Solazyme Inc. (NASDAQ:SZYM), a renewable oil and bioproducts company, announced results for the first quarter ended March 31, 2014.
“Q1 was an important milestone quarter for the company from both production and commercialization standpoints as we began making and selling products from Clinton/Galva, our first large scale commercial facility; our partner Unilever began using our oils in its premier Lux soap brand; we launched and began selling our new Encapso™ encapsulated lubricants in the oil field services market; and our Algenist® brand expanded into Nordstrom. While we haven’t yet announced our first commercial product out of Moema, much of that plant is operational, including full-scale fermenters. We expect to manufacture commercial product at the Moema facility in the second quarter,” said Jonathan Wolfson, CEO of Solazyme.
Total revenue for the first quarter of 2014 was $12.4 million compared with $6.7 million in the first quarter of 2013, an increase of 85 percent. First quarter GAAP net loss was $34.7 million, which compares with net loss of $26.5 million in the prior year period. On a non-GAAP basis, the net loss was $30.5 million for the first quarter of 2014, compared with net loss of $21.5 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.
“Manufacturing at Clinton/Galva is progressing as planned and we are pleased to report that we have doubled the number of customers shipped to since our update at the end of February,” said Tyler Painter, chief financial officer of Solazyme. “We made commercial progress across our consumer products, nutrition, encapsulated lubricants, and industrial oils and fuels markets. We also strengthened our balance sheet and are well-positioned to ramp manufacturing volumes and commercialize our growing portfolio of products.”
Recent business highlights:
- Unilever commercial production of Lux soap featuring Solazyme algal oil. Last week, our partner Unilever announced that it has incorporated our sustainable algal oil into one of Unilever’s premier soap brands, Lux. The soap has been on store shelves in Brazil since early March.
- Commercialization progress at Clinton/Galva continues. Since late February Solazyme has doubled the number of customers purchasing ingredients manufactured at the Clinton/Galva facilities. Additionally, the Company is filling repeat orders, demonstrating strong progress in building trust and reliability of supply.
- Encapso lubricants launched in oil field services market. Solazyme’s first-of-its-kind encapsulated lubricant, Encapso, was launched into the oil field services market in March. Solazyme is working with multiple drilling operators and customers, including some repeat end customers, to rapidly expand commercial use and testing. Encapso lubricants have been used in about 20 wells to date, a 50 percent increase in well-count in just a few weeks, and has already been used in six basins.
- Algenist percent launched in Nordstrom stores. In April, Solazyme reported that its award-winning anti-aging skin care brand, Algenist percent, is available for sale in select Nordstrom locations nationwide and on the retailer’s website. The Algenist percent line is featured as part of Nordstrom’s “Advanced Skincare” category.
- Raised $202.8 million in hybrid financing. On April 1, 2014, Solazyme announced the closing of its sale of 5,750,000 shares of its common stock, and $149.5 million aggregate principal amount of 5.00 percent Convertible Senior Subordinated Notes due 2019. Aggregate estimated net proceeds from the hybrid offering were $202.8 million.