Accelrys ROTH Growth Stock Conference

Transcription

1 Accelrys ROTH Growth Stock Conference Feb. 20, 2008 Presented by: Mark Emkjer, CEO Rick Russo, CFO

2 Forward-looking Statements When used in this presentation, words such as expects, believes, anticipates, estimates, and similar expressions identify forward-looking statements. Forward-looking statements may include statements relating to our growth strategy, the future size of our addressable markets, future products and our potential future financial and operating results. Such statements are based on our current expectations of future events, and are subject to risks and uncertainties which could cause actual results to differ materially from results expressed or implied by these statements, including, but not limited to, the risk that our growth strategy will not succeed, that our current and/or future markets will not grow as estimated, that our products will not be successfully developed, released or will not be in demand, risks relating to competition, changes in economic conditions, and other risks described in documents we have filed with the Securities and Exchange Commission, including our most recent report on Form 10-K and subsequent reports on Form 10-Q. All forward-looking statements are qualified entirely by the cautionary statements in this document and our filings. These forward-looking statements speak only as of the date of this presentation. We disclaim any undertaking to update or revise any forward-looking statements to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Measures This presentation contains certain Non-GAAP financial measures. A reconciliation of each of these measures to the directly comparable GAAP financial measure is posted on the investor portion of our web site at Accelrys, Inc. 2

3 Company Overview Accelrys provides Scientific Business Intelligence software that manages scientific information and accelerates the discovery and development of new drugs and materials. NASDAQ: ACCL Customers: 2000 Employees: 372 Technology Partners: 75+ Headquarters: San Diego, CA Offices: Cambridge (UK), Tokyo FY07 results Revenues: $81M Oper. Income (Non-GAAP) $4.8M Cash Increase: $4.7M EPS: $0.23 / Share (Non-GAAP) 03/31/2007 financial position: Cash: $70.8M Deferred Revenue: $56.1M No Debt 2008 Accelrys, Inc. 3

4 What we do Software and Professional Services based solutions that Mine, aggregate, visualize, and report scientific data Facilitate decision making through high end analytics This allows our customers to Better manage their R&D processes and make informed decisions on a real time basis Accelerate the discovery of new drugs and materials Scientific Business Intelligence 2008 Accelrys, Inc. 4

5 Accelrys Vision Individuals Modeling & Simulations ChemInformatics BioInformatics Modeling & Simulation Departments Data Pipelining Data Mining Text Analytics Image Analysis Reporting BioInformatics Inventory Informatics Based Solutions Inter Departmental Laboratory Integration Clinical Data Integration Data Federation Data Marts ELN Workflow Portals Security Scientific Business Intelligence & Innovation Enterprise Standards Symantec Query Global Architecture Performance Enterprise Level SBI Discovery Discovery & Early Development Post Marketing Clinical/Manufacturing Discovery & Early Development 2008 Accelrys, Inc. 5

6 Beyond Traditional Business Intelligence Traditional Business Intelligence Scientific Business Intelligence Simple Numeric Data Structured Text BI Platform ERP, CRM, SFA, Financials Static Reports & Dashboards Structured Data: Text & Numeric Simple Numeric Data Text Chemical Structures Biological Sequences Complex Images Predictive Modeling and Simulation Scientific Operating Platform High End Analytics Sophisticated 3D Visualization Interactive Reporting & Dashboards Structured Data: Plus Unstructured Complex Data 2008 Accelrys, Inc. 6

7 Scientific Business Intelligence Example Environmental Health and Safety Risk Management Corporate Chemical Data Manufacturing Byproducts Bayesian Models Property Calculations User Portal Experimental testing Animal Testing EPA Data internet Scientific Operating Platform R statistics Corporate Toxicity Data Decision Support Test prioritization planning Chemical property prediction Ecological hazard prediction Reporting & Dashboards 2008 Accelrys, Inc. 7

8 Value Proposition Reduce R&D spending Computer aided experiments less expensive than physical experimentation Streamline Processes Turn data into information for better decisions Automate integration of data, process, and reporting Reduce Burden on Research IT Reduce internal IT development User empowered drag and drop environment 2008 Accelrys, Inc. 8

9 Market Positioning Discovery Development Manufacturing Accelrys Involvement Visualization and Scientific Dashboards Finance, Marketing & Sales Business Dashboards Scientific Applications Business Applications Scientific Operating Platform S/W Middleware S/W Operating System Hardware Platform Microsoft 2008 Accelrys, Inc. 9

10 Estimated Market by Segment In Millions $ $3,000 $2,500 $2,500 $2,000 $1,500 $1,000 $1, $500 $- $185 $225 $125 $170 Modeling and Simulation Cheminformatics Scientific Business Intelligence 2008 Accelrys, Inc. 10

