五星体育直播

五星体育直播 Reports First Quarter 2020 Financial Results

R&D revenue increased 26% to $9.6听million fueled by the Novartis and Takeda strategic collaborations

Withdraws 2020 financial guidance due to uncertainty of COVID-19 potential impact

Conference call begins at 4:30 pm Eastern time today

REDWOOD CITY, Calif., May 07, 2020 (GLOBE NEWSWIRE) -- 五星体育直播 (Nasdaq: CDXS), a leading protein engineering company, announces financial results for the three months ended March 31, 2020 and provides a business update.

鈥淲e are pleased to report strong financial results with $14.7听million in first quarter total revenues driven by a 26% year-over-year increase in R&D revenue. The quarter benefitted from significant contribution from our Novartis CodeEvolver^庐 agreement announced a year ago and from our Takeda collaboration launched in March,鈥� said 五星体育直播 President and CEO John Nicols. 鈥淲e are especially excited about our new partnership with Takeda to support their development of novel gene therapies for rare diseases. This partnership showcases our CodeEvolver^庐 platform technology鈥檚 unique ability to discover differentiated biotherapeutic candidates targeting lysosomal storage disorders as well as potentially other serious diseases. Takeda joins Nestl茅 Health Science by entering into a high-value, multi-program relationship with 五星体育直播 that further supports our Novel Biotherapeutics segment.

鈥淎s a company, we believe we are well positioned to manage through the COVID-19 pandemic given the strength of our multifaceted business model, our partnerships with world-class companies in the pharmaceutical, diagnostic, and food ingredient industries, the value-creation opportunities afforded by our CodeEvolver^庐 protein engineering platform, and our strong balance sheet,鈥� he added. 鈥淎t present, we anticipate only limited impact from the pandemic on product sales this year, although a portion of our R&D revenues are being impacted due to shelter-in-place restrictions that were put in place in mid-March. Given the continuing uncertainty of the potential impact of the pandemic on our business and operations, we believe it is prudent to withdraw our 2020 financial guidance. The safety and wellbeing of our great team at 五星体育直播 is our top priority. Our team continues to innovate and is currently managing a limited start-up of R&D activities.听 We are prudently minimizing third-party and capital expenses until we are able to ramp up R&D operations and revenue generation following the lifting of shelter-in-place restrictions.鈥�

First Quarter Financial Highlights
五星体育直播 is reporting two business segments: the Performance Enzymes segment, which consists of its protein catalyst and enzyme product and service offerings with a focus on pharmaceutical, food, molecular diagnostics and other industrial markets; and the Novel Biotherapeutics discovery and development segment.

Total revenues for the first quarter of 2020 were $14.7听million, compared with $15.6听million for the first quarter of 2019. Product revenue was $5.1听million, compared with $8.0听million for the first quarter of 2019, with the decrease due to the timing of demand for various enzymes. Research and development (R&D) revenue for the first quarter of 2020 was $9.6听million, up 26% from $7.6听million for the prior-year period, with the increase primarily driven by听 revenues under the Novartis CodeEvolver^庐 licensing agreement and license fees from the Takeda collaboration, partially offset by lower revenues from Nestl茅 Health Science due primarily to recognition of the option exercise payment in the prior year for CDX-6114, our biotherapeutic candidate for the potential treatment of PKU. R&D revenue for the first quarter of 2020 included $5.8听million from the Performance Enzymes segment and $3.8听million from the Novel Biotherapeutics segment. R&D revenue for the first quarter of 2019 included $2.1听million from the Performance Enzymes segment and $5.5听million from the Novel Biotherapeutics segment. R&D revenue in the first quarter of 2020 was reduced by approximately $0.6 million as completion of certain R&D services were deferred to future periods due to delays resulting from the COVID-19 pandemic.

Gross margin on product revenue for the first quarter of 2020 was 50%, compared with 45% for the first quarter of 2019, due to product mix.

R&D expenses were $11.0听million for the first quarter of 2020, compared with $8.0听million for the first quarter of 2019, with the increase primarily due to higher outside services fees, higher salaries and personnel costs associated with higher headcount and higher allocation of occupancy-related costs. R&D expenses for the first quarter of 2020 included $5.7听million from the Performance Enzymes segment and $4.9听million from the Novel Biotherapeutics segment. R&D expenses for the first quarter of 2019 included $4.4听million from the Performance Enzymes segment and $3.3听million from the Novel Biotherapeutics segment.

