Codexis, Inc. (NASDAQ: CDXS), a developer of cost-advantaged processes for the production of biofuels, bio-based chemicals, and pharmaceuticals, today announced financial results for the second quarter ended June 30, 2012.
“The remainder of 2012 is an important transition period for Codexis,” said John Nicols, President and CEO of Codexis. “We are driving Codexis into a new phase of commercial execution, imparting an efficient, profit-driven culture throughout the organization. We are deploying our unique technology platform to advance our position in pharmaceuticals and to deliver against significant opportunities in fuels and chemicals.”
Second Quarter Financial Highlights:
Revenue and Gross Profit: For the second quarter of 2012, the company reported revenues of $22.9 million, a 12% decrease from $26.1 million in the second quarter of 2011. Product revenue in the second quarter of 2012 was $6.8 million, a 19% decrease from $8.4 million in the prior year quarter, due to the timing of pharmaceutical product orders. Product gross profit in the second quarter was $1.0 million, down from $1.3 million in the prior year quarter primarily due to lower product sales. Product gross margin in the second quarter was 14%, compared to 15% in the prior year quarter due to a higher percentage of generic products sales in the second quarter of 2012. Collaborative research and development revenue of $15.9 million decreased 9% from $17.4 million in the second quarter of 2011, a result of R&D funding reductions in our fuels and carbon capture programs that were taken in the second half of 2011.
Operating Expenses: Research and development expenses in the second quarter of 2012 were $15.7 million, an increase of 5% from $15.0 million for the second quarter of 2011. The increase was primarily due to headcount additions made in the second half of 2011 for the development of CodeXol™ Detergent Alcohol. Selling, general and administrative expenses in the second quarter of 2012 were $6.8 million, a decrease of 27% compared to $9.3 million in the same period of 2011. The decrease was primarily due to reductions in headcount and other discretionary expenses during the second quarter of 2012. Sequential reductions in total operating expenses of 13% for the second quarter of 2012 compared to the first quarter helped to improve our sequential quarterly net income result by $3.3 million.