Solazyme, Inc.
Feb 21, 2012

Solazyme Reports Fourth Quarter and Fiscal Year 2011 Results

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Solazyme, Inc. (NASDAQ:SZYM), a renewable oil and bioproducts company, announced today financial results for the fourth quarter and fiscal year ended December 31, 2011 and recent key corporate highlights.

"In 2011, Solazyme made significant progress toward commercializing our valuable technology platform, including launching our Algenist skincare line and our Solazyme Roquette Nutritionals business," said Jonathan Wolfson, CEO, Solazyme. "Recently, we commenced operations at our manufacturing plant in Peoria, Illinois and Solazyme Roquette Nutritionals commenced operations at its Phase 1 facility in France. Over the past year, we delivered on all of our partner commitments, signed MOUs and JDAs to meet the majority of our long-term feedstock needs, and progressed on important partnerships. We believe we've set the stage for commercial expansion in 2012 and 2013."

"Our unique technology platform is capable of rapidly prototyping new triglyceride oils that we expect will allow our customers to develop new and improved products and change the industrial playing field," added Mr. Wolfson.

Financial Results

Total revenue for the fourth quarter ended December 31, 2011 was $14.9 million compared with $23.2 million in the fourth quarter of 2010. The fourth quarter of 2010 included a $15 million license payment from Roquette, compared with a $5 million license payment received in the comparable quarter in 2011. Fourth quarter GAAP net loss attributable to Solazyme, Inc. common stockholders was $15.6 million, which compares with net income attributable to common stockholders of $2.9 million in the prior year period. On a non-GAAP basis, the net loss attributable to Solazyme, Inc. common stockholders was $12.2 million for the fourth quarter of 2011, compared with net income attributable to common stockholders of $5.9 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.

Total revenue for the fiscal year ended December 31, 2011 was $39.0 million compared with $38.0 million in the prior year. Fiscal year 2011 GAAP net loss attributable to Solazyme, Inc. common stockholders was $54.0 million, compared with $16.4 million in the prior year. On a non-GAAP basis, the net loss attributable to Solazyme, Inc. common stockholders was $39.4 million for 2011, compared with $11.8 million in 2010.

"Our primary focus throughout 2012 will be on ramping our commercial capacity," said Tyler Painter, CFO, Solazyme. "With approximately $244 million in cash, cash equivalents and marketable securities at year end, we believe we are well positioned to execute our plans and remain on track to achieve our commercialization targets."

Recent Business Highlights

2011 Highlights

Conference Call

Solazyme will hold a conference call for investors on Feb. 21, 2012 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the call by dialing 973-409-9250. A live webcast of the call will be available from the Investor Relations section of www.solazyme.com. A recording of the call will also be available by calling 404-537-3406; access code 48899250 beginning approximately two hours after the call, and will be available for one week. A webcast replay from today's call will also be available from the Investor Relations section of www.solazyme.com approximately two hours after the call and will be available for up to thirty days.

About Solazyme, Inc.

Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources — petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) chemicals and fuels, (2) nutrition and (3) skin and personal care. For more information, please visit our website: http://www.solazyme.com

Solazyme®, the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as "non-GAAP financial measures" by the Securities and Exchange Commission: non-GAAP net loss and non-GAAP net loss per share. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures, see "Reconciliation of GAAP to Non-GAAP Net-Loss Per Share" included in the tables to this press release.

These non-GAAP measures are provided to enhance investors' overall understanding of Solazyme's current financial performance and Solazyme's prospects for the future. Specifically, Solazyme believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results and business outlook.

For its internal budgeting process, Solazyme's management uses financial measures that do not include stock-based compensation expense or special one-time expenses such as non-cash losses due to warrant revaluations. In addition to the corresponding GAAP measures, Solazyme's management also uses the foregoing non-GAAP measures in reviewing the financial results of Solazyme. Solazyme excludes stock-based compensation expenses and special non-cash one-time charges from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and uncertainties concerning: the commercialization plans and commercialization timetable for its tailored oils and applications thereof; product revenue growth in 2012; the future market demand for its tailored oils; the timetable of its manufacturing scale-up and the volume of oils that may be produced from such scale-up; the ability of its feedstock agreements to support its tailored oil production capacity requirements; the ability of its customers to develop new products using its oils; the timetable for commercial expansion; its entry into new markets and partnerships; its ability to execute on its plans and achieve commercialization targets; and the timetable for completion of the production plant in Brazil; the timetable for production at the Phase 1 facility. When used in this press release, the words "will", "expects", "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: Solazyme's limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; its limited experience in constructing and operating commercial manufacturing facilities; delays related to construction, facilitization or start-up of production facilities; its access to adequate supply of feedstock on favorable terms; its ability to enter into and maintain strategic collaborations; its ability to obtain requisite regulatory approvals; and its access, on favorable terms, to any required financing. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.

In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.

