For a full list of Materials Studio 5.0 enhancements and to register for the ongoing web seminar series, please visit http://accelrys.com/products/materials-studio/

About Accelrys, Inc.

Headquartered in San Diego, California, Accelrys develops scientific business intelligence software and solutions for the life sciences, energy, chemicals, aerospace, and consumer products industries. Customers include many Fortune 500 companies and other commercial entities, as well as academic and government entities. Accelrys has a vast portfolio of computer-aided design modeling and simulation offerings which assist customers in conducting scientific experiments 'in silico' in order to reduce the duration and cost of discovering and developing new drugs and materials. Its scientific business intelligence platform underlies the company's computer-aided design modeling and simulation offerings. The Accelrys platform can be used with both Accelrys and competitive products, as well as with customers' proprietary predictive science products. Its flexibility, ease-of-use and advanced chemical, text and image analysis and reporting capabilities enable customers to mine, aggregate, analyze and report scientific data from disparate sources, thereby better utilizing scientific data within their organizations. For more information about Accelrys, visit http://accelrys.com/

SOURCE: Accelrys

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The AIChE Annual Meeting is the premier educational forum for chemical engineers interested in innovation and professional growth. A wide range of subjects relevant to the latest research and newest technologies in emerging growth areas will be covered. The Accelrys exhibit in booth #18 will showcase the new features and enhancements found in Materials Studio 5.0, a single, integrated platform for advanced modeling and simulation. For more information on the conference, visit http://www.aiche.org/Conferences/AnnualMeeting/index.aspx

About Accelrys, Inc.

Headquartered in San Diego, California, Accelrys develops scientific business intelligence software and solutions for the life sciences, energy, chemicals, aerospace, and consumer products industries. Customers include many Fortune 500 companies and other commercial entities, as well as academic and government entities. Accelrys has a vast portfolio of computer-aided design modeling and simulation offerings which assist customers in conducting scientific experiments 'in silico' in order to reduce the duration and cost of discovering and developing new drugs and materials. Its scientific business intelligence platform underlies the company's computer-aided design modeling and simulation offerings. The Accelrys platform can be used with both Accelrys and competitive products, as well as with customers' proprietary predictive science products. Its flexibility, ease-of-use and advanced chemical, text and image analysis and reporting capabilities enable customers to mine, aggregate, analyze and report scientific data from disparate sources, thereby better utilizing scientific data within their organizations. For more information about Accelrys, visit http://accelrys.com/

SOURCE: Accelrys

Second Quarter 2010 Financial Results:

-- Revenue for the quarter ended September 30, 2009 decreased 1% to $20.0 million from $20.1 million for the same quarter of the previous year.

-- Non-GAAP net income was $3.3 million, or $0.12 per diluted share, for the current quarter compared to non-GAAP net income of $2.7 million, or $0.10 per diluted share, for the same quarter of the previous year.

-- GAAP net income was $1.8 million, or $0.07 per diluted share, for the current quarter compared to GAAP net income of $1.2 million, or $0.04 per diluted share, for the same quarter of the previous year.

Fiscal 2010 Year to Date Financial Results:

-- Revenue for the six months ended September 30, 2009 decreased 1% to $40.1 million from $40.4 million for the same period of the previous year.

-- Non-GAAP net income was $5.1 million, or $0.18 per diluted share, for the six months ended September 30, 2009 compared to non-GAAP net income of $4.9 million, or $0.18 per diluted share, for the same period of the previous year.

-- GAAP net income was $2.6 million, or $0.09 per diluted share, for the six months ended September 30, 2009 compared to GAAP net income of $1.3 million, or $0.05 per diluted share, for the same period of the previous year.

Recent Business and Financial Highlights:

-- Announced the release of Materials Studio 5.0 software suite, a state-of-the-art modeling and simulation platform that transforms the efficiency and effectiveness of chemical and materials research. The new release includes a host of integrated product enhancements that deliver performance and usability improvements that increase research productivity and reduce time-to-innovation for industries including specialty chemicals, pharmaceuticals, consumer packaged goods, heavy manufacturing, and electronics. These new product capabilities are currently being used by Procter and Gamble, PQ Corporation, Taiyo Uden, and the Army Research Laboratory, USA.

