Senomyx Inc. (SNMX, Financial) filed Quarterly Report for the period ended 2009-06-30.
SENOMYX is a leading company using proprietary taste receptor technologies to discover and develop novel flavor ingredients in the savory sweet salt bitter and cooling areas. Senomyx has entered into product discovery and development collaborations with seven of the world\'s leading food beverage and ingredient supply companies: Ajinomoto Co. Inc. Cadbury plc Campbell Soup Company The Coca-Cola Company Firmenich SA Nestle SA and Solae. Nestle is currently marketing products that contain one of Senomyx\'s flavor ingredients. Senomyx Inc. has a market cap of $98.9 million; its shares were traded at around $3.2 with and P/S ratio of 5.8.
Salaries and Personnel. Our expenses for research and development personnel, including consultants, were $6.2 million and $6.6 million for the six months ended June 30, 2009 and 2008, respectively. The decrease of $459,000 was primarily due to a decrease in travel expenses of $224,000 and a decrease in payroll expenses of approximately $132,000. Our research and development staff decreased from an average of 98 for the six months ended June 30, 2008 to an average of 95 for the six months ended June 30, 2009.
Interest income was $34,000 and $869,000 for the six months ended June 30, 2009 and 2008, respectively. The decrease of $835,000 was primarily attributable to lower average rates of return on our invested balances and lower investable balances for the six months ended June 30, 2009 as compared to the six months ended June 30, 2008. Liquidity and Capital Resources Since our inception, we have financed our business primarily through private and public placements of stock, research and development payments under our product discovery and development collaborations and interest income. As of June 30, 2009, we had received in excess of $170.9 million in proceeds from the sales of common and preferred stock. In addition, we had received $91.2 million in non-refundable license fees, research and development payments, cost reimbursements and milestone payments from our collaboration agreements and $12.1 million in interest income. Over the remaining life of our current collaboration agreements, we may receive up to an additional $31.5 million in non-refundable research and development payments and license fees from our collaborators. In addition, we may receive payments for reimbursement of certain expenses and achievement of research or development milestones, and royalty payments in the event our collaborators commercialize products incorporating our flavor ingredients. We may not recognize revenues for research and development funding or milestones if the collaborations are terminated, or if we do not achieve the milestones set forth in the collaboration agreements.
At June 30, 2009, we had $27.6 million in cash, cash equivalents and investments available-for-sale as compared to $40.1 million at December 31, 2008, a decrease of $12.5 million. This overall decrease resulted primarily from the net use of cash to fund our operations and to purchase capital equipment, partially offset by the receipt of proceeds of $376,000 from purchases of stock from the employee stock purchase plan and from the issuance of common stock through the exercise of employee stock options.
Operating activities used cash of $12.6 million for the six months ended June 30, 2009 compared to $13.4 million for the six months ended June 30, 2008. Our net loss increased $2.9 million to $15.4 million for the six months ended June 30, 2009 compared to $12.5 million for the six months ended June 30, 2008. Non-cash income decreased $662,000 to $24,000 for the six months ended June 30, 2009 from $686,000 for the six months ended June 30, 2008. Non-cash expenses decreased $385,000 to $4.2 million for the six months ended June 30, 2009 from $4.6 million for the six months ended June 30, 2008. The decrease in non-cash expenses was primarily due to relative decreases in stock-based compensation expense
for employees and non-employee directors of $279,000 and in depreciation expense of $101,000. Net changes in other assets provided cash of $127,000 and $425,000 during the six months ended June 30, 2009 and 2008, respectively. Additionally, net decreases in operating liabilities used cash of $1.5 million and $5.2 million during the six months ended June 30, 2009 and 2008, respectively.
