Solazyme Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company, announced results for the fourth quarter and full year ended Dec. 31, 2014.
“Although 2014 was a challenging year, we made great strides against our commercialization and production goals, including launching Encapso™ and our AlgaVia™ microalgae food ingredients, and starting up operations at our Clinton/Galva and SB Oils Moema facilities,” said Jonathan Wolfson, CEO of Solazyme. “We ended 2014 by demonstrating fully integrated operations at Moema and are confident that we will turn the corner to consistent and reliable operations as well. We have great technology, products and partners and though there is hard work in front of us we are excited about our opportunities and the year ahead.”
Total revenue for the fourth quarter of 2014 was $14.5 million compared with $11.3 million in the fourth quarter of 2013, an increase of 29 percent. Fourth quarter GAAP net loss was $44.9 million compared to a net loss of $33.3 million in the prior year period. On a non-GAAP basis, the net loss was $35.5 million for the fourth quarter of 2014 compared to a net loss of $27.4 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.
Total revenue for the year ended Dec. 31, 2014 was $60.4 million compared with $39.8 million in the prior year, an increase of 52 percent, with the product revenue component of that up 87 percent versus the prior year. Full year 2014 GAAP net loss was $162.1 million, compared with $116.4 million loss in the prior year. On a non-GAAP basis, the net loss was $133.4 million for 2014, compared with $88.6 million in 2013.
“Solazyme’s 2014 revenue growth reflects the continued expansion of our Algenist® product line, shipments from Clinton/Galva and Peoria of Encapso™ and AlgaVia™ branded products, as well as delivery against all of our joint development milestones for our partners,” said Tyler Painter, COO and CFO of Solazyme. “We are focused on maximizing the returns on our capacity investments and driving efficiencies across our operations. We are well positioned financially to accelerate the commercialization of our products in 2015.”
Moema: In December, we demonstrated the ability to operate on a fully integrated basis at Moema, achieving a major technical milestone for the company by demonstrating integrated operations from input sugar to crude oil. Our goal at Moema in 2015 is to reach consistent fully integrated operations and ramp production volumes.
Clinton/Galva: We began commercial production in Clinton and Galva and successfully produced five unique products during the course of the year.
Encapso™: Solazyme introduced Encapso, the world’s first commercially-available, biodegradable encapsulated oil for use as a lubricant in drilling fluids. Commercial rig results have confirmed that Encapso delivered operational improvements such as reductions in torque, increases in drilling speed, and reductions in non-productive time during use in 37 commercial wells.
AlgaVia: In 2014, we launched our microalgae food ingredients business under the AlgaVia brand name. The lipid and protein powders, as well as our high oleic algae oil, are Generally Recognized as Safe (GRAS) in the US and have received “No Questions” letters from the FDA.
Partner developments: In 2014, we made our first deliveries under a 10k MT supply agreement and extended our Joint Development Agreement (JDA) with Unilever; expanded our JDA and established key terms for a five year supply agreement targeting up to 10k MT/year with AkzoNobel; partnered with Versalis to commercialize Encapso; and met all JDA targets with Mitsui.