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SENOMYX ANNOUNCES CORPORATE UPDATE AND THIRD QUARTER FINANCIAL RESULTS
Date:11/12/2013

te Program in the third quarter of 2012 and $500,000 related to our Cooling Taste Program in the first quarter of 2012.

Commercial revenues were $867,000 for the third quarter of 2013 compared to $909,000 for the third quarter of 2012.  This difference is primarily due to the reduction of certain minimum annual royalty arrangements, offset in part by increased royalties from our sweet and bitter blocking flavor ingredients.  Commercial revenues for the nine months ended September 30, 2013 increased to $3.8 million from $2.9 million for the nine months ended September 30, 2012.  The increase for the nine-month period primarily reflects increased royalties from our sweet and bitter blocking flavor ingredients.

Cost of commercial revenues was $61,000 for the third quarter of 2013 compared to $64,000 for the third quarter of 2012.  Cost of commercial revenues was $266,000 and $203,000 for the nine months ended September 30, 2013 and 2012, respectively.  These amounts represent royalty payments related to certain in-licensed technologies and are consistent with corresponding variances in commercial revenues.Research and development expenses, including stock-based compensation expenses, decreased to $7.1 million for the third quarter of 2013 from $7.2 million for the third quarter of 2012.  Research and development expenses were $21.4 million and $21.5 million for the nine months ended September 30, 2013 and 2012, respectively.

General and administrative expenses, including stock-based compensation expenses, were $3.1 million for the third quarter of 2013 and $2.7 million for the third quarter of 2012.  General and administrative expenses for the nine months ended September 30, 2013 were $9.1 million compared to $8.5 million for the corresponding period in 2012.  The increases were primarily due to personnel-related expenses, including recruiting and relocation expenses related to our direct sales in
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