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Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "We are pleased with our first quarter results as we continue to build our infrastructure to meet the increasing demands for our enzyme products and further the advancement and monetization of our technologies. We are particularly encouraged by the 30% increase in our product sales from the same period last year."
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First Quarter Highlights and Recent Events
Financial Results
Total revenue for the three months ended March 31, 2010 decreased to approximately $2.0 million, as compared to approximately $5.0 million for the three months ended March 31, 2009. The decrease was primarily attributable to Dyadic's recognition in the first quarter of 2009 of approximately $3.3 million from Abengoa Bioenergy R&D, Inc. ("Abengoa") pursuant to an agreement between Abengoa and Dyadic. Excluding this agreement from 2009, total revenue for the first quarter of 2010 increased 21% over the same period last year, highlighted by an approximate 30% increase in net product related revenue, from approximately $1.5 million for the three months ended March 31, 2009 to approximately $1.9 million for the three months ended March 31, 2010.
Product related gross margins as a percentage of revenues increased approximately 10% which was largely due to the continued focus on the sale of higher margin products to growing segments of the industrial enzyme market as well as an increase in operational efficiencies.
Research and development expenses decreased approximately 25% from the same period last year, to $286,000, as Dyadic dedicated a greater portion of its research and development resources to profit generating collaborations.
Other income for the first quarter of 2010 increased by approximately $440,000, of which $410,000 represented the gain from the reduction of the stockholder litigation accrual.
Net loss for the quarter ended March 31, 2010 was approximately $1.1 million, or $(0.04) per basic and diluted share, as compared to net income of approximately $2.3 million, or $0.08 per basic and $0.07 per diluted share for the quarter ended March 31, 2009. This decrease is due to the recognition of approximately $3.3 million of Abengoa research and development revenue in the first quarter of 2009 as described above.
General and administrative costs increased approximately 65% from approximately $823,000 for the three months ended March 31, 2009 to approximately $1.4 million for the three months ended March 31, 2010, due primarily to additional legal, consulting and accounting fees as well as stock based compensation. Some of these legal fees were attributable to the class action stockholder lawsuit which has subsequently been resolved.
At March 31, 2010, cash and cash equivalents were approximately $7.5 million and working capital was approximately $5.1 million.
Mr. Emalfarb further stated, "The growth of our industrial enzyme revenue validates the continued demand for our products and the improving confidence of our customers in the global economic recovery. Our recent addition of key sales and strategic positions reflects our deep commitment to aggressively leveraging our technologies in the primary areas of biofuels and biopharmaceuticals while also continuing to grow our core industrial enzyme business. We intend to achieve this growth by capitalizing on the GRAS acknowledgment we received from the FDA last year and by continuing to offer high-quality products for the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles and alternative fuels markets."
About Dyadic
Dyadic International, Inc. is a leading-edge early-stage biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of products and solutions for the bioenergy, industrial enzyme and biopharmaceutical industries. Please visit Dyadic's website at www.dyadic.com.
Dyadic makes financial disclosures through the Pink OTC Markets Disclosure and News Service which offers free information on the Pink Sheets website (www.pinksheets.com) concerning issuers listed on the Pink Sheets over-the-counter market. Investors can access and download Dyadic's financial reports and other announcements that Dyadic makes through the Pink Sheets website. Dyadic will also continue providing updates through regular press releases as appropriate.
Cautionary Statement for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Dyadic's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Dyadic expressly disclaims any intent or obligation to update any forward-looking statements.
-- Achieved approximately 30% growth in first quarter product revenues over the same period last year -- Improved product margins -- Increased production capacity to meet current and anticipated demand -- Resolved the securities class action stockholder lawsuit -- Strengthened Dyadic's leadership team through the appointment of an Executive Director Strategic Alliances and a Vice President Sales & Marketing -- Dedicated a greater portion of Dyadic's research and development capabilities to profit generating collaborations
SOURCE Dyadic International, Inc.
