Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts
company, announced today results for the first quarter ended March
31, 2015.
“We are executing against our operating plan for 2015 and are
pleased with the progress we are seeing across the company and in
our manufacturing and commercialization efforts specifically,” said
Jonathan Wolfson, CEO of Solazyme. “Advances are being made at the
Moema JV production facility in Brazil including substantial
improvements in downstream processing efficiency and oil production
as well as in overall up-time and integrated operations. On the
commercial side, we are moving forward as well. Recent progress
includes the announced Flotek strategic partnership for Encapso™
and Flocapso™, new AlgaVia™ food ingredient customers and the
expansion of our relationship with Bunge to cover a next generation
food ingredient.”
Financial Results
Total revenue for the first quarter ended March 31, 2015 was
$12.6 million compared with $12.4 million in the first quarter of
2014, while product revenue of $8.8 million was up 20% versus the
comparable quarter. GAAP net loss was $34.7 million for the first
quarter of 2015, unchanged from the first quarter of the prior
year. On a non-GAAP basis, the net loss was $29.5 million for the
first quarter of 2015, compared with net loss of $30.5 million in
the prior year quarter. A reconciliation of GAAP to non-GAAP
results is included below.
“During the first quarter, we continued to build the market for
our AlgaVia™ food ingredients business, which had its best quarter
yet, and our Algenist® personal care brand turned in 26%
year-on-year growth,” said Tyler Painter, COO and CFO of Solazyme.
“We are focused on sales as well as overall financial performance
and continue to believe that we are well positioned to profitably
commercialize our products globally.”
Business Review
- Moema: During the first quarter
of 2015, we experienced improved downstream recovery rates from
production and were able to run greater volumes through the
facility. Although we continue to experience some power and steam
intermittency, fixes implemented to date have led to improved
reliability, and we have experienced multi-week periods where the
facility has run on a continuous, fully integrated basis. Key steam
and power redundancy projects remain on track to be completed by
the end of the second quarter.
- Encapso™: We reached a strategic
alliance agreement with Flotek under which Flotek will market
Solazyme’s Encapso, the first commercially available, biodegradable
encapsulated lubricant for drilling fluids, in certain Middle
Eastern markets. The companies also reached a joint product
development and marketing agreement to globally commercialize
Flocapso™, an innovative, advanced drilling fluid. During the
quarter, we also secured our first customer in South America,
further expanding Encapso’s geographic reach.
- Algenist®: We had
another quarter of double digit year-on-year revenue growth as we
continue to grow and expand our Algenist brand, which is now
distributed in 22 countries with 36 SKUs. We currently have two new
launches in process including a Genius Bi-Phase Peel at Sephora and
QVC and Sublime Defense Anti-Aging Moisturizer with SPF 30,
launching at QVC, Sephora, Ulta and select Nordstrom
locations.
- AlgaVia™: First quarter revenues
were the highest to date for our AlgaVia food ingredient product
line. We continue to add new projects with food and beverage
manufacturers, as well as three new customers for lipid powders and
protein ingredients.
- Partner Developments: We
expanded our relationship with Bunge and entered into a new joint
development agreement for a next generation food ingredient.
Conference Call
Solazyme will hold a conference call for investors on May 6,
2015 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the call
by dialing 973-409-9250. A live webcast of the call will be
available from the Investor Relations section of www.solazyme.com.
A recording of the call will also be available by calling
404-537-3406; access code 26374695 beginning approximately two
hours after the call, and will be available for one week. A webcast
replay from today’s call will also be available from the Investor
Relations section of www.solazyme.com approximately two hours after
the call and will be available for up to thirty days.
About Solazyme, Inc.
Solazyme, Inc. develops and sells high-performance oils and
ingredients that are better for people and better for the planet.
Starting with microalgae, the world's original oil producer,
Solazyme creates innovative, sustainable, high-performance
products. These include renewable oils and ingredients that serve
as the foundation for healthier foods; high-performance industrial
products; unique home and personal care solutions; and more
sustainable fuels. Headquartered in South San Francisco, Solazyme's
mission is to solve some of the world's biggest problems with one
of the world's smallest and earliest life forms: microalgae.
For additional information, please visit Solazyme's website at
www.solazyme.com.
Solazyme®, Algenist®, AlgaVia™, Encapso™, the Solazyme logo and
other trademarks or service names are the trademarks of Solazyme,
Inc.
Non-GAAP Financial Measures
This press release includes the following financial measures
defined as a “non-GAAP financial measure” by the Securities and
Exchange Commission: non-GAAP net-loss and net-loss per share.
These measures may be different from non-GAAP financial measures
used by other companies. The presentation of this financial
information, which is not prepared under any comprehensive set of
accounting rules or principles, is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with generally accepted accounting
principles. For a reconciliation of these non-GAAP financial
measures to the nearest comparable GAAP measure, see
“Reconciliation of GAAP to Non-GAAP Net-Loss and Net-Loss Per
Share” included in the tables to this press release.
These non-GAAP measures are provided to enhance investors’
overall understanding of Solazyme’s current financial performance
and Solazyme’s prospects for the future. Specifically, Solazyme
believes the non-GAAP measures provide useful information to both
management and investors by excluding certain expenses that may not
be indicative of its core operating results and business
outlook.
