Marrone Bio Innovations, Inc. logged a net loss of $2.9 million or 4 cents per share in first-quarter 2018, narrower than a loss of $7.6 million or 31 cents per share a year ago. Loss per share for the reported quarter was in line with the Zacks Consensus Estimate. The narrower year-over-year loss was mainly due to a gain on the conversion of debt.
Revenues & Margins
Marrone Bio’s revenues went up roughly 4% year over year to $4.3 million in the quarter. Product revenues rose 3% year over year to $4.2 million while license revenues jumped 72% to $100 million in the quarter.
Gross margin for the quarter was 48.1%, an improvement from 45.1% recorded a year ago. The increase was supported by the company’s research and development and manufacturing process improvement initiatives as well as favorable product mix.
Marrone Bio ended the quarter with cash and cash equivalents of around $14.8 million, a roughly eight-fold year over year increase. Long-term debt was around $12 million, down around 43% year over year. Net cash used in operations was roughly $9.7 million for the first quarter, compared with $7.6 million of cash used for the same period a year ago.
Marrone Bio completed a number of capital raise and debt refinancing transactions, generating roughly $40 million of net proceeds and converting $45 million of long term debt into equity.
Marrone Bio said that it remains focused on boosting its international distributor network and to drive increased demand for its products. The company also noted that its equity raise and debt refinancing initiatives have strengthened its balance sheet, providing it with sufficient resources to finance operations for the foreseeable future.
Marrone Bio has underperformed the industry it belongs to over a year. The company’s shares have gained around 7.7% over this period compared with the industry’s gain of 11.8% over the same period.
Zacks Rank & Stocks to Consider
Marrone Bio currently has a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Celanese Corporation (CE - Free Report) , Methanex Corporation (MEOH - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) .
Celanese has an expected long-term earnings growth rate of 8.9% and flaunts a Zacks Rank #1 (Strong Buy). Its shares have gained roughly 29% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15% and carries a Zacks Rank #2 (Buy). Its shares have gained roughly 65% over a year.
Kronos has an expected long-term earnings growth rate of 5% and flaunts a Zacks Rank #2. The company’s shares have moved up around 22% in a year.
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