BioFuels Journal

Date Posted: August 7, 2015

Emeryville, Calif., Aug. 6, 2015 — Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the second quarter ended June 30, 2015.

"During the second quarter, we continued growing our specialty ingredients business with our new collaboration partnership into the food ingredients sector and our announcement today of our entry into bio-opioids as the key ingredient into the large and fast-growing chronic pain products market," said John Melo, Amyris President & CEO.

"These are markets where we believe our technology platform is uniquely positioned to deliver low cost, high performing sustainable products.

"Our farnesene renewable product platform continues to deliver lower cost, better performing products into the personal care and industrial cleaning markets.

"These products are continuing to realize strong consumer acceptance and continued revenue growth evidenced by our recent successful product launches of Biossance™ skin care and Muck Daddy™ hand cleaner products," continued Melo.

"We've delivered more than half our 2015 expected collaboration inflows in the first half of the year and have already started successful production of our fragrance molecules for delivery to our customers in the second half of 2015 where we expect to realize strong product revenue growth.

"We're very pleased to have successfully transitioned from the development phase of our hydrocarbon fuel development program to the commercialization phase with our partner Total and expect to realize further simplification and focus on our high-margin & high-growth specialty ingredient and performance materials business," concluded Melo.

Business Highlights

Other key operating and development highlights during the second quarter and, more recently, included:

Personal Care

Successfully launched Biossance™ brand available at www.biossance.com and executed consumer marketing program that exceeded expectations based on 42,000 samples requested by consumers since the beginning of June launch and experienced strong positive consumer survey feedback where over 90% believe Biossance is the best skin moisturizer they've used.

Executed exclusive reseller agreement with Dinaco Importação Comércio S.A. for Amyris's Neossance® cosmetic ingredients in Brazil

Signed letter of intent with Ipca Laboratories Ltd. to establish an agreement for Amyris to supply a key pharmaceutical ingredient Performance Chemicals

Announced early success of Muck Daddy high-performance hand cleaner with initial pre-launch product shipments surpassing 3,000 units

Sold first liquid farnesene rubber for commercial use for tires to be launched later this year.

Industrials

In conjunction with the joint venture restructuring announcement noted above, transitioned from development to commercial phase for jet fuel technology

Announced successful completion of Volkswagen renewable diesel evaluation program.

Financial Performance Second Quarter 2015

GAAP revenues were $7.8 million, a decrease of 16% compared to the $9.3 million in the second quarter of 2014.

The decline was driven by unfavorable foreign currency fluctuations of approximately $0.5 million and our transition away from low value fuel sales.

Collaboration and grants revenues contributed $4.5 million to the total GAAP revenues for the quarter, compared with $4.9 million for the second quarter of 2014.

Cash revenue inflows, a non-GAAP measure, totaled $5.2 million for the second quarter of 2015.

Collaboration and grants inflows decreased from $3.8 million in the second quarter of 2014 to $1.9 million in the second quarter of 2015.

This decline was mostly driven by timing of contracts and the choppiness related to collaboration negotiations.

Cost of products sold increased to $11.0 million in the second quarter 2015 from $7.5 million in the second quarter of 2014 driven mainly by product mix, and higher inventory provisions related to the lower expected price of future fuels sales compared to our higher inventory cost.

Our adjusted gross margin, excluding inventory provisions, depreciation and excess capacity was 37.7%, a decline from Q2 2014 driven mainly by product mix.

Net loss attributable to Amyris common stockholders for the second quarter of 2015 was $47.1 million, or $0.59 per basic share, and $0.62 on a diluted basis.

Included in the second quarter net loss were two large non-cash related items: a gain of $28.8 million related to the change in fair value of derivative instruments, and a $36.6 million charge related to the acceleration of debt discount accretion associated with the debt conversion transaction.

Adjusted net loss, excluding these non-recurring items, and excluding stock-based compensation, was $37.3 million, or $0.47 per basic share.

Adjusted Free Cash flow for Q2 2015 was -$30.2 million, compared to -$26.7 million for Q2 2014 driven by timing of collaboration inflows, increased marketing spend and lower adjusted gross margins in the quarter.

First Half 2015

GAAP revenues were $15.7 million in the first half of 2015, representing an increase of 2% over the $15.3 million in the same period last year, driven mainly by the achievement of collaboration milestones and the timing of revenue recognition related to previous collaboration payments.

This increase was partly offset by an unfavorable foreign currency fluctuations effect of $0.7 million, lower fragrance sales due to the timing of a large fragrance molecule sale in the first quarter of 2014 as well as the completion of several government grant contracts.

Collaboration and grants revenues contributed $10.3 million of total revenues for the six months ended June 30, 2015, compared to $8.1 million for the same period in 2014.

Cash revenue inflows, a non-GAAP measure, totaled $35.5 million for the six months ended June 30, 2015.

This is a 36% increase compared to $26.1 million for the same period of 2014.

Net loss attributable to Amyris common stockholders for the six months ended June 30, 2015 was $99.4 million, or $1.25 per basic and diluted share.

Adjusted Free Cash flow for the first half of 2015 was -$23.7 million, an improvement of $14.2 million compared to the first half of 2014, driven by collaboration inflows, including with Total, as well as improved adjusted gross margins.

Cash & Access to Growth Capital

Our current cash and investments balance approximates $32 million.

We intend to continue to review our capital requirements and improve our capital structure.

To supplement any cash needs, we continue to maintain our $50-million equity facility.

Business Outlook]

For the first time, we are introducing a GAAP revenue outlook for the rest of 2015.

We believe our GAAP revenues will be in the range of $63 million to $75 million for the full year 2015 with the large range driven largely by the expectations related to the timing of closing collaborations and finalizing terms that may impact revenue recognition timing.

We expect the personal care segment to be a main driver of second half revenues as new fragrance products are delivered to partners, and the impact of our recent product launches gain traction.

Until we fully transition to a more consistent and stable collaboration revenue base, we will also continue to provide our outlook related to non-GAAP cash revenue inflows.

Cash revenue inflows represents the sum of our GAAP product revenues and cash inflows from collaborations.

Our outlook for non-GAAP cash revenue inflows is in the range of $82 million to $102 million for the full year 2015, with the large range driven by the expected timing of closing collaborations in our pipeline.

This aligns with the product portfolio post-restructuring of the joint venture with Total.

Cash revenue inflows through June 30, 2015 was $35.5 million.

For more information, please contact Peter DeNardo at 1-510-740-7481 or [email protected]

See Related Websites/Articles:

• Amyris, Inc.

more ADVANCED BIOFUELS...