Solazyme Whiffs on Revenues

Solazyme (Nasdaq: SZYM  ) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Solazyme whiffed on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share grew. GAAP loss per share increased.

Margins dropped across the board.

Revenue details
Solazyme notched revenue of $6.7 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $8.5 million on the same basis. GAAP reported sales were 51% lower than the prior-year quarter's $13.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.35. The six earnings estimates compiled by S&P Capital IQ predicted -$0.39 per share. Non-GAAP EPS were -$0.35 for Q1 against -$0.28 per share for the prior-year quarter. GAAP EPS were -$0.43 for Q1 versus -$0.28 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 78.2%, much worse than the prior-year quarter. Operating margin was -349.7%, much worse than the prior-year quarter. Net margin was -397.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $11.1 million. On the bottom line, the average EPS estimate is -$0.36.

Next year's average estimate for revenue is $55.1 million. The average EPS estimate is -$1.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 383 members out of 401 rating the stock outperform, and 18 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Solazyme a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solazyme is outperform, with an average price target of $15.32.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Solazyme. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (2)

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  • Report this Comment On May 09, 2013, at 2:44 PM, GUVF wrote:

    This company is for an intents and purposes "pre-revenue"...they didn't "whiff", they haven't even stepped up to the plate. The revenue you're seeing now is batting practice, nothing more.

  • Report this Comment On May 09, 2013, at 3:13 PM, MichalTod wrote:

    Yes... this stock won't begin to see much of any kind of revenue until 2014, and the projects that they've announced won't hit full capacity until sometime in early 2015. That being said, it does look like 2014 will be an exciting growth year for the company revenue and profit wise; I'm long.

  • Report this Comment On May 09, 2013, at 4:13 PM, EmFetch267 wrote:

    Product revenues weren't a whiff... the only whiff was this article.

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