Amyris
Feb 28, 2011

Amyris Reports Fourth Quarter and 2010 Year-End Results

Amyris technology operating successfully at industrial scale, Company delivers on all milestones and strong revenue growth

EMERYVILLE, Calif.--(BUSINESS WIRE)-- Amyris, Inc. (NASDAQ:AMRS), which applies its industrial synthetic biology platform to provide renewable alternatives to select petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide, today announced financial results for the fourth quarter and year ended December 31, 2010.

Total revenues for year ended December 31, 2010 were $80.3 million versus $64.6 million in the prior year, with cost of products sold of $70.5 million versus $60.4 million. Research and Development expense increased to $55.2 million from $38.3 million and Sales, General and Administrative expense increased to $40.4 million from $23.6 million. The 2010 GAAP net loss attributable to Amyris, Inc. common stockholders was $123.9 million compared with $64.5 million in the prior year. The 2010 loss included a non-cash beneficial conversion feature charge of $42.0 million related to the conversion of certain shares of the Company's preferred stock as well as shares of the Company's subsidiary, Amyris Brasil, into shares of the Company's common stock in connection with the Company's initial public offering. On a non-GAAP basis the 2010 net loss attributable to Amyris, Inc. common stockholders was $71.4 million compared to $61.2 million in the prior year. A reconciliation of GAAP to non-GAAP results is included below.

Total revenues for the fourth quarter were $29.7 million versus $24.2 million in the prior quarter with Cost of Products Sold of $27.5 million versus $22.9 million. Research and Development expense increased to $17.0 million from $14.7 million and Sales, General and Administrative expense increased to $11.0 million from $10.5 million. Fourth quarter GAAP net loss attributable to Amyris, Inc. common stockholders was $25.6 million compared with $62.1 million in the prior quarter which had included the non-cash beneficial conversion referenced above. On a non-GAAP basis the net loss attributable to Amyris, Inc. common stockholders was $22.1 million for the quarter compared to $17.5 million in the prior quarter. A reconciliation of GAAP to non-GAAP results is included below.

The Company's balance of cash, cash equivalents and marketable securities was $257.9 million at the end of the fourth quarter versus $271.0 million at the end of the prior quarter.

"We met all of our publicly-stated milestones for our first full quarter as a public company, and delivered additional product partnerships as well," said John Melo, CEO of Amyris. "We have entered 2011 well-positioned to move into industrial-scale production and sales of our first renewable products, beginning with squalane for cosmetics and followed by lubricants."

Highlights of recent accomplishments include:

About Amyris

Amyris is an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial synthetic biology platform to convert plant sugars into a variety of hydrocarbon molecules - flexible building blocks which can be used in a wide range of products. Amyris is commercializing these products both as No Compromise® renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise renewable diesel and jet fuel. Amyris Brasil S.A., a subsidiary of Amyris, oversees the establishment and expansion of Amyris's production in Brazil. Amyris also has fuel distribution capabilities in the United States through its subsidiary, Amyris Fuels LLC. More information about Amyris is available at www.amyris.com.

Conference Call Information

The Company will discuss these results in a conference call scheduled for today at 2:00 pm PST/5:00 pm EST. Investors may access a live audio webcast of this conference call and the earnings call presentation in the Investor section of the Company's website at http://investors.amyris.com. An audio replay of the conference call will be available approximately two hours after the conclusion of the call and can be accessed by dialing 888-203-1112 if calling from within the United States or 719-457-0820 if calling from outside the United States and entering the replay pass code 8192158. A replay of the webcast will be available on the Investor Relations section of the Company's website approximately two hours after the conclusion of the call and remain available for approximately 60 calendar days.

Forward-Looking Statements

This release contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as statements regarding industrial-scale production and sales of products) 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 those associated with any delays in production and commercialization of products and other risks detailed in the "Risk Factors" section of Amyris's final prospectus for its initial public offering, as filed on September 28, 2010 pursuant to Rule 424(b) under the Securities Act of 1933, and its quarterly report on Form 10-Q filed on November 10, 2010. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally 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. In addition, Amyris 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 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 when understanding Amyris's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

Amyris, the Amyris logo, Biofene and No Compromise are trademarks or registered trademarks of Amyris, Inc.

