</pre>
<p>REDWOOD CITY, Calif., <span class="xn-chron">May 26</span> /CNW/ -- Codexis, Inc. (Nasdaq: CDXS) today announced financial results for the first quarter ending <span class="xn-chron">March 31, 2010</span>.</p>
<p/>
<p>Codexis completed an initial public offering of six million shares in <span class="xn-chron">April 2010</span>, raising gross proceeds of <span class="xn-money">$78 million</span> at a price per share of <span class="xn-money">$13.00</span>.</p>
<pre>
Financial Highlights
</pre>
<p>For the first quarter, the company reported revenues of <span class="xn-money">$25.7 million</span>, an increase of 32% from <span class="xn-money">$19.4 million</span> in the same period last year and a net loss of (<span class="xn-money">$1.4 million</span>) or (<span class="xn-money">$0.50</span>) per basic and diluted share compared to a loss of (<span class="xn-money">$6.1 million</span>) or (<span class="xn-money">$2.35</span>) per basic and diluted share in the first quarter of 2009. Research and development expenses for the first quarter of 2010 declined 14% to <span class="xn-money">$13.0 million</span> from <span class="xn-money">$15.1 million</span> for the first quarter of 2009.</p>
<p/>
<p>On a non-GAAP basis, Adjusted EBITDA increased from (<span class="xn-money">$3.4</span>) million in the first quarter of 2009 to <span class="xn-money">$2.8 million</span> in the first quarter of 2010. Adjusted EBITDA is calculated by adding depreciation, amortization, net interest expense, income taxes, stock-based compensation and preferred stock fair market value adjustment to our net loss. A reconciliation of Adjusted EBITDA to net loss is presented in the table below.</p>
<p/>
<p>Cash, cash equivalents and marketable securities for the first quarter decreased to <span class="xn-money">$39.3 million</span>, compared to <span class="xn-money">$55.6 million</span> at <span class="xn-chron">December 31, 2009</span>.</p>
<p/>
<p>For 2010, Codexis forecasts revenues of <span class="xn-money">$94 million to $98 million</span>, which would represent growth of 13% to 18% compared to 2009. Codexis expects Adjusted EBITDA to be positive for full year 2010.</p>
<pre>
Conference Call
</pre>
<p>Codexis will hold a conference call for investors on <span class="xn-chron">May 26, 2010</span> at <span class="xn-chron">1:30PM PT</span>/<span class="xn-chron">4:30PM ET</span>. The conference call dial-in numbers are US: 866-783-2145 or International: 857-350-1604, access code (56829308). A live webcast of the call will also be available on the Investor Relations section of <a href="http://www.codexis.com">www.codexis.com</a>. A recording of the call will be available by calling (US: 888-286-8010) or (International: 617-801-6888), access code (94161862) beginning approximately one hour after the call, and will be available for up to thirty days. A webcast replay from today's call will also be available from the Investor Relations section of <a href="http://www.codexis.com">www.codexis.com</a> approximately one hour after the call and will be available for up to thirty days.</p>
<pre>
About Codexis
</pre>
<p>Codexis, Inc. is a leading provider of optimized biocatalysts that make existing industrial processes faster, cleaner and more efficient than current methods and have the potential to make new industrial processes possible at commercial scale. Codexis has commercialized its biocatalysts in the pharmaceutical industry and is developing biocatalysts for use in producing advanced biofuels under a multi-year research and development collaboration. The company is also using its technology platform to pursue biocatalyst-enabled solutions in other bioindustrial markets, including carbon management, water treatment and chemicals.</p>
