Jay Flatley, Deputy CEO of Zymergen
Mark Neuring | CNBC
Self-proclaimed “a bio-factory company that uses biology to rethink the world,” Zeimergen plunged 68% in after-hours trading on Tuesday, dropping its IPO price from $ 31 to $ 11.07.The company Press release It is no longer expected to generate revenue for the product in 2021, and next year’s revenue is “not important.”
Zymergen’s market capitalization has fallen from its April high of about $ 4.8 billion to just over $ 1 billion.
“We are disappointed with these developments, and the board and management have solved the underlying problem to ensure that Zymergen is moving forward as a stronger company with a compelling operating plan. We are focusing on, “Flatley said in a press release. “We are confident in the opportunities and prospects of Seimergen, but it will take longer than previously expected to reach our goals.”
Zymergen’s current challenges relate to a product called Hyaline that the company launched in 2020. This is an optical film made using biomolecules that electronics companies can use, such as for touch screens. Zymergen’s goal is to achieve environmentally sustainable products at significantly lower costs than products manufactured by traditional chemical companies.
To date, Zymergen has made some revenue from R & D service contracts, but has made very little revenue from product sales.among them IPO prospectusZymergen said it expects to start generating revenue from Hyaline from Hyaline in the second half of 2021.
The target has been pushed back all the time. Zymergen said on Tuesday that some potential customers “ran into technical problems in implementing Hyaline in their manufacturing process” during the quarter. Zymergen said there were no “technical issues inherent in Hyaline,” but now “the company’s commercial launch has been delayed.”
Zymergen said it has raised over $ 465 million in its IPO and now has $ 588 million worth of cash. In the second quarter, we expect total revenues to be between $ 5 million and $ 6 million, while operating costs are expected to be between $ 100 million and $ 105 million.
Zymergen (ZY) plunged 68% in 2022’non-significant’revenue forecast
Source link Zymergen (ZY) plunged 68% in 2022’non-significant’revenue forecast