Solazyme Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company, announced results for the first quarter ended March 31, 2015.
“We are executing against our operating plan for 2015 and are pleased with the progress we are seeing across the company and in our manufacturing and commercialization efforts specifically,” said Jonathan Wolfson, CEO of Solazyme. “Advances are being made at the Moema JV production facility in Brazil including substantial improvements in downstream processing efficiency and oil production as well as in overall up-time and integrated operations. On the commercial side, we are moving forward as well. Recent progress includes the announced Flotek strategic partnership for Encapso™ and Flocapso™, new AlgaVia™ food ingredient customers and the expansion of our relationship with Bunge to cover a next generation food ingredient.”
Total revenue for the first quarter ended March 31, 2015 was $12.6 million compared with $12.4 million in the first quarter of 2014, while product revenue of $8.8 million was up 20 percent versus the comparable quarter. GAAP net loss was $34.7 million for the first quarter of 2015, unchanged from the first quarter of the prior year. On a non-GAAP basis, the net loss was $29.5 million for the first quarter of 2015, compared with net loss of $30.5 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.
“During the first quarter, we continued to build the market for our AlgaVia™ food ingredients business, which had its best quarter yet, and our Algenist® personal care brand turned in 26 percent year-on-year growth,” said Tyler Painter, COO and CFO of Solazyme. “We are focused on sales as well as overall financial performance and continue to believe that we are well positioned to profitably commercialize our products globally.”
- Moema: During the first quarter of 2015, we experienced improved downstream recovery rates from production and were able to run greater volumes through the facility. Although we continue to experience some power and steam intermittency, fixes implemented to date have led to improved reliability, and we have experienced multi-week periods where the facility has run on a continuous, fully integrated basis. Key steam and power redundancy projects remain on track to be completed by the end of the second quarter.
- Encapso™: We reached a strategic alliance agreement with Flotek under which Flotek will market Solazyme’s Encapso, the first commercially available, biodegradable encapsulated lubricant for drilling fluids, in certain Middle Eastern markets. The companies also reached a joint product development and marketing agreement to globally commercialize Flocapso™, an innovative, advanced drilling fluid. During the quarter, we also secured our first customer in South America, further expanding Encapso’s geographic reach.
- Algenist®: We had another quarter of double digit year-on-year revenue growth as we continue to grow and expand our Algenist brand, which is now distributed in 22 countries with 36 SKUs. We currently have two new launches in process including a Genius Bi-Phase Peel at Sephora and QVC and Sublime Defense Anti-Aging Moisturizer with SPF 30, launching at QVC, Sephora, Ulta and select Nordstrom locations.
- AlgaVia™: First quarter revenues were the highest to date for our AlgaVia food ingredient product line. We continue to add new projects with food and beverage manufacturers, as well as three new customers for lipid powders and protein ingredients.
- Partner developments: We expanded our relationship with Bunge and entered into a new joint development agreement for a next generation food ingredient.