Read the The complete ReportSNMX is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
SENOMYX is a leading company using proprietary taste receptor technologies to discover and develop novel flavor ingredients in the savory sweet salt bitter and cooling areas. Senomyx has entered into product discovery and development collaborations with seven of the world\'s leading food beverage and ingredient supply companies: Ajinomoto Co. Inc. Cadbury plc Campbell Soup Company The Coca-Cola Company Firmenich SA Nestle SA and Solae. Nestle is currently marketing products that contain one of Senomyx\'s flavor ingredients. Senomyx Inc. has a market cap of $98.9 million; its shares were traded at around $3.2 with and P/S ratio of 5.8.
Highlight of Business Operations:
Salaries and Personnel. Our expenses for research and development personnel, including consultants, were $3.1 million and $3.4 million for the three months ended June 30, 2009 and 2008, respectively. The decrease of $277,000 was primarily due to a decrease in travel expenses of $154,000 for the three months ended June 30, 2009 as compared to the three months ended June 30, 2008. In addition, the reduction was due to decreases in payroll expenses and management consulting expenses of approximately $56,000 and $51,000, respectively. Our research and development staff decreased from an average of 100 for the three months ended June 30, 2008 to an average of 94 for the three months ended June 30, 2009. The decrease in headcount was due to natural attrition.Salaries and Personnel. Our expenses for research and development personnel, including consultants, were $6.2 million and $6.6 million for the six months ended June 30, 2009 and 2008, respectively. The decrease of $459,000 was primarily due to a decrease in travel expenses of $224,000 and a decrease in payroll expenses of approximately $132,000. Our research and development staff decreased from an average of 98 for the six months ended June 30, 2008 to an average of 95 for the six months ended June 30, 2009.
Interest income was $34,000 and $869,000 for the six months ended June 30, 2009 and 2008, respectively. The decrease of $835,000 was primarily attributable to lower average rates of return on our invested balances and lower investable balances for the six months ended June 30, 2009 as compared to the six months ended June 30, 2008. Liquidity and Capital Resources Since our inception, we have financed our business primarily through private and public placements of stock, research and development payments under our product discovery and development collaborations and interest income. As of June 30, 2009, we had received in excess of $170.9 million in proceeds from the sales of common and preferred stock. In addition, we had received $91.2 million in non-refundable license fees, research and development payments, cost reimbursements and milestone payments from our collaboration agreements and $12.1 million in interest income. Over the remaining life of our current collaboration agreements, we may receive up to an additional $31.5 million in non-refundable research and development payments and license fees from our collaborators. In addition, we may receive payments for reimbursement of certain expenses and achievement of research or development milestones, and royalty payments in the event our collaborators commercialize products incorporating our flavor ingredients. We may not recognize revenues for research and development funding or milestones if the collaborations are terminated, or if we do not achieve the milestones set forth in the collaboration agreements.
At June 30, 2009, we had $27.6 million in cash, cash equivalents and investments available-for-sale as compared to $40.1 million at December 31, 2008, a decrease of $12.5 million. This overall decrease resulted primarily from the net use of cash to fund our operations and to purchase capital equipment, partially offset by the receipt of proceeds of $376,000 from purchases of stock from the employee stock purchase plan and from the issuance of common stock through the exercise of employee stock options.
Operating activities used cash of $12.6 million for the six months ended June 30, 2009 compared to $13.4 million for the six months ended June 30, 2008. Our net loss increased $2.9 million to $15.4 million for the six months ended June 30, 2009 compared to $12.5 million for the six months ended June 30, 2008. Non-cash income decreased $662,000 to $24,000 for the six months ended June 30, 2009 from $686,000 for the six months ended June 30, 2008. Non-cash expenses decreased $385,000 to $4.2 million for the six months ended June 30, 2009 from $4.6 million for the six months ended June 30, 2008. The decrease in non-cash expenses was primarily due to relative decreases in stock-based compensation expense
for employees and non-employee directors of $279,000 and in depreciation expense of $101,000. Net changes in other assets provided cash of $127,000 and $425,000 during the six months ended June 30, 2009 and 2008, respectively. Additionally, net decreases in operating liabilities used cash of $1.5 million and $5.2 million during the six months ended June 30, 2009 and 2008, respectively.
Read the The complete ReportSNMX is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
