Problems persist at the oil maker, which commercializes its products in fuels and chemicals, nutrition, and skin care, analysts said.
"Solazyme has failed to achieve its cost goals as it struggles to ramp its new Brazil plant, in our view, and it will now operate at sub-scale in an effort to preserve cash," Pacific Crest analyst Weston Twigg said.
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"Solazyme announced that it will run both its Clinton/Galva operation (the Archer Daniels plant) and its new Moema, Brazil, operation (the Bunge JV plant) below nameplate capacity as the company focuses on just a few high-margin product opportunities in an effort to preserve cash while it works through production issues at the Moema site," Twigg added.
Separately, TheStreet Ratings team rates SOLAZYME INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLAZYME INC (SZYM) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself."