Dyadic reports increased revenues in Q1 results

Dyadic International Inc. has released first quarter financial results, reporting a strong start to the year. “Investments in our proprietary technologies are continuing to pay off on multiple fronts,” said Mark Emalfarb, CEO of Dyadic, noting that revenues grew 20 percent during the quarter.

Total revenue reached $3 million for the first three months of the year, up from $2.5 million during the same quarter of the prior year. Net product related revenue increased more than 17 percent to $2.5 million in the first quarter, compared to $2.1 million for the same period of 2013. Dyadic attributed the growth to new customers in key markets and increased sales to existing customers.

Research and develop revenue increased 36 percent, reaching $526,000. Dyadic recorded no license fee revenue during the quarter. The cost of goods sold in the first quarter was $2 million, or approximately 66 percent of total revenue. Gross profit increased significantly to $1 million. Gross profit for the same period of 2013 was $520,000. Gross profit margins increased from 21 percent last year to 34 percent during the first quarter.

The net loss for the first three months of the year was $1.6 million, or 5 cents per basic and fully diluted share, compared to a net loss of $1.5 million, or 5 cents per basic and fully diluted share, for the same period of the prior year.

“Dyadic is better positioned today than we have been in a very, very long time,” Emalfarb said during a call to discuss the quarterly results. He added that a primary goal of the company is to be profitable from the operations of selling of products and providing development research and development services, exclusive of license fee revenue that may come in from time to time. In a statement, he also stressed that the company’s licensing model is expected to bring the company recurring royalty streams in a broad variety of markets. “We anticipate the first of such royalties later this year from Abengoa Bioenergy, a C1 licensee,” he said.

Emalfarb indicated the expansion of the company’s Dutch research center is already starting to bear fruit and that the more rapid technology advancement is benefiting ongoing internal and external research projects.

Danai Brooks, executive vice president and chief operating officer of Dyadic, also spoke during call, highlighting research and development operations and business development initiatives. According to Brooks, Dyadic’s CMAX-5 biofuel enzyme is expected to be 40 percent lower cost than the previous-generation CMAX-4 enzyme. He also indicated that Dyadic’s project with BASF has already hit milestones the company didn’t expect to reach until the end of the year.

In addition to releasing its first quarter financial results, Dyadic also announced the addition of new members of its European leadership team in May. Ronen Tchelet was named vice president of business development. Tchelet most recently worked for Codexis, where he served as vice president and managing director of the company’s research and development laboratories in Hungary. In his new position at Dyadic, Tchelet will play a key role in driving business development efforts across all markets.

Dyadic also announced Andre Klaassen will become the company’s director of sales for Europe next month. He has spent the past two decades in enzyme sales at DuPont and Genencor in a variety of senior roles. As Dyadic’s director of sales, he will manage the day-to-day European sales operations and help support new product development in the company’s Dutch research facility. Klaassen will also provide key account management and assume global responsibility for the company’s starch and alcohol enzyme business.