Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Evogene Reports Third Quarter 2013 Financial Results



  Evogene Reports Third Quarter 2013 Financial Results

    Collaborations enhanced and extended and progress reported in all four
                             operating divisions

Business Wire

REHOVOT, Israel -- October 24, 2013

Evogene Ltd. (TASE: EVGN), a plant genomics company specializing in enhancing
crop productivity for the food, feed and biofuel industries, today announced
its financial results for the third quarter and nine months ended September
30, 2013.

Ofer Haviv, Evogene's President and CEO, stated:  “Last year, in view of the
broad applicability of the unique technological capabilities and
infrastructure that we have established over the past decade, we reorganized
our company into four operating divisions, each focused on leveraging these
assets to create improved products in a different and substantial market
area.”

“In our most mature division, Yield and Abiotic Stress, we currently have
seventeen product programs with many of the leading seed companies in the
world, including our multiyear collaborations with Monsanto Company in corn,
soybean, cotton and canola, and with Bayer CropScience for wheat.”

“We continue to broaden our activities in our division focused on Biotic
Stress. We recently expanded our Asian Soybean Rust collaboration with Pioneer
DuPont, and, following promising results for Evogene-supplied candidate genes,
we also extended our collaboration with Syngenta in the field of Soybean
Nematode. We were also pleased to announce positive field trial results in our
collaboration with RAHAN, targeting Black Sigatoka disease in bananas.”

“In our Ag-Chemicals division, the newest of our four operating divisions, our
current focus is on new ‘modes of action’ for herbicides and novel crop
enhancers. During the past quarter we continued to extend certain of our
existing capabilities to meet these new pursuits and to add the required
chemical-specific capabilities and infrastructure."

“Our wholly owned subsidiary, Evofuel, continues to progress towards its goal
of developing and supplying castor seeds as a cost-competitive biofuel
feedstock. During the past quarter, we were pleased to announce the completion
of three years of field trials in Brazil and, based on encouraging results,
our expectation to initiate commercialization of our proprietary castor seeds
in 2016.”

“Everything that we are able to accomplish in our four operating divisions
rests on our unique technology platforms and highly skilled professional
staff. As such, in addition to our program-directed activities in each
division, we continue to make increasing investments to enhance and extend our
core technologies and capabilities. These efforts have been primarily related
to our computational technologies and plant validation platforms, including
the broadening of our field-trial capabilities and greenhouse facilities,"
concluded Mr. Haviv.

Revenues for the first nine months ended September 30, 2013 were $13.2
million, compared to $12.3 million for the same period in 2012. Revenues for
the third quarter of 2013 were $4.2 million, compared to $4.0 million reported
for the same period in 2012. Revenues for the first nine months and the third
quarter of 2013 consist primarily of research and development payments under
the Company's various collaboration agreements.

Cost of revenues consists of expenses incurred in support of our ongoing
collaborations that provide, in addition to current revenues stemming from
research and development fees, the potential for future milestone and royalty
revenues. Cost of revenues  for the first nine months ended September 30, 2013
was $7.3 million, compared to $6.9 million for the same period in 2012. Cost
of Revenues  for the third quarter of 2013 was $2.6 million, compared to $2.4
million for the same period in 2012. This increase in costs primarily relates
to the expansion in the Company's scope of activities in order to meet the
obligations of its various contractual agreements.

Research and development expenses for the first nine months ended September
30, 2013, which do not include expenses incurred in support of ongoing
collaborations which, as stated above, are accounted for as cost of revenues,
were $7.6 million, compared to $5.2 million for the same period in 2012.
Research and development expenses for the third quarter of 2013 were $3.0
million, compared to $1.9 million for the same period in 2012. The increases
for 2013 compared to 2012 primarily relate to the significant increase in
activities devoted to strengthening the infrastructure and expanding the
product offerings across Evogene’s four operating divisions, including the
establishment of dedicated computational platforms and related increases in
professional staff.

