Exhibit 99.1

 

LOGO

 
   

Codexis, Inc.

200 Penobscot Drive

Redwood City, CA 94063

Tel: 650-421-8100

www.codexis.com

For Immediate Release

Codexis Reports First Quarter 2012 Results

REDWOOD CITY, Calif. – May 10, 2012 – Codexis, Inc. (NASDAQ: CDXS), a developer of cost-advantaged processes for the production of biofuels, bio-based chemicals, and pharmaceutical intermediates, today announced financial results for the first quarter ended March 31, 2012.

“In the first quarter of 2012, we saw increased sales in our pharmaceutical business and made continued progress with our development projects and partnerships in bio-based fuels and chemicals,” said Peter Strumph, interim CEO of Codexis. “We remain focused on growing our pharmaceutical portfolio while continuing to advance CodeXyme™ cellulase enzymes and CodeXol™ detergent alcohols toward commercialization.”

First Quarter Financial Highlights:

Revenue: For the first quarter of 2012, the company reported revenues of $31.1 million, in-line with $31.0 million from the first quarter of 2011. Product revenue in the first quarter of 2012 was $15.2 million, a 17% increase over $12.9 million in the prior year quarter, primarily driven by increased sales of atorvastatin-related intermediates. Collaborative research and development revenue of $14.6 million decreased 16% from $17.5 million in the first quarter of 2011.

Operating Expenses: Research and development expenses in the first quarter of 2012 were $16.3 million, an increase of 19% from $13.8 million for the first quarter of 2011. The increase was primarily due to continued development of CodeXol™ detergent alcohol. Selling, general and administrative expenses in the first quarter of 2012 were $9.4 million, an increase of 4% compared to $9.0 million in the same period of 2011.

Net Loss: Net loss was ($7.5) million, or ($0.21) per share, based on 36.1 million weighted average common shares outstanding in the first quarter of 2012. This compares to a net loss of ($3.5) million or ($0.10) per share during the first quarter of 2011.

Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA was ($3.1) million in the first quarter of 2012 compared to $1.8 million for the first quarter of 2011. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization and stock-based compensation. A reconciliation of net loss to Adjusted EBITDA is presented below.

 

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Cash: Cash, cash equivalents and marketable securities at March 31, 2012 were $62.2 million, a 3% decrease compared to $63.8 million at December 31, 2011. The company generated $0.6 million in cash from operations in the first quarter of 2012.

Outlook

Codexis’ statements with regard to its outlook are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below.

For the full year 2012, Codexis forecasts revenues in line with or exceeding 2011 results. Codexis expects 2012 Adjusted EBITDA will be positive and expects total cash burn to be in line with 2011 levels.

Conference Call

Codexis will hold a conference call on Thursday, May 10, 2012 at 1:30 p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US: 866-788-0541 or International: 857-350-1679, access code 54501345. A live webcast of the call will also be available from the Investors section of www.codexis.com. A recording of the call will be available by calling US: 888-286-8010 or International: 617-801-6888, access code 93747367 beginning approximately two hours after the call, and will be available for up to seven days. A webcast replay will also be available from the Investors section of www.codexis.com approximately two hours after the call and will be available for up to 30 days.

About Codexis, Inc.

Codexis, Inc. is a developer of cost-advantaged processes for the production of biofuels, bio-based chemicals, and pharmaceutical intermediates. Codexis’ product lines include CodeXyme™ Cellulase Enzymes and CodeXol™ Detergent Alcohol. Partners and customers include global leaders such as Shell, Merck and Pfizer. For more information, see www.codexis.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to Codexis’ forecast for 2012 revenue, Adjusted EBITDA and total cash burn, and Codexis’ ability to deliver sales growth in its pharmaceutical products and services in 2012. 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

 

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materially affect actual results include the risks that our operating results may fluctuate in the future and that we are dependent on a limited number of products and customers in our pharmaceutical business. Additional factors that could materially affect actual results can be found in Codexis’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2012, including under the caption “Risk Factors.” Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Codexis, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Per Share Amounts)

 

     Three Months Ending        
     March 31,        
     2012     2011     % change  

Revenues:

      

Product

   $ 15,167      $ 12,932        17

Collaborative research and development

     14,612        17,486        -16

Government grants

     1,357        616        120
  

 

 

   

 

 

   

Total revenues

     31,136        31,034        0
  

 

 

   

 

 

   

Costs and operating expenses:

      

Cost of product revenues

     12,642        11,650        9

Gross margin $

     2,525        1,282        97

Gross margin %

     17     10  

Research and development

     16,349        13,750        19

Selling, general and administrative

     9,395        9,013        4
  

 

 

   

 

 

   

Total costs and operating expenses

     38,386        34,413        12
  

 

 

   

 

 

   

Loss from operations

     (7,250     (3,379     115

Interest income

     75        49        53

Interest expense and other, net

     (118     17        nm   
  

 

 

   

 

 

   

Loss before provision for income taxes

     (7,293     (3,313     120

Provision for income taxes

     197        158        25
  

 

 

   

 

 

