Aug 15, 2011

KiOR's 2Q loss widens on higher expenses (AP)

PASADENA, Texas – Renewable fuels company KiOR Inc. said Thursday its second-quarter net loss widened because of higher expenses as it prepares to start production at its first facility next year.

KiOR's net loss totaled $40.6 million, or 43 cents per share, after payment of dividends on preferred stock in the second period. That compared with a net loss of $19.4 million, or 27 cents per share, in the year-ago quarter.

The results reflected $5.5 million in expenses related to warrant liabilities and $2.6 million of stock-based compensation expenses.

The company did not recognize revenue in the quarter.

Analysts surveyed by FactSet had predicted a net loss of 18 cents per share. Such estimates typically exclude one-time items.

During the quarter, KiOR said research and development expenses rose to $7.7 million from $4.2 million in the year-ago quarter. General and administration expenses more than doubled to $7.2 million from $2.1 million.

The Pasadena, Texas, company is constructing its first commercial facility in Columbus, Miss., where it expects production to get under way in the second half of 2012. It raised $148.7 million in net proceeds from an initial public offering of 10 million common shares in June.

Shares of KiOR rose 96 cents, or 9.6 percent, to close at $11 Thursday before the earnings were issued.


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