Consumables
Cereplasts Preliminary First Quarter 2011 Revenue Exceeds Guidance
Tuesday 19. April 2011 - Rapid Increase in New Distribution Contracts Helps Drive Strong Revenue Growth
Increases Full Year 2011 Guidance
Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary biobased, compostable and sustainable plastics, today reported preliminary revenue for its first quarter ended March 31, 2011.
Cereplast expects to report first quarter 2011 revenue of $7.2 million, exceeding the high-end of its previous first quarter guidance of $5.0 million to $6.5 million for the quarter. Based on these preliminary results, the company has raised its full-year 2011 revenue guidance to $28.0 million to $34.0 million, from its previously stated 2011 guidance of $24.0 million to $32.0 million, representing a significant increase over its 2010 revenue of $6.3 million.
“We are executing on our stated growth strategy to secure strategic partnerships with large distributors,” said Frederic Scheer, Chairman and Chief Executive Officer of Cereplast. “Our better than expected revenue is primarily a result of the five new distribution agreements we signed during the quarter, which helped to expand our footprint into the European market, where legislation is a key driver in the rise of demand for biobased alternatives to petroleum-based plastics.”
Scheer continued, “We began shipping to our new customers in the first quarter of 2011 and expect these contracts to ramp in size and scope throughout the year. This momentum is expected to continue through next year and ultimately result in increased capacity utilization at our manufacturing facility in Indiana. This increasing volume will help leverage our overall cost structure and move the company towards its goal of profitability.”
The financial results included in this press release are preliminary and subject to change.