Senomyx, Inc. (SNMX)

[surf1944]

UPDATE 1-Senomyx raises full-year outlook on Pepsi deal

Wed Aug 18, 2010 1:23pm EDT

* Sees FY shr loss $0.37-$0.40, rev $27-$29 mln

* Cantor Fitzgerald raises Senomyx to "buy" from "hold"

* Shares flat

Aug 18 (Reuters) - Senomyx Inc (SNMX.O) narrowed its loss view for the year and raised its revenue outlook on Wednesday, a day after it said it will get $30 million in upfront payment from PepsiCo (PEP.N) to develop sweetners.

In a regulatory filing, the company said it now expects a loss of 37-40 cents a share, on revenue of $27-$29 million for 2010. Previously, it was expecting a loss of 48-56 cents a share, on revenue of $20-$24 million.

The upfront payment from PepsiCo will be recognized as revenue over a four-year period, Senomyx Chief Financial Officer Antony Rogers said by phone. Senomyx will recognize $1.9 million per quarter as revenue until August 2014.

On Tuesday, Senomyx signed a four-year deal with the food and beverage giant, two months after it broke ties with long-standing partner Coca-Cola Co (KO.N). [ID:nSGE67G0GD]

Shares of San Diego, California-based Senomyx were trading flat at $4.04 on Nasdaq. They had risen 11 percent and touched a high of $4.24 on Tuesday after the deal was announced. (Reporting by Suzannah Benjamin in Bangalore; Editing by Anne Pallivathuckal)