Financial Highlights
Revenue: For the third quarter of 2010, the company reported revenues of $27.1 million, an increase of 35% from $20.1 million in the third quarter of 2009, primarily due to an increase of $4.9 million in product revenue, representing an increase of 105% over the same time period.
Operating Expenses: Research and development expenses in the third quarter of 2010 were $13.1 million, compared to $12.2 million for the third quarter of 2009. The increase was primarily due to higher depreciation and stock-based compensation expenses. Selling, general and administrative expenses in the third quarter of 2010 declined to $7.9 million compared to $8.7 million same period of 2009 primarily due to a reduction in discretionary expenses.
Net Income/(Loss): Net loss was ($2.7) million, or ($0.08) per share, based on 34.2 million weighted average common shares outstanding in the third quarter of 2010. This compares to a net loss of ($6.2) million during the third quarter of 2009.
Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA increased from ($2.7) million in the third quarter of 2009 to $2.1 million in 2010. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization, stock-based compensation and preferred stock warrant fair market valuation. A reconciliation of net loss to Adjusted EBITDA is presented below.
Cash: Cash, cash equivalents and marketable securities at September 30, 2010 decreased to $99.3 million compared to $100.3 million at June 30, 2010.
Outlook
Codexis' statements with regard to its outlook are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.
Codexis increases its full year revenue guidance for 2010. For full year 2010, Codexis forecasts revenues of greater than $100 million, which would represent growth of 21% or greater compared to 2009. Codexis affirms its expectation that Adjusted EBITDA will be positive for the full year 2010; and expects Adjusted EBITDA will be greater than $7 million for the year.
Conference Call
Codexis will hold a conference call for investors on October 28, 2010 at 1:30 p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US: 866-788-0541 or International: 857-350-1679, access code 54501345. A live webcast of the call will also be available from the Investor Relations section of www.codexis.com. A recording of the call will be available by calling US: 888-286-8010 or International: 617-801-6888, access code 43072209 beginning approximately two hours after the call, and will be available for up to thirty days. A webcast replay from today's call will also be available from the Investor Relations section of www.codexis.com approximately two hours after the call and will be available for up to thirty days.
About Codexis, Inc.
Codexis is a clean technology company. Codexis develops optimized biocatalysts that make industrial processes faster, cleaner and more efficient. Codexis' technology is commercialized with leading global pharmaceutical companies and in development for advanced biofuels with Shell. Other potential markets for the company's biocatalyst-enabled solutions include carbon capture, water treatment and chemicals.
Forward-Looking Statements
This press release contains forward-looking statements relating to the company's forecast for 2010 revenue and Adjusted EBITDA, which is defined elsewhere in this press release. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results. Factors that could materially affect actual results can be found in Codexis' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 6, 2010, including under the caption "Risk Factors." Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.
Codexis, Inc. | ||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||
(Unaudited) | ||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | % | September 30, | % | |||||||||||
2010 | 2009 | change | 2010 | 2009 | change | |||||||||
Revenues: | ||||||||||||||
Product | $ 9,491 | $ 4,636 | 105% | $ 24,250 | $ 13,401 | 81% | ||||||||
Related party collaborative research and development | 16,178 | 15,000 | 8% | 46,873 | 43,963 | 7% | ||||||||
Collaborative research and development | 1,065 | 426 | 150% | 2,577 | 1,295 | 99% | ||||||||
Government grants | 379 | - | nm | 3,593 | 11 | nm | ||||||||
Total revenues | 27,113 | 20,062 | 35% | 77,293 | 58,670 | 32% | ||||||||
Costs and operating expenses: | ||||||||||||||
Cost of product revenues | 8,563 | 4,618 | 85% | 19,856 | 11,886 | 67% | ||||||||
Gross margin $ | 928 | 18 | 4,394 | 1,515 | ||||||||||
Gross margin % | 10% | 0% | 18% | 11% | ||||||||||
Research and development | 13,070 | 12,239 | 7% | 39,056 | 39,486 | -1% | ||||||||
Selling, general and administrative | 7,940 | 8,699 | -9% | 25,192 | 20,939 | 20% | ||||||||
. | . | |||||||||||||
Total costs and operating expenses | 29,573 | 25,556 | 16% | 84,104 | 72,311 | 16% | ||||||||
Loss from operations | (2,460) | (5,494) | -55% | (6,811) | (13,641) | |||||||||
