Dyadic International Reports Profitable 2012 Full Year Financial Results

JUPITER, Fla., March 7, 2013 /PRNewswire/ -- Dyadic International, Inc. (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and others proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries, today announced financial results for the year ended December 31, 2012.

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Full Year 2012 Financial Highlights

• Total Revenue increased 52%
  • License Fee Revenue increased 441%
  • Research and Development Revenue increased 25%
  • Product Related Revenue increased 6%
• Gross Profit increased 121%
• Total Expenses decreased 18%
• Income from Operations of $1.6 million compared to a loss of $4.2 million in the prior year
• Net Income of $1.3 million compared to a Net Loss of $4.7 million in the prior year

Full Year 2012 Operational Highlights

• Licensing
  • Expanded license agreement with Abengoa New Technologies, Inc. ("Abengoa Bioenergy") for $5.5 million plus potential royalties and facility fees
  • Entered into a research, development and license agreement to use Dyadic's C1 platform technology to develop and produce enzymes for food applications
• Research and Development
  • Demonstrated AlternaFuel® CMAX™ enzymes equal or exceed other industry-leading enzymes in converting biomass into fermentable sugars for the production of biofuels and bio-based chemicals
  • Successful verification of Dyadic's biofuels enzymes by SEKAB E-Technology in the ethanol demonstration plant in Sweden
  • Extended existing research projects funded by third parties in the areas of animal health and nutrition, food and biopharmaceuticals
  • Joined the Bio-Mimetic Project and the HealthBread Project, two multidisciplinary research consortia funded by the European Community's Seventh Framework Programme (FP7)
• New Products
  • Launched FibreZyme® G5000 high performance powder enzyme for pulp and paper manufacturing processes
• Patents
  • Received four new issued patents (two U.S. and two foreign)

Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "We executed our strategy very effectively in 2012, resulting in our first yearly profit since 2009. By demonstrating the capabilities of our technologies and products to our licensees, research partners and customers, we increased revenue in every business segment. Because our C1 platform creates real value in diverse applications such as animal health and nutrition, food, biofuels and biopharmaceuticals, we believe our efforts to identify new collaborations and sales will bear fruit in the months and years ahead. Provided we conclude a specific pending licensing transaction, 2013 is anticipated to be another great year that should equal or exceed our 2012 results."

Full Year 2012 Financial Results

Revenue. Total revenue increased 52% for the year ended December 31, 2012 to $15.6 million as compared to $10.3 million for the prior year.

License fee revenue increased more than fivefold to $5.5 million for the year ended December 31, 2012 as compared to $1.0 million for the prior year. This increase was due to a $5.5 million license fee recognized in the second quarter of 2012 from Dyadic's non-exclusive licensee, Abengoa Bioenergy, for an expansion of its rights under its license agreement with Dyadic.

Research and development revenue increased 25% to $2.3 million for the year ended December 31, 2012 as compared to $1.8 million for the year ended December 31, 2011.

Net product related revenue increased 6% to $7.8 million for the year ended December 31, 2012 as compared to $7.4 million for the prior year.

Gross Profit. Gross profit increased 121% to $8.0 million for the year ended December 31, 2012 as compared to $3.6 million for the prior year primarily due to the contribution from license fee revenue, which has very high margins.

Expenses. Total expenses decreased 18% to $6.4 million for the year ended December 31, 2012 as compared to $7.8 million for the prior year, due largely to a reduction in litigation-related costs, as well as Dyadic's focus on improving cost controls and operational efficiencies.

Settlement of Litigation. In August 2012, Dyadic received $525,000 for the settlement of certain of its claims against two defendants in Dyadic's professional liability lawsuit against its former outside legal counsel. The settlement is included in Other Income (Expense) for the year ended December 31, 2012.

Net Income. Net income for the year ended December 31, 2012 was $1.3 million, or $0.04 per basic and fully diluted share, as compared to a net loss of $4.7 million, or ($0.15) per basic and fully diluted share, for fiscal 2011.

Cash and Cash Equivalents. At December 31, 2012, cash and cash equivalents totaled $4.0 million as compared to $3.7 million at December 31, 2011. The increase was partially due to Dyadic's receipt of the first $2.0 million of the total license fee of $5.5 million for the expansion of Dyadic's license with Abengoa Bioenergy in April 2012.

Debt. At December 31, 2012, total debt was $8.4 million which was unchanged from December 31, 2011.

The financial information contained in this press release should be read in conjunction with the financial statements and related footnotes which have been posted on the OTC market website at http://www.otcmarkets.com/stock/DYAI/filings and on Dyadic's website at http://dyadic.com/investorinfo/financials/.

Conference Call

Dyadic's 2012 year-end financial results conference call is scheduled for 5:00 p.m. Eastern Time on Thursday, March 7, 2013. The conference call may be accessed by dialing 888-259-8885 (from the United States or Canada) or 913-312-0695 (from other countries) five to ten minutes prior to start time and providing the passcode 1207134. A replay of the conference call will be available on the Dyadic website (www.dyadic.com) shortly after the live event.

About Dyadic

Dyadic International, Inc. is a global biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries.

Dyadic trades on the OTC Pink tier of the OTC market. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC market website (www.otcmarkets.com/stock/DYAI/quote).

Cautionary Statement for Forward-Looking Statements

Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Dyadic's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Dyadic expressly disclaims any intent or obligation to update any forward-looking statements.

SOURCE Dyadic International, Inc.