Jupiter, Florida (USA) based Dyadic International, Inc., a global biotechnology company focused on the discovery, development, manufacture and sale of enzyme and protein products, announced its financial results for the quarter ended June 30, 2011.
Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "The second quarter was highlighted by two important transactions. We opened the quarter with our first significant research collaboration in biopharmaceuticals with Sanofi Pasteur and EnGen Bio to leverage Dyadic's C1 technology to produce certain vaccines.
“We closed the quarter with a research, development and license agreement with a major player in the animal feed industry to use C1 to produce new animal feed products.
“These and other transactions show the benefits of providing integrated solutions to our partners and customers which include research, licensing and product offerings.
“Finally, we added to the value and protection of our products and technologies with the issuance of three new US patents."
Second quarter highlights
Total revenue for the second quarter increased approximately 35% over the same period last year.
Gross profit increased by 81% over the same period last year as a result of higher license fee revenue, improved product margins and further cost controls and operational efficiencies.
Total revenue for the second quarter ended June 30, 2011 increased to approximately $3.0 million compared to approximately $2.2 million for the second quarter ended June 30, 2010.
Total revenue for the six months ended June 30, 2011 increased to approximately $5.3 million compared to approximately $4.2 million for the six months ended June 30, 2010.
The increase in total revenue for the three and six month periods ended June 30, 2011 as compared to the same periods ended June 30, 2010 was due to an increase in license fee revenue and, with respect to the six month comparison, also due to an increase in research and development revenue.
Net product related revenue for the second quarter decreased to $1.6 million compared to $1.7 million for Q2 2010.
Net product related revenue for H1 2011 decreased to $3.5 million from $3.6 million for the same period a year ago. The decrease in net product related revenue was primarily due to a decline in sales of textile enzymes.
Research and development revenue for Q2 2011 decreased to $323,000 compared to $465,000 for the Q2 2010. R&D revenue for H1 2011 increased to $814,000 compared to $554,000 for H1 2010.
License fee revenue for Q2 2011 increased to $1.0 million compared to no license fee revenue for the Q2 2010. License fee revenue for H1 2011 increased to $1.0 million compared to $32,000 for H1 2010.
The increases in license fee revenue were due to a $1.0 million upfront license fee recognized in the second quarter of 2011 from a major player in the animal feed industry pursuant to the research, development and license agreement entered into between Dyadic and this commercial partner in June 2011.
Net loss for Q2 2011 was approximately $736,000 compared to a net loss of $1.4 million for Q2 2010. Net loss for H1 2011 was approximately $2.2 million compared to a net loss of $2.5 million for H1 2010.