration to include more facilities over several years.
Roche Scientists use Screener to estimate the biological potency of thousands of compounds, Genedata said.
The software has been already deployed to four sites in "a very short time period," Genedata said.
AstraZeneca Extends License for Linguamatics/BioWisdon Text-Mining Agreement
Linguamatics said last week that AstraZeneca has extended a licensing agreement to its text-mining software. Linguamatics is collaborating with BioWisdom to analyze the scientific literature for AstraZeneca.
AstraZeneca originally signed a license for Linguamatics' I2E text-mining technology in October 2003, Linguamatics said.
The company did not disclose any financial details of the deal.
EMBL Licenses IMMD's KeyMolnet Pathway Informatics Platform
The European Molecular Biology Laboratory has licensed the KeyMolnet pathway informatics platform from the Institute of Medicinal Molecular Design, the Japan-based institute said last week.
EMBL will use KeyMolnet at its main laboratory in Heidelberg, Germany, and at its outstations.
KeyMolnet is a database of information on the relationships among genes, molecules, diseases, pathways, and drugs that have been manually curated from literature by IMMD biologists.
The Genomics and Chemical Biology Core Facilities will provide KeyMolnet access to EMBL's research community and collaborators.
Financial details were not disclosed.
Tripos Confirms Plans for Layoffs in UK; Details Not Disclosed
Tripos last week confirmed that it will lay off employees at its UK-based discovery research business, but did not provide specifics on the extent of the job losses.
Tripos CEO John McAlister said last month that "a reorganization of Tripos Discovery Research may be necessary" in the wake of Pfizer's decision to not renew a four-year file-enrichment collaboration that began in 2001 [BioInform 11-28-05].
Last week, the company said in a statement that it "intends to streamline its Discovery Research business and has initiated the 30-day consultation period with employees mandated by UK law when job losses are expected in the range of 20 to 99 positions."
Tripos said it intends to finalize its plans for the headcount reduction by the end of January. Tripos Discovery Research currently has 164 employees.
LEO Pharma Licenses Isentris from Elsevier MDL
Elsevier MDL said last week that Denmakr's LEO Pharma has taken a license to its Isentris information management and integration platform.
Karsten Linneberg, head of R&D IT in the department of spectroscopy at LEO Pharma, said in a statement that Isentris "will accelerate and streamline LEO Pharma's intensive R&D activities."
Financial terms of the agreement were not disclosed.
NOTE: This is the last issue of BioInform to
be published in 2005. We will resume our normal publishing schedule on Jan. 9, 2006.