Amyris releases financial results, achieves positive cash flow

By Erin Voegele | May 06, 2015

Amyris Inc. has released financial results for the first quarter, reporting that the company delivered on its previously announced goal of achieving positive cash flow. In addition, the company announced its Brotas, Brazil, plant has restarted following scheduled maintenance and is now exceeding operational targets.

“We delivered total cash revenue inflows for the first quarter of $30.3 million,” said John Melo, president and CEO of Amryis. “I'm also pleased to report that we delivered on our previously stated goal of achieving positive cash flow, generating $1.7 million of positive free cash flow for the first quarter. This achievement was despite a negative currency impact of cash flow of $1.2 million.”

During an investor call, Melo explained that the Brotas plant restarted after the quarter ended, following annual scheduled maintenance that was performed during the sugarcane offseason. “The plant had a very successful restart, and is operating contamination free and meeting or exceeding our operational targets,” he said. “We expect to end the year with farnesene production cash costs under $2 a liter and have visibility on farnesene production under $1 a liter within the next 24 to 36 months. This could not be accomplished without the amazing effort and leadership of our manufacturing team and all of our team in Amyris’s Brazil operation.”

In addition to providing an update on plant operations, Melo also discussed the company’s various product lines and partnerships during the call. During the first quarter, he said Amyris doubled its volume of squalene sales, with Asian sales growing by 180 percent, European sales growing by 200 percent and U.S. sales growing by 86 percent. He also indicated Amyris is experiencing strong interest in its new emollient product hemisqualane.

In the fuels segment, Melo said Brazil Diesel de Cana sales remained at about the same volume as prior quarters. Revenues, however, were significantly lower during the first quarter as the company completed the transition to its new distributor Raizen, from BR, the Petrobras distribution company. With that process now complete, second quarter revenue is expected to be consistent with prior quarters.

Melo also discussed several new product lines, including the Biossance skin care line, Muck Daddy industrial hand cleaner, Myralene industrial cleaners, industrial monomers and polymers through the company’s Kuraray partnership, and Neossance Hemisqualane. “Combined with the products we make for our partners from our collaborations, these products provide the underpinning to our growth over the next two to three years,” he said.

During the first quarter, Amyris signed a letter of intent with Fosun Pharma, a pharmaceutical company in China to establish agreements for Amyris to supply a precursor to an active pharmaceutical ingredient and develop additional target molecules of interest. According to Melo, the company is also in active discussions with other large pharma companies.

Amyris also entered an agreement with Genome Complier Corp. during the first quarter. Genome Complier is focused on computer-aided design and collaboration platforms for the synthetic biology industry.

Regarding the company’s activities in the flavor and fragrance space, Melo said Amyris received several milestone payments and annual collaboration payments during the quarter. In addition, he noted the company made progress on its collaboration with Braskem and Michelin for the development of renewable isoprene, which among other uses, could give Michelin a sustainable sourcing channel for poly-isoprene for the production of quality tires using high-performance, environmentally responsible material.

Amyris reported first quarter non-GAAP cash revenue inflows of $30.3 million for the quarter, up from $17.9 million during the same quarter of the previous year. Total first quarter revenues were $7.9 million, up 30 percent compared to the same three months of 2014. Product sales were $2.1 million, down 26 percent from the first quarter of last year, due primarily to decreased flavors and fragrances and diesel fuel product sales. Net loss attributed to Amyris common stockholders was $52.2 million, or 66 cents per share, which includes a non-cash loss related to change in fair value of derivatives of $17.4 million, or 22 cents per diluted share, compared to $16.4 million, or 21 cents per share, during the same quarter of 2014. Adjusted net loss, excluding stock-based compensation, gains and losses from changes in fair value of derivatives and losses on debt extinguishment attributable to Amyris common stockholders for the first quarter was $33.2 million, or 41 cents per share, compared to an adjusted net loss of $28.1 million, or 37 cents per share, for the same period of last year.