SOURCE: Evogene


May 13, 2013 09:00 ET

Evogene Reports First Quarter 2013 Financial Results

REHOVOT, ISRAEL--(Marketwired - May 13, 2013) - Evogene Ltd. (TASE: EVGN), a leader in plant genomics underlying crop productivity for the food, feed and biofuel industries, today announced its financial results for the first quarter ended March 31, 2013.

Ofer Haviv, Evogene's president and CEO, stated: "The necessity of raising crop productivity in order to meet the rapidly growing need for food, feed and renewable fuel is a key driver in agriculture worldwide. As such, the ability to enhance seed traits, and therefore crop productivity, through an understanding and utilization of plant genomics is expected to be a crucial factor in meeting these critical demands. This is our area of focus, and we believe we have now established Evogene as a recognized leader in this field."

"Our long-term, highly focused research and development efforts have established a powerful integrated technology infrastructure based on proprietary scientific understandings of plant genomics. An important aspect of this technology infrastructure is our broad array of computational technologies, capable of integrating and analyzing the vast amounts of genomic data now becoming available through more and more advanced data creation methodologies. These vast new sources and types of biological data provide substantial opportunities for identifying methods for trait improvement. However, they also provide a major challenge, since gaining meaningful knowledge from them requires sophisticated analysis tools, such as the computational technologies that we have established, and believe are unique in the industry. In addition, our infrastructure incorporates strong capabilities for data generation and plant validation systems, allowing us to identify, prioritize and initially validate for trait performance over 1,000 genes per year," added Mr. Haviv.

"During the first quarter of 2013, we continued to make progress under our multiple collaborations with leading seed companies worldwide. In addition, Evogene continued to expand its research and development capabilities, strengthening its genomic innovation with the launch of Gene2Product™, a proprietary computational platform designed to improve plant trait efficacy and probability of success of novel seed products, and the introduction of a new monocot plant validation system, the Brachypodium."

"We are confident that our broadly applicable technology infrastructure provides us with the foundation for continued growth and development. We anticipate that this growth will come from both current and new collaboration partners, and from the leveraging of our core industry leading competences into new areas of advanced agriculture, such as ag-chemicals and second generation feedstock for biodiesel," concluded Mr Haviv. 

Revenues for the first quarter of 2013 grew to $4.6 million, compared to $4.2 million for the same period in 2012. Evogene's current revenues consist primarily of research and licensing revenues generated under the Company's various collaboration agreements with seed companies.

Cost of Revenues includes expenses related to the support of the Company's on-going activities under collaboration agreements with seed companies, all of which provide for future milestone and royalty revenues. Cost of Revenues for the first quarter of 2013 was $2.2 million, compared to $2.1 million for the same period in 2012.

Research & Development expenses for the first quarter of 2013, which do not include expenses incurred in support of on-going collaborations which, as stated above, are accounted for as Cost of Revenues, were $2.2 million. This compared to $1.5 million for the same period in 2012. The increase in Research & Development expenses mainly relates to the development of new computational technologies, establishing new capabilities for our technology platform and expansion of internal research projects and related headcount. 

Loss from ordinary operations for the first quarter of 2013 was $0.6 million, compared to a loss from ordinary operations of $0.1 million for the same period in 2012. This increase is mainly attributed to the increase in research & development expenses, as described above.

Total Comprehensive loss for the first quarter of 2013 was $0.5 million, compared to a total comprehensive profit of $0.5 million for the same period in 2012. The change from comprehensive profit to comprehensive loss is mainly due to the increase in loss from ordinary operations, as described above, and a decrease in financial income, net, mainly due to fluctuation in currency exchange rates and decline in interest rates.

As of March 31, 2013, Evogene had $52.5 million in cash, cash equivalents and short-term marketable securities, compared to $55.1 million as of December 31, 2012.

About Evogene
Evogene is a world leading 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 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 is listed for trading on the Tel Aviv Stock Exchange (TASE: EVGN). For additional information, please visit Evogene.

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 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.           

  March 31,     December 31,  
  2013     2012      2012
  Unaudited     Audited  
  Thousands of US Dollars  
Current Assets                
Cash and cash equivalents 19,369     11,501     24,262  
Marketable securities 33,168     33,998     30,868  
Short term deposits -     11,300     -  
Receivables 1,957     1,585     1,542  
Other account receivables 920     496     650  
  55,414     58,880     57,322  
Non-Current Assets                
Long term deposits 43     47     43  
Property and equipment, net 7,279     7,468     7,401  
Long term investments 365     -     -  
Intangible assets 78     123     89  
  7,765     7,638     7,533  
Total Assets 63,179     66,518     64,855  
Current Liabilities                
Trade Payable 1,266     975     1,416  
Other accounts payable and accruals 2,224     1,806     3,139  
Liabilities in respect of grants from the Chief Scientist 518     483     733  
Deferred revenues 4,185     4,195     4,211  
  8,193     7,459     9,499  
Long-term Liabilities                
Liabilities in respect of grants from the Chief Scientist 3,005     2,910     2,918  
Deferred revenues 3,433     7,141     4,168  
Accrued severance pay, net 11     9     11  
  6,449     10,060     7,097  
Shareholders' Equity    
Share capital 102     100     102  
Premium on shares 84,316     81,587     83,688  
PUT Option (7,764 )   (7,764 )   (7,764 )
Reserve - transaction with a former 1,156     1,156     1,156  
controlling shareholder                
Reserve - share based payment transactions 7,189     6,923     7,058  
Accumulated deficit (36,462 )   (33,003 )   (35,981 )
  48,537     48,999     48,259  
  63,179     66,518     64,855  
    3 Months ended March 31,     Year ended  
              December 31,  
    2013   2012     2012  
    Unaudited     Audited  
    Thousands of US Dollars
(Except per share data)
Revenues   4,616   4,200     17,072  
Cost of revenues   2,230   2,079     9,552  
Gross Profit   2,386   2,121     7,520  
Research and development   2,186   1,457     7,252  
Business and development   227   249     1,159  
General and administrative   575   536     2,268  
    2,988   2,242     10,679  
Loss from ordinary operations   (602 ) (121 )   (3,159 )
  Financial incomes   459   569     972  
  Financial expenses   (313 ) (2 )   (89 )
  Financial expenses due to Revaluation of Obligation to the OCS, net   (45 ) 10     (205 )
Other Income   20   -     33  
Profit (loss) before tax   (481 ) 456     (2,448 )
Tax on Incomes   -   -     74  
Net Profit (loss)   (481 ) 456     (2,522 )
Basic and Diluted profit (loss) and Total per share (in dollar)   (0.0128 ) 0.012     0.07  

Contact Information

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