Dallas, Texas 05/12/2014 (FINANCIALSTRENDS) –Solazyme Inc (NASDAQ:SZYM). the a California-based producer of various renewable oils from the algae, drooped the most in 3 weeks after its 1st commercial production located in Brazil was pushed into its current quarter. Revenue dropped short of projections & its Q1 loss was much bigger than expected. The company now expects to start its commercial production at the company’s Moema, Brazil- facility in its current quarter, as per the statement after close of t5eh regular trading.
In November 2013, Solazyme said that this would happen in the Q1, rather than the last year, and had reiterated this goal in February. It reported a loss of 44 cents/ share, with the exclusion of stock-based compensation & other 1-time expenses. That had exceeded the 36-cent-average of 8 analysts.. Revenue was $12.4M which missed the projections of $14.6 million. Solazyme Inc (NASDAQ:SZYM) is already delivering its commercial volumes from the plant in Iowa, & its Brazil facility is almost complete, as per the statement.
While they have not yet announced their 1st commercial product out of the Moema, much of that particular plant is operational said the company’s Chief Executive Officer – Jonathan Wolfson, in the statement.
First commercial product launch
They expect to manufacture the commercial product at this Moema facility in the Q2. Higher output in 2014 might boost revenue & the profit, said an analyst at Cowen & Co., Rob Stone, in the note to investors. He also rates the company to the equivalent of buy with the 12-month PT of $18.The company is currently at a very attractive entry point, and much ahead of the inflection as the full-scale production starts to ramp. Solazyme makes oil. Its technology transforms a variety of plant-based-sugars into oils. The renewable products can also replace or even enhance the oils that are derived from the three existing sources in the world- petroleum, plants & animal fats.