REHOVOT, ISRAEL--(Marketwire - November 18, 2010) -
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Evogene |
Ofer Haviv, Evogene's president and CEO, stated: "During the past quarter, we continued to progress as planned under our current collaborations with world leading seed companies. In addition, in order to support these collaborations as well as prepare for anticipated future collaborations, significant efforts and investments were made in both improving and broadening our ATHLETE 3.0, RePack and EvoBreed genomic technologies, including their application to wheat as an additional target crop. Guiding these efforts is our focus on creating a complete and comprehensive solution for improving plant genetics, through the synergistic combination of 'state of the art' biotechnology and advanced breeding approaches."
Revenues for the first nine months of 2010 were $7.9 million, compared to $7.4 million for the same period in 2009. Revenues for both the third quarter of 2010 and of 2009 were $2.6 million. Revenues for all such periods consist substantially of research revenues generated under the company's various collaboration agreements with seed companies.
Research & Development expenses for the first nine months of 2010 were $3.7 million, including non-cash financial expenses of $0.7 million for amortization of deferred compensation. This compares with $1.5 million for the same period in 2009, including such non-cash financial expenses of $0.2 million. Research & Development expenses for the third quarter of 2010 were $1.5 million, including non-cash financial expenses of $0.4 million for amortization of deferred compensation. This compares with $0.7 million for the same period in 2009, including such non-cash financial expenses of $0.1 million. These increases in Research & Development expenses relate to the development of new genomic technologies, the establishment of genomic and breeding infrastructure for wheat, increased efforts related to additional traits and to support our biofuel program. Research & Development expenses do not include expenses incurred in support of on-going collaborations, which are accounted for as Cost of Revenues.
Loss from ordinary operations for the first nine months of 2010 was $2.1 million, including non-cash financial expenses of $1.7 million for amortization of deferred compensation. This compares to a profit from ordinary operations of $0.7 million for the same period in 2009, including such non-cash financial expenses of $0.6 million. Loss from ordinary operations for the third quarter of 2010 was $1.2 million, including non-cash financial expenses of $0.9 million for amortization of deferred compensation. This compares to a loss from ordinary operations of $0.1 million for the same period in 2009, including such non-cash financial expenses of $0.3 million. The increase in loss from ordinary operations for both the first nine months and third quarter periods of 2010 compared to 2009 is primarily due to the previously mentioned increases in Research & Development expenses and non-cash financial expenses.
Financial expenses due to publicly traded warrants: Evogene has approximately 4.5 million publicly traded warrants outstanding which were issued in 2007 as part of its IPO on the Tel Aviv Stock Exchange. Such warrants will expire if not previously exercised on May 31, 2011. Although not impacting the actual financial status of the Company or its cash balances, as long as these warrants are outstanding, any change as of the end of a reporting period in the market price of the Company's ordinary shares will result 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.
Comprehensive loss for the first nine months of 2010 was $4.0 million, which includes $2.2 million of non-cash financial expenses due to publicly traded warrants, as described above, compared to a total comprehensive loss of $3.0 million, including $5.0 million of such non-cash financial expenses for the same period in 2009. Total comprehensive loss for the third quarter of 2010 was $3.6 million, which includes $3.1 million of such non-cash financial expenses, compared to a comprehensive profit of $2.1 million, which includes $1.3 million of such non-cash financial revenues for the same period in 2009.
As of September 30, 2010, Evogene had $35.9 million in cash, cash equivalents, cash deposits and short-term marketable securities, compared to $38.2 million as of December 31, 2009.
About Evogene
Evogene is a world leading developer of improved plant traits for the agriculture and biofuel industries through the use of plant genomics. The company's technology platform is based on a unique computational core technology for gene discovery, the ATHLETE 3.0, and high throughput systems for gene validation. Evogene's development programs focus on the improvement of high-commercial value plant traits, such as yield, biotic and a-biotic stresses tolerance and the improvement of plants specifically for biofuel uses. Evogene is collaborating with world leading seed companies in order 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 September 30
-------------- ------------------------------
2009 2010 2009
Audited Unaudited Unaudited
-------------- -------------- --------------
Current assets
Cash and cash equivalents 26,215 10,654 13,727
Short term bank deposits
and marketable securities 12,024 25,218 25,290
Account receivables 558 563 549
Other account receivables
and prepaid expenses 345 304 317
-------------- -------------- --------------
39,142 36,739 39,883
-------------- -------------- --------------
Non-current assets
Prepaid expenses 25 33 28
Property and equipment 3,440 3,709 3,254
Finance derivative 57 - 47
Intangible assets 217 183 228
-------------- -------------- --------------
3,739 3,925 3,557
-------------- -------------- --------------
Total Assets 42,881 40,664 43,440
============== ============== ==============
Current liabilities
Current maturities of
other long-term
liabilities 4,082 4,138 4,010
Trade payable 675 645 587
Liability related to traded
warrants - 6,478 -
Other accounts payable and
accruals 999 1,354 949
-------------- -------------- --------------
5,756 12,615 5,546
-------------- -------------- --------------
Long-term Liabilities
Liability related to
finance lease 117 - 113
Liability related to traded
warrants 4,349 - 4,487
Liability related to chief
scientists grants 3,293 3,408 2,994
Deferred revenues 10,018 7,154 11,071
Accrued severance pay, net 9 9 9
-------------- -------------- --------------
17,786 10,571 18,674
-------------- -------------- --------------
Shareholders' Equity
Share capital 80 81 80
Premium on shares 47,058 47,656 46,951
Option Warrants 72 72 72
Other capital reserves 3,696 5,219 3,289
PUT Option (4,433) (4,433) (4,433)
Accumulated deficit (27,134) (31,117) (26,739)
-------------- -------------- --------------
19,339 17,478 19,220
-------------- -------------- --------------
Total liabilities and
shareholders' equity 42,881 40,664 43,440
============== ============== ==============
STATEMENTS OF COMPREHENSIVE INCOME
Dollar in thousands (except per share data)
For the For the period of
Year For the period of three months
ended on nine months ended on ended on
--------- -------------------- --------------------
December September September September September
31 2009 30 2010 30 2009 30 2010 30 2009
Audited Unaudited Unaudited Unaudited Unaudited
--------- --------- --------- --------- ---------
Revenues 9,993 7,905 7,387 2,589 2,560
Cost of revenues 4,962 4,213 3,642 1,486 1,361
--------- --------- --------- --------- ---------
Gross profit 5,031 3,692 3,745 1,103 1,199
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development, net 2,569 3,691 1,524 1,499 741
Business
development
expenses 739 715 493 274 178
General and
administrative 1,457 1,375 981 506 393
--------- --------- --------- --------- ---------
Profit (Loss) from
ordinary operation 266 (2,089) 747 (1,176) (113)
Other (expenses)
income 54 (54) 54 - 54
Financial income 1,402 614 1,260 789 759
Financial expenses (54) (7) (41) (3) (21)
Financial income
(expenses) due to
revaluation of
warrants (4,814) (2,222) (4,952) (3,126) 1,314
Financial income
(expenses) due to
revaluation of
Obligation to the
OCS (217) (225) (36) (109) 130
Share of losses of
an associate
company (46) - (46) - -
--------- --------- --------- --------- ---------
Net Profit (loss) (3,409) (3,983) (3,014) (3,625) 2,123
========= ========= ========= ========= =========
Total Comprehensive
income (loss) (3,409) (3,983) (3,014) (3,625) 2,123
========= ========= ========= ========= =========
Basic profit (loss)
per share (in dollar) (0.13) (0.14) (0.11) (0.12) 0.07
========= ========= ========= ========= =========
