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Ceres Announces Fiscal Year 2013 Financial Results



              Ceres Announces Fiscal Year 2013 Financial Results

- Plantings have commenced for the 2013-14 growing season in Brazil.

- Number of mills evaluating Ceres' sorghum hybrids has increased over
previous season.

- Lower expenses forecast for fiscal year 2014.

PR Newswire

THOUSAND OAKS, Calif., Nov. 21, 2013

THOUSAND OAKS, Calif., Nov. 21, 2013 /PRNewswire/ -- Energy crop company
Ceres, Inc. (Nasdaq: CERE) today announced financial results for the fiscal
year ended August 31, 2013 and provided an update on its business in Brazil.

The company reported that plantings for the 2013-2014 sorghum growing season
in Brazil have commenced and are expected to continue through December. With
industrial processing of Ceres' sweet sorghum hybrids generally well
established, these plantings consist primarily of smaller, multi-hybrid
evaluations designed to determine yield potential, identify the best
performing hybrids for specific regions and to demonstrate various crop
management practices.  

"Our goal this season is to clearly demonstrate the economic basis for sweet
and high biomass sorghum cultivation and processing," said Richard Hamilton,
President and Chief Executive Officer of Ceres. "We have made a number of
adjustments to our product development process and go-to-market approach, with
an emphasis on consistent execution of our crop management protocols."

Mr. Hamilton noted that field performance will largely determine the scale and
pace at which the company's products will be adopted moving forward. "We have
significantly increased yields of fermentable sugars since our first
industrial evaluations in 2011 and we expect to continue to develop a stream
of higher-performing hybrids that provide a greater buffer to variable growing
conditions and crop management practices," he said.

Ceres Chief Financial Officer Paul Kuc indicated that the company is moving
forward with previously reported plans to reduce expenses in fiscal year 2014.
"The priority for our working capital will be product development and
commercial activities related to sorghum and our near-term opportunity in
Brazil. We will also continue to advance potentially high-value traits, like
yield and drought resistance, in our pipeline for use in sorghum as well as in
row crops," he said.

RECENT BUSINESS HIGHLIGHTS

  o For the 2013-2014 season, Ceres expects to evaluate its sorghum hybrids at
    approximately 50 mills and mill suppliers. These evaluations include
    approximately 10 hybrids, including commercial and pre-commercial
    products. Plantings are expected to cover up to approximately 1,000
    hectares compared to approximately 3,000 hectares the previous season due
    primarily to a greater focus among mills on field performance, which can
    be determined at a smaller scale than evaluations needed for confirming
    industrial performance. Approximately 30 mills evaluated the company's
    sorghum products last season.
  o The company has expanded the number of locations and scope of field
    evaluations of  pre-commercial products and advanced breeding materials in
    Brazil in order to better position its future products among various
    geographies, growing conditions and production practices. These breeding
    materials have demonstrated, among other characteristics, step increases
    in yields, greater yield stability, longer periods of industrial
    utilization and greater adaptation to various growing conditions and
    harvest times.
  o Former Brazil Agricultural Minister Roberto Rodrigues has agreed to chair
    a sorghum advisory council established by the company's Brazilian
    subsidiary. The council will provide strategic advice and support for the
    introduction of the biofuel crop in Brazil. Members represent companies in
    industrial ethanol processing, agricultural production and bioenergy.
  o In October, Ceres announced that the company extended a joint market
    development agreement with Syngenta in Brazil. Under the renewed
    agreement, Syngenta and Ceres will continue to collaborate on field
    evaluations with mills. Syngenta indicated that it plans to move forward
    with its evaluations aimed at registering additional crop protection
    products for sorghum.
  o In China, field evaluations of several Ceres' biotech traits in corn have
    demonstrated significantly higher grain yields under drought conditions.
    The company intends to seek out-licensing opportunities for certain of
    these traits in corn once further evaluations allow their commercial value
    to be more definitively determined.
  o In India, results from rice evaluations completed this month confirmed
    that genes developed by Ceres provided improved yield stability under
    drought and other stress conditions that routinely limit
    productivity. These genes are currently being introduced into breeding
    lines by the company's commercialization partner in India.
  o In October, Ceres reported that it would further align expenditures with
    its near-term commercial opportunity in Brazil, relocate its Northern
    Hemisphere sorghum breeding activities, reduce research and development
    expenditures for U.S. cellulosic feedstocks, reduce overall costs and
    conserve cash. These changes are expected to deliver cash savings of up to
    approximately $5.0 million in fiscal year 2014 and up to approximately
    $8.0 to $10.0 million annually thereafter.

YEAR-END FINANCIAL RESULTS

Total revenues for the year ended August 31, 2013 were $5.2 million compared
to $5.4 million for the previous fiscal year due primarily to a decrease in
collaborative research revenue.

Cost of product sales was $6.2 million for the year ended August 31, 2013
compared to $2.4 million for the previous fiscal year. The increase was
primarily due to write-down expenses of $2.2 million for obsolete seed
inventory relating to the company's sweet sorghum products and $1.7 million
for crop management services performed under certain sales incentive and
performance-based promotional programs for the 2012-2013 growing season in
Brazil.

Research and development expenses decreased by $2.8 million to $16.4 million
for the year ended August 31, 2013 compared to the previous fiscal year due
primarily to reduced personnel and related expenses in the U.S. as well as
reduced external R&D expenses.

