JUPITER, Fla., Nov. 3, 2011 /PRNewswire/ -- Dyadic International, Inc. (“Dyadic”) (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzyme and protein products for the bioenergy, industrial enzyme and biopharmaceutical industries, today announced financial results for the quarter ended September 30, 2011.
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The financial information contained in this press release should be read in conjunction with the financial statements and related footnotes which have been posted on the OTC market website at www.otcmarkets.com/stock/DYAI/financials and on Dyadic’s website at www.dyadic.com/wt/dyad/investors.
Dyadic’s President and Chief Executive Officer, Mark Emalfarb, stated, “In the third quarter, Dyadic continued to make strong progress in performing funded research at our facility in the Netherlands which not only increases our research and development revenue but also enhances our opportunities for broader strategic partnerships. We also continued to see improvements in the customer base and profitability of our industrial enzyme business. Lastly, our biofuels licensees reported progress in the third quarter in scaling up towards ultimate commercialization of second generation biofuels and biochemicals which may utilize our C1 technology.”
Financial Results
Total revenue for the third quarter ended September 30, 2011 increased 30% to $2.6 million compared to $2.0 million for the quarter ended September 30, 2010. Total revenue for the nine months ended September 30, 2011 increased 27% to $7.9 million compared to $6.2 million for the same period last year. The increase in total revenue for both periods as compared to the same periods ended September 30, 2010 was due to an increase in research and development revenue and, with respect to the nine month comparison, also due to an increase in license fee revenue.
Net product related revenue for the third quarter ended September 30, 2011 increased to $2.0 million compared to $1.9 million for the third quarter ended September 30, 2010. Net product related revenue for the nine months ended September 30, 2011 was flat as compared to the same period a year ago.
Research and development revenue for the third quarter ended September 30, 2011 increased to $536,000 compared to $64,000 for the third quarter ended September 30, 2010. Research and development revenue for the nine months ended September 30, 2011 increased to $1.3 million compared to $618,000 for the nine months ended September 30, 2010.
There was no license fee revenue for the third quarter ended September 30, 2011. License fee revenue for the nine months ended September 30, 2011 increased to $1.0 million compared to $32,000 for the nine months ended September 30, 2010. The increase in license fee revenue for the nine month period ended September 30, 2011 compared to the same period last year was due to an upfront license fee recognized in the second quarter of 2011 from a licensee in the animal feed industry.
Gross profit for the third quarter ended September 30, 2011 increased to $784,000 compared to $339,000 for the third quarter ended September 30, 2010. This increase was the result of higher research and development revenue and improved product margins. Gross profit for the nine months ended September 30, 2011 nearly doubled to $2.9 million compared to the same period last year due to increased margins on product revenue and the recognition of license fee income.
General and administrative expenses for the third quarter ended September 30, 2011 increased to $1.3 million compared to $1.1 million for the third quarter ended September 30, 2010. For the nine months ended September 30, 2011, general and administrative expenses increased to $4.4 million compared to $3.7 million for the nine months ended September 30, 2010. The increase in both periods was due to costs incurred by Dyadic in the completion of the arbitration of its professional liability lawsuit against its former auditors, as well as additional business development costs.
Net loss for the third quarter ended September 30, 2011 was $1.3 million, or $(0.04) per basic and diluted share, compared to a net loss of $1.4 million, or $(0.04) per basic and diluted share for the third quarter ended September 30, 2010. Net loss for the nine months ended September 30, 2011 was $3.6 million, or $(0.11) per basic and diluted share, compared to a net loss of $3.9 million, or $(0.13) per basic and diluted share, for the nine months ended September 30, 2010.
At September 30, 2011, cash and cash equivalents were $4.0 million compared to $4.5 million at December 31, 2010. During the third quarter of 2011, Dyadic raised $3.0 million through the private placement of convertible subordinated secured promissory notes, of which $2.4 million was received during the third quarter as reflected in the condensed consolidated balance sheet as of September 30, 2011. The remaining $600,000 was received in October and will be reflected in the year-end financial statements. A significant portion of the decrease in cash since the end of last year was due to costs incurred by Dyadic in the completion of the arbitration of its professional liability lawsuit against its former auditors.
Conference Call
Dyadic’s third quarter 2011 financial results conference call is scheduled for 5:00 p.m. Eastern Time on Thursday, November 3, 2011. The conference call may be accessed by dialing 888-661-5176 (from the United States or Canada) or 913-312-0702 (from other countries) five to ten minutes prior to start time and providing the passcode 3489907. A replay of the conference call will be available on the Dyadic website (www.dyadic.com) shortly after the live event.
About Dyadic
Dyadic International, Inc. is a global biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of enzyme and protein products for the bioenergy, industrial enzyme and biopharmaceutical industries.
Dyadic trades on the OTC Pink tier of the OTC market. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC market website (www.otcmarkets.com/stock/DYAI/quote).