<pre>
Forward-Looking Statements
</pre>
<p>This press release contains forward-looking statements relating to the Company's forecast for 2010 revenue and Adjusted EBITDA, as defined in this press release. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results. Factors that could materially affect actual results can be found in Codexis' Registration Statement on Form S-1 dated <span class="xn-chron">December 28, 2009</span>, as amended, including under the caption "Risk Factors." Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.</p>
<p/>
<p> </p>
<p> </p>
<pre>
Codexis, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Share Amounts)
</pre>
<p> </p>
<pre>
Three Months Ended
March 31,
2010 2009
---- ----
Revenues:
Product $6,275 $4,571
Related party collaborative research and
development 16,042 14,420
Collaborative research and development 661 407
Government grants 2,722 12
----- ---
</pre>
<p> </p>
<pre>
Total revenues 25,700 19,410
------ ------
</pre>
<p> </p>
<pre>
Costs and operating expenses:
Cost of product revenues 5,218 3,856
Research and development 12,982 15,134
Selling, general and administrative 8,600 6,063
----- -----
</pre>
<p> </p>
<pre>
Total costs and operating expenses 26,800 25,053
------ ------
</pre>
<p> </p>
<p> Loss from operations (1,100) (5,643)</p>
<p> </p>
<pre>
Interest income 28 31
Interest expense and other, net (358) (427)
Loss before provision (benefit) for
income taxes (1,430) (6,039)
Provision (benefit) for income taxes (61) 54
--- ---
Net loss (1,369) (6,093)
====== ======
</pre>
<p> </p>
<pre>
Net loss per share of common stock,
basic and diluted $(0.50) $(2.35)
------ ------
</pre>
<p> </p>
<pre>
Weighted average common shares used in
computing net loss per
per share of common stock, basic and
diluted 2,714 2,594
===== =====
</pre>
<p> </p>
<p> </p>
<pre>
Codexis, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands)
</pre>
<p> </p>
<pre>
March 31, December 31,
2010 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $29,197 $31,785
Marketable securities 10,067 23,778
Accounts receivable, net 6,561 7,246
Inventories 2,912 2,915
Prepaid expenses and other current
assets 1,919 1,658
----- -----
Total current assets 50,656 67,382
</pre>
<p> </p>
<pre>
Restricted cash 731 731
Property and equipment, net 21,251 21,581
Intangible assets, net 744 928
Goodwill 3,241 3,241
Other non-current assets 7,213 5,173
----- -----
Total assets $83,836 $99,036
======= =======
</pre>
<p> </p>
<pre>
Liabilities, redeemable convertible preferred stock,
and shareholders' deficit
Current liabilities:
Accounts payable $6,730 $9,999
Accrued compensation 3,560 6,518
Related party payable 548 1,314
Other accrued liabilities 9,294 10,376
Redeemable convertible preferred stock
warrant liability 2,405 2,009
Deferred revenues 819 2,240
Related party deferred revenues 8,622 13,161
Financing obligations 5,455 5,368
Total current liabilities 37,433 50,985
</pre>
<p> </p>
<pre>
Deferred revenues, net of current
portion 1,811 1,856
Related party deferred revenues, net of
current portion 6,466 7,487
Financing obligations, net of current
portion 1,207 2,574
Other long-term liabilities 1,405 1,307
----- -----
Total liabilities 48,322 64,209
</pre>
<p> </p>
<pre>
Redeemable convertible preferred stock
issuable in series A to F 179,672 179,672
</pre>
<p> </p>
<pre>
Stockholders' deficit:
Common stock - -
Additional paid-in capital 16,812 15,015
Accumulated other comprehensive income
(loss) 7 (252)
Accumulated deficit (160,977) (159,608)
-------- --------
Total stockholders' deficit (144,158) (144,845)
Total liabilities, redeemable
convertible preferred stock, and
shareholders' deficit $83,836 $99,036
======= =======
</pre>
<p> </p>
<p> </p>
<pre>
Codexis, Inc.