Amyris, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except share and per share amounts)
 
  Three Months Ended

December 31,

  Years Ended

December 31,

  2010       2009       2010       2009  
Revenues    
Product sales $ 26,627 $ 16,900 $ 68,664 $ 61,689
Grants and collaboration revenue   3,102     1,089     11,647     2,919  
Total revenues 29,729 17,989 80,311 64,608
Cost and operating expenses
Cost of product sales 27,483 16,686 70,515 60,428
Research and development (1) 16,957 10,914 55,249 38,263
Sales, general and administrative (1) 11,007 9,256 40,393 23,558

Restructuring and asset impairment (income) charges

  -     -     (2,061 )   5,768  
Total cost and operating expenses   55,447     36,856     164,096     128,017  
Loss from operations (25,718 ) (18,867 ) (83,785 ) (63,409 )
Other income (expense):
Interest income 276 77 1,540 448
Interest expense (159 ) (325 ) (1,443 ) (1,218 )
Other income (expense), net   (55 )   (1,121 )   898     (621 )
Total other income (expense)   62     (1,369 )   995     (1,391 )
Net loss (25,656 ) (20,236 ) (82,790 ) (64,800 )
Loss attributable to noncontrolling interest   13     120     920     341  
Net loss attributable to Amyris, Inc. (25,643 ) (20,116 ) (81,870 ) (64,459 )

Deemed dividend related to the beneficial conversion feature of Series D convertible preferred stock and conversion of Amyris Brasil S.A. shares held by a third party

  -     -     (42,009 )   -  
Net loss attributable to Amyris, Inc. common stockholders $ (25,643 ) $ (20,116 ) $ (123,879 ) $ (64,459 )

Net loss per share attributable to common stockholders basic and diluted

$ (0.59 ) $ (4.12 ) $ (8.35 ) $ (13.56 )

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted

  43,744,476     4,879,693     14,840,253     4,753,085  
 

__________________

(1) Includes stock-based compensation expense of the following for the periods presented:

 
Research and development $ 824 $ 178 $ 2,161 $ 773
Sales, general and administrative   2,700       851     8,271       2,526  
Total stock-based compensation expense $ 3,524     $ 1,029   $ 10,432     $ 3,299  
Amyris, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
 
  December 31,   December 31,
2010 2009
 
Assets
Current assets:
Cash, cash equivalents and marketable securities $ 257,933 $ 67,210
Accounts receivable 5,215 1,372
Inventories 4,006 2,298
Prepaid expenses and other current assets   2,905   3,983  
Total current assets 270,059 74,863
Property and equipment, net 54,847 42,560
Restricted cash - 4,506
Other assets   32,547   230  
Total assets $ 357,453 $ 122,159  
 

Liabilities, Convertible Preferred Stock, Redeemable Noncontrolling Interest and Equity (Deficit)

Current liabilities:
Accounts payable $ 7,116 $ 1,709
Deferred revenue 565 378
Accrued and other current liabilities 14,795 10,445
Capital lease obligation, current portion 2,854 2,251
Debt, current portion   1,911   9,018  
Total current liabilities 27,241 23,801
Capital lease obligation, net of current portion 3,091 4,977
Long-term debt, net of current portion 4,734 4,362
Convertible preferred stock warrant liability - 2,740
Deferred rent, net of current portion 11,186 8,828
Deferred revenue, net of current portion 1,130 -
Restructuring liability - 4,486
Other liabilities   2,523   1,553  
Total liabilities   49,905   50,747  
 
Convertible preferred stock - 179,651
Redeemable noncontrolling interest - 5,506
 
Amyris, Inc. stockholders' equity (deficit) 307,546 (113,745 )
Noncontrolling interest   2   -  
Total equity (deficit)   307,548   (113,745 )

Total liabilities, convertible preferred stock, redeemable noncontrolling interest and equity (deficit)

$ 357,453 $ 122,159  
Amyris, Inc.
Supplemental Consolidated Financial Information
(Unaudited)
(In thousands, except per share amounts)
 
  Three Months Ended

December 31,

  Years Ended

December 31,

  2010       2009       2010       2009  
   
 
Other Selected Financial Information:
Capital expenditures $ 2,657   $ 1,675   $ 10,906   $ 7,608  

Depreciation and amortization

$ 1,980   $ 1,490   $ 7,280   $ 5,775  
 
Reconciliation of GAAP to Non-GAAP Net Loss Per Share:
 
Net loss attributable to Amyris Inc., common stockholders (GAAP) $ (25,643 ) $ (20,116 ) $ (123,879 ) $ (64,459 )
 
Deemed dividend related to beneficial conversion feature - - 42,009 -
Stock Compensation Expense   3,524     1,029     10,432     3,299  

Net loss attributable to Amyris Inc., common stockholders (Non- GAAP)

$ (22,119 ) $ (19,087 ) $ (71,438 ) $ (61,160 )
 

Net loss per share attributed to common stockholders basic and diluted (GAAP)

$ (0.59 ) $ (4.12 ) $ (8.35 ) $ (13.56 )
 
Deemed dividend related to beneficial conversion feature - - 2.84 -
Stock Compensation Expense   0.08     0.21     0.70     0.69  

Net loss per share attributed to common stockholders basic and diluted (Non-GAAP)

$ (0.51 ) $ (3.91 ) $ (4.81 ) $ (12.87 )

Amyris, Inc.
Jeryl Hilleman, 510-740-7434
Chief Financial Officer
investor@amyris.com

Source: Amyris, Inc.

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