SANTA CLARA, CA--(MARKET WIRE)--Dec 3, 2008 -- Symyx Technologies, Inc. (NasdaqGS:SMMX - News) today announced it is realigning and restructuring its business operations to drive performance, improve operating efficiency and increase positive cash flow in 2009.
Specific steps include:
-- Combining Symyx Tools and Symyx Research to create Symyx High Productivity Research (HPR). Richard Boehner, President of Symyx Research, will serve as President of HPR. HPR will be organized along industry lines (Life Sciences and Chemicals/Energy) to facilitate unified product and contract research go-to-market and customer support strategies.
-- Establishing dedicated sales forces within Symyx Software and Symyx HPR in 2009 to improve market focus and sales execution.
-- Measures to reduce 2009 expenses by an estimated $15 million compared to fiscal 2008, excluding restructuring charges. As part of these reductions, Symyx is implementing a worldwide workforce reduction of approximately 15%, primarily concentrated within Symyx’s Tools and Research operations and in the Company’s general and administrative areas. Symyx expects to substantially complete these actions by December 31, 2008. The Company is currently assessing associated restructuring and other charges, the substantial majority of which the Company expects to take in the fourth quarter of this year. The total cash impact is presently expected to be $3- 4 million. These restructuring and other charges were not contemplated in the Company’s earlier earnings and cash estimates for the fourth quarter and full fiscal year 2008.
By taking these steps, the Company intends to (1) strengthen the performance of core products and services within Symyx Software and Symyx HPR, (2) drive growth opportunities in Symyx Notebook, Symyx Isentris, and Life Sciences HPR Services, and (3) develop and establish new growth initiatives.
“In light of the broad economic and market instability our customers face, we are taking these necessary steps to focus our resources and streamline our operations,” said Isy Goldwasser, Symyx Technologies’ Chief Executive Officer. “We are committed to strengthening the Company in 2009 within a challenging market environment.”
About Symyx
Symyx Technologies, Inc. (NasdaqGS:SMMX - News) enables companies in life sciences, chemicals and energy, and consumer and industrial products to transform scientific R&D and achieve extraordinary breakthroughs in productivity and return on investment. Symyx scientific information management enables scientists to design, execute, analyze, and report experimental results faster, easier, and less expensively. Symyx microscale, parallel experimentation enables a single scientist to rapidly explore a broad experimental space and develop comprehensive data sets in days -- not weeks or months. Symyx contract research delivers these advantages on a customer-directed project basis and enables companies to increase R&D productivity, agility, and flexibility. Information about Symyx, including reports and other information filed by Symyx with the Securities and Exchange Commission, is available at www.symyx.com.
Certain statements in this press release are forward-looking statements under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including without limitation Symyx’s estimates of the financial impacts of its restructuring efforts and its expectations regarding the prospective benefits of these efforts, are based upon Symyx’s current expectations and involve risks and uncertainties. Symyx’s actual results could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation: (1) risk inherent in significant restructuring efforts, which may affect current and future operations and our customer relationships, and may make it more difficult for us to retain and motivate our employees, (2) current material uncertainty in domestic and global economic conditions and in international financial markets may cause customers to further delay or cancel significant capital purchases (such as Tools) or software investments; (3) in response to such uncertainty and economic conditions, Symyx may determine it is necessary to take additional measures to reduce its operating expenses, which may lead to further restructuring charges and cash outlays; (4) failure to timely execute against existing contracts in order to recognize committed revenue as planned; (5) inaccurate assessment of demand for existing and new offerings or failure to close new contracts with customers as forecasted; (6) failure to transition customers to the Company’s Isentris platform and Symyx electronic notebook products as quickly as estimated or to execute on software development roadmaps as planned; (7) risks inherent in acquisitions and subsequent integration efforts; and (8) risks associated with export sales and operations. These and other risk factors are discussed under “Risk Factors” in Symyx’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2008 filed with the SEC on November 7, 2008. Symyx does not in this press release provide any guidance or updates to guidance previously provided as to financial results, and further expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any guidance or to the forward-looking statements contained in this press release, except as the law may require.
Symyx is a registered trademark of Symyx Technologies, Inc. All rights reserved.
Contact:
For more information: Rex S. Jackson Executive Vice President and CFO Symyx Technologies, Inc. (408) 773-4000
Source: Symyx Technologies, Inc.
