Learnings from the Earnings – Who’s Up? Who’s Down?

Amyris (AMRS)

The Top Line. Q4 2018 GAAP revenue of $19.4 million, compared with GAAP revenue of $80.6 million (reflected $57.3 million during period for agreement with DSM) for Q4 2017. Fourth-quarter revenue of $19.4 million compared with the same period in 2017 of $17.7 million when adjusted for the loss making product sales on contracts assigned to DSM and any one-time revenue.

The Big Highlights. Signed $300 million definitive cannabinoid agreement with LAVVAN, Inc. Agreed on a clear path forward for Vitamin E royalty. Sugarcane based zero calorie sweetener with very strong demand growing.

“Our results for the quarter and year are below expectations,” said John Melo, President and CEO of Amyris. “The negative results for the quarter and full year reflect the inability to recognize revenue for a $50 million multi-party Vitamin E deal in China during the fourth quarter. Our financial results for the fourth quarter were also impacted by a 30-day delay to our manufacturing scale-up and production of our natural sweetener product. The sweetener issues were quickly resolved in the first quarter of 2019 with shipments occurring in the current quarter with strong interest and demand for our sweetener.”

Continued Melo, “We have undertaken a thorough review of our business plan for 2019 and will take a more conservative approach in assessing likely revenue opportunities. This is the right course of action to improve our business planning and also our ability to hit our revenue targets.”

Concluded Melo, “We are very pleased to have signed a significant agreement in the cannabinoid market.  This agreement is yet another example of a partner coming to us based on confidence in our ability to develop and commercialize fermentation-based natural products at significantly reduced cost.”

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