$AMRS, Amyris Reports Third Quarter 2016 Results 3

$AMRS,

Amyris Reports Third Quarter 2016 Results
3 hours 23 minutes ago - DJNF
Amyris Reports Third Quarter 2016 Results

Record Revenue, Lower SG&A Expenses and Strong Outlook

-- Record Q3 2016 GAAP revenues* of $26.5 million, led by strong

collaboration and product sales growth of 61% over Q3 2015

-- Continued strong momentum in new collaborations, including with two key

nutraceutical partners, the Department of Energy (DOE) and most recently

a new pharma deal and pending asset transaction leading to strong Q4 cash

generation

-- Reduced selling, general and administrative expenses by 19% quarter over

quarter

EMERYVILLE, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the third quarter ended September 30, 2016, and posted the highest quarterly revenue in the company's history since exiting ethanol sales and trading.

"We're encouraged by the solid momentum in our business, which led to record revenue for the third quarter," said John Melo, Amyris President & CEO. "We have continued to execute on our business plan to grow our business through collaborations and partnerships, including expansion into the pharmaceutical sector. Our industry leading platform helped us reach a tipping point in demand from some of the leading companies in our target sectors. The combination of the strong growth for our farnesene building block, the new collaborations we are signing and the record number of products in our portfolio that are reaching commercial scale help underpin a very strong fourth quarter and over $200 million of 2017 revenue that we believe is supported by our current business and the remaining collaborations we expect to close in the fourth quarter."

Key Highlights

Other key operating and development highlights during the third quarter and more recently included:

-- Signed our third collaboration agreement with a "big pharma" partner

solidifying our entrance into the biopharma sector. We are now partners

with the leading companies in the world for each of the target compounds

we are working on.

-- Executed definitive agreements for a strategic partnership with a global

nutraceuticals market leader including expansion to a second

nutraceutical market product expected to represent $40-$50 million of

incremental annual revenue in 2019, and an unsecured credit facility of

$25 million, expected to close in December 2016.

-- Entered Memorandum of Understanding with a leader in food ingredients and

nutraceuticals for a transformative collaboration. Subject to completing

definitive agreement - on track for completion by the beginning of

December 2016 - Amyris expects to receive a collaboration payment of $10

million along with a partner equity investment of $20 million at $1.40

per share. Initial revenue expectations with this partner beginning in

2017 are $100 million.

-- Announced major DOE agreement to further the manufacturing of

cellulose-derived farnesene for biofuels. This is expected to expand

global availability of Amyris's farnesene for a variety of applications.

Success in the project could enable farnesene cost below $1 a liter,

delivering breakthrough results in a variety of products and unlocking

additional market opportunities.

-- Recently announced that our Biossance skin-care products will be launched

in Sephora stores and online beginning in the first quarter of 2017, in

line with our plan to introduce Biossance into new, large, distribution

channels to drive growth and lower our operating cost.

-- Signed letter of intent for distribution of Biossance skin care products

through leading infomercial and direct selling channel. This anticipated

partnership will also fund working capital to support growth of Amyris's

consumer business and become key distribution channel for Biossance along

with Sephora relationship.

-- Recently signed term sheet with one of most respected cosmetic ingredient

suppliers in the world to establish joint venture for Amyris's Neossance

cosmetic ingredients business. This proposed partnership is valuing the

business at $40 million and expected to continue supporting the growth

and leadership the company has achieved with our proprietary Neossance

squalane.

-- Since September 30, 2016 the Company has closed on financing totaling

$16.5 million. Further, management executed an amendment that extends the

maturity of the Company's senior secured loans of $28.6 million from the

2017 to 2019, subject to extending maturities of various loans with

non-affiliates to 2019 as well. Along with this amendment, restrictive

financial covenants have been eliminated as well as the monthly loan

amortization.

Financial Performance

Third Quarter 2016

-- Revenues for third-quarter 2016 were $26.5 million, up sharply from $8.6

million for the third quarter of 2015. The increase was driven by a 61%

increase in product sales, primarily in the company's personal care

segment, as well as by significantly higher collaboration revenues.

Collaboration revenues contributed $19.7 million and were up from $4.4

million for the same quarter of 2015. Product revenue of $6.8 million for

the third quarter of 2016 compared with $4.2 million for Q3 2015.

-- Q3 2016 selling, general and administrative expenses were $11.4 million,

down 19% from Q3 2015, reflecting ongoing actions taken to reduce

operating expenses.

-- Net loss attributable to Amyris common stockholders for the third quarter

of 2016 was ($19.7) million, or ($0.08) per basic share and per diluted

share. Included in the calculation of net loss were several non-cash

related items, including a loss from changes in fair value of embedded

derivatives. Adjusted net loss, excluding these items and excluding

stock-based compensation, was ($16.5) million, or ($0.07) per basic

share.

-- Q3 Free Cash Flow was $0.7 million, a marked improvement compared to

($18.9) million in the same quarter in 2015 driven largely by the revenue

growth in the quarter.

Nine Months Ended September 30, 2016

-- Revenues for the nine months ended September 30, 2016 were $45.0 million,

compared with $24.3 million for the same period last year. The increase

was driven by a 54% increase in product sales led by Amyris's personal

care business. Collaboration revenues contributed $30.1 million to total

revenues for the period, which was more than double from the same period

of 2015 and driven by collaboration revenue under the Ginkgo Bioworks

agreement, as well as overall growth in new collaborations.

-- Net loss attributable to Amyris common stockholders for the nine months

ended September 30, 2016 was ($48.6) million, or ($0.21) per basic and

($0.28) per diluted share. This compared with a net loss for the same

period of 2015 of ($176.0 million), or ($1.76) per basic and diluted

share. The net loss for the 2015 period included several large non-cash

related items.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

Condensed consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information 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. Management 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.

Adjusted net loss is calculated by taking GAAP net loss and excluding stock-based compensation and gains and losses from changes in fair value of derivatives and debt extinguishment.

Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations. Non-GAAP revenue is calculated using GAAP revenues and adding the related changes in accounts receivable and deferred revenue related to revenue recognized for these collaborations and grants to equal funds received during the period, along with any funding associated with collaborations.

Non-GAAP financial 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 in order to understand Amyris's operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net loss, non-GAAP revenue, and other measures, to the most directly comparable GAAP financial measure is provided in the tables attached to this press release.

QUARTERLY CONFERENCE CALL TODAY

Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing (866) 516-3867, participant passcode: 5584794.

A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.

About Amyris

(MORE TO FOLLOW) Dow Jones Newswires

November 02, 2016 16:00 ET (20:00 GMT)