SOURCE: Evogene

Evogene

May 17, 2011 09:00 ET

Evogene Reports First Quarter 2011 Financial Results

Highlights for Quarter Include Continued Progress in Collaborations, Substantial Increases in Current Revenues and Financial Strength and Infrastructure Expansion to Provide for Future Growth

REHOVOT, ISRAEL--(Marketwire - May 17, 2011) - Evogene Ltd. (TASE: EVGN) announced today its financial results for the first quarter ended March 31, 2011.

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)
                            ==============  ==============  ==============



Contact Information

  • Contact Information
    Evogene:
    Liat Cinamon
    PR & IR Executive
    E-mail: Email Contact
    Tel: +972-8-931-1933