Solazyme Reports Third Quarter 2012 Results

  Solazyme Reports Third Quarter 2012 Results

 Renewable Oil Production Capacity Buildouts in Brazil and France on Schedule

  Executes JV Expansion Framework Agreement with Bunge Which Sets Forth the
Intent to Expand the Solazyme Bunge Renewable Oils JV to 300,000 MT Annualized

     Enters Strategic Collaboration, Manufacturing and Market Development
  Agreements with Archer Daniels Midland Company Including Capital Efficient
                   Manufacturing Capacity in North America

Business Wire

SOUTH SAN FRANCISCO, Calif. -- November 14, 2012

Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company,
announced today financial results for the third quarter ended September 30,
2012 and recent key corporate highlights.

The Company also announced separately today two important business

  *The signing of a JV Expansion Framework Agreement for its Solazyme Bunge
    Renewable Oils JV, which sets forth the intent to increase production
    capacity to 300,000 MT annually by 2016, includes new plans to broaden the
    portfolio of oils produced by the JV and describes joint market
    development for tailored food oils in Brazil; and
  *The signing of strategic collaboration, manufacturing and market
    development agreements in which Solazyme and the Archer-Daniels-Midland
    Company (NYSE: ADM) will produce Solazyme’s tailored algal oils in ADM’s
    advanced fermentation plant in Clinton, Iowa.

“We continue to execute on our commercialization strategy, highlighted by
on-target progress with our capacity build-outs, the execution of a JV
expansion framework agreement with Bunge, and our new strategic relationship
with ADM,” said Jonathan Wolfson, CEO of Solazyme. "We are actively supplying
tailored oils from Peoria to customers, and positioning ourselves for our
future commercial-scale operations when Moema, Clinton and other facilities
come online.”

“At the same time, we have made substantial progress in recent months in
growing our portfolio of high-value tailored triglyceride oil profiles
targeted at attractive markets in food, confectionary and personal care,”
Wolfson continued. “These developments are enabling us to showcase our value
proposition to potential customers across attractive end markets, a key step
in our strategy for long-term value creation.”

Financial Results

Total revenue for the third quarter ended September 30, 2012 was $8.6 million
compared with $8.9 million in the third quarter of 2011. Third quarter GAAP
net loss was $22.5 million, which compares with net loss of $14.1 million in
the prior year period. On a non-GAAP basis, the net loss attributable to
Solazyme, Inc. common stockholders was $19.4 million for the third quarter of
2012, compared with net loss attributable to common stockholders of $11.5
million in the prior year quarter. A reconciliation of GAAP to non-GAAP
results is included below.

“We continue to prudently manage the business, and we are proud to remain on
schedule with all major projects. We have a healthy balance sheet and
increasing partner commitments, and we are making steady progress against our
planned capacity and commercialization strategy,” said Tyler Painter, CFO of

Other Recent Business Highlights

  *Solazyme Bunge Renewable Oils pours foundation for Brazil facility:
    Solazyme and Bunge Global Innovation LLC (“Bunge”), a wholly-owned
    subsidiary of Bunge Limited (NYSE: BG), remain on track for a 100,000
    metric ton renewable oil production facility adjacent to Bunge’s Moema
    sugarcane mill in Brazil. The earthwork has been concluded and the
    foundation work recently begun.
  *Solazyme Roquette Nutritional Joint Venture Continues Forward: The  Phase
    II buildout for 5,000 MT of production in Lestrem is on track for
    completion in 2Q13.
  *Peoria Manufacturing Operation: Peoria is currently producing high oleic
    and lauric oils, among others, for partners and routinely shipping
    multi-ton tailored oil samples to strategic partners.
  *Algenist®: Revenue continues to climb reaching nearly $12 million for the
    year to date, more than double the comparable year-ago period. During the
    third quarter, we introduced two new SKUs, bringing the total number to

Conference Call

Solazyme will hold a conference call for investors on November 14 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 A recording of the call will also be available by calling
404-537-3406; access code 38851131 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
approximately two hours after the call and will be available for up to thirty

About Solazyme, Inc.

Solazyme, Inc. (SZYM) is a renewable oil and bioproducts company that
transforms a range of low-cost plant-based sugars into high-value oils.
Headquartered in South San Francisco, Solazyme's renewable products can
replace or enhance oils derived from the world's three existing sources –
petroleum, plants and animal fats. Initially, Solazyme is focused on
commercializing its products into three target markets: (1) fuels and
chemicals, (2) nutrition and (3) skin and personal care.

Solazyme®, the Solazyme logo and other trademarks or service names are
trademarks of Solazyme, Inc.

