Loading...
•
Dec 31, 2020
Cibus Q4 2020 Earnings Report
Calyxt reported an increase in revenue driven by grain sales, but gross margin was negative due to changes in go-to-market strategy and commodity derivative losses. The company also reported a decrease in operating expenses and a net loss.
Key Takeaways
Calyxt's Q4 2020 revenue increased significantly due to grain sales and liquidation of inventories. However, the gross margin was negative. Operating expenses decreased, and the company secured $14.0 million in proceeds from a capital raise.
Revenue increased by 270% to $13.9 million due to grain sales and inventory liquidation.
Gross margin was negative $4.9 million, impacted by go-to-market strategy changes and commodity derivative losses.
Operating expenses decreased by 22% to $8.1 million due to the change in go-to-market strategy.
Net loss increased to $13.4 million, driven by the increase in negative gross margin partially offset by the decline in operating expenses.
Forward Guidance
Calyxt is focusing on technology licensing, product development, and seed sales arrangements and expects to see continued progress in development of winter oats and hemp.
Positive Outlook
- Continued development of winter oat projects targeting food, feed, and cover crop markets.
- Continued development of hemp projects targeting protein, nutraceutical, fiber, and advanced materials markets.
- Secured commitment from ADM to purchase remaining 2019 grain inventory and all 2020 grain production.
- Executed commercial agreement with S&W Seed Company on IQ™ Alfalfa product, marking Calyxt’s first trait license agreement.
- Entered into an agreement with Perdue AgriBusiness for the sale of soybean seed in 2021.
Challenges Ahead
- The development of winter oat projects is not expected to become available for commercialization until 2026.
- The development of hemp projects is not expected to become available for commercialization until 2024.
- Gross margin was negative $4.9 million, or a negative 35 percent, in the fourth quarter of 2020.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...