Selling, general and administrative (SG&A) expenses for the first quarter of 2020 were $9.0听million, compared with $8.4听million for the first quarter of 2019, with the increase primarily due to an increase in costs associated with accounting fees, outside services, facilities and higher headcount, partially offset by lower allocable expenses. SG&A expenses for the first quarter of 2020 included $2.3听million from the Performance Enzymes segment, $0.6听million from the Novel Biotherapeutics segment and the remaining portion is included in $6.2听million in corporate overhead, depreciation and amortization. SG&A expenses for the first quarter of 2019 included $2.1听million from the Performance Enzymes segment, $0.5听million from Novel Biotherapeutics and the remaining portion is included in $5.9听million in corporate overhead, depreciation and amortization.

The net loss for the first quarter of 2020 was $7.7听million, or $0.13 per share, compared with a net loss for the first quarter of 2019 of $5.1听million, or $0.09 per share. Non-GAAP net loss for the first quarter of 2020 was $5.0听million, or $0.09 per share, compared with non-GAAP net loss for the first quarter of 2019 of $2.8听million, or $0.05 per share. A reconciliation of GAAP to non-GAAP measures is provided below.

Cash and cash equivalents as of March 31, 2020 were $87.3听million, compared with $90.5听million as of December听31, 2019.

Non-GAAP Financial Measures
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude the non-cash items depreciation expense and stock-based compensation expense. Non-GAAP financial measures presented are non-GAAP net income or loss, non-GAAP net income or loss per share (basic and diluted), non-GAAP R&D expense and non-GAAP SG&A expense. Non-GAAP operating expenses exclude stock-based compensation expense and depreciation of property and equipment.

五星体育直播 management uses these non-GAAP financial measures to monitor and evaluate the Company鈥檚 operating results and trends on an ongoing basis, and internally for operating, budgeting and financial planning purposes. 五星体育直播 management believes the non-GAAP information is useful for investors by offering them the ability to identify trends in what management considers to be 五星体育直播鈥� core operating results and to better understand how management evaluates the business. These non-GAAP measures have limitations, however, because they do not include all expenses that affect 五星体育直播. These non-GAAP financial measures are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP, and therefore these non-GAAP results should only be used for evaluation in conjunction with the corresponding GAAP measures. A description of the non-GAAP calculations and reconciliation to comparable GAAP financial measures is provided in the accompanying table entitled 鈥淩econciliation of GAAP to Non-GAAP Financial Measures.鈥�

Impact of COVID-19 Pandemic

At present, we have experienced business disruptions as a result of the COVID-19 pandemic. Our headquarters in Redwood City, California are subject to local and state ordinances relating to sheltering in place for all non-essential businesses and activities. The vast majority of our employees, including our research and development staff, have been operating under a shelter-in-place ordinance since March 17, 2020, which has led to the temporary suspension of much of our research project work. Additionally, small scale manufacturing at our Redwood City pilot plant has been put on hold. Our larger volume manufacturing partners have remained operational to date, enabling continued production of critical materials for our customers, and our supply chain team has continued to ship products near or on schedule. We and our partners continue to strive to meet customers鈥� product supply needs, but our forward deliveries may be impacted as the global situation continues to develop. In addition, restrictions on the ability to travel and access to our customers, partners, suppliers or contract manufacturers, as well as temporary closures of our facilities or the facilities of our customers, partners, suppliers or contract manufacturers could negatively impact our sales and operating results. The impact of the COVID-19 outbreak on local economies and the global stock markets could also lead to delays in delivering our products and services to customers and collaboration partners and decreased demand for our products and services. The total impact of these disruptions could have a material impact on our financial results. Due to the uncertain scope and duration of the pandemic, and uncertain timing of global recovery and economic normalization, we cannot at this time estimate the future impact on our operations and financial results. As a result, we are withdrawing our full year 2020 financial guidance.

Conference Call and Webcast
五星体育直播 will hold a conference call and audio webcast today beginning at 4:30 p.m. Eastern time. The conference call dial-in numbers are 855-890-8665 for domestic callers and 720-634-2938 for international callers, and the passcode is 6668354. A live webcast of the call will be available on the Investors section of www.codexis.com.

A recording of the call will be available for 48 hours beginning approximately two hours after the completion of the call by dialing 855-859-2056 for domestic callers or 404-537-3406 for international callers. Please use the passcode 6668354 to access the recording. A webcast replay will be available on the Investors section of www.codexis.com for 30 days, beginning approximately two hours after the completion of the call.

About 五星体育直播
五星体育直播 is a leading protein engineering company that applies its proprietary CodeEvolver^庐 technology to develop proteins for a variety of applications, including as biocatalysts for the commercial manufacture of pharmaceuticals, fine chemicals and industrial enzymes, and enzymes as biotherapeutics and for use in molecular diagnostics. 五星体育直播鈥� proven technology enables improvements in protein performance, meeting customer needs for rapid, cost-effective and sustainable manufacturing in multiple commercial-scale implementations of biocatalytic processes. For more information, see www.codexis.com.

