Evogene Ltd. Reports First Quarter 2011 Financial Results
REHOVOT, ISRAEL--(Marketwire - May 17, 2011) -
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Ofer Haviv, Evogene's president and CEO, stated: "This past quarter saw substantial efforts directed in three primary areas as we continue our rapid progress. First, and foremost, we continued to meet our obligations under our on-going collaborations with world leading seed companies, including Bayer CropScience, Biogemma, Monsanto, Pioneer/Dupont, and Syngenta. Secondly, very substantial efforts were devoted to establishing our new wheat collaboration with Bayer, signed during December of last year, and which is targeted at improving wheat varieties utilizing a combination of advanced breeding and genetic modification methods. And lastly, we continued to build our infrastructure for the future, including ongoing construction programs to increase our research capacity by more than 50%, including facilities for expanded gene validation, data experiments and plant growth. This increased capacity will allow us to both significantly increase the number of research programs we can support and enable the introduction of new technologies now under development."
Mr. Haviv continued: "With respect to our financial results, we are of course pleased to see the substantial increase in both current revenues and financial strength in order to support our continued growth."
Revenues for the first quarter of 2011 were $3.4 million, representing an increase of approximately 26% compared to $2.7 million reported for the same period in 2010. Revenues consist of research and licensing revenues generated under the company's various collaboration agreements with seed companies.
Research & Development expenses for the first quarter of 2011 were $1.2 million, including non-cash financial expenses of $205 thousand for amortization of deferred compensation. This compares with $0.94 million for the same period in 2010, including such non-cash financial expenses of $97 thousand. These increases in Research & Development expenses relate to the development of new genomic technologies, expansion of the company's internal projects and to support our biofuel program.
Loss from ordinary operations for the first quarter of 2011 was $399 thousand, including non-cash financial expenses of $665 thousand for amortization of deferred compensation. This compares to a profit from ordinary operations of $181 thousand for the same period in 2010, including such non-cash financial expenses of $370 thousand.
Financial expenses due to publicly traded warrants: As of March 31, 2011, Evogene had approximately 3.5 million publicly traded series 2 warrants outstanding which were issued in 2007 as part of its IPO on the Tel Aviv Stock Exchange. These warrants will expire, if not previously exercised, at the end of this month (May 31, 2011). Although not impacting the actual financial status of the Company or its cash balances, any change as of the end of a reporting period in the market price of the Company's ordinary shares results in non-cash financial income (expense) due to revaluation of warrants on our statements of comprehensive income and a corresponding decrease or increase in the non-cash liability related to traded warrants on our balance sheets, which has an effect on Evogene's comprehensive profit as detailed hereunder.
Comprehensive profit for the first quarter of 2011 was $1.1 million, which includes $1.0 million of non-cash financial revenues due to publicly traded warrants, as described above, compared to a total comprehensive loss of $3.7 million, including $3.6 million of such non-cash financial expenses for the same period in 2010.
Cash Status: As of March 31, 2011, Evogene had $50.1 million in cash, cash equivalents, cash deposits and short-term marketable securities, including $12 million received in January 2011 pursuant to the Bayer CropScience agreement signed in late 2010, compared to $35.8 million as of December 31, 2010.
About Evogene
Evogene is a world leading developer of improved plant traits, such as yield and drought tolerance, for a wide diversity of key crops through the use of plant genomics. The company is focusing on providing a complete solution for plant trait improvement through combining state of the art biotechnology and advanced breeding methods, based on its computational genomic technologies: ATHLETE 3.0 for gene discovery; RePack for gene expression optimization and EvoBreed for breeding enhancement. Evogene's technology also combines high throughput plant validation systems, field experiments and proprietary genomic data creation. Evogene is collaborating with world leading seed companies to introduce its technology into key commercial crops. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange (TASE: EVGN). For additional information, please visit Evogene's website at www.evogene.com.
This press release contains "forward-looking statements." These statements include words like "may," "expects," "believes," "scheduled" and "intends," and they describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Evogene Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
BALANCE SHEETS
Dollar in thousands (except per share data)
As of
December 31 As of March 31
------------ --------------------------
2010 2011 2010
Audited Unaudited Unaudited
------------ ------------ ------------
Current assets
Cash and cash equivalents 10,120 12,919 32,231
Short term bank deposits and
marketable securities 25,729 37,771 5,558
Account receivables 2,142 1,292 528
Other account receivables 553 653 410
------------ ------------ ------------
38,544 52,635 38,727
------------ ------------ ------------
Non-current assets
Prepaid expenses 37 37 28
Property and equipment 4,120 4,333 3,553
Finance derivative - - 3
Intangible assets 171 160 206
------------ ------------ ------------
4,328 4,530 3,790
------------ ------------ ------------
Total Assets 42,872 57,165 42,517
============ ============ ============
Current liabilities
Trade payable 1,054 584 998
Liability related to chief
scientists grants 400 487 343
Deferred revenues 3,718 4,176 3,925
Liability related to traded
warrants 9,199 6,463 -
Other accounts payable and
accruals 1,949 1,514 1,142
------------ ------------ ------------
16,320 13,224 6,408
------------ ------------ ------------
Long-term Liabilities
Liability related to chief
scientists grants 3,499 3,399 3,277
Deferred revenues 6,313 7,909 8,966
Liability related to traded
warrants - - 7,870
Accrued severance pay, net 9 9 9
------------ ------------ ------------
9,821 11,317 20,122
------------ ------------ ------------
Shareholders' Equity
Share capital 82 89 80
Premium on shares 49,248 63,433 47,173
Other capital reserves 5,938 6,522 4,050
PUT Option (4,433) (4,433) (4,433)
Accumulated deficit (34,104) (32,987) (30,883)
------------ ------------ ------------
Total liabilities and
shareholders' equity 16,731 32,624 15,987
------------ ------------ ------------
42,872 57,165 42,517
============ ============ ============
STATEMENTS OF COMPREHENSIVE INCOME
Dollar in thousands (except per share data)
For the Year
ended on For three month period ended on
-------------- ------------------------------
December 31, March 31 March 31
2010 2011 2010
Audited Unaudited Unaudited
-------------- -------------- --------------
Revenues 12,563 3,387 2,685
Cost of revenues 5,811 1,710 1,310
-------------- -------------- --------------
Gross profit 6,752 1,677 1,375
-------------- -------------- --------------
Operating expenses:
Research and development,
net 5,544 1,226 939
Business development
expenses 1,062 272 200
General and administrative 2,069 578 417
-------------- -------------- --------------
Loss from ordinary
operation (1,923) (399) (181)
Other expenses (54) - (54)
Financial income 724 595 169
Financial expenses (10) (42) (15)
Financial income (expenses)
due to revaluation of
options (5,393) 1,038 (3,574)
Financial expenses due to
revaluation of
obligation to the OCS (314) (75) (94)
-------------- -------------- --------------
Net Profit (loss) (6,970) 1,117 (3,749)
-------------- -------------- --------------
Total Comprehensive Profit
(loss) (6,970) 1,117 (3,749)
============== ============== ==============
Basic profit (loss) per
share (in dollar) (0.24) 0.038 (0.14)
============== ============== ==============
Diluted profit (loss) per
share (in dollar) (0.24) 0.035 (0.14)
============== ============== ==============