11 The Accelrys Advantage Defacto standard Scientific Operating Platform Data pipelining, Integration, Data Mining, Reporting, Analytics Expansive eco system 150 staff PhDs Academic collaborators 32 ISV partners Domain Experience Biology, Chemistry, Materials, Nanotech Contract research, Solution Consulting, Support Financial Stability in our market 2008 Accelrys, Inc. 11

12 Who we sell to... Academic 17% Revenues by Customer Type Government 5% Asia Pacific 20% Revenues by Geography Europe 26% U.S. 54% FY07: $81 M Commercial 78% FY07: $81 M 2008 Accelrys, Inc. 12

13 Our Scientific Business Intelligence Customers Life Sciences Pharma Biotech Material Sciences Chemicals Fine Chemicals Personal Care Paint & Coatings Petrochemical Automotive Aerospace 2008 Accelrys, Inc. 13

14 Predictable Revenues $5 $18 6% 22% Renewable New Millions of dollars $58 72% Services $81M Total revenue (FY07) 2008 Accelrys, Inc. 14

15 Growth Strategy Maintain and grow existing renewable revenue steams Expand our footprint in current customer base by moving downstream with our platform products Introduce new products into our distribution channel Expand distribution channel through OEM and distributors Expand to new verticals and growth markets Active M&A campaign to acquire strategic, synergistic technologies and companies 2008 Accelrys, Inc. 15

16 Experienced Management Team Name Industry Experience Title Background Mark Emkjer 26 years President and CEO Sunquest Information Systems, Pace Health Management Systems Dr. Frank Brown 20 years Chief Science Officer J&J, Oxford Molecular, Glaxo Rick Russo 25 years Chief Financial Officer Captiva, DataWorks,Price Waterhouse Rohit Shyam 16 years VP Marketing & Strategy IBM, CSC, Booz Allen & Hamilton Rick Murphy 20 years SVP Sales MSC 2008 Accelrys, Inc. 16

17 Financial Highlights

18 Financial Overview Fiscal year end 3/31 81 million revenue; 71 million cash; no debt Generated 4.8 million Non GAAP operating income Generated 4.7 million in cash in FY 07 70% recurring revenue model Stable, amortized revenue stream Model that can be leveraged 2008 Accelrys, Inc. 18

19 Annual Revenues In Millions $ $90.0 $79.0 $82.0 $81.0 $80.0 $70.0 $60.0 $55.5 $56.8 $57.2 $50.0 Sunset Platform $40.0 Ongoing Total $30.0 $20.0 $15.4 $8.1 $11.5 $13.7 $8.1 $15.7 $10.0 $0.0 FY05 FY06 FY Accelrys, Inc. 19

20 Annual Non-GAAP Operating Income (Loss) Trend In Millions $ $6.0 $4.8 $4.0 $2.0 $- $(1.9) $(2.0) $(4.0) $(6.0) $(8.0) $(10.0) $(12.0) $(10.7) FY05 FY06 FY Accelrys, Inc. 20

21 Quarterly Non-GAAP Operating Income (Loss) Trend $3.0 $2.5 $2.6 In Millions $ $2.5 $2.1 $2.0 $1.5 $1.5 $1.6 $1.0 $0.5 $0.2 $0.6 FY06 FY07 $- FY08 $(0.5) $(1.0) $(0.3) $(0.5) $(1.5) $(1.5) $(1.7) $(2.0) Q1 Q2 Q3 Q Accelrys, Inc. 21

22 Quarterly Cash / Investments Trend In Millions $ $80.0 $70.0 $60.0 $56.3 $63.3 $68.7 $52.8 $64.9 $61.2 $50.1 $60.0 $70.8 $65.8 $66.0 $50.0 $40.0 $30.0 FY06 FY07 FY08 $20.0 $10.0 $- Q1 Q2 Q3 Q Accelrys, Inc. 22

23 Financial Model Non GAAP Presentation Historical & Goal In Millions $ Mid-Term Goal Revenue 100% 100% 100% 100% Cost of Revenue 15% 17% 17% 17.0% Gross Margin 85% 83% 83% 83% Operating Expenses (Non-GAAP): Product Development 29% 26% 22% 19.0% Sales & Marketing 48% 41% 37% 35.0% General & Administrative 22% 18% 18% 15.0% Total Non-GAAP Operating Expenses % 99% 85% 77% 69% Operating Income % -14.0% -2.0% 6.0% 14.0% 2008 Accelrys, Inc. 23

24 Investment Summary Defacto Standard Scientific Operating Platform Domain Expertise Large Target Market Strong Growth Opportunity and Strategy Stable and Recurring Core Business Financial Stability in Our Market 2008 Accelrys, Inc. 24

25 Thank You For more information contact Rick Russo Chief Financial Officer Accelrys, Inc Accelrys, Inc. 25