DAVIS, Calif.--(BUSINESS WIRE)--Marrone Bio Innovations, Inc. (the “Company” or “we”) (NASDAQ:MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced results for the first quarter ended March 31, 2017.
First Quarter Results
The Company reported that GAAP revenues grew by 56% to $4.2 million for the first quarter of 2017 as compared to $2.7 million in the first quarter of 2016.
First quarter 2017 product shipments1 grew by 66% to $6.5 million as compared to $3.9 million in the first quarter of 2016. The Company noted that this is the second consecutive quarter it has recorded record product shipment levels.
The Company’s ongoing growth reflects a number of important sources of strength, including increased grower adoption of the Company’s products, expanded labeling of certain products, growth in the Company’s customer base and growth in certain international markets.
Dr. Pam Marrone, Chief Executive Officer, commented, “We have achieved another quarter of excellent growth, with a new record of product shipments and solid improvement in gross margin. We believe that we are well positioned to continue to capture a powerful, technology-driven opportunity and to stand out as a high growth company in the relatively mature agricultural products market.”
Dr. Marrone continued, “Since the close of the first quarter, we have strengthened our balance sheet with the completion of a secondary offering with estimated net proceeds of $8.2 million and in March, the closing of a working capital line for up to $7.0 million. These new sources of capital have provided the support and flexibility we need to continue our growth in the near term.”
Dr. Marrone continued, “Our portfolio approach to product development has enabled broad-based growth with significant continued opportunities for each of our products. Increasingly, we expect to leverage our customer relationships and the growing power of our brand to market solutions to meet a wider range of unmet pest and disease challenges.”
The Company’s reported net loss for the first quarter of 2017 improved to $7.6 million, compared to a net loss of $9.3 million in the first quarter of 2016. This progress primarily reflects the strong level of year-over-year revenue and margin growth.
The Company’s gross margin of 45.1% in the first quarter of 2017 was a dramatic improvement as compared to a gross margin of 15.0% reported for the first quarter of 2016. First quarter product costs included $108,000 of unabsorbed costs related to capacity utilization at our manufacturing plant as compared to the 2016 first quarter’s level of such costs of $222,000, reflecting continued progress in capacity utilization.
Dr. Marrone concluded, “We are excited and energized by the ramping momentum in our business. We are focused on what we believe to be a powerful, unique opportunity for sustainable, bio-based solutions. Our products enhance yield and therefore profitability for farmers, while improving global environmental sustainability. We have confidence that 2017 will prove to be a pivotal year in the history of our Company and we are excited to have the ongoing opportunity to create meaningful value for our customers, our communities and our shareholders.”
