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Amyris Narrows Q4 Loss; Transitions Out of Ethanol Ops
Posted: February 19, 2013
Amyris Inc. narrowed its fourth-quarter loss, although quarterly revenue sank 85.9% due to the company’s planned transition out of the ethanol and ethanol-blended gasoline business, which was completed in the third quarter.
For the quarter ended December 31, the renewable products company said its net loss narrowed to $43.6 million from $59.6 million a year ago. Fourth-quarter total revenue dropped to $5.9 million from $41.5 million a year earlier. Of the $5.9 million in total revenue during the quarter, $3 million was related to renewable product sales compared to $700,000 for the same period in the prior year.
"In the final quarter of 2012, we completed commissioning and began commercial production of our industrial-scale farnesene production plant in Brazil. Also, we secured additional capital from some of our largest shareholders," said John Melo, Amyris’ president and CEO. "Amyris is focused on continued execution of our business strategy with the goal of achieving positive cash flow in 2014, underpinned by a reduced operating expense profile, strong product and collaboration revenues, and ongoing support from our investors," he added.
During an earnings conference call with investors, Melo revealed that the company is "well ahead" of its collaboration targets with its partner on second generation farnesene strains, as well as the fragrance oil it's developing for its partner, Firmenich.
"Building on the success of our first collaboration, we've reached initial agreement to significantly expand our partnership with Firmenich," he said.
Amyris expects to provide details of this expansion once it has completed the definitive agreement.
For the full year, Amyris said its net loss widened to $206 million from $179.5 million a year ago. Total 2012 revenue plunged to $73.7 million from $147 million in the prior year, also due to the company's planned transition out of the ethanol and ethanol-blended gasoline business. Renewable product sales were $10.8 million for the year compared to $800,000 the year prior.