WOW THE DIPS. LOOK AT THIS
During the 2Q conference call and a subsequent investor's presentation the company expects to report $90 to $100 million for 2016. That is a significant increase compared to the $34 million reported in 2015. This also means that AMRS expects to report $70 to $80 million in revenues in the second half of 2016. In itslatest press release Amyris CEO John Melo stated:
" We're very pleased with our continued execution this year and remain on track for expected record revenue in the third quarter of 2016, and execution on the non-core asset sales that are expected to deliver strong, positive cash flow by year end."
Record revenues for 3Q 2016 and cash-flow positive performance by year end is a strong message of confidence for a company that despite so much promise has underperformed up to now. But as will be seen later in this article, there are many reasons for expecting improved results going forward. Third quarter 2016 financial results will be reported in about 5 weeks and I expect the share price uptrend to continue before this event and beyond.
A recent industry research report recognizes Amyris is as the global leader in farnesene production. The company markets farnesene under the Biofene trademark. Farnesene is the main building block for a wide range of commercial products including squalene, hemisqualene, nutraceuticals, cosmetics, perfumes, flavors, detergents, lubricants, diesel, jet fuel, rubber compounds, etc. Until farnesene became available in large and sustainable quantities through Amyris, key ingredients for these products were derived from animals like sharks (for squalene) and seasonal plants in often limited supplies. Amyris produces farnesene at large biofactories like the one shown below located in Brotas, Brazil. The sugarcane feedstock for the Brotas plant comes from the Paraíso mill located next to it. The demand for farnesene has exploded as of late causing the production out of the Brotas plant is sold out at least through 2020. The global farnesene market size is expected to increase at a near 30% CAGR through 2023 according to a research report announced this week.
