REHOVOT, Israel--(BUSINESS WIRE)--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, net | 7,294 | 7,597 | 7,401 | ||||||
| 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 from the Chief Scientist | 520 | 470 | 733 | ||||||
| Deferred revenues | 3,566 | 4,347 | 4,211 | ||||||
| 8,492 | 7,760 | 9,499 | |||||||
|
LONG-TERM LIABILITIES |
|||||||||
| Liabilities in respect of grants from the Chief Scientist | 2,869 | 2,879 | 2,918 | ||||||
| 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 former controlling shareholder | 1,156 | 1,156 | 1,156 | ||||||
| Capital reserve for share-based payment transactions | 8,150 | 7,271 | 7,058 | ||||||
| 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 development, net | 7,638 | 5,158 | 2,972 | 1,850 | 7,252 | ||||||||||
| Business development | 906 | 860 | 374 | 316 | 1,159 | ||||||||||
| General and administrative | 2,111 | 1,539 | 863 | 470 | 2,268 | ||||||||||
| Other Income |
(81 |
) |
- |
(30 |
) |
- |
(33 |
) |
|||||||
| Total operating expenses | 10,574 | 7,557 | 4,179 | 2,636 | 10,646 | ||||||||||
| 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 for Revaluation |
(104 |
) |
(161 |
) |
(26 |
) |
(142 |
) |
(205 |
) |
|||||
| of Liabilities to the Scientist, Net | |||||||||||||||
| Loss before taxes on income |
(4,661 |
) |
(1,683 |
) |
(2,299 |
) |
(1,000 |
) |
(2,448 |
) |
|||||
| Taxes on income | - |
(74 |
) |
- |
(22 |
) |
(74 |
) |
|||||||
| Comprehensive net loss |
(4,661 |
) |
(1,757 |
) |
(2,299 |
) |
(1,022 |
) |
(2,522 |
) |
|||||
| Basic and diluted net loss per share |
(0.12 |
) |
(0.05 |
) |
(0.06 |
) |
(0.03 |
) |
(0.07 |
) |
|||||