Non-GAAP Financial Measures

This press release includes the following financial measure defined as a
“non-GAAP financial measure” by the Securities and Exchange Commission:
non-GAAP net loss. This measure 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 this
non-GAAP financial measure to the nearest comparable GAAP measure, see
“Reconciliation of GAAP to Non-GAAP Net-Loss Per Share” included in the tables
to this press release.

This non-GAAP measure is 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 measure provides 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 due to warrant revaluations. In
addition to the corresponding GAAP measures, Solazyme’s management also uses
the foregoing non-GAAP measure 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

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 plans and commercialization timetable for
tailored oils; market opportunities; the capacity of planned facilities; the
timetable for bringing facilities online; development of additional tailored
oils; meeting commercialization and technology targets; 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 and operating
commercial manufacturing facilities; market acceptance of its products; delays
related to construction or start-up of production facilities; its access to
adequate supply of feedstock on favorable terms; its ability to manage
operational costs at production facilities; its ability to manage operational
costs at production facilities; its ability to enter into and maintain
strategic collaborations; 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 Quarterly Report on Form
10-Q for the quarter ended June 30, 2012 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.



Three and nine months ended September 30, 2012 and 2011

In thousands, except per share amounts
                 Three Months Ended September     Nine Months Ended September
                  30,                              30,
                    2012           2011         2012        2011    
Revenues          (Unaudited)                      (Unaudited)
Research and
development       $  4,810         $  7,051       $  23,838      $ 18,542
Product              3,773             1,886          11,846         5,535
Total revenues       8,583             8,937          35,684         24,077
Costs and
expenses (1)
Cost of product      1,331             554            3,907          1,592
Research and         16,534            10,866         50,276         28,692
Sales, general
and                 13,849         11,527       41,628      28,591  
Total costs and
operating            31,714            22,947         95,811         58,875
Loss from            (23,131  )        (14,010 )      (60,127  )     (34,798 )
Other income
Interest and
other income         626               (76     )      1,262          115
(expense), net
Loss on equity
method               (683     )        -              (1,193   )     -
Gain (Loss)
from change in
fair value of       685            -            1,536       (3,637  )
Total other
income               628               (76     )      1,605          (3,522  )
Net Loss             (22,503  )        (14,086 )      (58,522  )     (38,320 )
Accretion of
redeemable          -              -            -           (60     )
preferred stock
Net loss
attributable to
Solazyme, Inc.    $  (22,503  )    $  (14,086 )   $  (58,522  )  $ (38,380 )
Net loss per
attributable to
Solazyme, Inc.    $  (0.37    )    $  (0.24   )   $  (0.97    )  $ (1.15   )
basic and
average number
of common
shares used in       60,678            59,508         60,387         33,272
loss per share
basic and
of GAAP to        Three Months Ended September     Nine Months Ended September
non-GAAP basic    30,                              30,
net loss per
In thousands,
except per          2012           2011         2012        2011    
share amounts
                  (Unaudited)                      (Unaudited)
Net loss
attributable to
Solazyme, Inc.    $  (22,503  )     $  (14,086 )   $  (58,522  )   $ (38,380 )
Gain (Loss)
from change in
fair value of        (685     )        -              (1,536   )     3,637
(1) Operating expenses include
stock-based compensation expense
as follows:
Research and         1,001             534            2,939          1,567
Sales, general
and                 2,742          2,018        8,619       6,008   
stock-based          3,743             2,552          11,558         7,575
Net loss
attributable to
Solazyme, Inc.    $  (19,445  )    $  (11,534 )   $  (48,500  )  $ (27,168 )
Basic and
diluted loss
per share
attributable to   $  (0.37    )     $  (0.24   )   $  (0.97    )   $ (1.15   )
Solazyme, Inc.
Gain (Loss)
from change in
fair value of        (0.01    )        -              (0.02    )     0.11
compensation         0.06              0.05           0.19           0.22
Net loss per
attributable to
Solazyme,Inc.     $  (0.32    )    $  (0.19   )   $  (0.80    )  $ (0.82   )
Consolidated      September 30,     December 31,
Balance Sheets
In thousands        2012           2011    
                  (Unaudited)       (Unaudited)
Current assets
Cash, cash
equivalents and   $  167,101        $  243,724
Other current        18,353            15,169
Total current        185,454           258,893
Property, plant
and equipment -      32,269            25,985
Other assets         20,010            346
Total assets      $  237,733      $  285,224 
Liabilities and
Current portion
of long-term      $  7,255          $  5,289
Other current        15,894            23,923
Total current        23,149            29,212
Other                1,936             491
Long-term debt      8,587          14,963  
Total               33,672         44,666  
stockholders'        204,061           240,558
liabilities and   $  237,733      $  285,224 


Solazyme, Inc.
Corporate Communications:
Genet Garamendi
Brainerd Communicators, Inc.
Jeff Majtyka, 212-986-6667
Mike Smargiassi, 212-986-6667
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