| Metabolix Reports Third Quarter 2007 Financial Results and Provides Business Update |
|
CAMBRIDGE, Mass. -(BUSINESS WIRE)-Metabolix, Inc. (NASDAQ: MBLX), a bioscience company focused on developing clean, sustainable solutions for the world’s needs for plastics, fuels, and chemicals, today reported financial results for the three months ended September 30, 2007. The Company reported a net loss of $8.3 million or $0.37 per share for the third quarter of 2007 as compared to a net loss of $4.2 million or $1.41 per share for the third quarter of 2006. The weighted average shares outstanding used in the calculation of earnings per share was 22.3 million for the third quarter 2007 as compared to 3.0 million for the third quarter 2006. The increase in the number of shares primarily reflects the shares issued in the Company’s November 2006 initial public offering and 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 third quarter in 2007 was $0.9 million, which compares to net cash used of $0.09 million for the comparable quarter in 2006. Both quarters reflected payments from Archer Daniel Midland (ADM). Cash and short-term investments at September 30, 2007 totaled $113 million. Jay Kouba, Chairman, and Chief Executive Officer, commented, “We made significant progress over the past year which began with our successful IPO and the ground breaking for our joint venture production facility with ADM. During the third quarter of 2007 Metabolix continued to build on its achievements as evidenced by our receipt of a $2 million Advanced Technology Program award, which will enable us to develop another platform for growth based on bio-based chemicals.” Dr. Kouba added, “Extensive testing and evaluation of Mirel, focusing on physical properties, fossil energy usage, CO2 emissions, biodegradation and FDA food contact notification, has helped us identify and define our strongest competitive advantages and market potential. As a result of these studies we will be focusing our near term marketing efforts on six targeted industries to align with our competitive advantages.” OPERATING HIGHLIGHTS Construction of Commercial Manufacturing Facility Construction of the commercial manufacturing facility at Clinton is on track. The onsite fermentation fabrication and assembly are progressing on schedule. All major equipment has been ordered and detailed design of piping and control systems are currently underway. Based on the current status and plans, ADM estimates that commercial operations will start on time in December 2008. ATP Award In September the Company received a $2 million Advanced Technology Program (ATP) award from the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST). Over 600 proposals were submitted and Metabolix was one of 56 companies that were selected. This award will help fund the Company’s Integrated Bio-Engineered Chemicals (or IBEC) program. The IBEC is beginning development of clean, sustainable solutions for widely-used C-4 industrial chemicals, the demand for which is estimated at 2.5 billion pounds annually, and growing at a rate of 4 to 5 percent a year. Mirel – Evaluation and Testing In October the Company released the findings of an independent life cycle assessment (LCA) for Mirel™ bioplastic base polymer. The LCA study, conducted by Dr. Bruce Dale, professor of Chemical Engineering at Michigan State University, determined that production of Mirel reduces the use of nonrenewable energy by more than 95% and provides a 200% reduction in greenhouse gases (GHG) compared to production of conventional petroleum-based plastics. Mirel actually has a negative net CO2 footprint, showing a net result of -2.2 GHG emissions (kg CO2 eq. /kg) compared to a +2.0 GHG emissions (kg CO2 eq. /kg) for these olefin based polymers. THIRD QUARTER 2007 FINANCIAL OVERVIEW Metabolix used $0.9 million in operating activities for the third quarter 2007, which compares to net cash used of $0.09 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 the future quarters as it expands its operations in advance of the commercialization of Mirel. The Company received $4.4 million in payments from ADM during the third quarter of 2007, of which $3.2 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. In addition, the Company recorded approximately $0.2 million in revenue primarily from grants and license and royalty fees in the third quarter 2007. For the three months ended September 30, 2007, total operating expenses were $10.0 million as compared to $4.9 million for the comparable period in 2006. Research and development expenses were $5.7 million for the quarter ended September 30, 2007, up from $2.8 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. Expenses related to pre-commercial manufacturing increased to $2.5 million during the third quarter in 2007 as compared to $0.9 million during the comparable period in 2006. Selling, general and administrative (“SG&A”) expenses were $4.3 million for the three months ended September 30, 2007 as compared to $2.0 million for the three months ended September 30, 2006. The increase in SG&A was primarily due to an increase in marketing, sales and administrative personnel and the administrative requirements of being a public company. Conference Call Info Metabolix will host a conference call on Monday, November 5, 2007 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 1-800-360-9865 or 1-913-312-0404 (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 November 5, 2007, and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 (international callers) and entering pin number 3558314. In addition, the webcast will be archived on the Company’s website in the Investor Relations section. Bookmark this page!      |
Be the first to know!
