SOURCE: Evogene

Evogene

August 10, 2011 10:02 ET

Evogene Reports Second Quarter 2011 Financial Results

Highlights for Quarter Include Development of New Gene2Product Technology and Infrastructure Expansion; As of End of Quarter, Evogene Had Over $60 Million in Cash, Including Approximately $16 Million Received From Exercise of Public Warrants and $12 Million Investment by Bayer CropScience

REHOVOT, ISRAEL--(Marketwire - Aug 10, 2011) - Evogene Ltd. (TASE: EVGN) announced today its financial results for the second quarter ended June 30th, 2011.

Ofer Haviv, Evogene's president and CEO, stated: "2011 has been a year of both execution and expansion. With respect to execution, we are continuing to successfully provide our partners with genomic discoveries under our various collaborations, including agreements with most of the world's leading seed companies. With respect to expansion, we are substantially enhancing and expanding our infrastructure for the future, in terms of capabilities, people and physical facilities. Furthermore, we are very pleased with Evogene's current financial stability: as of June 30, 2011, we had over $60 million in cash, representing an increase of more than $25 million during the first half of 2011, including amounts received from the exercise of public warrants and the Bayer CropScience investment."

Mr. Haviv continued, "An important key component of our expansion is our new Gene2Product technology that focuses the power of our proven industry leading computational genomic capabilities on optimizing trait efficacy and the product development process of novel genes in our partners' pipelines. The first component of the Gene2Product technology, RePack, has been commercially launched, with additional components under development and planned for introduction during the coming months. We are very excited about the potential that this powerful new capability has to substantially improve the probability of success, in terms of both quality of performance and quantity, of biotechnology seed products resulting from industry-wide development efforts."

Revenues for the first six months ended June 30, 2011 were $6.8 million representing an increase of approximately 28% compared to $5.3 million for the same period in 2010. Revenues for the second quarter of 2011 were $3.4 million, representing an increase of approximately 30% compared to $2.6 million reported for the same period in 2010. Revenues for the first half and the second quarter of 2011 consist of research and licensing revenues generated under the company's various collaboration agreements with seed companies.

Research & Development expenses for the first six months ended June 30, 2011 were $2.7, compared to $2.2 million for the same period in 2010. Research & Development expenses for the second quarter of 2011 were $1.5 million, compared to $1.3 million reported for the same period in 2010. These increases mainly relate to the development of the Gene2Product computational genomic technologies and increased efforts focused on additional traits, mainly biotic tolerance traits.

Loss from ordinary operations for the first six months of 2011 was $1 million, compared to loss from ordinary operations of $0.9 million in the same period in 2010. Loss from ordinary operations for the second quarter of 2011 was $0.6 million, compared to loss from ordinary operations of $0.7 million in the same period in 2010.

Financial expenses due to publicly traded warrants: Evogene had approximately 4.5 million publicly traded warrants outstanding, which were issued as part of its IPO on the Tel Aviv Stock Exchange in May 2007, 99.9% of which were exercised by May 31, 2011 (the warrant expiry date). While these warrants were outstanding, 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 their revaluation on our statements of comprehensive profit or loss. This will not be applicable for future quarterly results.

Comprehensive profit for the first six months ended June 30, 2011, was $3.9 million, which includes $3.7 million of non-cash financial revenues due to previously outstanding publicly traded warrants, as described above, compared to a total comprehensive loss of $0.4 million, including $0.9 million of non-cash financial revenues for the same period in 2010. Comprehensive profit for the second quarter of 2011 was $2.8 million, which includes $2.7 million of non-cash financial revenues, compared to a comprehensive profit of $3.4 million, including $4.5 million of such non-cash financial revenues for the same period in 2010.

As of June 30, 2011, Evogene had $61.0 million in cash, cash equivalents, cash deposits and short-term marketable securities, compared to $35.8 million as of December 31, 2010. The June 30, 2011 amount includes $16.6 million from the exercise of the publicly traded warrants (including $13 million received in the second quarter of 2011) and $12 million from an equity investment in the Company by Bayer CropScience pursuant to a wheat collaboration agreement signed in December 2010.

