I will now turn the call over to Jamie.
Thanks Kelly, and good morning everyone. Thank you for joining us. 2011 was an important and productive year for Verenium as we continued to build and maximize our product portfolio, which addresses the large and growing industrial enzymes market. I’d like to start today by discussing the news related to our financing strategy we announced in this morning’s press releases and SEC filings.
This morning, we launched a tender offer for our outstanding convertible notes pursuant to the provisions allowing holders to put their notes to the Company on April 2. In anticipation of this event, over the past month we have been exploring a number of options to address the Company’s funding requirements. We are currently working on two primary strategies: a potential financing to raise capital, and the potential sale of the Company. With regard to a financing, we have continued to advance discussions regarding the issuance of new equity or equity-linked securities. Regarding the potential sale, we are actively evaluating proposals we have received to acquire 100% of the stock of the Company. We remain committed to developing the most favorable outcome for all of our stakeholders. Given these conversations are ongoing, we are unable to provide additional details at this time but look forward to providing continued updates as appropriate.
I’d now like to turn to some of the progress made by the business in 2011. I’ll start with our financial performance for the year in relation to the 2011 guidance we previously announced. Jeff will go into greater detail in the financial section of this call, but to summarize, in 2011 we increased total revenue to just over $61 million, slightly higher than our revenue guidance range. We grew product gross margin to $21.5 million, within our guidance range. We increased R&D spend to $11 million, within our target range. We significantly decreased our SG&A spend to approximately $19 million, coming in below our guidance range, and we spent a total of $6.5 million in capital expenditures, within our target range, primarily for the build-out of our new facility in San Diego. I’m pleased with our financial performance in 2011, including our ability to meet our financial guidance and grow the business, especially given the current state of the economy and it’s effects on the industries we serve.