SOURCE: Evogene

Evogene

August 13, 2009 09:00 ET

Evogene Reports Second Quarter 2009 Financial Results

Increased Research Revenues Result in Profit From Operations for Quarter; $9 Million Received From Exercise of Options Issued in 2007 IPO

REHOVOT, ISRAEL--(Marketwire - August 13, 2009) - Evogene Ltd. (TASE: EVGN) announced today its financial results for the second quarter, ended June 30, 2009.

Ofer Haviv, Evogene's president and CEO, stated: "During the second quarter of 2009, our accelerating growth and development continued with new collaborations with world leading ag-biotech companies, important enhancements to our discovery methodologies and further broadening of the scope of our R&D activities. These achievements included the recently announced initiation of a collaboration with Syngenta Biotechnology, focusing on identifying plant genes for resistance to soybean nematode, one of the most devastating and yield limiting pests of soybean. This collaboration is the first where we will be focusing our gene discovery capabilities in the critical area of pest protection for major field crops."

Mr. Haviv continued: "In addition, we greatly appreciate the vote of confidence expressed by our investors through the recent exercise of 99.6% of the company's outstanding Series 1 options. These options were issued as part of the company's IPO in June 2007, and with the approximately $9 million received from this exercise, Evogene ended the quarter with cash and cash equivalents of $39 million."

Revenues for the first six months ended June 30, 2009 were $4.8 million, compared to $202 thousand for the same period in 2008. Revenues for the second quarter of 2009 were $2.4 million, compared to $88 thousand for the same period in 2008. Revenues for the first six months and second quarter of 2009 include revenues generated mainly under the collaboration with Monsanto.

Profit from ordinary operations for the first six months of 2009 was $860 thousand, compared to a loss from ordinary operations of $2.7 million in the same period in 2008. Profit from ordinary operations for the second quarter of 2009 was $236 thousand, compared to a loss from ordinary operations of $1.5 million in the same period in 2008.

Total comprehensive loss for the first six months ended June 30, 2009, was $5.1 million, or $0.2 per share, as a result of $6.3 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 $1.5 million, or $0.12 per share, in the same period in 2008, including non-cash financial revenues of $0.5 million due to the revaluation of options.

Total comprehensive loss for the second quarter of 2009 was $3.8 million, or $0.14 per share, as a result of $4.7 million of non-cash financial expenses due to revaluation of certain non-employee options, primarily options issued in the 2007 IPO. This is compared to a total comprehensive loss of $0.9 million, or $0.06 per share, including non-cash financial revenues of $0.3 million due to the revaluation of options.

As of June 30, 2009, Evogene had $39 million in cash, cash equivalents, cash deposits and short-term marketable securities compared to $29.4 million as of December 31, 2008.

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 ag-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             As of
 share data)                            December 31,     As of June 30,
                                        ------------  --------------------

                                            2008        2009       2008
                                          Audited     Unaudited  Unaudited
                                        ------------  ---------  ---------

Current assets
Cash and cash equivalents                     14,490     14,039      8,516
Short term bank deposits and marketable
 securities                                   14,883     24,974      2,088
Account receivables                            1,890        621          -
Other account receivables and prepaid
 expenses                                        322        453        486
                                        ------------  ---------  ---------
                                              31,585     40,087     11,090
                                        ------------  ---------  ---------

Non-current assets
Investment in associate company                  136          -          -
Long term deposits                                22         30         24
Property and equipment, net                    1,359      2,921        994
Finance derivative                               585         37        177
Intangible assets                                261        240        308
                                        ------------  ---------  ---------
                                               2,363      3,228      1,503
                                        ------------  ---------  ---------

Total Assets                                  33,948     43,315     12,593
                                        ============  =========  =========

Current liabilities
Current  maturities of Deferred
 Revenues and other long-term
 liabilities                            (*     3,927      3,954         23
Trade payable                                    403        628        357
Liability related to traded warrants    (*       262          -        518
Other accounts payable and accruals              842      1,087        868
                                        ------------  ---------  ---------
                                               5,434      5,669      1,766
                                        ------------  ---------  ---------


Long-term  Liabilities:
Liability related to finance lease               123        120        127
Liability related to traded warrants    (*     2,388      5,791      1,363
Liability related to chief scientists
 grants                                        2,828      3,086      1,592
Deferred revenues                       (*    13,556     11,939        718
Accrued severance pay, net                         9          9         12
                                        ------------  ---------  ---------
                                              18,904     20,945      3,812
                                        ------------  ---------  ---------

Shareholders' Equity
Share capital                                     67         79         47
Premium on shares                             34,841     46,850     20,797
Option Warrants                                   72         72          -
Other capital reserves                         2,788      2,995      2,093
PUT Option                                    (4,433)    (4,433)         -
Capital fund from translation of the
 financial reports                                 -          -      1,714
Accumulated deficit                          (23,725)   (28,862)   (17,636)
                                        ------------  ---------  ---------
Total equity capital                           9,610     16,701      7,015
                                        ------------  ---------  ---------

Total liabilities and shareholders'
 equity                                       33,948     43,315     12,593
                                        ============  =========  =========

*) Reclassified




STATEMENTS OF COMPREHENSIVE INCOME

Dollar in thousands (except per share data)

                      For the     For the period of    For the period of
                       Year         three months          six months
                     ended on         ended on             ended on
                     ---------  --------------------  --------------------
                     December   June 30,   June 30,   June 30,   June 30,
                     31, 2008     2009       2008       2009       2008
                      Audited   Unaudited  Unaudited  Unaudited  Unaudited
                     ---------  ---------  ---------  ---------  ---------

Revenues                 3,426      2,442         88      4,827        202

Cost of revenues         1,414      1,275          3      2,281         32
                     ---------  ---------  ---------  ---------  ---------

Gross profit             2,012      1,167         85      2,546        170
                     ---------  ---------  ---------  ---------  ---------

Operating expenses:
  Research and
   development, net      4,078        443      1,023        783      1,926
  Business
   development
   expenses                922        171        264        315        401
  General and
   administrative        1,160        317        265        588        513
                     ---------  ---------  ---------  ---------  ---------

Profit (Loss) from
 ordinary operation     (4,148)       236     (1,467)       860     (2,670)

Financial income           449        755         82        501        183

Financial expenses         (73)         -       (225)       (20)      (425)

Financial income
 (expenses) due to
 Revaluation of
 Options                  (247)    (4,736)       316     (6,266)       457
Financial income
 (expenses) due to
 Revaluation of
 Obligation to the
 OCS                      (675)        (4)       113       (166)       154
Share of losses of
 an associate
 company                  (114)       (12)         -        (46)         -
                     ---------  ---------  ---------  ---------  ---------

Net loss                (4,808)    (3,761)    (1,181)    (5,137)    (2,301)

Other Comprehensive
 income:
Currency translation
 adjustment of
 financial statement       293          -        328          -        779
                     ---------  ---------  ---------  ---------  ---------

Total Comprehensive
 loss                   (4,515)    (3,761)      (853)    (5,137)    (1,522)
                     =========  =========  =========  =========  =========

Loss per share
 (in dollar)             (0.22)     (0.14)     (0.06)     (0.20)     (0.12)
                     =========  =========  =========  =========  =========

Contact Information

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