BioFuels Journal

Date Posted: March 10, 2016

Emeryville, CA - March 9, 2016 - Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

"The fourth quarter resulted in our best renewable product sales quarter to date during 2015 while also highlighting our challenge in completing our product finishing and shipping in time for one of our customers," said John Melo, Amyris President & CEO.

Continued Melo, "We expect to complete a significant portion of the delayed product shipment during the current quarter with the remainder later in the year and continue to make very good progress in the expansion of our collaboration portfolio.

"We entered 2016 with key commitments in place for farnesene applications, which represent a substantial percentage of our total planned annual farnesene production volume for 2016.

"The volumes we expect under these farnesene supply agreements represent initial supplies for high-volume applications, and alone, could fully utilize our Brotas plant through the end of 2016."

Concluded Melo, "We are focusing on our core business, which is driven by solving supply challenges, delivering innovative products and providing our partners with a strategic advantage underpinned by high-performance, sustainable products.

"We expect our key results for 2016 to include divestment of non-core assets that we believe will generate approximately $40 million to $60 million of net proceeds, closing new collaborations in personal care and pharmaceutical industries and delivering on our farnesene supply agreements."

Business Highlights

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

Collaborations

• Continued execution under a milestone-driven, multi-year technology investment agreement with DARPA, with successful completion of initial design paths for hundreds of molecules (which would have historically taken weeks or months to design and now ─ in most cases ─ take a few hours with Amyris's design methodology)

• Launched Pathways Program providing partners with low-cost, low-risk opportunity to access transformational technology platform utilizing next-generation tools and technologies being developed through Amyris's agreement with DARPA.

Personal Care and Industrial

• Successfully launched Biossance™ Beauty Brand on HSN February 18, 2016 with better-than-expected sales metrics, leading to increased number of shows planned for 2016 that will feature expanding line of products

• Q4 2015 was a record quarter in squalane shipments and recently-launched hemisqualane has seen positive acceptance from distributors and formulators with rapid growth expected for 2016

• Signed new major agreements with two partners during fourth quarter for farnesene applications related to nutraceuticals and polymers and converted two other partners from collaborations to farnesene supply agreements supporting Brotas plant utilization expectations through 2020

• Expanded Muck Daddy™ market penetration with successful AAPEX and SEMA automotive aftermarket trade shows presence and SCORE International (Baja racing series) and Pirelli World Challenge (PWC racing series) sponsorships.

Financial Performance

Fourth Quarter 2015

• GAAP revenues were $9.8 million, compared with $11.6 million for the fourth quarter of 2014, and $8.6 million for the third quarter of 2015.

The increase from Q3 2015 was despite a delay in a large product shipment to a collaboration partner anticipated for Q4 2015.

Product sales in Q4 2015 of $5.2 million, compared to $4.7 million in Q4 2014 and $4.2 million in Q3 2015.

Collaboration and grants revenues contributed $4.6 million to total GAAP revenues for the quarter, down from $6.9 million in Q4 2014, and increased from $4.4 million in Q3 2015.

• Cost of products sold increased to $11.3 million for Q4 2015 from $9.3 million for the same period a year ago driven by higher sales, product mix and a higher yielding pilot run of our latest farnesene strain.

• Net loss attributable to Amyris common stockholders for the fourth quarter of 2015 was $41.9 million, or $0.23 per basic share and $0.28 per diluted basis.

Included in the fourth quarter net loss were several large non-cash related items, including a net gain from debt extinguishment, changes in fair value of derivatives, impairment of assets and other asset allowances, and a charge related to withholding tax due to conversion of related-party notes.

Adjusted net loss, excluding these non-recurring items, and excluding stock-based compensation, was $34.0 million, or $0.16 per basic share.

Fiscal Year 2015

• GAAP revenues for fiscal year 2015 were $34.2 million, compared with $43.3 million for fiscal year 2014 due to the initial large shipment in 2014 of product to a collaboration partner, while our initial large shipment of a product to a collaboration partner expected for Q4 2015 was delayed.

Collaboration revenues contributed $19.3 million of total revenues for 2015, compared with $19.8 million for 2014.

• Non-GAAP revenue for fiscal 2015 was $48.5 million compared with $58.9 million for 2014.

• Cost of products sold increased to $37.4 million in 2015 from $33.2 million in 2014 despite the decline in revenue due mainly to an unfavorable product mix in 2015, with declining fuel average selling prices generating losses.

A favorable mix change into 2016 is expected to positively impact our product margin profile.

• Net loss attributable to Amyris common stockholders for fiscal year 2015 was $218.0 million, or $1.75 per basic and diluted share.

Included in the 2015 net loss were several large non-cash related items, including a loss from debt extinguishment, acceleration of the amortization of debt discount, changes in fair value of derivatives, and impairment of assets and other asset allowances, and a charge related to withholding tax due to the conversion of related-party notes in the aggregate amount of $71.9 million.

Adjusted net loss, excluding these non-recurring items, and excluding stock-based compensation, was $135.7 million, or $1.07 per basic share.

• Cash and cash equivalents at December 31, 2015 were $13.5 million and compared with $43.4 million at December 31, 2014.

The company expects its recent $20 million financing, planned monetization of non-core assets, other potential financing sources, and cash from existing and new collaborations to provide funding for the near term.

For more information, please contact Peter DeNardo at 510-740-7481.

See Related Websites/Articles:

• Amyris

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