-- Held our 2009 European User Group meeting in Barcelona, Spain, with strong attendance from customers across the globe, as well as speakers from the leading pharmaceutical and manufacturing companies, including AstraZeneca, Schering Plough, Pfizer, Unilever and Sanofi-Aventis.

Non-GAAP Financial Measures:

This press release describes financial measures for operating income, net income, and net income per diluted share that exclude stock-based compensation expense, purchased intangible assets amortization and restructuring charges (recoveries). These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles.

Management believes these non-GAAP financial measures provide a useful measure of the Company's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company's ongoing operating performance. Further, management and the Board of Directors utilize these measures, in addition to GAAP measures, when evaluating and comparing the Company's operating performance against internal financial forecasts and budgets. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

For additional information on the items excluded by the Company from its non-GAAP financial measures please refer to the Form 8-K regarding this release that was furnished today to the Securities and Exchange Commission.

The following table contains a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures (unaudited, amounts in thousands, including footnotes):

                                            Three Months Ended      Six Months Ended
                                            September 30,           September 30,
                                            2009        2008        2009             2008
GAAP Operating income                       $    1,846  $    1,278  $    2,924       $    1,420
Stock-based compensation expense(1)              1,021       1,114       1,809            1,993
Purchased intangible asset amortization(2)       381         381         762              762
Restructuring charges (recoveries)(3)            17          8           (74   )          850
Non-GAAP Operating income                   $    3,265  $    2,781  $    5,421       $    5,025
GAAP Net income                             $    1,846  $    1,227  $    2,590       $    1,313
Stock-based compensation expense                 1,021       1,114       1,809            1,993
Purchased intangible asset amortization          381         381         762              762
Restructuring charges (recoveries)(3)            17          8           (74   )          850
Non-GAAP Net income                         $    3,265  $    2,730  $    5,087       $    4,918
GAAP Diluted net income per share           $    0.07   $    0.04   $    0.09        $    0.05
Stock-based compensation expense                 0.04        0.04        0.07             0.07
Purchased intangible asset amortization          0.01        0.01        0.03             0.03
Restructuring charges (recoveries)(3)       --          --          --                    0.03
Non-GAAP Diluted net income per share(4)    $    0.12   $    0.10   $    0.18        $    0.18
(1) Stock-based compensation expense is included in our
condensed consolidated statements of operations as follows:
                                            Three Months Ended      Six Months Ended
                                            September 30,           September 30,
                                            2009        2008        2009             2008
Cost of revenue                             $    49     $    106    $    112         $    204
Product development                              229         253         451              476
Sales and marketing                              292         312         458              468
General and administrative                       451         443         788              845
Total stock-based compensation expense      $    1,021  $    1,114  $    1,809       $    1,993
(2) Purchased intangible asset amortization is included
in the cost of revenue line in our condensed consolidated
statements of operations.
(3) Restructuring charges (recoveries) are included in
the restructuring charges (recoveries) line in our condensed
consolidated statements of operations.
(4) Earnings per share amounts for the three months ended
September 30, 2008 and the six months ended September 30, 2009 do
not add due to rounding.

Conference Call Details:

At 5:00 p.m. ET, November 5, 2009, Accelrys will conduct a conference call to discuss its financial results. To participate, please dial (866) 393-7459 (+ (706) 643-4624 outside the United States) and enter the access code, 37307429, approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accelrys website at www.accelrys.com.

A replay of the conference call will be available online at www.accelrys.com and via telephone by dialing (800) 642-1687 (+1 (706) 645-9291 outside the United States) and entering access code, 37307429, beginning 6:00 p.m. ET on November 5, 2009 through 11:59 p.m. ET on February 5, 2010.

