Columbus Facility on Track for September Startup R&D Efforts Decrease Capital Intensity
PASADENA, Texas, Aug. 14, 2012 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR), a next-generation renewable fuels company, today announced its financial results for the second quarter ended June 30, 2012.
"We are proceeding on schedule with the commissioning of our Columbus facility and are on track to start the facility up next month," said Fred Cannon, KiOR's President and Chief Executive Officer. "With startup in September, we anticipate that the Columbus facility will be providing America's first truly sustainable cellulosic gasoline and diesel for American vehicles in the fourth quarter. Also, we expect that the final construction costs for the Columbus facility will be about four percent under our latest cost estimate.""In addition to the progress at the Columbus facility, our research and development efforts have generated major advances to our proprietary biomass-to-fuels technology. Once implemented, we believe that these improvements should allow us to increase our nameplate capacity up to 20 percent and significantly decrease the capital intensity of our facilities," Cannon concluded. Financial Results Second quarter 2012 net loss was $23.0 million, or $0.22 per share, compared to a net loss of $16.8 million, or $0.16 per share, for the first quarter of 2012. Net loss for the second quarter of 2011 totaled $21.0 million, or $0.43 per share. KiOR did not recognize revenue during the second quarter of 2012; its activities remained focused on construction of its first commercial facility in Columbus, research and development designed to improve production yields, and obtaining necessary financing for its expansion plan. Research and development (R&D) expenses for the second quarter of 2012 totaled $8.6 million, a $0.7 million increase from the $7.9 million recorded in the first quarter of 2012 primarily as a result of higher maintenance expenses incurred in its demonstration facility. Second quarter 2012 R&D expenses increased $0.8 million from second quarter 2011 mainly due to continuous R&D expansion.