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Accelrys Posts 2 Percent Revenue Gain for Q2; Cuts 12 Percent of Staff

NEW YORK (GenomeWeb News) – Scientific informatics firm Accelrys reported after the close of the market Wednesday that its second-quarter revenues increased nearly 2 percent year over year, as it announced cost-cutting measures including the termination of 80 positions.

The San Diego-based company brought in total revenues of $39 million for the three months ended June 30, compared to $38.4 million for the second quarter of 2012. On a non-GAAP basis, which includes a deferred revenue fair value adjustment, its revenue for Q2 2013 was $41.8 million. Wall Street analysts, on average, had expected $44.8 million in revenues.

"The implementation of our market segment strategy and field coverage model continued to take hold during the quarter and our execution improved across the business producing positive results overall," Max Carnecchia, president and CEO of Accelrys, said in a statement. "Orders performance for the second quarter improved from Q1 2013 and represented solid growth over the second quarter of 2012."

Accelrys posted net income of $19.8 million, or $.35 per share, for the quarter, compared to a loss of $520,000, or $.01 per share, for the second quarter of 2012. On a non-GAAP basis, its EPS was $.07, even with Q2 2012 and below analysts' consensus estimate of $.10.

The firm's product development spending was flat year over year at $9.7 million, while its SG&A expenses were up 7 percent to $19.4 million from $18.2 million.

Accelrys also announced Wednesday a restructuring program that includes laying off 80 of its employees, or approximately 12 percent of its total workforce. It also said that it is abandoning part of its facilities in San Ramon, Calif.

"These actions are intended to reduce costs and to realign the company's operations to focus on growth opportunities within the company's market segments," the firm said in its statement. It added that "[a]pproximately 40 positions will be filled in different capacities or locations to rebalance the skillset as part of this realignment."

Company officials said on a conference call following the release of the Q2 results that the firm will incur up to $6 million in severance and relocation charges during the next several quarters. It will also incur $1.5 million in contract termination and other charges as a result of exiting part of the San Ramon facilities.

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