General and administrative expenses for the first nine months ended September
30, 2013 were $2.1 million (including a non-cash expense of $503 thousand for
amortization of share-based compensation), compared to $1.5 million for the
same period in 2012 (including a non-cash expense of $221 thousand for
amortization of share based-compensation). General and administrative expenses
for the third quarter of 2013 were $863 thousand (including a non-cash expense
of $315 thousand for amortization of share-based compensation), compared to
$470 thousand for the same period in 2012 (including a non-cash expense of $49
thousand for amortization of share-based compensation). The increases for 2013
compared to 2012 primarily relate to the increase in non-cash expense for
amortization of share-based compensation, as well as an increase in other
expenses to support the growth of the ongoing activities of the Company.

Loss from ordinary operations for the first nine months ended September 30,
2013 was $4.7 million (including a non-cash expense of $1.6 million for
amortization of share-based compensation), compared to loss from ordinary
operations of $2.2 million for the same period in 2012 (including a non-cash
expense of approximately $925 thousand for share-based compensation). Loss
from ordinary operations for the third quarter of 2013 was $2.5 million
(including a non-cash expense of approximately $1 million for share-based
compensation), compared to loss from ordinary operations of $1.1 million for
the same period in 2012 (including a non-cash expense of approximately $352
thousand for share-based compensation). This increase in loss from ordinary
operations primarily relates to the increase in research and development
expenses and an increase in non-cash expenses for share-based compensation as
described above.

Total comprehensive loss for the first nine months ended September 30, 2013
was $4.7 million (including a non-cash expense of $1.6 million for
amortization of share-based compensation), compared to a total comprehensive
loss of $1.8 million for the same period in 2012 (including a non-cash expense
of approximately $925 thousand for share-based compensation). Total
comprehensive loss for the third quarter of 2013 was $2.3 million (including a
non-cash expense of approximately $1.0 million for share-based compensation),
compared to a total comprehensive loss of $1.0 million for the same period in
2012 (including a non-cash expense of approximately $352 thousand for
share-based compensation).

As of September 30, 2013, Evogene had  approximately $48.3 million in cash,
cash equivalents and marketable securities compared to approximately $55.1
million as at December 31, 2012.

About Evogene

Evogene is a plant genomics company utilizing a proprietary integrated
technology infrastructure to enhance seed traits underlying crop productivity.
Evogene offers a complete solution for crop productivity improvement through
biotechnology and advanced breeding using a unique technology infrastructure
that is based on deep scientific understandings of plant genomics and
proprietary computational capabilities. The Company has strategic
collaborations with world-leading agricultural companies to develop improved
seed traits in relation to yield and a-biotic stress (such as tolerance to
drought), and biotic stress (such as resistance to disease), in key crops such
as corn, soybean, wheat and rice. In addition, Evogene has earlier stage
operations in agriculture chemicals, and seeds focusing on second generation
feedstock for biodiesel. The Company's headquarters are located in Rehovot,
Israel and the Company is listed for trading on the Tel Aviv Stock Exchange
(TASE: EVGN). For additional information, please visit www.evogene.com.

This press release contains "forward-looking statements" relating to future
events. These statements may be identified by words such as "may", “expects”,
"intends", “anticipates”, “plans”, “believes”, “scheduled”, “estimates” or
words of similar meaning. Such statements are based on current expectations,
estimates, projections and assumptions, describe opinions about future
events, involve certain risks and uncertainties which are difficult to
predict and are not guarantees of future performance. Therefore, actual future
results, performance or achievements of Evogene may differ materially from
what is expressed or implied by such forward-looking statements due to a
variety of factors, many of which are beyond Evogene's control, including,
without limitation, those risk factors contained in Evogene’s reports filed
with the Israeli Securities Authority. Evogene disclaims any obligation or
commitment to update these forward-looking statements to reflect future events
or developments or changes in expectations, estimates, projections and
assumptions.

