Investors

News Release

<< Back
Codexis Reports Fourth Quarter and Full Year 2011 Results
49% Annual Increase in Pharmaceutical Product Sales
CodeXyme™ Cellulase Enzymes and CodeXol™ Detergent Alcohol Product Lines Launched

REDWOOD CITY, Calif., Feb. 7, 2012 /PRNewswire/ -- Codexis, Inc. (NASDAQ: CDXS), a developer of industrial enzymes to enable the production of biofuels, bio-based chemicals, and pharmaceutical intermediates, today announced financial results for the fourth quarter and year ended December 31, 2011.  

“In 2011, we launched our CodeXyme™ cellulase enzymes and CodeXol™ detergent alcohol product lines,” said Alan Shaw, Ph.D., President and CEO of Codexis, Inc. “In 2012 we are focused on delivering world-class CodeXyme™ cellulase enzymes to our development partners, piloting production of CodeXol™, and delivering continued sales growth in our pharmaceuticals products and services”.

Full Year 2011 Financial Highlights:

Revenue: For fiscal 2011, the company reported revenues of $123.9 million, an increase of $16.8 million or 16% over fiscal 2010 revenue of $107.1 million. Product revenue of $49.0 million increased $16.2 million or 49% over the prior year, driven by increased sales to both generic and innovator pharmaceutical customers. Collaborative R&D revenue of $71.4 million increased $1.2 million from $70.2 million over the prior year.

Operating Expenses: Research and development expenses for fiscal 2011 were $61.0 million, compared to $52.4 million for fiscal 2010. The increase was primarily due to additional headcount and amortization related to intellectual property purchased from Maxygen, Inc. Selling, general and administrative expenses for fiscal 2011 increased to $36.9 million compared to $33.8 million for fiscal 2010, driven by higher stock compensation expense and higher compensation expense due to headcount increases.

Net Loss: Net loss was ($16.6) million, or ($0.46) per share, based on 35.7 million weighted average common shares outstanding for fiscal year 2011. This compares to a net loss of ($8.5) million or ($0.35) per share for fiscal 2010.

Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA was $4.3 million for fiscal 2011 compared to $9.9 million for fiscal 2010. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization, stock-based compensation and preferred stock warrant fair market valuation. A reconciliation of net loss to Adjusted EBITDA is presented below.

Cash: Cash, cash equivalents and marketable securities at December 31, 2011, was $63.8 million compared to $74.1 million at December 31, 2010. The company used ($0.5) million in cash from operations in fiscal 2011.

Fourth Quarter 2011 Financial Highlights:

Revenue: For the fourth quarter of 2011, the company reported revenues of $33.5 million, an increase of $3.7 million or 12% over $29.8 million in the fourth quarter of 2010. Product revenue increased $6.9 million or 80% over the same time period of 2010.

Operating Expenses: Research and development expenses in the fourth quarter of 2011 were $15.5 million, compared to $13.3 million for the fourth quarter of 2010. The increase was primarily due to additional headcount for the development of CodeXol™ Detergent Alcohol. Selling, general and administrative expenses in the fourth quarter of 2011 increased to $9.8 million, compared to $8.6 million over the same time period of 2010, related to use of consultants, legal costs associated with intellectual property patent filing and increased costs related to SOX compliance.

Net Loss: Net loss was ($5.3) million, or ($0.15) per share, based on 36.0 million weighted average common shares outstanding in the fourth quarter of 2011. This compares to a net loss of ($0.5) million or ($0.01) per share during the fourth quarter of 2010.

Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA decreased from $4.4 million in the fourth quarter of 2010 to ($0.2) million in the fourth quarter of 2011. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization, stock-based compensation and preferred stock warrant fair market valuation. A reconciliation of net loss to Adjusted EBITDA is presented below.

Cash: Cash, cash equivalents and marketable securities at December 31, 2011 was $63.8 million compared to $70.6 million at September 30, 2011. The company used ($2.9) million in cash from operations in the fourth quarter.

Outlook

Codexis' statements with regard to its outlook are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.

For the full year 2012, Codexis forecasts revenues in line with or exceeding 2011 results. Codexis expects 2012 Adjusted EBITDA will be positive.

Conference Call

Codexis will hold a conference call for investors on February 7, 2012 at 1:30 p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US: 866-788-0541 or International: 857-350-1679, access code 54501345. A live webcast of the call will also be available from the Investor Relations section of www.codexis.com. A recording of the call will be available by calling US: 888-286-8010 or International: 617-801-6888, access code 84268524 beginning approximately two hours after the call, and will be available for up to thirty days. A webcast replay from today's call will also be available from the Investor Relations section of www.codexis.com approximately two hours after the call and will be available for up to thirty days.

