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>>> Amyris Reports Second Quarter 2016 Results



http://investors.amyris.com/releasedetail.cfm?ReleaseID=983049



Strongest Operational Execution to Date while Successfully Moving the Business Beyond Biofuels

•Q2 2016 GAAP revenues of $9.6 million (non-GAAP revenues of $12.4 million), led by product sales growth of 47% over Q2 2015 without any fuel sales

•Largest ever quarter for signing number of new collaborations, including agreements with Givaudan, Ginkgo Bioworks, the Bill & Melinda Gates Foundation, and Janssen Biotech, combined with the recently announced collaboration with Biogen. These collaborations have already delivered over $20 million in payments and are expected to significantly increase revenues in the second half of 2016
•Reduced selling, general and administrative expenses by 21% quarter over quarter

EMERYVILLE, Calif., Aug. 04, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the second quarter ended June 30, 2016.

"We're very pleased with reaching our best ever quarter of signing new collaborations that have already funded more than $20 million of payments this year and are expected to more than underpin our full year targets," said John Melo, Amyris President & CEO. "We are encouraged by these results and our success in delivering on our stated milestones and goals thus far this year. Additional progress in the coming months is anticipated to further grow our customer base, improve our balance sheet and further position the company as the leader in industrial biotechnology."

Key Highlights

Other key operating and development highlights during the second quarter and more recently included:
•Entered into an Initial Strategic Partnership Agreement with Ginkgo Bioworks to accelerate commercialization of bio-based ingredients and establish clear leadership in industrial biotechnology with a combined offering that we consider unparalleled. In connection with the agreement, a license fee of $15 million was paid on July 25, 2016, to Amyris in exchange for use of certain Amyris technology and the parties agreed to pursue the negotiation and execution of a definitive partnership agreement that includes significant value sharing. The partnership is expected to deliver more new ingredients into the global market over the next three years than the entire industry has achieved in the last 10 years. Upon executing the definitive partnership agreement in the next several weeks, an amendment extending the maturity of our senior secured debt facility to 2019, and eliminating monthly principal repayments and cash covenants will be closed.
•Announced multi-year, multi-million-dollar collaboration in cosmetic active ingredients with Givaudan to engineer and produce cosmetic active targets for global commercialization by Givaudan.
•Began commercialization of novel fragrance product with Takasago International Corporation.
•Jointly announced with Cathay Pacific a two-year biojet agreement supporting continued strong farnesene demand and the future of sustainable air travel; initial flight on May 12, 2016 using the biojet blend was the longest flight using a renewable jet fuel to date. This fuel is supplied through the Amyris Total partnership that is dedicated to making BioJet an industrial reality.
•Announced American Refining Group's (‘ARG') 33.3% equity investment in Novvi LLC, a joint venture of Amyris and Cosan S.A., enabling market access and acceleration in revenue growth of Novvi's high performance, sustainably sourced, renewable lubricants.
•Entered into research agreement with commercial license option with Janssen Biotech, facilitated by Johnson & Johnson Innovation, to use Amyris's µPharm™ platform for rapid integrated discovery and production of therapeutic compounds thereby opening a new area of compounds previously not accessible for new drug discovery.
•Announced partnership with Biogen, Inc. to develop alternative cell lines supporting production of therapeutics, marking second major partnership in biopharma market, which is now positioned to become Amyris's largest opportunity for collaborations.

Financial Performance

Second Quarter 2016
•Revenues for second-quarter 2016 were $9.6 million, compared with $7.8 million for the second quarter of 2015. The increase from the second quarter of 2015 was driven by a 47% increase in product sales, largely in our personal care segment. Collaboration and grants revenues contributed approximately half of the total revenues for the quarter, which was consistent with the same quarter of 2015. Product revenue for the second quarter of 2016 was $4.9 million, up from $3.3 million for Q2 2015 driven by the shipment of a new novel fragrance product, as well as Neossance® Squalane sales. Contracts signed in the quarter delivered over $20 million in payments year to date
•Q2 2016 selling, general and administrative expenses of $11.4 million, which was a decline of 21% from Q2 2015, reflecting the ongoing actions taken to reduce operating expenses.
•Net loss attributable to Amyris common stockholders for the second quarter of 2016 was $13.6 million, or $0.06 per basic share. Included in the calculation of net loss were several non-cash related items, including a gain from changes in fair value of embedded derivatives. Adjusted net loss, excluding this item, and excluding stock-based compensation, was $32.7 million, or $0.15 per basic share.
•Free Cash Flow for the second quarter of 2016 was -$17.4 million, an improvement over -$28.8 million for the second quarter of 2015, driven by collaboration inflows, as well as higher product sales, gross margins, and lower costs.
•Closed on a $5 million equity investment from the Bill & Melinda Gates Foundation to support the development of a lower cost semi-synthetic artemisinic acid to drive lower cost malaria treatments in emerging markets.
•Closed on a $10 million convertible note and a $5 million senior secured loan with existing investors.

First Half 2016
•Revenues for the first half of 2016 were $18.4 million, compared with $15.7 million for the same period last year. The increase was driven by a 47% increase in product sales led by our personal care business, mainly within Flavors & Fragrances. Collaboration and grant revenues contributed $10.3 million to total revenues for the period, which was flat with the same period in 2015.
•Net loss attributable to Amyris common stockholders for the six months ended June 30, 2016 was $28.9 million, or $0.13 per basic share. This compared with a net loss for the same period of 2015 of $99.4 million, or $1.25 per basic share.

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, 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 [phone], participant passcode: 49059751.

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
Amyris is the integrated renewable products company that is enabling the world's leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules, specialty ingredients and consumer products. The company is delivering its No Compromise® products in focused markets, including specialty and performance chemicals, fragrance ingredients, and cosmetic emollients. More information about the company is available at www.amyris.com.

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