   

Net loss

   $ (7,490   $ (3,471     116
  

 

 

   

 

 

   

Net loss per share of common stock, basic and diluted

   $ (0.21   $ (0.10  
  

 

 

   

 

 

   

Weighted average common shares used in computing net loss per share of common stock, basic and diluted

     36,057        35,116     
  

 

 

   

 

 

   

 

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Codexis, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In Thousands)

 

     March 31,
2012
    December 31,
2011
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 26,604      $ 25,762   

Marketable securities

     26,679        27,720   

Accounts receivable, net

     18,548        18,917   

Inventories

     4,814        4,488   

Prepaid expenses and other current assets

     4,063        2,345   
  

 

 

   

 

 

 

Total current assets

     80,708        79,232   

Restricted cash

     1,511        1,511   

Non-current marketable securities

     8,867        10,348   

Property and equipment, net

     24,001        24,176   

Intangible assets, net

     15,526        16,442   

Goodwill

     3,241        3,241   

Other non-current assets

     747        972   
  

 

 

   

 

 

 

Total assets

   $ 134,601      $ 135,922   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 8,978      $ 10,364   

Accrued compensation

     4,387        6,785   

Other accrued liabilities

     10,813        7,354   

Deferred revenues

     9,070        3,789   
  

 

 

   

 

 

 

Total current liabilities

     33,248        28,292   

Deferred revenues, net of current portion

     1,439        1,485   

Other long-term liabilities

     3,649        3,455   
  

 

 

   

 

 

 

Total liabilities

     38,336        33,232   

Stockholders’ equity:

    

Common stock

     4        4   

Additional paid-in capital

     288,991        287,792   

Accumulated other comprehensive loss

     (541     (407

Accumulated deficit

     (192,189     (184,699
  

 

 

   

 

 

 

Total stockholders’ equity

     96,265        102,690   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 134,601      $ 135,922   
  

 

 

   

 

 

 

 

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Codexis, Inc.

Condensed Consolidated Statements of Cash Flow

(Unaudited)

(In Thousands)

 

     Three Months Ending
March 31,
 
     2012     2011  

Operating activities:

    

Net loss

   $ (7,490   $ (3,471

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Amortization of intangible assets

     916        941   

Depreciation and amortization of property and equipment

     2,203        1,895   

Loss on disposal of property and equipment

     79        —     

Gain from extinguishment of asset retirement obligation

     —          (124

Stock-based compensation

     1,169        2,307   

Accretion of asset retirement obligation

     7        17   

Amortization of premium / accretion of discount on marketable securities

     156        (3

Changes in operating assets and liabilities:

    

Accounts receivable

     370        4,011   

Inventories

     (325     (407

Prepaid expenses and other current assets

     (1,748     (971

Other assets

     160        (48

Accounts payable

     (1,386     1,037   

Accrued compensation

     (2,399     (4,324

Other accrued liabilities

     3,646        2,570   

Deferred revenues

     5,235        3,856   
  

 

 

   

 

 

 

Net cash provided by operating activities

     593        7,286   
  

 

 

   

 

 

 

Investing activities:

    

Increase in restricted cash

     —          (46

Purchase of property and equipment

     (2,107     (891

Purchase of marketable securities

     (8,926     (27,104

Proceeds from sale of marketable securities

     5,000        —     

Proceeds from maturities of marketable securities

     6,024        —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (9     (28,041
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from exercises of stock options

     94        1,485   
  

 

 

   

 

 

 

Net cash provided by financing activities

     94        1,485   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     164        26   
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     842        (19,244

Cash and cash equivalents:

    

Beginning of the period

     25,762        72,396   
  

 

 

   

 

 

 

End of the period

     26,604        53,152   

Marketable securities at the end of period

     35,546        28,836   
  

 

 

   

 

 

 

Cash, cash equivalents and marketable securities

   $ 62,150      $ 81,988   
  

 

 

   

 

 

 

 

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Reconciliation of GAAP to Non-GAAP Financial Information

In this press release, in addition to GAAP financial results, 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 to evaluate the effectiveness of our business strategies.

A reconciliation of GAAP net loss to Adjusted EBITDA is included in the table below.

Codexis, Inc.

Reconciliation of GAAP Net Loss to Adjusted EBITDA

(Unaudited)

(In Thousands)

 

     Three Months Ending  
     March 31,  
     2012     2011  

Calculation of Adjusted EBITDA

    

Net loss

   $ (7,490   $ (3,471

Adjustments:

    

Minus: Interest income

     (75     (49

Plus: Income taxes

     197        158   

Plus: Depreciation and amortization

     3,119        2,836   

Plus: Stock-based compensation

     1,169        2,286   
  

 

 

   

 

 

 

Adjusted EBITDA

   $ (3,080   $ 1,760   
  

 

 

   

 

 

 

Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:

 

   

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;

 

   

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.

 

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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.

Contacts:

Codexis, Inc.

Investors: 212-362-1200

ir@codexis.com

Kelly McAlearney, 415-503-4073 (Media)

media@codexis.com

 

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