Amyris
Aug 10, 2017

Amyris Delivers Another Strong Quarter with Revenue of $25.7 Million and Product Sales Increase of 159% over 2nd Quarter of 2016

EMERYVILLE, Calif., Aug. 10, 2017 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the second quarter ended June 30, 2017.

"Our strong business results are continuing with another consecutive quarter of doubling product revenue year over year," said John Melo, Amyris President & CEO. "We are continuing to experience very strong product sales growth in our personal care and health and nutrition segments and expect most of our products to generate improved gross margins with the value share component of our business."

Continued Melo, "With the strong support of DSM as a strategic partner and shareholder we have the necessary resources to maintain our leadership in industrial biotechnology. We have a very strong collaboration and product pipeline with several new partnerships expected to close before the end of this year and several new product deliveries to our strategic partners driving our growth for the remainder of 2017."

Key Highlights

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

Financial Performance

Second Quarter 2017       

First Half 2017

FINANCIAL RESULTS AND NON-GAAP INFORMATION

Condensed consolidated financial information has been presented in accordance with US GAAP as well as on a non-GAAP basis. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Amyris's historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision-making.

Non-GAAP financial information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP in order to understand Amyris's operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net loss, and other measures to the most directly comparable GAAP financial measure is provided in the tables attached to this press release.

QUARTERLY CONFERENCE CALL TODAY

Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing (866) 516-3867, participant passcode: 58275243.

A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.

About Amyris
Amyris is the integrated renewable products company that is enabling the world's leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products. The company is delivering its No Compromise® products across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. More information about the company is available at www.amyris.com.

Forward-Looking Statements

This release contains forward-looking statements, and any statements other than statements of historical fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as product development, collaborations and brand expansion plans), that involve risks and uncertainties. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including risks related to Amyris's liquidity and ability to fund operating and capital expenses, timing and execution risks associated with manufacturing, uncertainty regarding consummating proposed transactions, including the timing thereof, and growth in sales, potential delays or failures in development, production and commercialization of products, risks related to Amyris's reliance on third parties to achieve its goals, and other risks detailed in the "Risk Factors" section of Amyris's quarterly report on Form 10-Q filed on May 15, 2017. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Amyris, the Amyris logo, No Compromise, and Biossance are registered trademarks of Amyris, Inc. All other trademarks are trademarks of their respective owners.

            -Financial Tables Attached-


Amyris, Inc.         
Condensed Consolidated Statement of Operations        
(Unaudited)        
(In thousands, except per share data)        
 Three Months Ended June 30, Six Months Ended June 30, 
  2017   2016   2017   2016  
Revenues        
Renewables product sales$  12,729  $  4,922  $  21,021  $  8,062  
Grants and collaborations revenue   12,950     4,677     17,639     10,347  
Total revenues   25,679     9,599     38,660     18,409  
Cost and operating expenses        
Cost of products sold   17,279     7,891     30,047     19,068  
Research and development(1)   14,249     13,176     28,956     25,082  
Sales, general and administrative(1)   15,949     11,408     28,799     23,674  
Total cost and operating expenses   47,477     32,475     87,802     67,824  
Loss from operations   (21,798)    (22,876)    (49,142)    (49,415) 
Other income (expense):        
Gain from change in fair value of derivative instruments(2)   35,775     20,934     38,114     42,612  
Loss upon extinguishment of debt   (3,624)    (433)    (3,528)    (649) 
Other expense, net   (9,423)    (11,053)    (21,926)    (21,169) 
Total other income   22,728     9,448     12,660     20,794  
Income (loss) before income taxes   930     (13,428)    (36,482)    (28,621) 
Provision for income taxes   (310)    (138)    (269)    (253) 
Net income (loss)   620     (13,566)    (36,751)    (28,874) 
Net income (loss) attributable to noncontrolling interest   -     -     -     -  
Net income (loss) attributable to Amyris, Inc.   620     (13,566)    (36,751)    (28,874) 
Deemed dividend (BCF on Series A preferred stock)   (562)    -     (562)    -  
Deemed dividend (capital distribution to related parties)   (8,648)    -     (8,648)    -  
Cumulative dividends - Series A and Series B   (1,675)    -     (1,675)    -  
Net loss attributable to common stock$  (10,265) $  (13,566) $  (47,636) $  (28,874) 
Net loss per share attributable to common stockholders:        
Basic$  (0.46) $  (0.91) $  (2.24) $  (2.00) 
Diluted$  (0.46) $  (1.67) $  (2.24) $  (3.46) 
Weighted-average shares of common stock outstanding used in computing net income (loss) per share of common stock:        
Basic   22,406,414     14,874,135     21,248,306     14,426,247  
Diluted   22,406,414     17,526,410     21,248,306     17,253,961  
         
(1) Includes stock-based compensation expense as follows:        
Research and development $  441  $  485  $  924  $  977  
Sales, general and administrative   597     1,304     1,760     2,863  
 $  1,038  $  1,789  $  2,684  $  3,840  
         
(2) Upon revaluing its derivative liabilities, the Company recorded non-cash gains for the three and six months ended June 30, 2017 and 2016. The gains were the result of changes in the fair value of derivative liabilities primarily as the result of declines in Amyris's stock price during each of the periods presented. The gains for all periods presented included the change in fair value of derivatives in connection with certain features of outstanding convertible notes, related to change in control protection and price-based anti-dilution adjustment provisions. In addition, the gains for the three and six months ended June 30, 2017 included the change in fair value of derivatives in connection with convertible preferred stock that was issued in May 2017. 
         