About Accelrys:

Headquartered in San Diego, California, Accelrys develops scientific business intelligence software and solutions for the life sciences, energy, chemicals, aerospace, and consumer products industries. Our customers include many Fortune 500 companies and other commercial entities, as well as academic and government entities. We have a vast portfolio of computer-aided design modeling and simulation offerings which assist our customers in conducting scientific experiments 'in silico' in order to reduce the duration and cost of discovering and developing new drugs and materials. Our scientific business intelligence platform underlies most of our computer-aided design modeling and simulation offerings. Our platform can be used with our products, our competitors' products and our customers' proprietary predictive science products. Its flexibility, ease-of-use and advanced chemical, text and image analysis and reporting capabilities enable our customers to mine, aggregate, analyze and report scientific data from disparate sources, thereby better utilizing scientific data within their organizations. For more information about Accelrys, visit its website at http://accelrys.com/.

Forward-Looking Statements:

Statements contained in this press release relating to the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Such forward-looking statements including, but not limited to, statements relating to the Company's products and prospects are subject to a number of risks and uncertainties. These include risks that the Company will not achieve its anticipated results due to, among other possibilities, an inability to withstand negative conditions in the global economy or a lack of demand for or market acceptance of the Company's products, as well as the risks and uncertainties that are contained from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended March 31, 2009, quarterly reports on Form 10-Q and current reports on Form 8-K. The Company's actual results could differ materially from those projected in such forward-looking statements due to these risks and uncertainties, and the Company disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future events or otherwise.

ACCELRYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
                                                                      Three Months Ended      Six Months Ended
                                                                      September 30,           September 30,
                                                                          2009        2008        2009            2008
Revenue                                                               $   19,988  $   20,112  $   40,129      $   40,412
Cost of revenue                                                           3,350       3,545       6,800           7,005
Gross profit                                                              16,638      16,567      33,329          33,407
Operating expenses:
Product development                                                       3,551       3,832       7,454           8,110
Sales and marketing                                                       7,812       8,190       15,955          16,307
General and administrative                                                3,412       3,259       7,070           6,720
Restructuring charges (recoveries)                                        17          8           (74    )        850
Total operating expenses                                                  14,792      15,289      30,405          31,987
Operating income                                                          1,846       1,278       2,924           1,420
Interest and other income, net                                            273         350         268             623
Income before taxes                                                       2,119       1,628       3,192           2,043
Income tax expense                                                        273         401         602             730
Net income                                                                1,846       1,227       2,590           1,313
Net income per share
Basic                                                                 $   0.07    $   0.05    $   0.09        $   0.05
Diluted                                                               $   0.07    $   0.04    $   0.09        $   0.05
Weighted average shares used to compute basic and diluted net income
per share
Basic                                                                     27,503      27,094      27,403          26,992
Diluted                                                                   27,901      27,367      27,662          27,177

ACCELRYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                      September 30,   March 31,
                                                      2009            2009
Assets
Cash, cash equivalents, and marketable securities(1)  $      79,983   $     81,769
Trade receivables, net                                       8,577          21,860
Other assets, net(2)                                         55,919         56,985
Total assets                                          $      144,479  $     160,614
Liabilities and stockholders' equity
Current liabilities, excluding deferred revenue              10,661         15,427
Total deferred revenue(3)                                    42,181         57,224
Noncurrent liabilities, excluding deferred revenue           7,256          7,204
Total stockholders' equity                                   84,381         80,759
Total liabilities and stockholders' equity            $      144,479  $     160,614

(1 )Cash, cash equivalents, and marketable securities consist of the following line items in our consolidated balance sheet: Cash and cash equivalents; Marketable securities; Marketable securities, net of current portion; and Restricted cash

(2 )Other assets, net, consists of the following line items in our consolidated balance sheet: Prepaid expenses, deferred tax assets and other current assets; Property and equipment, net; Goodwill; Purchased intangible assets, net; and Other assets

(3 )Total deferred revenue consists of the following line items in our consolidated balance sheet: Current portion of deferred revenue; and Deferred revenue, net of current portion

SOURCE: Accelrys, Inc.

Accelrys, Inc. 
Rick Russo, 858-799-5200 
or 
Investor Relations 
MKR Group 
Charles Messman or Todd Kehrli, 323-468-2300 
accl@mkr-group.com