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CAMBRIDGE, Mass.--(BUSINESS WIRE)--Metabolix, Inc. (NASDAQ: MBLX), a bioscience company focused on developing clean, sustainable solutions for plastics, chemicals and energy, today reported financial results for the three months ended December 31, 2007.

The Company reported a net loss of $7.2 million or $0.33 per share for the fourth quarter of 2007 as compared to a net loss of $7.4 million or $0.59 per share for the fourth quarter of 2006. The weighted average shares outstanding used in the calculation of earnings per share was 22.5 million for the fourth quarter 2007 as compared to 12.7 million for the fourth quarter 2006. The increase in the number of shares primarily reflects the shares issued in the Company's November 2006 initial public offering, the conversion of its convertible preferred stock and the exercise of certain options and warrants.

The Company’s net cash used for operating activities during the fourth quarter in 2007 was $3.7 million, which compares to net cash used of $0.8 million for the comparable quarter in 2006. Both quarters reflected payments from Archer Daniels Midland (ADM). Cash and short-term investments at December 31, 2007 totaled $109 million.

Jay Kouba, Chairman and Chief Executive Officer, commented, “We made significant progress over the past year, both in moving the Company closer to commercial production of MirelTM” Dr. Kouba added, “The foregoing attest to the breadth and strength of our technology and intellectual property.” and developing additional platforms for growth. We now have three crops in which we are applying our patented technologies to co-produce bioplastic and energy. We also have an early-stage C4 chemicals initiative underway.

OPERATING HIGHLIGHTS

Construction of Commercial Manufacturing Facility

Construction of the commercial manufacturing facility at Clinton, Iowa is progressing. The timing of product availability from the Clinton facility has been projected to be December 2008. However, much of the current construction work at Clinton has been impacted by this year’s harsh Midwest winter. ADM is in the process of re-evaluating construction timing for the Clinton project.

Oilseed Crops for Bioplastic and Biofuel

In February 2008, the Company announced that it initiated a program to develop advanced industrial oilseed crop to produce bioplastics. As part of this initiative the Company has established a research collaboration with noted oilseed experts at the Donald Danforth Plant Science Center in St. Louis. Oilseeds are an attractive target because they offer multiple sources of value in a single crop and the commercial infrastructure for non-food applications of oils in biodiesel and oleochemicals is well developed. Industrial oilseed represents the third crop system to which Metabolix is applying its patented technology, in addition to switchgrass and sugarcane.

FOURTH QUARTER 2007 FINANCIAL OVERVIEW

Metabolix used $3.7 million of cash in operating activities for the fourth quarter 2007, which compares to net cash used of $0.8 million for the comparable quarter in 2006. Metabolix currently manages its finances with an emphasis on cash flow. Net cash used in operating activities increased as the Company expanded its activities in sales and marketing, pre-commercial manufacturing, product development, branding and research. The Company expects its net cash used in operating activities to increase in future quarters as it expands its operations in advance of the full commercialization of Mirel.

The Company received $2.7 million in payments from ADM during the fourth quarter of 2007, of which $1.6 million was a scheduled support payment and the balance was for reimbursements of pre-commercial manufacturing expense. Payments from ADM are recorded as deferred revenue on the Company’s balance sheet. The Company also received a $0.5 million license payment from a new licensing arrangement during the fourth quarter of 2007. In addition, the Company recorded approximately $0.3 million in revenue primarily from grants and other license and royalty fees in the fourth quarter 2007.

For the three months ended December 31, 2007, total operating expenses were $9.5 million as compared to $8.8 million for the comparable period in 2006.

Research and development expenses were $5.4 million for the quarter ended December 31, 2007, up from $3.7 million for the comparable period in 2006. This increase was primarily the result of increasing research and development expenses for product development and pre-commercial manufacturing of Mirel plastics as well as increases in personnel for the microbial fermentation and plant research programs.

Selling, general and administrative (“SG&A”) expenses were $4.1 million for the three months ended December 31, 2007 as compared to $5.0 million for the three months ended December 31, 2006. The decrease in SG&A expenses was primarily due to the recognition of stock-based compensation expenses of $2.2 million in the fourth quarter of 2006, as compared to $1.2 million for the comparable period during 2007.

Conference Call Info

Metabolix will host a conference call on Tuesday, March 11, 2008 at 4:30 p.m. Eastern Time to discuss these results. Jay Kouba, Ph.D., the Company’s Chairman and Chief Executive Officer will be hosting the call. The dial in number is 1-800-818-7543 or 1-913-312-0976 (international). The conference call will be webcast and can be accessed from the Company’s website at www.metabolix.com in the Investor Relations section. For those who are unable to listen to the webcast live, a telephone replay will be available for one week beginning at 7:30 p.m. (Eastern Time) on March 11, 2008, and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 (international callers) and entering pin number 4377791. In addition, the webcast will be archived on the Company’s website in the Investor Relations section.

 Source: Press Release, Metabolix

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