Such statements are only predictions, and actual events or results may differ materially from these projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to our ability to satisfy all closing conditions in our pending transaction with BP, IP partners, competitors; and, regulatory and market forces. Certain of these factors and others are more fully described in our filings with the SEC, but not limited to our report on Form 10-Q for the quarter-ended March 31st, 2010.
These forward-looking statement speak only to the date hereof and the Company expressly disclaims any intent or obligation to update these forward-looking statements.
I will now turn the call over to Carlos.
Carlos RivaThanks, Kelly. Good afternoon, everyone, and thank you for joining us on today's call. Today I am pleased to report that the second quarter was a very productive one for the company. It was an especially productive quarter for our Enzyme business. Product revenues increased significantly on both year-on-year and quarter-on-quarter basis. We believe this is a clear signal that the full impact of the recession in our target enzyme markets is behind us and that our newer products will continue to gain traction in the market as they become a larger proportion of the mix of total product revenue. During the past quarter, we were also able to decrease our operating expenses. In addition, in April, we received a further $4.9 million award from the Department of Energy to fund activities at our demonstration plant in Jennings, thus further enhancing our cash position. Critical importance, we recently announced an agreement for the sale of our cellulosic biofuels business to BP for $98.3 million. To recap the terms of this transaction, upon closing, BP will acquire Verenium’s facilities in Jennings, Louisiana, including our pilot plant and demonstration facility together with our R&D facilities in San Diego, our cellulosic biofuels technology and related IP as well as our holdings in the joint ventures we currently have with BP. In addition, BP will employ select scientists and personnel needed to continue the cellulosic biofuels development program.