Forward-Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding 五星体育直播, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including 五星体育直播鈥� expectations regarding its collaborations with Novartis, Nestl茅 Health Science and Takeda, the possible impacts of the COVID-19 pandemic on 五星体育直播鈥檚 operations and businesses and 五星体育直播鈥� prospects for recovery from those impacts, 五星体育直播鈥� expectations on future growth for its businesses, and 五星体育直播鈥� expectations for 2020 revenues, including product revenues and R&D revenues, and 五星体育直播鈥� expectations regarding demand for its products and services, and disruption to 五星体育直播鈥� manufacturing and supply chain. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond 五星体育直播鈥� control and that could materially affect actual results. Factors that could materially affect actual results include, among others: the risk that the COVID-19 outbreak could lead to reduced demand for 五星体育直播鈥� products and services, and disruption to 五星体育直播鈥� manufacturing and supply chain, or cause diversion of management and other resources in responding to the COVID-19 outbreak; 五星体育直播鈥� dependence on its licensees and collaborators; 五星体育直播鈥� dependence on a limited number of products and customers; potential adverse effects to 五星体育直播鈥� business if its customers鈥� products are not received well in the markets; 五星体育直播鈥� ability to deploy its technology platform in new market spaces; 五星体育直播鈥� dependence on key personnel; 五星体育直播鈥� ability to compete may decline if it loses some of its intellectual property rights; third party claims that 五星体育直播 infringes third-party intellectual property rights; 五星体育直播 could face increased competition if third parties misappropriate 五星体育直播 biocatalysts; the uncertainties inherent in research and the clinical development process, including risks, uncertainties and costs associated with the successful development of biotherapeutic candidates, including obtaining development partners for 五星体育直播鈥� unpartnered biotherapeutic programs and progressing such programs to clinical trials and regulatory approvals; 五星体育直播鈥� dependence on its biotherapeutic licensees and collaborators, including 五星体育直播鈥� dependence on Nestl茅 Health Science for the successful development and commercialization of CDX-6114; 五星体育直播鈥� biotherapeutic programs are early stage, highly regulated and expensive; the regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time consuming and the results inherently unpredictable; results of preclinical studies and early clinical trials of product candidates may not be predictive of results of later studies or trials; unintended or undesirable side effects of our product candidates could hinder or prevent receipt of regulatory approval; even if regulatory approval is obtained for any products that we develop alone or with collaborators, such products will remain subject to ongoing regulatory requirements and expenses; our biotherapeutic products may face competition in the market; 五星体育直播鈥� dependence on a limited number of products and customers in its biocatalysis business; potential adverse effects to 五星体育直播鈥� business if its customers鈥� pharmaceutical or food products are not received well in the markets; risks, uncertainties and costs associated with the successful development of biotherapeutic candidates, including obtaining development partners for its biotherapeutic programs and progressing such programs to clinical trials and regulatory approvals; and risks associated with epidemic diseases or the perception of their effects. Additional information about factors that could materially affect actual results can be found in 五星体育直播鈥� Annual Report on Form 10-K filed with the Securities and Exchange Commission (鈥淪EC鈥�) on February 28, 2020, including under the caption 鈥淩isk Factors鈥� and in 五星体育直播鈥� other periodic reports filed with the SEC. 五星体育直播 expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Investor Contact:
LHA Investor Relations
Jody Cain, 310-691-7100
jcain@lhai.com

Financial Tables to Follow

五星体育直播
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)

五星体育直播
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands)

五星体育直播
Segmented Information
(Unaudited)
(In Thousands)

⁽¹⁾ Research and development expenses and Selling, general and administrative expenses exclude depreciation and amortization of finance leases.
⁽²⁾ Corporate costs include unallocated selling, general and administrative expense, interest income, and other income and expenses.

五星体育直播
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Thousands, Except Per Share Amounts)

听These non-GAAP financial measures exclude the following items:

(a) Depreciation expense: We provide non-GAAP information which excludes depreciation expense related to the depreciation of property and equipment. We believe that eliminating this expense from our non-GAAP measures is useful to investors, because the acquisition of property and equipment, and the corresponding depreciation expense, can be inconsistent in amount and can vary from period to period.

(b) Stock-based compensation expense: We provide non-GAAP information which excludes expenses for stock-based compensation. We believe the exclusion of this item allows for financial results that are more indicative of our operations. We also believe that the exclusion of stock-based compensation expense provides for a better comparison of 五星体育直播' operating results to prior periods as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types.

听

Released May 7, 2020