Note: Due to the complexity of the accounting associated with the closing of the Company's Series A and Series B financing rounds from May 2017, the Company is still in the process of finalizing it's balance sheet. As a result, the calculation of earnings per share for the periods ended June 30, 2017 may be subject to change. Both the balance sheet and earnings per share will be included in the Company's 10-Q to be filed by August 14, 2017. 
         
         
         
         
         
         
Amyris, Inc.         
Reconciliation of GAAP to Non-GAAP Financial Information        
(Unaudited)        
(In thousands, except per share data)        
 Three Months Ended June 30, Six Months Ended June 30, 
  2017   2016   2017   2016  
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$  (10,265) $  (13,566) $  (47,636) $  (28,874) 
Stock-based compensation expense   1,038     1,789     2,684     3,840  
Gain from change in fair value of derivative instruments(2)   (35,775)    (20,934)    (38,114)    (42,612) 
Loss upon extinguishment of debt   3,624     433     3,528     649  
Deemed dividend (BCF on Series A preferred stock)   562     -     562     -  
Deemed dividend (capital distribution to related parties)   8,648     -     8,648     -  
Cumulative dividend - Series A and Series B   1,675     -     1,675     -  
Net loss attributable to Amyris, Inc. common stockholders (non-GAAP)$   (30,493) $   (32,278) $   (68,653) $   (66,997) 
         
Net loss per share attributable to Amyris, Inc. common stockholders - Basic (GAAP)$  (0.46) $  (0.91) $  (2.24) $  (2.00) 
Stock-based compensation expense$  0.05  $  0.12  $  0.13  $  0.27  
Gain from change in fair value of derivative instruments(2)$  (1.60) $  (1.41) $  (1.79) $  (2.95) 
Loss upon extinguishment of debt$  0.16  $  0.03  $  0.17  $  0.05  
Deemed dividend (BCF on Series A preferred stock)$  0.03  $  -   $  0.03  $  -   
Deemed dividend (capital distribution to related parties)$  0.39  $  -   $  0.41  $  -   
Cumulative dividend - Series A and Series B$  0.07  $  -   $  0.08  $  -   
Net loss per share attributable to Amyris, Inc. common stockholders - Basic (non-GAAP)$   (1.36) $   (2.17) $   (3.23) $   (4.64) 
         

 

 


Amyris, Inc.        
Reconciliation of GAAP to Non-GAAP Financial Information       
(Unaudited)       
(In thousands)       
 Three Months Ended June 30, Six Months Ended June 30,
  2017   2016   2017   2016 
Product sales (GAAP and non-GAAP)       
Renewables$  12,729  $  4,922  $  21,021  $  8,062 
Product sales (GAAP and non-GAAP)$   12,729   $   4,922   $  21,021   $   8,062  
        
Grants and collaborations revenue (GAAP)$  12,950  $  4,677  $  17,639  $  10,347 
Change in accounts receivable, deferred revenue and fundings associated with collaborations   (5,886)    2,828     (5,623)    (746)
Grants and collaborations inflows (non- GAAP)(1)$   7,064   $   7,505   $  12,016   $   9,601  
        
Total Revenues (GAAP)$  25,679  $  9,599  $  38,660  $  18,409 
Change in accounts receivable, deferred revenue and fundings associated with collaborations   (5,886)    2,828     (5,623)    (746)
Total cash revenue inflows (non-GAAP)(1)$   19,793   $   12,427   $  33,037   $  17,663  
        
Cost of products sold (GAAP)$  17,279  $  7,891  $  30,047  $  19,068 
  Other costs/provisions   1,966     (1,547)    4,603     (3,643)
  Excess capacity   (629)    (1,420)    (1,549)    (4,177)
Depreciation and amortization   (911)    (914)    (1,842)    (1,730)
Cost of products sold (non-GAAP)$   17,705   $   4,010   $  31,259   $   9,518  
        
Adjusted gross profit (non-GAAP)(2)$   2,088   $   8,417   $   1,778   $   8,145  
Gross margin (%) 10.5%  67.7%  5.4%  46.1%
        
Research and development (GAAP)$  14,249  $  13,176  $  28,956  $  25,082 
Stock-based compensation expense   (441)    (485)    (924)    (977)
Depreciation and amortization   (1,600)    (1,676)    (3,201)    (3,478)
Research and development (non-GAAP)$   12,208   $   11,015   $  24,831   $  20,627  
        
Sales, general and administrative (GAAP)$  15,949  $  11,408  $  28,799  $  23,674 
Stock-based compensation expense   (597)    (1,304)    (1,760)    (2,863)
Depreciation and amortization   (179)    (287)    (387)    (565)
Sales, general and administrative (non-GAAP)$   15,173   $   9,817   $  26,652   $  20,246  
        
(1) The largest differences between the GAAP and non-GAAP collaborations numbers are (i) timing of revenue recognition.
(2) Non-GAAP Adjusted Gross Profit /(Loss) is calculated based on non-GAAP Product Sales & Grants and Collaboration Inflows and Non-GAAP Cost of Products Sold, and does not include costs related to collaborations.

 

Contact:

Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc. 
+1 (510) 740-7481
investor@amyris.com
pr@amyris.com