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Verenium Announces Preliminary Financial Results For Fiscal 2012

SAN DIEGO, March 14, 2013 /PRNewswire/ -- Verenium Corporation (the "Company") (Nasdaq: VRNM), a leading industrial biotechnology company focused on the development and commercialization of high-performance enzymes, today announced certain preliminary financial results for its year ended December 31, 2012. The Company intends to provide fourth quarter and full year audited 2012 financial results on Wednesday, March 27, 2013 after market close.

(Logo: http://photos.prnewswire.com/prnh/20120924/MM79973LOGO)

Verenium expects to report total revenue in the range of $57.0 million to $57.5 million and product gross profit in the range of $16.5 million to $17.0 million for the year ended December 31, 2012.  Verenium also expects to report operating income between $20.8 million and $21.3 million, including a $31.3 million gain on the sale of the Company's oilseed processing business and, excluding this gain, a non-GAAP operating loss between $10.0 million to $10.5 million. The Company believes that excluding the impact of this gain provides a more consistent measure of operating results.

The Company also expects to report capital expenditures in the range of $8.0 million to $8.5 million for the year ended December 31, 2012 and an unrestricted cash balance of approximately $34.9 million as of December 31, 2012. 

"The progress we have made during 2012 towards our operational and partnering objectives, together with our solid financial performance, sets a strong foundation for 2013," said James Levine, President and Chief Executive Officer at Verenium.  "We remain optimistic about the near-term opportunities for our high-performance industrial enzyme products and the long-term growth prospects for our company. We look forward to providing more detail on our 2012 financial performance when we report our final financial results for 2012."

Verenium also announced today that during the preparation process for the Company's 2012 Annual Report on Form 10-K an error was identified in the Company's previously-issued financial statements related to the Company's accounting for its facility lease at 3550 John Hopkins Court in San Diego, CA.

Under Generally Accepted Accounting Principles ("GAAP") the Company is required to record an asset representing the total cost of the building and improvements, including the costs paid by the lessor (the legal owner of the building), with a corresponding lease financing obligation. As a result, the Company will restate certain historical financial statements as of, and for the year ended December 31, 2011 and the quarterly periods ended June 30, 2011, September 30, 2011,  March 31, 2012, June 30, 2012 and September 30, 2012. The restatement is expected to have a material impact on the consolidated balance sheets for the relevant periods. The impact of the restatement on the Company's consolidated net income (loss) for the relevant periods is expected to be insignificant.  Further, the restatement will have no impact on the Company's reported cash position for the relevant periods.

"As we indicated in our June 2011 disclosures when we entered into this lease, we believe our facility is a highly attractive means for us to provide the space we need to grow our business on financial terms favorable to the Company," said Jeff Black, Chief Financial Officer at Verenium. "Today, we are revising the accounting treatment for our San Diego facility lease, as prescribed by GAAP; however, we feel it is critical for our stakeholders to fully understand that going forward, the approximately $22 million asset that will appear on our balance sheet as a result of this accounting revision is not legally owned by Verenium. We are considered the owner of the building solely for accounting purposes. This change in accounting does not represent a change in the economic terms or substance of our lease."

The financial restatement is described in more detail in the Company's Current Report on Form 8-K, filed today with the Securities and Exchange Commission.

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