Dyadic International, Inc. (Pink Sheets:DYAI) (“Dyadic”) today announced financial results for the third quarter ended September 30, 2009. The financial information contained in this press release should be read in conjunction with the financial statements and footnotes for the three and nine month periods ended September 30, 2009 as well as the financial statements, footnotes and independent auditors’ report for the year ended December 31, 2008 which have been posted on the Pink Sheets website at www.pinksheets.com and on Dyadic’s website at www.dyadic.com.
Financial Results
Total revenue for the third quarter ended September 30, 2009 decreased to approximately $2.1 million compared to approximately $3.2 million for the third quarter ended September 30, 2008. Total revenue for the nine months ended September 30, 2009 increased to approximately $19.0 million, compared to approximately $9.9 million for the nine months ended September 30, 2008.
Net product related revenue for the third quarter and nine months ended September 30, 2009 decreased to approximately $1.7 million and approximately $4.9 million, respectively, compared to approximately $2.2 million and $6.9 million, respectively, for the third quarter and nine months ended September 30, 2008. This decrease was due, in part, to Dyadic’s restructuring of its industrial enzyme business to focus on higher margin products for growing segments of the industry, such as animal feed, while streamlining product lines and discontinuing some lower margin products in declining segments of the industry, such as textiles, as well as global economic conditions.
The increase in total revenue for the nine month period ended September 30, 2009, compared to the nine month period ended September 30, 2008, was due to research and development revenue recognized, as a result of satisfying certain performance criteria, from the proceeds of the $10 million upfront fee received from Codexis, Inc. (“Codexis”) pursuant to the non-exclusive license agreement entered into between Codexis and Dyadic in November 2008 as well as the recognition of $3.3 million of a total $10 million in proceeds received from Abengoa Bioenergy R&D, Inc. (“Abengoa”) in October 2006 pursuant to a securities purchase agreement entered into between Dyadic and Abengoa.