-- Conference call today at 4:30 pm ET --
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov. 7, 2012--
Codexis, Inc. (NASDAQ: CDXS), a developer of world-leading enzymes and
processes for the production of pharmaceuticals, biofuels and bio-based
chemicals, today announced financial results for the third quarter ended
September 30, 2012.
“As promised, Codexis went about the hard, but crucial work this quarter
of strategically realigning the company for its forward growth strategy
following the loss of Shell funding,” said John Nicols, President and
CEO of Codexis. “In parallel, we are encouraged by solid developments in
our pharma business having recently finalized a new, more profitable
business arrangement with our manufacturing partner, Arch Pharmalabs. We
are also developing early prospects for commercialization partners for
our CodeXyme™ cellulase enzymes, which produce cellulosic sugars,”
Nicols added.
Third Quarter Financial Highlights:
Revenues for the third quarter of 2012 were $26.3 million, a 21%
decrease from $33.3 million in the third quarter of 2011. Product
revenue in the third quarter of 2012 was $7.1 million, a 41% decrease
from $12.2 million in the prior year quarter and a 5% sequential
increase from $6.8 million in the second quarter of 2012. Product gross
margin in the third quarter was 10%, compared to 18% in the prior year
quarter due to a higher percentage of generic products sales and lower
on patent sales in the third quarter of 2012. Collaborative research and
development revenue of $18.6 million decreased 3% from $19.2 million in
the third quarter of 2011.
Research and development expenses in the third quarter of 2012 were
$14.2 million, a decrease of 15% from $16.8 million for the third
quarter of 2011. The decrease was primarily due to headcount reductions
for the development of CodeXol™ detergent alcohol.
Selling, general and administrative expenses in the third quarter of
2012 were $7.9 million, a decrease of 11% compared to $8.9 million in
the same period of 2011. The decrease was primarily due to reductions in
headcount and other discretionary expenses during the third quarter of
2012.
Net loss was $2.3 million, or a loss of $0.06 per share, based on 37.1
million weighted average common shares outstanding in the third quarter
of 2012. This compares to a net loss of $2.7 million, or a loss of $0.08
per share during the third quarter of 2011.
On a non-GAAP basis, Adjusted EBITDA was income of $3.2 million in the
third quarter of 2012 compared to income of $2.6 million for the third
quarter of 2011. Adjusted EBITDA is calculated by adjusting net loss for
net interest income, income taxes, depreciation, amortization,
impairment of marketable securities and stock-based compensation. A
reconciliation of net loss to Adjusted EBITDA is presented below.
Cash, cash equivalents, and marketable securities at September 30, 2012
were $53.9 million.
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 2012, Codexis expects a decline in total revenues
relative to its full year 2011 total revenues of $124 million and
adjusted EBITDA to be negative. The Company anticipates its year-end
cash, cash equivalents, and marketable securities to be approximately
$45 million.
Conference Call
Codexis will hold a conference call on Wednesday, November 7, 2012, at
4:30 p.m. Eastern Time. 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 Investors
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 65902545 beginning
approximately two hours after the call, and will be available for up to
seven days. A webcast replay will also be available from the Investors
section of www.codexis.com
approximately two hours after the call, and will be available for up to
30 days.
About Codexis, Inc.
Codexis, Inc. is a developer of world-leading enzymes and processes for
the production of pharmaceuticals, biofuels and bio-based chemicals.
Codexis' product lines include CodeXyme™ cellulase enzymes and CodeXol™
detergent alcohol. Partners and customers include global leaders such as
Merck, Pfizer and Arch Pharmalabs. For more information, see www.codexis.com.
Forward-Looking Statements
This press release contains forward-looking statements relating to
Codexis’ forecast for 2012 revenue, Adjusted EBITDA, total cash burn and
total pharmaceutical product sales; Codexis’ ability to advance its
position in pharmaceuticals and to deliver against opportunities in
fuels and chemicals; Codexis’ ability to monetize its technology; and
Codexis’ ability to develop its enzyme package for second generation
ethanol. 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 Codexis’ control and
that could materially affect actual results. Factors that could
materially affect actual results include Codexis’ need for substantial
additional capital in the future in order to expand its business,
Codexis’ dependence on its collaborators, Codexis’ dependence on a
limited number of products and customers in its pharmaceutical business;
Codexis’ ability to secure third-party funding for its advanced biofuels
program; the success of Codexis’ recent cost saving measures, including
its recent reduction in force; and various challenges to the feasibility
of the production and commercialization of biofuels and bio-based
chemicals derived from cellulose and Codexis’ limited experience
manufacturing and selling cellulase enzymes. Additional factors that
could materially affect actual results can be found in Codexis’
Quarterly Report on Form 10-Q for the period ended September 30, 2012
filed with the Securities and Exchange Commission on November 7, 2012,
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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Codexis, Inc.
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Condensed Consolidated Statement of Operations
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(Unaudited)
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(In Thousands)
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Three Months Ended
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Nine Months Ended
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September 30
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September 30
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2012
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2011
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2012
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2011
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Revenues:
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Product
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7,140
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12,199
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29,090
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33,528
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Collaborative research and development
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18,569
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19,201
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49,049
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54,073
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Government awards
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632
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1,882
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2,247
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2,771
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Total revenues
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$
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26,341
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$
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33,282
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$
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80,386
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$
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90,372
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Costs and operating expenses:
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Cost of product revenues
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6,397
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9,958
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24,868
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28,713
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Research and development
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14,191
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16,786
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46,190
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45,502
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Selling, general and administrative
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7,909
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8,871
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24,093
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27,160
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.