                                                           
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
                                                             
                                    As of September 30,     As of December 31,
                                    2013        2012        2012
                                    Unaudited               Audited
CURRENT ASSETS
Cash and cash equivalents           16,655      20,913      24,262
Marketable securities               31,684      30,260      30,868
Short-term bank deposits            -           2,700       -
Trade receivables                   1,836       1,502       1,542
Other receivables                   1,744       439         650           
                                                             
                                    51,919      55,814      57,322        
LONG-TERM ASSETS
Long term deposits                  31          38          43
Plant, property and equipment,      7,294       7,597       7,401
net
Other investment                    365         -           -
Intangible assets, net              56          100         89            
                                                             
                                    7,746       7,735       7,533         
                                                             
                                    59,665      63,549      64,855        
                                                             
CURRENT LIABILITIES
Trade payables                      1,461       1,052       1,416
Other payables                      2,945       1,891       3,139
Liabilities in respect of grants    520         470         733
from the Chief Scientist
Deferred revenues                   3,566       4,347       4,211         
                                                             
                                    8,492       7,760       9,499         
                                                             
LONG-TERM LIABILITIES
Liabilities in respect of grants    2,869       2,879       2,918
from the Chief Scientist
Deferred revenues                   1,877       5,013       4,168
Severance pay liability, net        19          9           11            
                                                             
                                    4,765       7,901       7,097         
SHAREHOLDERS' EQUITY
Share capital                       103         101         102
Share premium                       85,405      82,340      83,688
Put option                          (7,764  )   (7,764  )   (7,764       )
Reserve - transaction with a        1,156       1,156       1,156
former controlling shareholder
Capital reserve for share-based     8,150       7,271       7,058
payment transactions
Accumulated deficit                 (40,642 )   (35,216 )   (35,981      )
                                                             
                                    46,408      47,888      48,259        
                                                             
                                    59,665      63,549      64,855        
                                                                          

                                                                  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands (except share and per share data)
                                                                    
                       For the Nine          For the Three         For the
                                                                   Year
                       Months ended          Months ended          ended
                       September 30          September 30          December 31
                       2013       2012       2013       2012       2012
                       Unaudited             Unaudited             Audited
                                                                    
                                                                    
Revenues               13,168     12,254     4,234      3,967      17,072
                                                                    
Cost of revenues       7,271      6,903      2,583      2,420      9,552     
                                                                    
Gross profit           5,897      5,351      1,651      1,547      7,520     
                                                                    
                                                                    
Research and           7,638      5,158      2,972      1,850      7,252
development, net
Business development   906        860        374        316        1,159
General and            2,111      1,539      863        470        2,268
administrative
Other Income           (81    )   -          (30    )   -          (33      )
                                                                    
Total operating        10,574     7,557      4,179      2,636      10,646    
expenses
                                                                    
Operating loss         (4,677 )   (2,206 )   (2,528 )   (1,089 )   (3,126   )
                                                                    
Financing income       944        824        275        314        972
Financing expenses     (824   )   (140   )   (20    )   (83    )   (89      )
Financial Expenses     (104   )   (161   )   (26    )   (142   )   (205     )
for Revaluation
of Liabilities to                                                   
the Scientist, Net
                                                                    
Loss before taxes on   (4,661 )   (1,683 )   (2,299 )   (1,000 )   (2,448   )
income
                                                                    
Taxes on income        -          (74    )   -          (22    )   (74      )
                                                                    
Comprehensive net      (4,661 )   (1,757 )   (2,299 )   (1,022 )   (2,522   )
loss
                                                                    
Basic and diluted      (0.12  )   (0.05  )   (0.06  )   (0.03  )   (0.07    )
net loss per share
                                                                    

Contact:

Evogene
Karen Mazor
Director, Public and Investor Relations
+972 54 22 88 039
karen.mazor@evogene.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement