Metabolix, Inc (Metabolix), a US based bioscience company, has reported revenues of $0.22 million for the year-end 2008, compared with the revenues of $0.14 million in the pervious year-end. It has also reported a net loss of $36 million, or $1.58 per share, for the year-end 2008, compared with the net income of $27.8 million, or $1.27 per share, in the pervious year-end.

The company reported a net loss of $8.9 million or $0.40 per share for the fourth quarter of 2008 as compared to a net loss of $7.2 million or $0.33 per share for the fourth quarter of 2007. For the full year 2008 the company reported a net loss of $36.0 million compared to a net loss of $27.8 million for 2007. The net loss per share for 2008 was $1.58 compared to a net loss per share of $1.27 for 2007.

The company’s net cash used for operating activities during the fourth quarter of 2008 was $3.7 million, which compares to net cash used of $3.7 million for the comparable quarter in 2007. Net cash used in operating activities for the full year 2008 was $18.4 million compared to $10.9 million for 2007. Unrestricted cash and short-term investments at December 31, 2008 totaled $91.1 million. The company has no long-term debt.

Fourth Quarter And Full Year 2008 Financial Overview

Metabolix used $3.7 million of cash in operating activities for the fourth quarter 2008, which compares to net cash used of $3.7 million for the comparable quarter in 2007. Metabolix currently manages its finances with an emphasis on cash flow. Net cash used in operating activities reflects the company’s activities in sales and marketing development, and research and product development. The company expects its net cash used in operating activities to increase in future quarters as it expands its operations in advance of the full commercialization of Mirel and for the development of its longer term technology platforms.

The company received $3.6 million in payments from Archer Daniels Midland company (ADM) during the fourth quarter of 2008 for reimbursement of pre-commercial manufacturing expenses. Payments from ADM are recorded as long term deferred revenue on the company’s balance sheet. For the full year 2008 the company received payments from ADM recorded as deferred revenue of $9.3 million compared to $9.9 million in 2007.

Total revenue in the quarter was $0.4 million, which included revenue recognized from delivery of Mirel sample product and government research grants. This compared to $0.9 million in the same period of 2007. For the full year 2008 the company generated revenue of $1.6 million, primarily in the form of grant revenue. For the full year 2007 revenue was $1.7 million. The slight year over year decrease in revenue was attributed to less license fee and royalty revenue in 2008 compared to 2007, partially offset by higher grant revenue in 2008.

For the three months ended December 31, 2008, total operating expenses were $9.7 million as compared to $9.5 million for the comparable quarter in 2007. Operating expenses for the full year 2008 were $40.4 million compared to $35.5 million for 2007. The majority of the year over year increase in expenses relates to more spending on research and development. Research and development expenses were $24.7 million for 2008 compared to $19.9 million for 2007.

Research and development expenses were $6.2 million for the quarter ended December 31, 2008, up from $5.4 million for the comparable quarter in 2007. The increase during the quarter and for the full year was primarily the result of continued expansion of product development activities associated with developing new product grades and formulations for prospective customers, and increases in research and development personnel for polymer science and engineering primarily to support the company’s collaborative agreement with ADM.

Selling, general and administrative expenses were $3.6 million for the three months ended December 31, 2008 as compared to $4.1 million for the comparable quarter in 2007. The change was primarily due to lower accounting and audit fees during the company’s second year of Sarbanes-Oxley compliance and lower stock compensation expense. For the full year, selling, general and administrative expenses were $15.8 million compared to $15.6 million in 2007. Included in selling, general and administrative expense are non-cash stock-based compensations expenses of $4.4 million for 2008 and $4.6 million for 2007.

Business Update

Metabolix is commercializing Mirel through its joint venture with ADM known as Telles. ADM is responsible for construction of the commercial manufacturing facility located in Clinton, Iowa. ADM is conducting a detailed review of the project to improve productivity and better optimize remaining costs. This review is still ongoing with conclusions expected in late April. Earlier guidance indicated start-up of the plant in Q2 of 2009. Based on input from ADM, Metabolix is now anticipating start of production to be in the second half of calendar 2009.

Rick Eno, chief executive officer Metabolix, stated, Notwithstanding this modest delay, we believe that customer demand for Mirel remains strong and remain extremely confident of the tremendous long term opportunity for the product. The unique properties of Mirel, particularly, its bio-based sourcing and biodegradability, provide our customers with an environmentally responsible alternative to a wide variety of traditional plastics. We are also very pleased with the pace of our team’s technology advances across our Mirel and other platforms and are excited about the resultant potential for Metabolix.