Breaking News

Tweet TWEET

Solazyme Reports First Quarter 2013 Results

  Solazyme Reports First Quarter 2013 Results

  Enters Agreement with AkzoNobel Targeting Surfactants and Coatings Markets

                  Commercial Production Facilities on Track

   Further Expands Disruptive Technology Platform with New Oil Structuring
                                  Capability

Business Wire

SOUTH SAN FRANCISCO, Calif. -- May 08, 2013

Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company,
announced today results for the first quarter ended March 31, 2013.

“We are off to an excellent start in 2013 executing on our three primary focus
areas: completing capacity projects on schedule; developing our portfolio of
tailored oils; and bringing our tailored oils to market,” said Jonathan
Wolfson, CEO of Solazyme. “In addition to the newly announced agreement with
AkzoNobel, the first quarter included several important milestones such as our
Mitsui partnership, our technology breakthrough that allows us to develop new
structuring oils, and key financing achievements that support a clear path to
commercialization. We remain on target to be in commercial production in
multiple facilities by early 2014 and are excited about the opportunities
ahead.”

Financial Results

Total revenue for the first quarter ended March 31, 2013 was $6.7 million
compared with $13.6 million in the first quarter of 2012. Revenues in the
first quarter of 2012 included $5.5 million in government funded revenues,
which as expected did not recur during the first quarter of 2013. First
quarter GAAP net loss attributable to Solazyme, Inc. common stockholders was
$26.5 million, which compares with net loss of $16.8 million in the prior year
period. On a non-GAAP basis, the net loss was $21.5 million for the first
quarter of 2013, compared with net loss of $12.8 million in the prior year
quarter. A reconciliation of GAAP to non-GAAP results is included below.

“We strengthened our financial position with over $250 million in new capital
through a number of strategic initiatives including a successful convertible
offering, a strategic project financing from the Brazilian Development Bank
and a new credit facility with one of our commercial banking partners,” said
Tyler Painter, CFO of Solazyme. “Our enhanced capital structure and operating
flexibility position us well as we pursue a number of exciting opportunities
for Solazyme.”

Recent Business Highlights

  *Solazyme Further Expands Tailored Oils Platform Technology: Solazyme has
    added the ability to control the location of specific fatty acids on the
    glycerol backbone to its previously announced ability to control chain
    length and saturation, creating an unprecedented tailored oil technology
    platform that enables development of new structuring oils. The entire
    suite of triglyceride oil properties (nutritional, physical, and
    functional) can now be optimized using Solazyme’s technology platform.
  *Solazyme Enters Joint Development Agreement With AkzoNobel Targeting
    Specialty Surfactants and Paints and Coatings: New agreement targets the
    development of advanced tailored oils and commercial sales for near-term
    product supply. Tailored oils can enhance or replace petroleum-derived
    chemicals and improve upon the performance of plant oils and animal fats.
    Commercial supply of highly sustainable algal oil is anticipated to
    originate from the Solazyme Bunge Renewable Oils Joint Venture oil
    manufacturing plant in Brazil. Sales of product are targeted to commence
    in 2014, with pricing to be competitive and based upon Solazyme’s cost of
    manufacturing.
  *Solazyme Enters into a Multi-Oil Joint Development Agreement with Mitsui:
    Solazyme and Mitsui & Co., Ltd. entered an agreement to jointly develop a
    suite of triglyceride oils for use primarily in the oleochemical industry.
    Solazyme and Mitsui are working together to further develop Solazyme's
    high-myristic algal oil as well as additional high-value oils targeting
    the oleochemical and industrial sectors.
  *Solazyme Bunge Renewable Oils Enters into Loan Agreement for $120 Million
    in Project Financing for Renewable Oil Production Facility in Brazil:
    Solazyme Bunge Renewable Oils, the joint venture between Solazyme and
    Bunge Global Innovation LLC, a wholly owned subsidiary of Bunge Limited,
    finalized and executed the loan agreement for approximately $120 million
    in project financing with the Brazilian National Development Bank (BNDES).
    When closed, the financing will be used to support Solazyme Bunge
    Renewable Oils’ first commercial scale renewable oil production facility
    in Brazil.
  *Senior Subordinated Notes Offering Further Strengthens Financial Position:
    Solazyme raised $125 million in gross proceeds through the successful
    completion of an offering of 6% Convertible Senior Subordinated Notes due
    2018. Solazyme intends to use the proceeds to fund projects and capital
    expenditures and for general corporate purposes.

