REDWOOD CITY, Calif., May 5, 2011 /PRNewswire/ -- Codexis, Inc. (NASDAQ: CDXS) today announced financial results for the first quarter ended March 31, 2011.
First Quarter Financial Highlights:
Revenue: For the first quarter of 2011, the company reported revenues of $31.0 million, an increase of 21% from $25.7 million in the first quarter of 2010. Product revenue of $12.9 million increased 106% over the same time period driven by more than $5 million in sales of the boceprevir intermediate to be used in Merck’s investigational Hepatitis C drug trade named Victrelis. Collaborative R&D revenue of $2.7 million increased from $0.7 million in the first quarter of 2010, driven mainly by funded research for our carbon capture program.
Operating Expenses: Research and development expenses in the first quarter of 2011 were $13.8 million, compared to $13.0 million for the first quarter of 2010. The increase was primarily due to an increase in amortization related to intellectual property purchased from Maxygen, Inc. in the fourth quarter of 2010 and higher depreciation and stock compensation expenses. Selling, general and administrative expenses in the first quarter of 2011 increased to $9.0 million compared to $8.6 million over the same period of 2010, driven by higher stock compensation expense and higher compensation expense due to headcount increases.
Net Loss: Net loss was ($3.5) million, or ($0.10) per share, based on 35.1 million weighted average common shares outstanding in the first quarter of 2011. This compares to a net loss of ($1.4) million or ($0.50) per share during the first quarter of 2010.
Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA decreased from $2.8 million in the first quarter of 2010 to $1.8 million in 2011. 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 March 31, 2011, increased to $82.0 million compared to $74.0 million at December 31, 2010. The company generated $7.3 million in cash from operations in the first quarter.
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.
For the full year 2011, Codexis forecasts revenues of $120 million or greater, which would represent growth of 12% or greater compared to 2010. Codexis expects 2011 Adjusted EBITDA will be $5 million or greater.
Recent Events
On April 7, 2011, Codexis announced a partnership with Alcoa and CO2 Solution, Inc. for a carbon capture technology pilot test designed to turn emissions into beneficial commercial products. The collaboration will use proprietary enzyme technologies to reduce the environmental impact of industrial byproducts. This new pilot program will be funded by Alcoa and includes $13.5 million from the U.S. Department of Energy.
On March 8, 2011, Codexis named Jacques Beaudry-Losique VP Corporate Development & Strategy. Mr. Beaudry-Losique joined Codexis from the U.S. Department of Energy, and is responsible for corporate strategic planning for Codexis’ bioindustrials businesses and directing the company’s government relations programs.
On February 17, 2011, Codexis announced that Byron Dorgan, former U.S. Senator from North Dakota, had been elected to the company’s Board of Directors. Senator Dorgan retired from the Senate in January 2011 after a 30-year career in the U.S. Congress.
On January 25, 2011, Codexis signed its first Japanese biocatalysis collaboration with Dainippon Sumitomo Pharma, one of the ten largest Japanese pharmaceutical manufacturers. Under the agreement, Codexis will supply biocatalysis screening products and services to DSP for use in selected undisclosed therapeutic products in its development pipeline.
On January 12, 2011, Codexis signed an enzyme supply agreement with DSM Pharmaceutical Products, the custom manufacturing organization of Royal DSM NV. The agreement grants DSM rights to use Codexis’ custom biocatalysts and services, and secures supply of Codexis enzymes for commercialization of sustainable enzyme-based pharmaceutical manufacturing routes developed by DSM’s InnoSyn route scouting services.
Conference Call
Codexis will hold a conference call for investors on May 5, 2011 at 1:30 p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US: 866-730-5771 or International: 857-350-1595, access code 43195209. 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 62515565 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 and carbon capture. Other potential markets for the company’s biocatalyst-enabled solutions include chemicals and water treatment.
Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s forecast for 2011 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’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 10, 2011, including under the caption “Risk Factors.” Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.
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Condensed Consolidated Statements of Operations | ||||||||
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(In Thousands, Except Per Share Amounts) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | % change | ||||||
Revenues: | ||||||||
Product | $ 12,932 | $ 6,275 | 106% | |||||
Related party collaborative research and development | 14,823 | 16,042 | -8% | |||||
Collaborative research and development | 2,663 | 661 | 303% | |||||
Government grants | 616 | 2,722 | -77% | |||||
Total revenues | 31,034 | 25,700 | 21% | |||||
Costs and operating expenses: | ||||||||
Cost of product revenues | 11,650 | 5,218 | 123% | |||||
Gross margin $ | 1,282 | 1,057 | ||||||
Gross margin % | 10% | 17% | ||||||
Research and development | 13,750 | 12,982 | 6% | |||||
Selling, general and administrative | 9,013 | 8,600 | 5% | |||||
Total costs and operating expenses | 34,413 | 26,800 | 28% | |||||
Loss from operations | (3,379) | (1,100) | 207% | |||||
Interest income | 49 | 28 | 75% | |||||
Interest expense and other, net | 17 | (358) | nm | |||||
Loss before provision (benefit) for income taxes | (3,313) | (1,430) | 132% | |||||
Provision (benefit) for income taxes | 158 | (61) | nm | |||||
Net loss | $ (3,471) | $ (1,369) | 154% | |||||
Net loss per share of common stock, | ||||||||
basic and diluted | $ (0.10) | $ (0.50) | ||||||
Weighted average common shares used in computing net loss per share of common stock, basic and diluted | 35,116 | 2,714 | ||||||
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Condensed Consolidated Balance Sheets | |||||||
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