About Gene2Product
The Gene2Product technology consists of a number of computational genomic components, under development by Evogene, to improve the probability of successful development of biotechnology seed products. Utilization of Gene2Product is complimentary and additive to use of ATHLETE for gene discovery. The aim of Gene2Product is to improve trait efficacy through optimizing gene 'mode of use' in the pipelines of seed companies utilizing computational genomics and includes the following components: RePack to improve trait efficacy by optimization of gene regulation; PlaNet to improve trait efficacy by multiple gene stacking; GeneDex to improve trait efficacy through genes stable to different environments and genetic backgrounds; and GeneSpec to improve trait efficacy by selecting the preferred allele for each gene.

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 focuses on utilizing its proprietary computational genomic technologies to provide a complete solution for plant trait improvement through combining state of the art biotechnology and advanced breeding methods. These technologies include ATHLETE 3.0 for gene discovery; Gene2Product for improving trait efficacy and probability of successful development of biotechnology seed products; and EvoBreed for breeding enhancement. Evogene's plant genomics capabilities combine high throughput plant validation systems, field experiments and proprietary genomic data creation. Evogene is collaborating with world leading seed companies to introduce its improved plant traits into key commercial crops under milestone and royalty bearing agreements. 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 June 30
2010 2011 2010
Audited Unaudited Unaudited
Current assets
Cash and cash equivalents 10,120 21,710 9,368
Short term bank deposits and marketable securities 25,729 39,262 26,238
Account receivables 2,142 2,809 689
Other account receivables 553 591 376
38,544 64,372 36,671
Non-current assets
Prepaid expenses 37 46 27
Property and equipment 4,120 5,860 3,671
Finance derivative - - 20
Intangible assets 171 156 194
4,328 6,062 3,912
Total Assets 42,872 70,434 40,583
Current liabilities
Trade payable 1,054 1,028 601
Liability related to chief scientists grants 400 487 343
Deferred revenues 3,718 4300 3,864
Liability related to traded warrants 9,199 - 3,445
Other accounts payable and accruals 1,949 1,559 1,119
16,320 7,374 9,372
Long-term Liabilities
Liability related to chief scientists grants 3,499 3,398 3,251
Deferred revenues 6,313 6,798 8,024
Accrued severance pay, net 9 9 9
9,821 10,205 11,284
Shareholders' Equity
Share capital 82 100 81
Premium on shares 49,248 80,411 47,413
Other capital reserves 5,938 6,991 4,358
PUT Option (4,433 ) (4,433 ) (4,433 )
Accumulated deficit (34,104 ) (30,214 ) (27,492 )
Total liabilities and shareholders' equity 16,731 52,855 19,927
42,872 70,434 40,583
STATEMENTS OF COMPREHENSIVE INCOME
Dollar in thousands (except per share data)


For the Year ended on
For the period of three months ended on
For the period of six months ended on
December 31 2010
Audited
June 30 2011
Unaudited
June 30 2010
Unaudited
June 30 2011
Unaudited
June 30 2010
Unaudited
Revenues 12,563 3,429 2,631 6,816 5,316
Cost of revenues 5,811 1,846 1,417 3,556 2,727
Gross profit 6,752 1,583 1,214 3,260 2,589
Operating expenses:
Research and development, net 5,544 1,464 1,253 2,690 2,192
Business development expenses 1,062 215 241 487 441
General and administrative 2,069 545 452 1,123 869
Loss from ordinary operation (1,923 ) (641 ) (732 ) (1,040 ) (913 )
Other expenses (54 ) - - - (54 )
Financial income 724 738 20 1,333 189
Financial expenses (10 ) (9 ) (353 ) (51 ) (368 )
Financial income (expenses) due to revaluation of Options (5,393 ) 2,691 4,478 3,729 904
Financial expenses due to revaluation of Obligation to the OCS (314 ) (6 ) (22 ) (81 ) (116 )

Net Profit (loss)
(6,970 ) 2,773 3,391 3,890 (358 )
Total Comprehensive income (loss) (6,970 ) 2,773 3,391 3,890 (358 )
Basic profit (loss) per share (in dollar) (0.24 ) 0.089 0.12 0.125 (0.012 )
Diluted profit (loss) per share (in dollar) (0.24 ) 0.083 0.12 0.116 (0.012 )

Contact Information

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