About Codexis, Inc.

Codexis is an industrial biotechnology company developing enzymes for the production of high value sustainable chemicals, clean fuels, cost effective pharmaceutical processes and renewable bioindustrial ingredients to make industry more efficient, productive and profitable.  Partners and customers include global leaders such as Shell, Merck and Pfizer.  For more information, see www.codexis.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to Codexis' forecast for 2012 revenue and Adjusted EBITDA, and Codexis’ ability to deliver CodeXyme™ cellulase enzymes to its development partners in 2012, pilot production of CodeXol™ in 2012, and deliver sales growth in its pharmaceuticals products and services in 2012.  You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results.  Factors that could materially affect actual results include the risks that our operating results may fluctuate in the future, that we have a history of net losses and that we may be unable to successfully commercialize our technology in biofuels.  Additional factors that could materially affect actual results can be found in Codexis' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2011, including under the caption "Risk Factors."  Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Codexis, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Per Share Amounts)


















Three Months Ended




Year Ended






December 31,




December 31,






2011


2010


% change


2011


2010


% change


Revenues:














    Product


$ 15,493


$ 8,586


80%


$  49,021


$ 32,835


49%


    Collaborative research and development


17,296


20,746


-17%


71,368


70,196


2%


    Government grants


705


479


47%


3,476


4,073


-15%
















Total revenues


33,494


29,811


12%


123,865


107,104


16%
















Costs and operating expenses:














    Cost of product revenues


13,067


8,126


61%


41,781


27,982


49%


         Gross margin $


2,426


460


427%


7,240


4,853


49%


         Gross margin %


16%


5%




15%


15%


















    Research and development


15,548


13,349


16%


61,049


52,405


16%


    Selling, general and administrative


9,782


8,649


13%


36,942


33,841


9%










.


.




Total costs and operating expenses


38,397


30,124


27%


139,772


114,228


22%
















Loss from operations


(4,903)


(313)


1466%


(15,907)


(7,124)


123%
















    Interest income


77


31


148%


273


166


64%


    Interest expense and other, net


(297)


(153)


94%


(675)


(1,199)


-44%
















Loss before provision for income taxes


(5,123)


(435)


1078%


(16,309)


(8,157)


100%
















    Provision for income taxes


174


60


190%


241


384


-37%


Net loss


$ (5,297)


$  (495)


970%


$ (16,550)


$ (8,541)


94%
















Net loss per share of common stock,














basic and diluted


$   (0.15)


$ (0.01)




$     (0.46)


$   (0.35)


















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


35,965


34,452




35,674


24,594






Codexis, Inc.


Condensed Consolidated Balance Sheets


(Unaudited)


(In Thousands)











December 31,



December 31,




2011



2010


Assets







Current assets:







  Cash and cash equivalents


$           25,762



$           72,396


  Marketable securities


27,720



-


  Accounts receivable, net


18,917



15,333


  Inventories


4,488



2,817


  Prepaid expenses and other current assets


2,345



1,646


     Total current assets


79,232



92,192









Restricted cash


1,511



1,466


Non-current marketable securities


10,348



1,650


Property and equipment, net


24,176



21,452


Intangible assets, net


16,442



20,158


Goodwill


3,241



3,241


Other non-current assets


972



1,141


Total assets


$         135,922



$         141,300









Liabilities and stockholders' equity







Current liabilities:







  Accounts payable


$           10,364



$             9,208


  Accrued compensation


6,785



8,107


  Other accrued liabilities


7,354



5,630


  Deferred revenues


3,789



4,539


     Total current liabilities


28,292



27,484









Deferred revenues, net of current portion


1,485



5,074


Other long-term liabilities


3,455



1,381


     Total  liabilities


33,232



33,939









Stockholders' equity:







Common stock


4



4


Additional paid-in capital


287,792



275,540


Accumulated other comprehensive income (loss)


(407)



(34)


Accumulated deficit


(184,699)



(168,149)


     Total  stockholders' equity


102,690



107,361


Total liabilities, and stockholders' equity


$         135,922



$         141,300




Codexis, Inc.