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Total costs and operating expenses
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$
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28,497
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$
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35,615
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$
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95,151
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$
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101,375
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Loss from operations
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(2,156
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)
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(2,333
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)
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(14,765
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)
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(11,003
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)
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Interest income
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61
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76
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210
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195
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Other expenses
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(45
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)
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(411
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)
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(320
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)
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(378
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)
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Loss before provision for income taxes
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(2,140
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)
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(2,668
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)
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(14,875
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)
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(11,186
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)
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Provision for income taxes
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169
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74
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443
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|
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68
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Net loss
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$
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(2,309
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)
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$
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(2,742
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)
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$
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(15,318
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)
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$
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(11,254
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)
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Net loss per share of common stock, basic and diluted
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$
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(0.06
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)
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$
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(0.08
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)
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$
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(0.42
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)
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$
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(0.32
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)
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Weighted average common shares used in computing net loss per share
of common stock, basic and diluted
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37,116
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35,919
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36,494
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35,576
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Codexis, Inc.
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Condensed Consolidated Balance Sheets
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(Unaudited)
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(In Thousands)
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September 30,
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December 31,
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2012
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2011
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Assets
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Current assets:
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Cash and cash equivalents
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$
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25,573
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$
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25,762
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Marketable securities
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24,780
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27,720
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Accounts receivable, net
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16,527
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18,917
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Inventories
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2,760
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4,488
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Prepaid expenses and other current assets
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5,169
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|
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2,345
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Total current assets
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74,809
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79,232
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Restricted cash
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1,511
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1,511
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Non-current marketable securities
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3,578
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10,348
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Property and equipment, net
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19,892
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24,176
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Intangible assets, net
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13,777
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16,442
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Goodwill
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3,241
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3,241
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Other non-current assets
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2,228
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972
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Total assets
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$
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119,036
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$
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135,922
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Liabilities and stockholders' equity
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Current liabilities:
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Accounts payable
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$
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6,287
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$
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10,364
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Accrued compensation
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4,708
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6,785
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Other accrued liabilities
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7,419
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7,354
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Deferred revenues
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2,286
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3,789
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Total current liabilities
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20,700
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28,292
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Deferred revenues, net of current portion
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1,346
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1,485
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Other long-term liabilities
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3,994
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3,455
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Total liabilities
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26,040
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33,232
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Stockholders' equity:
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Common stock
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4
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4
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Additional paid-in capital
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293,163
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287,792
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Accumulated other comprehensive loss
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(154
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)
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|
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(407
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)
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Accumulated deficit
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(200,017
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)
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|
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(184,699
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)
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Total stockholders' equity
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92,996
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|
|
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102,690
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Total liabilities and stockholders' equity
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$
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119,036
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$
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135,922
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Reconciliation of GAAP to Non-GAAP Financial Information
In this press release, in addition to GAAP financial results, we present
Adjusted EBITDA because we believe it assists investors and analysts in
comparing our performance across reporting periods on a consistent basis
by excluding items that we do not believe are indicative of our core
operating performance. In addition, we use Adjusted EBITDA to evaluate
the effectiveness of our business strategies.
A reconciliation of GAAP net loss to Adjusted EBITDA is included in the
table below.
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|
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(Unaudited)
|
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(In Thousands)
|
|
|
|
|
|
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Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
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September 30,
|
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Calculation of Adjusted EBITDA
|
|
|
2012
|
|
|
|
2011
|
|
|
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2012
|
|
|
|
2011
|
|
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Net loss
|
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$
|
(2,309
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)
|
|
$
|
(2,742
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)
|
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$
|
(15,318
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)
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$
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(11,254
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)
|
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Adjustments:
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|
|
|
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|
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Minus: Interest income
|
|
|
(61
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)
|
|
|
(76
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)
|
|
(210
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)
|
|
|
(195
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)
|
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Plus: Income taxes
|
|
|
169
|
|
|
|
74
|
|
|
|
443
|
|
|
|
68
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Plus: Depreciation and amortization
|
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3,137
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|
|
|
2,846
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|
|
|
9,487
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|
|
|
8,465
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Plus: Stock-based compensation
|
|
|
1,466
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|
|
|
2,536
|
|
|
|
4,475
|
|
|
|
7,393
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Plus: Impairment of marketable securities
|
|
|
753
|
|
|
|
|
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Adjusted EBITDA
|
|
$
|
3,155
|
|
|
$
|
2,638
|
|
|
$
|
(370
|
)
|
|
$
|
4,477
|
|
Adjusted EBITDA has limitations as an analytical tool. Some of these
limitations are:
-
Adjusted EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual commitments;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs;
-
Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced
in the future, and Adjusted EBITDA does not reflect any cash
requirements for such replacements; and
-
Non-cash compensation is and will remain a key element of our overall
long-term incentive compensation package, although we exclude it as an
expense when evaluating our ongoing operating performance for a
particular period.
Because of these limitations, Adjusted EBITDA should not be considered
in isolation or as a substitute for performance measures calculated in
accordance with GAAP. We compensate for these limitations by relying
primarily on our GAAP results and using Adjusted EBITDA only
supplementally.
Codexis, Inc.
200 Penobscot Drive
Redwood City, CA 94063
Tel:
650-421-8100
www.codexis.com
Source: Codexis, Inc.
Codexis, Inc.
Investors: 212-362-1200
ir@codexis.com
Media:
Matthew
Hargarten, 312-377-4136
media@codexis.com
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