Conference Call

Solazyme will hold a conference call for investors on May 8, 2013 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 43763171 beginning approximately two hours after the
call, and will be available for one week. A webcast replay of the 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. (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) chemicals and
fuels, (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
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 plans and commercialization timetable for
tailored oils; market opportunities; agreement on definitive supply terms for
products, including selling prices for products; the capacity of planned
facilities; the timetable for bringing facilities online; the ability to bring
manufacturing facilities online with partners; the ability to have access
and/or continue to have access to manufacturing facilities constructed and/or
owned by partners; development of additional tailored oils; meeting
commercialization and technology targets; and Solazyme’s ability to maintain
its relationships with its partners and customers. 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; its
ability to sell its products at a profit; delays related to construction,
start-up or funding 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 enter into and maintain strategic
collaborations, including the funding thereof; 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
for the year ended December 31, 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.

                                                                
SOLAZYME, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
(UNAUDITED)
                                                                   
                                                     Three Months Ended

                                                     March 31,
                                                      2013       2012    
Revenues
Research and development programs                    $ 2,680       $ 9,560
Product revenues                                      4,000       3,996   
Total revenues                                         6,680         13,556
                                                                   
Costs and operating expenses (1)
Cost of product revenue                                1,454         1,246
Research and development                               13,720        15,361
Sales, general and administrative                     14,866      14,056  
Total costs and operating expenses                    30,040      30,663  
Loss from operations                                   (23,360 )     (17,107 )
                                                                   
Other income (expense) (2)
Interest and other income (expense), net               (1,523  )     327
Loss from equity method investment                     (959    )     -
Gain from change in fair value of warrant              54            -
liability
Loss from change in fair value of derivative          (737    )    -       
liability
Total other income (expense)                          (3,165  )    327     
Net loss                                             $ (26,525 )   $ (16,780 )
Net loss per share, basic and diluted                $ (0.43   )   $ (0.28   )
                                                                   
Weighted average number of common shares used in       61,543        60,101
loss per share computation, basic and diluted
                                                                             

SOLAZYME, INC.
RECONCILIATION OF GAAP TO NON-GAAP BASIC NET LOSS PER SHARE
In thousands, except per share amounts
(UNAUDITED)
                                                                
                                                     Three Months Ended

                                                     March 31,
                                                      2013        2012    
Net loss                                             $ (26,525 )   $ (16,780 )
                                                                   
Gain from change in fair value of warrant              (54     )     -
liability
Loss from change in fair value of derivative           737           -
liability
(1) Operating expenses include stock-based
compensation expense as follows:
Research and development                               1,089         925
Sales, general and administrative                     2,916       3,065   
Total stock-based compensation expense                 4,005         3,990
(2) Other income (expense) includes amortization
costs as follows:
Amortization of debt discount and issuance costs      335         -       
Net loss (non-GAAP)                                  $ (21,502 )   $ (12,790 )
                                                                   
Basic and diluted loss per share (GAAP)              $ (0.43   )   $ (0.28   )
Gain from change in fair value of warrant              -             -
liability
Loss from change in fair value of derivative           0.01          -
liability
Stock-based compensation expense                       0.07          0.07
Amortization of debt discount and issuance costs      -           -       
Net loss per share (non-GAAP)                        $ (0.35   )   $ (0.21   )
                                                                   

SOLAZYME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(UNAUDITED)
                                                               
                                                March 31,   December 31,
                                                2013              2012
Assets
                                                                  
Current assets
Cash, cash equivalents and marketable           $    239,111      $   149,005
securities
Other current assets                                21,385          16,274
Total current assets                                 260,496          165,279
Property, plant and equipment - net                  32,390           32,225
Other assets                                        24,477          19,520
Total assets                                    $    317,363      $   217,024
                                                                  
Liabilities and stockholders' equity
                                                                  
Current liabilities
Current portion of long-term debt               $    60           $   7,331
Other current liabilities                           19,375          17,607
Total current liabilities                            19,435           24,938
Other liabilities                                    2,486            1,138
Long-term debt                                      131,153         7,637
Total liabilities                                   153,074         33,713
Total stockholders' equity                           164,289          183,311
                                                                 
Total liabilities and stockholders' equity      $    317,363      $   217,024

Contact:

Solazyme, Inc.
Corporate Communications:
Genet Garamendi
press@solazyme.com
or
Brainerd Communicators, Inc.
Jeff Majtyka, 212-986-6667
majtyka@braincomm.com
Brad Edwards, 212-986-6667
edwards@braincomm.com
 
Press spacebar to pause and continue. Press esc to stop.