Metabolix, Inc. (MBLX) Q1 2012 Earnings Call April 26, 2012 4:30 PM ET Executives Richard Eno – President and CEO Joseph Hill – CFO Analysts Laurence Alexander – Jefferies Mike Ritzenthaler – Piper Jaffray JinMing Liu – Ardour Capital Jeff Zekauskas – JP Morgan Jeff Osborne – Stifel Nicolaus Presentation Operator
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Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including the other risks and uncertainties detailed in Metabolix’s filings with the Securities and Exchange Commission including the company’s 10-K filed on March 12, 2012. The company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of the conference call.With that, I’d like to turn the call now over to Rick Eno, President and CEO of Metabolix. Rick? Richard Eno Thank you Elsenhans. I’d like to welcome all of you to the first quarter 2012 earnings conference call for Metabolix. Today I will provide you with a review of the Metabolix vision, and an update on each of our three platform areas, and then Joe will take you through the financials. While I understand that for many of our long-term investors, a company overview is unnecessary, many of our newer investors find it valuable. I’ll take about a minute to provide some company context. Metabolix is an innovation-driven bioscience company, which is focused on delivering sustainable solutions to the plastics, chemicals, and energy industries. We are developing and commercializing pathways and products that are intended to lessen the world’s dependence on oil, reduce CO2 emissions relative to traditional materials, and address critical solid waste issues. We are founded on hard science and have exceptional capabilities in plant science, in fermentation, microbial and polymer engineering and in product and market development. We’re leaders in producing and upgrading a broad family of materials called PHAs. PHAs are energy storage molecules found in nature, which have a number of useful properties as plastics and can also serve as a unique source of renewable chemical intermediates. As a result of our capabilities and work in PHAs, we have assembled a strong IP portfolio as an anchor for our commercial initiatives.
We currently have deployed our PHA technology across three business platforms. First, Mirel, a family of biobased and biodegradable polymers; second, Industrial Chemicals, initially focused on C4 and C3 chemicals; and third, crop-based activities, which include our programs in oilseeds, switch grass and sugarcane.On review of the business, I’d like to begin with Mirel bio-polymers. So let’s turn to slide two of the accompanying slides. We are driving the biopolymers business forward across many fronts. In early March, all business operations for our PHA biopolymers platform which transfer to Metabolix. During the transition, in the first quarter, we provided customers with access to product inventory and began to fill orders from customers. During this period, our teams set up would be appropriate administrative, logistical and financial systems to enable us to take orders, deliver inventory and record sales for Metabolix. After March 6, the settlement date of our relationship with ADM, Metabolix recorded the first sales of Mirel biopolymer on our books. The revenue recorded in the quarter reflects small orders from existing Mirel biopolymer inventory for a number of customers primarily in the areas of horticulture, aquatic applications, molded bioplastic items. So our sales level reflected about three weeks of activity commencing immediately after the settlement of the Telles determination negotiation with ADM. I’d like to mention that we are now gaining further visibility on customer orders expected to shift in the second quarter. One area where we expect to be active in the second quarter, is the compostable bag market in Europe. As you know we are been working with European customers to develop and market compostable bags based on our assumptions and we are pleased to say that we have recently resume productive conversations with customers serving this market. Read the rest of this transcript for free on seekingalpha.com