Condensed Consolidated Statements of Cash Flow


(Unaudited)


(In Thousands)










Year Ended




December 31,




2011


2010


Operating activities:






Net loss


$ (16,550)


$   (8,541)


Adjustments to reconcile net loss to net cash used in operating activities:






   Amortization of intangible assets


3,716


1,063


   Depreciation and amortization of property and equipment


7,755


7,246


   Revaluation of redeemable convertible preferred stock warrant liability


-

0

677


   Loss (gain) on disposal of property and equipment


49


148


   Gain from extinguishment of asset retirement obligation


(124)


-


   Extinguishment of royalty payable


-


461


   Stock-based compensation


9,431


8,737


   Accretion of asset retirement obligation


39


146


   Amortization of debt discount


-


26


   Accretion (amortization) of premium/discount on marketable securities


771


511


      Changes in operating assets and liabilities:






    Accounts receivable


(3,583)


(8,087)


    Inventories


(1,671)


98


    Prepaid expenses and other current assets


(682)


13


    Other assets


513


2,814


    Accounts payable


1,156


(2,105)


    Accrued compensation


(1,322)


1,589


    Other accrued liabilities


4,351


(6,048)


    Deferred revenues


(4,339)


(15,131)


            Net cash used in operating activities


(490)


(16,383)








Investing activities:






   Increase in restricted cash


(45)


(735)


   Purchase of property and equipment


(10,736)


(6,990)


   Purchase of marketable securities


(52,564)


(49,051)


   Purchase of Maxygen patent portfolio




(20,705)


   Proceeds from sale of marketable securities


6,037


1,605


   Proceeds from maturities of marketable securities


8,500


70,695


   Proceeds from disposal of property and equipment




15


         Net cash used in investing activities


(48,808)


(5,166)








Financing activities:






   Principal payments on financing obligations


-


(8,026)


   Payments in preparation for initial public offering


-


(3,870)


   Proceeds from issuance of common stock on IPO, net of underwriting discounts


-

-

72,541


   Proceeds from exercises of stock options


2,579


1,594


         Net cash provided by financing activities


2,579


62,239








   Effect of exchange rate changes on cash and cash equivalents


85


(79)








Net increase (decrease) in cash and cash equivalents


(46,634)


40,611


Cash and cash equivalents:






  Beginning of the period


72,396


31,785


  End of the period


25,762


72,396








  Marketable securities at the end of period


38,068


1,650








Cash, cash equivalents and marketable securities


$  63,830


$   74,046














Reclassification of preferred stock warrant from liability to additional paid-in capital




$     2,686


Conversion of preferred stock to common stock and additional paid-in capital




$ 179,672



Reconciliation of GAAP to Non-GAAP Financial Information

In this press release, in addition to GAAP financial results, we present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA to evaluate the effectiveness of our business strategies.  

A reconciliation of GAAP net loss to Adjusted EBITDA is included in the table below.




Codexis, Inc.




Reconciliation of GAAP Net Loss to Adjusted EBITDA




(Unaudited)




(In Thousands)









Three Months Ended


Year Ended





December 31,


December 31,




Calculation of Adjusted EBITDA

2011


2010


2011


2010




Net loss

$(5,297)


$  (495)


$(16,550)


$(8,541)




Adjustments:











Minus: Interest income

(77)


(31)

(273)


(166)




Plus: Interest expense

-


5


-


529




Plus: Income taxes

174


60


241


384




Plus: Depreciation and amortization

3,006


2,609


11,471


8,309




Plus: Stock-based compensation

2,038


2,271


9,431


8,737




Plus: Preferred stock warrant fair market valuation adjustment

-


-


-


677















  Adjusted EBITDA

$   (156)


$4,419


$    4,320


$  9,929



Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:

  • Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
  • Non-cash compensation is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.

Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.

Contacts: 
Investors: Jay Sarwar, ir@codexis.com, 650-421-8331
Media: Lyn Christenson, lyn.christenson@codexis.com, 650-421-8144 or Saskia Sidenfaden, ssidenfaden@mww.com, 212-827-3771.      

SOURCE Codexis, Inc.

Print Page Print Page | E-mail Page E-mail Page | RSS Feeds RSS |

Share Page

X
| E-mail Alerts E-mail Alerts | IR Contacts Contacts | Financial Tear Sheet Tear Sheet

WE ARE BIOCATALYSISTM

We are an industrial biotechnology company delivering real business results through biobased innovation in chemicals, fuels, pharmaceuticals, consumer, and industrial products.

PHARMACEUTICAL ENZYMES


Supporting faster, cleaner, more efficient pharmaceutical manufacturing processes

Codexis delivers a range of chemicals at kilogram to multi-ton scale, through a partnered manufacturing network

CODEXIS

WHAT WE DO


Codexis delivers revolutionary biocatalytic routes that no one else can


CODEXIS

MEDIA CENTER


Visit our Media Center for the latest product information, videos, imagery, technical papers and press information.


CAREERS AT CODEXIS

An opportunity to make a difference.

Continued success at Codexis depends on the innovation, collaboration and commitment of people who are passionate about what they do


CODEXIS

INVESTOR CENTER


Access to Codexis information
for the investment community

built@zoomedia
You are now leaving this website. If you would like to continue, click Continue.
CancelContinue