Minneapolis, Minnesota – Biopolymer maker BioAmber Inc's Q2 2014 sales revenue was almost 60% lower than during the same period in 2013.
Sales were reported at $415,000 (EUR310,000) during the second quarter of this year compared to $1,028,000 over the same period in 2013.
The company said the decrease in revenue was principally due to “sales to two customers in Q2 2013 that will not recur until the Sarnia, Ontario plant comes on line.”
As previously reported at UTECH-polyurethane.com, the Sarnia plant will produce the company's proprietary bio-succinic acid as well as using licensed DuPont technology to produce 1,4-butanediol (BDO).
BioAmber’s gross loss for Q2, 2014 was $1,836,000 compared to a gross loss in Q2, 2013 of $383,000. However, the company’s third quarter in 2013 showed improvement with a gross profit of $211,000 reported.
According to BioAmber's 7 August, 2014 press release: “The increased loss was primarily due to the recording of a non-cash charge for an inventory reserve in the amount of $1,635,000.
"The reserve was taken to bring the recorded value of inventory in line with its net realisable value. The reduction in net realisable value was driven by the reduction in the average selling price.
"..Selling prices remain approximately twice the average selling price projected for Sarnia, but is declining as certain customers request Sarnia pricing in advance of the plant starting production,” the press release said.
R&D expenses for the latest quarter were also up on Q2, 2013 and reported at $4.3m, an increase of $38,000 from the same period in 2013.
Currency Conversion: 11 August, 2014