SOLAZYME, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and twelve months ended December 31, 2011 and 2010
In thousands, except per share amounts
  Three Months Ended December 31,   Year Ended December 31,
  2011       2010     2011       2010  

Revenues

(Unaudited) (Unaudited)
Research and development programs $ 8,251   $ 8,170 $ 26,793   $ 22,970
Product revenue 1,638 - 7,173 -
License fees 5,000 15,000 5,000 15,000
           
Total revenues 14,889 23,170 38,966 37,970
 

Operating expenses (1)

Cost of product revenue 828 - 2,420 -
Research and development 16,921 12,386 45,613 34,227
Sales, general and administrative   12,835       6,007     41,426       17,422  
Total operating expenses 30,584 18,393 89,459 51,649
           
Income (loss) from operations (15,695 ) 4,777 (50,493 ) (13,679 )
 

Other income (expense)

Net interest and other income 114 142 229 37
Loss from change in fair value of warrant liability   -       (2,000 )   (3,637 )     (2,638 )
Total other income (expense) 114 (1,858 ) (3,408 ) (2,601 )
           
Net income (loss) (15,581 ) 2,919 (53,901 ) (16,280 )
 
Accretion on redeemable convertible preferred stock   -       (37 )   (60 )     (140 )
 
Net income (loss) attributable to Solazyme, Inc. common stockholders $ (15,581 )   $ 2,882   $ (53,961 )   $ (16,420 )
 
Earnings (loss) per share attributable to Solazyme, Inc. common stockholders:
Basic $ (0.26 ) $ 0.24 $ (1.35 ) $ (1.42 )
Diluted $ (0.26 ) $ 0.06 $ (1.35 ) $ (1.42 )
 
Shares used in computing earnings (loss) per share:
Basic 59,703 11,895 39,934 11,540
Diluted 59,703 49,126 39,934 11,540
 
 
 
Reconciliation of GAAP to non-GAAP basic net earnings (loss) per share: Three Months Ended December 31, Year Ended December 31,
In thousands, except per share amounts   2011       2010     2011       2010  
(Unaudited) (Unaudited)
Net income (loss) attributable to Solazyme, Inc. common stockholders $ (15,581 ) $ 2,882 $ (53,961 ) $ (16,420 )
 
Loss from change in fair value of warrant liability - 2,000 3,637 2,638
(1) Operating expenses include stock-based compensation expense as follows:
Research and development 846 227 2,413 509
Sales, general and administrative   2,502       770     8,510       1,443  
Total stock-based compensation expense 3,348 997 10,923 1,952
           
Net income (loss) attributable to Solazyme, Inc. common stockholders (non-GAAP) $ (12,233 )   $ 5,879   $ (39,401 )   $ (11,830 )
 
Basic earnings (loss) per share attributable to Solazyme, Inc. common stockholders (GAAP) $ (0.26 ) $ 0.24 $ (1.35 ) $ (1.42 )
 
Loss from change in fair value of warrant liability - 0.17 0.09 0.22
Stock-based compensation expense 0.06 0.08 0.27 0.17
           
Basic earnings (loss) per share attributable to Solazyme,Inc. common stockholders (non-GAAP) $ (0.20 )   $ 0.49   $ (0.99 )   $ (1.03 )
Diluted earnings (loss) per share attributable to Solazyme,Inc. common stockholders (non-GAAP) $ (0.20 )   $ 0.12   $ (0.99 )   $ (1.03 )
SOLAZYME, INC.    
Consolidated Balance Sheets December 31, December 31,
In thousands   2011     2010  
(Unaudited) (Unaudited)

Current assets

Cash and cash equivalents $ 28,780 $ 32,497
Marketable securities 214,944 49,533
Accounts receivable 4,029 670
Unbilled revenue 3,889 3,467
Inventories 3,129 -
Prepaids and other current assets 4,122 1,816
   
Total current assets 258,893 87,983
 
Property, plant and equipment - net 25,985 5,693
Other assets 346 308
   
Total assets $ 285,224   $ 93,984  
 
 

Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

 

Current liabilities

Accounts payable $ 11,525 $ 6,137
Accrued liabilities 9,288 4,320
Current portion of long-term debt 5,289 50
Deferred revenue 3,014 1,363
Preferred stock warrant liability - 2,961
Other current liabilities 96 -
   
Total current liabilities 29,212 14,831
 
Other liabilities 491 728
 
Long-term debt 14,963 179
   
Total liabilities   44,666     15,738  
 
Commitments and contingencies
 

Redeemable convertible preferred stock

Preferred stock - Series A - 2,991
Preferred stock - Series B - 8,645
Preferred stock - Series C - 56,943
Preferred stock - Series D - 59,734
   
Total redeemable convertible preferred stock - 128,313
 

Stockholders' equity (deficit)

Common stock 60 12
Additional paid-in capital 348,083 4,393
Notes receivable from stockholders - (1,597 )
Accumulated other comprehensive loss (789 ) (40 )
Accumulated deficit (106,796 ) (52,835 )
   
Total stockholders' equity (deficit) 240,558 (50,067 )
   
 
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) $ 285,224   $ 93,984  

Solazyme, Inc.
Corporate Communications:
Genet Garamendi
press@solazyme.com
or
The Blueshirt Group
Chris Danne, 415-217-7722
chris@theblueshirtgroup.com
Maria Riley, 415-217-7722
maria@theblueshirtgroup.com

Source: Solazyme, Inc.

News Provided by Acquire Media