In a move to reduce costs, scientific software provider Accelrys ($ACCL) has revealed plans to eliminate 80 jobs in the U.S. and U.K. as well as abandon a significant part of its facilities in San Ramon, CA. The layoffs reduce the San Diego-based software outfit's global workforce by 12%, yet the company plans 40 hires with different skill sets, the company said on Wednesday.
The company expects restructuring charges of $6.1 million to $7.5 million related to the layoffs and real estate costs in the coming quarters, the company said in a regulatory filing. The company began the restructuring effort on Wednesday and aims to complete it by the end of March 2014.
Accelrys, which has its roots in providing software to pharma labs, reported the job cuts along with unimpressive financial results for the second quarter. Revenue was relatively flat, increasing 1% to $41.8 million from $41.6 million in the same quarter last year. And second-quarter profit fell to $3.7 million, down $400,000 from $4.1 million. Chief Executive Officer Max Carnecchia noted growth in orders during the second quarter ending in June and said the company had "positive results overall."
Excluding revenue from acquired companies such as Aegis and Vialis, Accelrys' revenue for the quarter fell by 5%, the company said on a conference call Wednesday. Executives attributed the drop in organic revenue to a shortfall in orders during the first quarter, after which Carnecchia had noted some disappointment with his sales organization.
The company shrank full-year 2013 revenue guidance from a range of $176 million to $181 million to between $176 million and $179 million.
In recent years Accelrys has navigated changes in the pharma market through a series of acquisitions, collaborations and product releases. For example, the company has scooped up quality-control software from VelQuest to expand the reach of its software offerings from early research through manufacturing and commercialization. And the company has partnered with British Telecom to support its cloud-based software for the life sciences market.
- here's the release