Verenium reports operational, financial progress

By Erin Voegele | November 13, 2012

Verenium Corp.’s third quarter financial results illustrate progress being made on both operational and financial fronts, despite the difficult economics that have been impacting the ethanol industry. According to information released by Verenium, total revenues for the first three quarters of 2012 decreased 8 percent, from $46.9 million to $43.2 million. Product and contract manufacturing revenues represented approximately 83 percent of total revenues for the first nine months of the year.

Grain processing revenues in the third quarter were $2.054 million, a reduction compared to the $3.942 million posted during the same period of last year. During a call to discuss the financials, Janet Roemer, executive vice president and chief operating officer of Verenium, noted that the reduced revenue was a reflection of continuing adverse industry conditions, largely due to reduced demand for gasoline and therefore ethanol. She also said that continued high corn prices are also negatively impacting ethanol margins.

On the positive side, trial activities for Verenium’s Fuelzyme alpha-amylase product picked up during the third quarter, Roemer continued. She also said that her company has seen a recent improvement in European demand. In addition, Roemer stressed that in the face of weaker demand Verenium is working to increase its market share by winning new customers through the value proposition of reducing enzyme costs per gallon of ethanol.

One recent accomplishment listed by Verenium in its quarterly release is the implementation of manufacturing improvements that resulted in greater Fuelzyme alpha-amylase yield and reduced manufacturing costs. The product is designed to perform across a wider temperature and pH range than competing products.