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| SMMX > SEC Filings for SMMX > Form 8-K on 28-Oct-2009 | All Recent SEC Filings |
28-Oct-2009
Results of Operations and Financial Condition, Costs Associated with Exit
On October 28, 2009, Symyx Technologies, Inc. ("Symyx") issued a press release announcing Symyx's financial results for the third fiscal quarter ended September 30, 2009. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein in its entirety.
The information in this Item 2.02 and in Exhibit 99.1 attached to this report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing by Symyx under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language contained in such filing.
On October 23, 2009, the Board of Directors of Symyx committed Symyx to a plan of restructuring of its HPR business unit. The restructuring plan will be implemented to address underperformance in the company's contract development and manufacturing operations ("CDMO") acquired as part of the IntegrityBio acquisition in the third calendar quarter of 2008, and to address the anticipated decline in the demand for research services following the end of 2009. As part of the restructuring plan:
† the company expects to exit its Camarillo CDMO facility and to commence a plan to reduce its overall HPR staffing by approximately 75 employees, representing a 15% reduction in the company's total current headcount; and
† the company expects associated restructuring costs, including losses on the sale of assets in connection with the CDMO exit, will be $4.0 million to $5.0 million, of which approximately $1.5 million to $2.5 million will be cash.
Of the expected restructuring costs, approximately $1.5 million to $2.0 million is expected to be impairment of associated leasehold improvements and fixed assets, and approximately $1.0 million is losses on the sale of assets in connection with the CDMO exit. Of the cash costs, substantially all are expected to be employee severance expenses.
Symyx expects to complete the majority of the restructuring by December 31, 2009, with the remaining balance being substantially completed in the first quarter of 2010.
On October 23, 2009, Symyx management determined that, as a result of the actions referenced in Item 2.05 above, which information is incorporated by reference here, the company would incur a non-cash impairment charge of $1.5 million to $2.0 million.
The statements set forth in Items 2.05 and 2.06 above regarding the timing of
completion of the actions and the expected total cash impact of the actions 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 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, risks inherent in
significant restructuring efforts, which may affect the timing of the completion
of the actions and ultimate actual amounts of the cash impact. Symyx expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to these forward-looking statements, except as the law may require.
On October 23, 2009, it was determined that the employment of Richard Boehner, president of the company's High Productivity Research ("HPR") business unit, will terminate effective December 31, 2009. Isy Goldwasser, the company's chief executive officer, has assumed the role of interim president of HPR.
Exhibit
Number Description
99.1 Press Release issued on October 28, 2009, announcing financial
results for the third fiscal quarter ended September 30, 2009.
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