Selling, general and administrative expenses were $15.2 million for the year
ended August 31, 2013 compared to $12.6 million for the previous fiscal year
due primarily to increased personnel and related administrative expenses in
Brazil.

For the fiscal year ended August 31, 2013, Ceres reported a net loss of $32.5
million, or $1.31 per share, compared to a net loss of $29.4 million, or $2.18
per share, for the fiscal year ended August 31, 2012.

At August 31, 2013, cash and cash equivalents and marketable securities
totaled $30.5 million.

CONFERENCE CALL AND WEBCAST INFORMATION

Ceres has scheduled a conference call for 4:30 p.m. EST (1:30 p.m. PST) today
to discuss year-end results. The webcast of the conference call may be
accessed at investor.ceres.net. Audio of the teleconference is also available
by dialing:

North America callers:
(877) 838-4153

International callers:
+1 (720) 545-0037

An audio replay of the call will be available two hours after the conclusion
of the live call, and remain available on the Ceres website for 30 days.

ABOUT CERES

Ceres, Inc. is an agricultural biotechnology company that markets seeds for
energy crops used in the production of renewable transportation fuels,
electricity and bio-based products. The company combines advanced plant
breeding and biotechnology to develop products that can address the
limitations of first-generation bioenergy feedstocks, increase biomass
productivity, reduce crop inputs and improve cultivation on marginal land. Its
development activities include sweet sorghum, high-biomass sorghum,
switchgrass and miscanthus. Ceres markets its products under its Blade brand.

CERES FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. All statements,
other than statements of historical facts, including statements regarding
Ceres' efforts to develop and commercialize its products, short-term and
long-term business strategies, market and industry expectations, future
operating metrics, product yields and future results of operations and
financial position, are forward-looking statements. You should not place undue
reliance on these forward-looking statements because they involve known and
unknown risks, uncertainties and other factors that are, in some cases, beyond
Ceres' control. Factors that could materially affect actual results can be
found in Ceres' filings with the U.S. Securities and Exchange Commission.
Ceres undertakes no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. These forward-looking statements should not be relied
upon as representing Ceres' views as of any date subsequent to the date of
this press release.

CERES, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations 
(In thousands, except share and per share amounts)
(Unaudited)
                          Three Months Ended          Year Ended
                         August 31,                  August 31, 
                         2013           2012         2013          2012
Revenues:
   Product sales         $        —     $            $             $          
                                           3          462          432
   Collaborative
research and government  898            1,161        4,781         4,939
grants 
       Total revenues    898            1,164        5,243         5,371
Cost and operating
expenses:
   Cost of product       1,132          507          6,245         2,384
sales 
   Research and          3,617          3,634        16,401        19,155
development 
   Selling, general and  3,488          3,673        15,187        12,634
administrative 
       Total cost and    8,237          7,814        37,833        34,173
operating expenses 
Loss from operations     (7,339)        (6,650)      (32,590)      (28,802)
Interest expense         (11)           (1)          (46)          (560)
Interest income          19             30           126           39
Other expense            —              —            —             (84)
Loss before income       (7,331)        (6,621)      (32,510)      (29,407)
taxes 
Income tax expense       —              (2)          (1)           (3)
Net loss                 $    (7,331)   $            $   (32,511)  $  
                                        (6,623)                     (29,410)
Basic and diluted net    $      (0.29)  $            $             $      
loss per share                          (0.27)       (1.31)         (2.18)
Basic and diluted
weighted average
outstanding common       24,886,140     25,509,940   24,796,030    13,488,336
shares used for net loss
per share

CERES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets 
(In thousands, except share amounts)
                                              August 31,       August 31,
                                              2013             2012
Assets
Current assets:
   Cash and cash equivalents                  $         8,881  $       21,069
   Marketable securities                      21,630           33,565
   Prepaid expenses                           791              1,050
   Accounts receivable                        957              765
   Inventories                                20               841
   Other current assets                       157              278
     Total current assets                     32,436           57,568
Property and equipment, net                   4,633            5,756
Marketable securities                         —                5,720
Other assets                                  109              203
     Total long-term assets                   4,742            11,679
     Total assets                             $       37,178   $       69,247
Liabilities and Stockholders' Equity
Current liabilities:
   Accounts payable and accrued expenses      $         3,825  $         5,476
   Deferred revenue                           —                701
   Deferred rent                              18               31
   Current portion of long-term debt          154              134
     Total current liabilities                3,997            6,342
Deferred rent                                 93               88
Long-term debt, net of current portion        82               256
     Total liabilities                        4,172            6,686
Commitments and contingencies
Stockholders' equity:
   Common stock, $0.01 par value;
490,000,000 shares authorized;
24,897,199 shares issued and outstanding at   248              245
August 31, 2013; 24,549,029 shares issued and
outstanding at August 31, 2012.
   Additional paid-in capital                 308,038          304,672
   Accumulated other comprehensive loss       (696)            (283)
   Accumulated deficit                        (274,584)        (242,073)
     Total stockholders' equity               33,006           62,561
Total liabilities and stockholders' equity    $       37,178   $       69,247

SOURCE Ceres, Inc.

Website: http://www.bladeenergy.com
Contact: Ceres, Inc., Gary Koppenjan, Investors, +1-805-375-7801, ir@ceres.net
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