Condensed Consolidated Statements of Cash Flow
(Unaudited)
(In Thousands)
</pre>
<p> </p>
<pre>
Three Months Ended
March 31,
2010 2009
---- ----
Operating activities:
Net loss $(1,369) $(6,093)
Adjustments to reconcile net loss to
cash used in
operating activities:
Amortization of intangible assets 187 215
Depreciation and amortization of
property and equipment 1,651 1,130
Revaluation of redeemable convertible
preferred stock warrant liability 96 6
Stock-based compensation 1,655 931
Amortization of debt discount 60 105
Accretion (amortization) of premium/
discount on marketable securities (119) 24
Changes in operating assets and
liabilities:
Accounts receivable 685 1,644
Inventories 3 116
Prepaid expenses and other current
assets (261) (151)
Other assets (71) 7
Accounts payable (2,720) (2,611)
Accrued compensation (2,958) (807)
Accrued related party payable (766) 3,084
Other accrued liabilities (1,372) (4,204)
Deferred revenues (7,026) (1,764)
------ ------
Net cash used in operating activities (12,025) (8,368)
</pre>
<p> </p>
<pre>
Investing activities:
Decrease in restricted cash - 220
Purchase of property and equipment (1,320) (1,340)
Proceeds from maturities of marketable
securities 13,610 5,000
Net cash provided by investing
activities 12,290 3,880
</pre>
<p> </p>
<pre>
Financing activities:
Principal payments on financing
obligations (1,339) (1,424)
Payments in preparation for initial
public offering (1,636) -
Proceeds from issuance of preferred
stock - 30,000
Proceeds from exercises of stock options 140 46
--- ---
Net cash provided by (used) in financing
activities (2,835) 28,622
</pre>
<p> </p>
<pre>
Effect of exchange rate changes on cash
and cash equivalents (18) 11
--- ---
</pre>
<p> </p>
<pre>
Net increase (decrease) in cash and cash
equivalents (2,588) 24,145
Cash and cash equivalents:
Beginning of the period 31,785 21,903
------ ------
End of the period 29,197 46,048
</pre>
<p> </p>
<pre>
Marketable securities at the end of
period 10,067 10,196
</pre>
<p> </p>
<pre>
Cash, cash equivalents and marketable
securities $39,264 $56,244
======= =======
Reconciliation of GAAP to Non-GAAP Financial Information
</pre>
<p>Adjusted EBITDA (earnings before interest, tax, depreciation, amortization, stock-based compensation and warrant related costs) for the first quarter of 2010 was <span class="xn-money">$2.8 million</span> compared to a loss of <span class="xn-money">$3.4 million</span> in the first quarter of 2009. We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA as a factor in evaluating management's performance when determining incentive compensation and to evaluate the effectiveness of our business strategies.</p>
<p/>
<p>A reconciliation of Adjusted EBITDA to GAAP net income (loss) is included in the table below.</p>
<p/>
<p> </p>
<p> </p>
<pre>
Codexis, Inc.
Reconciliation of Adjusted EBITDA to GAAP Net Income (Loss)
(Unaudited, Dollars In thousands)
</pre>
<p> </p>
<pre>
For the three months ended March 31
Calculation of Adjusted EBITDA 2010 2009
------------------------------ ---- ----
Net income (loss) (1,369) (6,093)
Adjustments: 28 31
Minus: Interest income
Plus: Interest expense 298 403
Plus: Income taxes (61) 54
Plus: Depreciation and amortization 1,838 1,345
Plus: Stock-based compensation 1,713 900
Plus: Preferred stock warrant fair
market valuation adjustment 396 6
</pre>
<p> </p>
<pre>
Adjusted EBITDA 2,787 (3,416)
</pre>
<p>For the three months ended <span class="xn-chron">March 31, 2010</span>, Adjusted EBITDA benefited from two sources of revenue. First, the Company recognized a <span class="xn-money">$2.7 million</span> grant from the <span class="xn-location">Singapore</span> government related to our pharmaceutical R&D program in <span class="xn-location">Singapore</span>. Second, we recognized a <span class="xn-money">$1.4 million</span> milestone payment from Shell for a biofuels research milestone achieved in late 2009 and validated in the first quarter of 2010.</p>
<p/>
<p>Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:</p>
<pre>
-- Adjusted EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual commitments;
-- Adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs;
-- Adjusted EBITDA does not reflect the interest expense, or the cash
requirements necessary to service interest or principal payments, on
our debts;
-- Although depreciation and amortization are non-cash charges, the
assets
being depreciated and amortized will often have to be replaced in the
future, and Adjusted EBITDA does not reflect any cash requirements for
such replacements; and
-- Non-cash compensation is and will remain a key element of our overall
long-term incentive compensation package, although we exclude it as an
expense when evaluating our ongoing operating performance for a
particular period.
</pre>
<p>Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.</p>
<pre>
Contacts:
Investors: Derick Sutton, [email protected], 650, 421-8130
</pre>
<p>Media: <span class="xn-person">Lyn Christenson</span>, <a href="mailto:[email protected]">[email protected]</a>, 650-421-8144 or Saskia Sidenfaden, <a href="mailto:[email protected]">[email protected]</a>, 212-827-3771</p>
<pre>
For further information: Investors, Derick Sutton, +1-650-421-8130, [email protected], or Media, Lyn Christenson, +1-650-421-8144, [email protected], both of Codexis, Inc.; or Saskia Sidenfaden, +1-212-827-3771, [email protected], for Codexis, Inc. Web Site: http://www.codexis.com
Share this article