Solazyme Reports Second Quarter 2014 Results
31 Jul 2014 --- Solazyme, Inc., a renewable oil and bioproducts company, announced results for the second quarter ended June 30, 2014.
"Solazyme made important progress in the second quarter on its commercialization path," said Jonathan Wolfson, CEO of Solazyme. "We are now manufacturing product in three facilities on two continents. We are shipping multiple oils and have increased production volumes out of our Clinton/Galva, Iowa operations, and we have begun production and shipment from the Solazyme Bunge Renewable Oils plant in Brazil. We are also building commercial momentum, including an expanded multi-year agreement with AkzoNobel involving funded joint development and targeting up to 10,000 MT of oil per year. In food ingredients, we launched our AlgaVia™ brand and won the highly prestigious IFT Food Expo innovation award. We have more work ahead as we progress on our production ramps and continue to build our commercial pipeline, but I believe we have the products, the plants, the capital and the team to execute moving forward."
Financial Results
Total revenue for the second quarter of 2014 was $15.9 million compared with $11.2 million in the second quarter of 2013, an increase of 43%. Second quarter GAAP net loss was $42.9 million, which compares with net loss of $25.8 million in the prior year period. On a non-GAAP basis, the net loss was $32.9 million for the second quarter of 2014, compared with net loss of $17.4 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.
"We are continuing to drive fiscal discipline and balance sheet management as we ramp our capacity and focus on delivering products to our customers," said Tyler Painter, CFO and COO of Solazyme. "We achieved a number of milestones this quarter and continue to strengthen our sales and market application efforts across our targeted markets."
Recent Business Highlights
- Commercial Production Begins at Moema Facility. In late May 2014, Solazyme's joint venture with Bunge Global Innovation LLC successfully produced its first commercially saleable products at the Solazyme Bunge Renewable Oils plant in Brazil and has subsequently begun shipping. Both oil and encapsulated lubricant, Encapso, products have been manufactured using full-scale production lines that include the 625,000L fermentation tanks.
- Clinton/Galva production progressing. Solazyme shipped additional commercial products, expanded its customer base and increased total output by > 40% from Q1 2014 to Q2 2014.
- AkzoNobel expanded multi-year agreement with supply terms targeting 10,000 MT annually and funded joint-development. The expansion provides for funded product development, as well as key terms for a multi-year supply agreement targeting annual supply of up to 10,000 MT of renewable Tailored algal oils. The parties expect that Solazyme's algal oil for the new proprietary surfactant contemplated under the joint development agreement and supply terms would be able to replace both petroleum- and palm oil-derived chemicals.
- AlgaVia brand launched at the International Food Technology (IFT) Food Expo, Solazyme's High Stability High Oleic oil won a prestigious 2014 IFT Innovation Award, and Solazyme added key food ingredient customer, and distribution agreements. Solazyme secured an important new AlgaVia Whole Algal Flour customer, and also signed agreements with two of the top North American food ingredient distributors to meet demand in the US and Mexico.
- Signed agreement with a leading North American oleochemicals company to commercialize microalgae-derived oleic acids. The agreement is to commercialize kosher certified high oleic algal oils for the oleic fatty acid market. The SoleumTM base oils offer performance, safety and sustainability.