For its internal budgeting process, Solazyme’s management uses
financial measures that do not include stock-based compensation
expense or special expenses such as non-cash gains or losses
related to derivative liabilities and warrant revaluations. In
addition to the corresponding GAAP measures, Solazyme’s management
also uses the foregoing non-GAAP measures in reviewing the
financial results of Solazyme. Solazyme excludes stock-based
compensation expenses and special non-cash charges from its
non-GAAP measures primarily because they are non-cash expenses that
management does not believe are reflective of ongoing operating
results.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: its commercialization and production
plans; the commissioning of equipment and the ramping up of
facilities; meeting commercialization and technology targets;
successful product trials and market acceptance of its products;
and Solazyme’s ability to maintain its relationships with its
partners. When used in this press release, the words “will”,
“expects”, “intends” and other similar expressions and any other
statements that are not historical facts are intended to identify
those assertions as forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any such
statement may be influenced by a variety of factors, many of which
are beyond the control of Solazyme, that could cause actual
outcomes and results to be materially different from those
projected, described, expressed or implied in this press release
due to a number of risks and uncertainties. Potential risks and
uncertainties include, among others: Solazyme’s limited operating
history; its limited history in commercializing products;
implementation risk in deploying new technologies; its limited
experience in constructing, ramping up and operating commercial
manufacturing facilities; its ability to sell its products at a
profit; delays related to construction, start-up and ramp-up of
production facilities; its ability to manage operational costs at
production facilities; its ability to enter into and maintain
strategic collaborations; successful product trials by its
customers and market acceptance of its products by end-users; its
ability to obtain requisite regulatory approvals; and its access,
on favorable terms, to any required financing. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what impact they will have on the results of operations
or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc.
files with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, as updated from time to time, for a
discussion of these and other risks. You are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date of this press release. Solazyme is not under any duty
to update any of the information in this press release.
SOLAZYME, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS In thousands, except per share amounts
(UNAUDITED)
Three Months EndedMarch
31,
2015 2014
Revenues
Product revenues $ 8,821 $ 7,348 Research and development programs
3,784 5,043 Total revenues
12,605 12,391
Costs and
operating expenses (1)
Cost of product revenue 4,670 3,390 Research and development 12,554
20,835 Sales, general and administrative 21,268 20,607
Restructuring charges 424 - Total costs
and operating expenses
38,916
44,832 Loss from operations
(26,311 )
(32,441 )
Other income
(expense) (2)
Interest and other income (expense), net (3,273 ) (1,112 ) Loss
from equity method investments (5,066 ) (3,834 ) Gain from change
in fair value of warrant liability - 688 (Loss) gain from change in
fair value of derivative liabilities (15 ) 2,018
Total other income (expense)
(8,354 )
(2,240 ) Net loss $
(34,665 ) $ (34,681 ) Net
loss per share - basic and diluted $ (0.44
) $ (0.50 )
Weighted average number of common
shares used in net loss per sharecomputation - basic and
diluted
79,650 69,213 SOLAZYME, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET LOSS AND NET LOSS PER
SHARE In thousands, except per share amounts (UNAUDITED)
Three Months EndedMarch
31,
2015 2014 Net loss $ (34,665 ) $ (34,681 )
Gain from change in fair value of warrant liability - (688 ) Loss
(gain) from change in fair value of derivative liabilities 15
(2,018 )
(1) Operating expenses includes costs as follows:
Research and development 1,112 1,820 Sales, general and
administrative 2,958 4,789 Total
stock-based compensation expense 4,070 6,609 Restructuring charges
424 -
(2) Other income (expense) includes costs as follows:
Amortization of debt discount and issuance costs 623
250
Net loss (non-GAAP) $
(29,533 ) $ (30,528 ) Net
loss per share (GAAP) - basic and diluted $ (0.44 ) $ (0.50 )
Gain from change in fair value of warrant liability - (0.01
) Loss (gain) from change in fair value of derivative liabilities -
(0.03 ) Stock-based compensation expense 0.05 0.10 Restructuring
charges 0.01 - Amortization of debt discount and issuance costs
0.01 -
Net loss per share (non-GAAP)
- basic and diluted $ (0.37 ) $
(0.44 ) SOLAZYME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS In thousands
(UNAUDITED)
March 31,
December 31,
2015 2014
Assets
Current
assets
Cash, cash equivalents and marketable securities $ 173,579 $
207,308 Other current assets 24,513 26,619
Total
current assets 198,092 233,927 Property, plant
and equipment - net 34,311 36,080 Other assets 41,192
42,582
Total assets $ 273,595 $
312,589
Liabilities and
stockholders' equity
Current
liabilities
Current portion of long-term debt $ - $ 6 Other current liabilities
18,597 23,448
Total current liabilities
18,597 23,454 Other liabilities 4,025 2,668 Long-term
debt 200,686 200,091
Total liabilities
223,308 226,213 Total stockholders'
equity 50,287 86,376 Total
liabilities and stockholders' equity $ 273,595
$ 312,589
Solazyme, Inc.Corporate Communications:Genet
Garamendipress@solazyme.comorMike SmargiassiBrad EdwardsBrainerd
Communicators,
Inc.212-986-6667smarg@braincomm.comedwards@braincomm.com