Evogene Ltd. Reports Third Quarter 2009 Financial Results

REHOVOT, ISRAEL--(Marketwire - November 19, 2009) -

Evogene Ltd. (TASE: EVGN) announced today its financial results for the third quarter, ended September 30, 2009.

Ofer Haviv, Evogene’s president and CEO, stated: “During the third quarter of 2009, we continued advancing our R&D activities under our existing collaboration agreements with world leading seed companies. In order to support these and anticipated new collaborations, along with our own internal programs, we recently completed a significant expansion of our capacity in terms of staffing, facilities and equipment. This included a new greenhouse site for model and target plant growth at Kibutz Naan in Israel, and expansion of our molecular biology and tissue culture labs. With this significantly increased computational gene discovery and plant validation capacity and our strong cash position, we enthusiastically look forward to the continuing growth of our company.”

Revenues for the first nine months ended September 30, 2009 were $7.4 million, compared to $1.1 million for the same period in 2008. Revenues for the third quarter of 2009 were $2.6 million, compared to $0.9 million for the same period in 2008. Revenues for the first nine months and third quarter of 2009 include revenues generated mainly under the collaboration with Monsanto.

Profit from ordinary operations for the first nine months of 2009 was $747 thousand, compared to a loss from ordinary operations of $5.0 million in the same period in 2008. Loss from ordinary operations for the third quarter of 2009 was $113 thousand, compared to a loss from ordinary operations of $2.3 million in the same period in 2008.

Total comprehensive loss for the first nine months ended September 30, 2009, was $3.0 million, or $0.11 per share, as a result of $5.0 million of non-cash financial expenses due to revaluation of certain non-employee options, primarily options issued in the 2007 IPO. These revaluations for accounting purposes reflect changes in the fair market value of Evogene ordinary shares and the market value of the options. This is compared to a total comprehensive loss of $9.1 million, or $0.44 per share, in the same period in 2008, including non-cash financial expenses of $4.3 million due to the revaluation of options.

Total comprehensive profit for the third quarter of 2009 was $2.1 million, or $0.07 per share, as a result of $1.3 million of non-cash financial income due to revaluation of certain non-employee options, primarily options issued in the 2007 IPO. This is compared to a total comprehensive loss of $7.6 million, or $0.35 per share, including non-cash financial expenses of $4.8 million due to the revaluation of options.

As of September 30, 2009, Evogene had approximately $39 million in cash, cash equivalents, cash deposits and short-term marketable securities, an increase of $10 million compared to $29 million as of December 31, 2008. This increase is mainly due to the exercise in the previous quarter of the company’s outstanding Series 1 options that were issued as part of the company’s IPO in June 2007.

About Evogene

Evogene is a world leading developer of improved plant traits. The company’s proprietary product development platform combines state of the art computational gene discovery technology (The ATHLETE), plant and field validation capabilities and unique selection systems. Evogene’s current programs focus on the improvement of key plant traits, such as yield and stress tolerance, and the improvement of plants specifically for biofuel uses. Evogene has collaboration and licensing agreements with world leading companies in the agro-biotech and alternative energy industries. 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 As of data) December 31 As of September 30 ----------- -------------------- 2008 2009 2008 Audited Unaudited Unaudited ----------- --------- --------- Current assets Cash and cash equivalents 14,490 13,727 29,574 Short term bank deposits and marketable securities 14,883 25,290 2,512 Account receivables 1,890 549 - Other account receivables and prepaid expenses 322 317 117 ----------- --------- --------- 31,585 39,883 32,203 ----------- --------- --------- Non-current assets Investment in associate company 136 - - Long term deposits 22 28 18 Property and equipment, net 1,359 3,254 930 Finance derivative 585 47 113 Intangible assets 261 228 273 ----------- --------- --------- 2,363 3,557 1,334 ----------- --------- --------- Total Assets 33,948 43,440 33,537 =========== ========= ========= Current liabilities Current maturities of other long-term liabilities (* 3,927 4,010 (* 3,752 Trade payable 403 587 292 Liability related to traded warrants (* 262 - (* 2,705 Other accounts payable and accruals 842 949 1,165 ----------- --------- --------- 5,434 5,546 7,914 ----------- --------- --------- Long-term Liabilities: Liability related to finance lease 123 113 126 Liability related to traded warrants (* 2,388 4,487 (* 3,853 Liability related to chief scientists grants 2,828 2,994 2,655 Deferred revenues (* 13,556 11,071 (* 14,193 Accrued severance pay, net 9 9 9 ----------- --------- --------- 18,904 18,674 20,836 ----------- --------- --------- Shareholders’ Equity Share capital 67 80 67 Premium on shares 34,841 46,951 34,815 Option Warrants 72 72 72 Other capital reserves 2,788 3,289 2,624 PUT Option (4,433) (4,433) (4,433) Accumulated deficit (23,725) (26,739) (28,358) ----------- --------- --------- Total equity capital 9,610 19,220 4,787 ----------- --------- --------- Total liabilities and shareholders’ equity 33,948 43,440 33,537 =========== ========= ========= *) Reclassified STATEMENTS OF COMPREHENSIVE INCOME Dollar in thousands (except per share data) For the Year For the period of For the period of ended on three months ended on nine months ended on --------- -------------------- -------------------- December September September September September 31 30 30 30 30 2008 2009 2008 2009 2008 Audited Unaudited Unaudited Unaudited Unaudited --------- --------- --------- --------- --------- Revenues 3,426 2,560 870 7,387 1,072 Cost of revenues 1,414 1,361 465 3,642 498 --------- --------- --------- --------- --------- Gross profit 2,012 1,199 405 3,745 574 --------- --------- --------- --------- --------- Operating expenses: Research and development, net 4,078 741 1,974 1,524 3,900 Business development expenses 922 178 400 493 801 General and administrative 1,160 393 344 981 857 --------- --------- --------- --------- --------- Profit (Loss) from ordinary operation (4,148) (113) (2,313) 747 (4,984) Other income - 54 - 54 - Financial income 449 759 391 1,260 290 Financial expenses (73) (21) - (41) (140) Financial income (expenses) due to Revaluation of Options (247) 1,314 (4,786) (4,952) (4,327) Financial income (expenses) due to Revaluation of Obligation to the OCS (675) 130 (434) (36) (280) Share of losses of an associate company (114) - - (46) - --------- --------- --------- --------- --------- Net Profit (loss) (4,808) 2,123 (7,142) (3,014) (9,441) Other Comprehensive income: Currency translation adjustment of financial statement 293 - (485) - 293 --------- --------- --------- --------- --------- Total Comprehensive loss (4,515) 2,123 (7,627) (3,014) (9,148) ========= ========= ========= ========= ========= Profit (loss) per share (in dollar) (0.22) 0.07 (0.35) (0.11) (0.44) ========= ========= ========= ========= =========