Amyris releases Q2 results, announces funding agreement
Amyris Inc. has released financial results for the second quarter of 2013, reporting aggregate revenues of $10.8 million, down from $19.3 million during the same period of last year. According to Amyris, higher revenues during the second quarter of 2012 are attributed to the sale of the company’s ethanol and ethanol-blended gasoline business, which resulted in $13.3 million in revenues. Of the $10.8 million in aggregate revenues reported for the second quarter of this year, $4.2 million was related to renewable product sales and $6.7 million was related to collaboration and grant revenue. Only $2.3 million in renewable product sales and $3.7 million in collaboration and grant revenue was reported during the same period of 2012.
Amyris highlighted several achievements made during the second quarter in its financial report. During the three-month period, the company continued production and commercial shipments of farnesene from its facility in Brazil. The successful ramp-up of production in Brazil allowed Amyris an early exit from a high-cost contract manufacturing facility.
Product sales also grew during the quarter, up 40 percent compared to the first quarter of the year, and up 84 percent compared to the second quarter of 2012. According to Amyris, the quarterly revenue increased was led by sales of its renewable emollient, Neossance Squalane. The company also expanded its partnerships during the quarter, forming an agreement with Firmenich to begin commercial production of a high-value fragrance oil molecule, and performing a second successful demonstration flight with Amyris-Total biojet fuel at the Paris Air Show.
During a call to discuss the financial results, John Melo, CEO, president and director of Amyris, noted that all six main fermenters at its farnesene plant in Brazil are now operational. “The second quarter was challenging as we dealt with the remaining start-up issues at the plant, and methodically worked through the full ramp up and dealt with all the expected fermentation issues of contamination and regular disruptions,” he said. “We prioritized getting through these learning pains and achieving our production cost target for the year over production volume. Not surprisingly, this resulted in lower production volume during the period.” Higher volumes are expected to be produced during the second half of the year. Melo added that the unit production cost decreased considerably in July, and the facility is expected to achieve its target cost of $4 per liter or less by the end of the year.
In the future, Melo said Amyris will continue to bring the latest improved farnesene production strains into its Brazilian plant, which will increase operational facility and production volumes.
The same day that Amyris released its financial results, the company also announced it has entered into an agreement for the sale of convertible notes in a private placement for up to $60 million in cash proceeds. Under the terms of the agreements, Temasek, one of Amyris’s largest stockholders, agreed to purchase $35 million of the notes in an initial tranche, and up to $25 million in a second tranche. Both tranches are subject to Amyris’s satisfaction of closing conditions, including stockholder approval of the transaction at an upcoming special meeting of stockholders.