Verenium Corporation, a developer of next-generation cellulosic ethanol and high-performance specialty enzymes, has reported that its total revenues for the fourth quarter and year ended December 31, 2008 were $19.7 million and $69.7 million, respectively, compared to $13 million and $46.3 million for the same periods in 2007. The increase in 2008 revenues over comparable periods in 2007 was driven by product revenue growth.
Total product revenues for the fourth quarter and year ended December 31, 2008 were $12.1 million and $49.1 million, respectively, compared to $8.2 million and $26.0 million in 2007, representing an increase of 47 percent and 89 percent when compared to the same periods in the prior year. The increase in product revenues was primarily due to increased sales of Phyzyme(TM)XP by Danisco Animal Nutrition, which continued to expand its global phytase market share position in the animal feed industry throughout 2008. The company has also experienced sales growth for its other enzyme products, including Fuelzyme(TM)-LF.
Product gross profit (product revenues less cost of product revenues) and product gross margin (product gross profit divided by product revenues) improved in the fourth quarter and full year 2008, versus comparable periods in 2007 due primarily to growth in Phyzyme sales, as well as incremental margin improvement contributed by other product growth.
Net loss for the fourth quarter and year ended December 31, 2008 was $12.6 million, or $0.19 per share, and $185.5 million, or $2.89 per share, respectively, including a one-time non-cash charge of $106.1 million, or $1.65 per share, for goodwill impairment related to the merger with Celunol Corporation. In comparison, net loss for the fourth quarter and year ended December 31, 2007 was $21.6 million, or $0.35 per share, and $107.6 million, or $1.97 per share, respectively, including a one-time non-cash charge of $42.4 million, or $0.78 per share, for in-process research and development related to the merger with Celunol Corporation in June 2007.
As of December 31, 2008, the company had unrestricted cash, cash equivalents, and short-term investments totaling $7.5 million.
Since January 1, 2009, Verenium has reduced its temporary and permanent workforce by approximately 15 percent. Reductions were made company-wide, reflecting the company's commitment to aggressively manage expenses in view of its financial position, ongoing cash needs, and the prevailing economic conditions.
Verenium and BP recently announced the formation of a 50-50 joint venture for the development of a commercial-scale cellulosic ethanol facility in Highlands County, Florida, with a total commitment of $45 million in funding and assets contributed to the joint venture company from BP and Verenium, including a total of $22.5 million from BP and certain development assets from Verenium. While the assets, liabilities and results of operations of the joint venture company may be consolidated with the financial position and results of operations of Verenium and its other subsidiaries on Verenium's future financial statements, the funding and assets contributed to the joint venture company will only be available for the use by the joint venture company.
Carlos Riva, President and Chief Executive Officer of Verenium, said: "I am pleased that despite the economic and industry challenges in 2008, Verenium was able to achieve significant progress in both our Biofuels and Specialty Enzyme businesses. Looking ahead to 2009, we expect to continue advancing our commercialization efforts consistent with our vision of delivering environmentally-sound, next-generation cellulosic ethanol to the market in the near-term."
