Evogene Reports First Quarter 2015 Financial Results19/05/2015
Rehovot, Israel – May 19, 2015 – Evogene Ltd. (NYSE; TASE: EVGN), a leading company for the improvement of crop productivity and economics for the food, feed and biofuel industries, announced today its financial results for the quarter ended March 31, 2015.
Ofer Haviv, Evogene's President and CEO, stated: "This past quarter, we were very pleased with our continuing progress in each of our four market oriented divisions. We saw advances in development across our individual product programs and increased recognition by the industry of our broad discovery capabilities, as demonstrated by our recent announcements regarding the incorporation of our gene optimization program into our collaboration with Monsanto following the entry of over 1,000 Evogene candidate genes into their product development pipeline, and the signing of our first collaboration with a leading multinational food company."
Mr. Haviv continued, “Looking at the worldwide agriculture market, demand for key crops continues to increase steadily to new record levels. For example, corn consumption during the past five years increased by 25%, and is expected to reach record levels this year. In view of the combination of continuing world-wide population growth and changing food habits, these increases in demand are certain to continue. Furthermore, due to on-going changes such as increasing resistance of insects and weeds to current pesticides and herbicides, along with negative trends in arable land and environmental pressures, it is reasonable to project that without significant technological advances, just sustaining today's levels of production will be a major challenge, let alone meeting the continuing increases in demand.”
Mr. Haviv concluded, “We are confident that Evogene is uniquely qualified to address this critical need for technological advances in agriculture. For the past 10 years we have been establishing and enhancing a broadly applicable discovery platform that combines deeper understandings of plant biology with industry leading computational based 'big data' integration, analysis and prediction technologies. And this unique capability, now being applied by us to address the key needs in four major market segments, is being recognized by an increasing number of collaborations with leading seed and other ag-bio based companies world-wide."
Financial results for the quarter ended March 31, 2015:
Cash Position: As of March 31, 2015, Evogene had $113.2 million in cash, short term bank deposits and marketable securities, representing a net cash usage for the quarter of $3.1 million. Assuming regular course of business and no new revenue sources, such as additional collaborations, the Company estimates that its net cash usage for full year 2015 will be in the range of $16 to $18 million.
Research Revenues include mainly periodic payments for research and development activities provided under certain of the Company's collaboration agreements with seed companies. Revenues from research and development payments for the first quarter of 2015 were $2.7 million, compared to $3.8 million for the first quarter of 2014. The decline was primarily related to the previously announced amendment to the Company’s Bayer collaboration work plan.
Evogene anticipates that longer term, its primary sources of revenues will be future royalties and other revenue sharing amounts, as well as castor seed sales by its wholly owned subsidiary Evofuel. In that regard, research revenues, which reflect R&D related cost reimbursement under certain of Evogene's collaboration agreements, were in the past a meaningful contributor to cash flow. Looking to the future, Evogene intends to consider, on a case by case basis, self-financing or jointly financing with potential partners, certain additional activities under future collaborations, particularly with respect to the Company's newer growth areas. Although possibly resulting in less short term R&D revenues than would otherwise be the case, the Company’s goal in negotiating the terms for future collaborations will be to maximize long term revenues, consistent with maintaining its financial strength.
Cost of Revenues largely includes research and development expenses related to the support of the Company’s on-going activities under collaboration agreements with seed companies, most of which provide for future milestone and royalty revenues. Cost of revenues for the first quarter of 2015 was $1.8 million, compared to $2.6 million, for the same period in 2014.
Research and Development Expenses for the first quarter of 2015 were $3.5 million, compared to $2.7 million for the same period in 2014. The increase in these expenses largely relates to expansion of self-funded activities, primarily focused on the development of new computational genomics and validation technologies in support of both existing and new activities, mainly in our key growth engines – insect resistance, ag-chemicals and Evofuel. As stated above, research and development expenses do not include such expenses incurred in support of on-going collaborations, which are accounted for as Cost of Revenues.
Operating Loss for the first quarter of 2015 was $4.1 million, compared to an operating loss of $2.6 million for the same period in 2014. This increase is mainly attributable to the decrease in revenues from research and development payments, as well as the increase in self-funded research and development expenses, and certain other operating expenses.
Conference call and webcast details:
Evogene management will host a conference call today at 09:00 am Eastern time, 16:00 Israel time to discuss the results. US-based participants are invited to access the call by dialing 1-888-668-9141, and participants from Israel and other countries are invited to access the call at 972-3-918-0609. A replay of the conference call will be available beginning at approximately 13:00 Eastern time, 20:00 Israel time today, and will be accessible through May 21, 2015. US-based participants are invited to access the replay by dialing 1-888-782-4291, and participants from Israel and other countries are invited to access the replay at 972-3-925-5901. A replay of the call may also be accessed as a webcast via Evogene’s website at www.evogene.com and will be available for a period of ten days.
About Evogene Ltd.:
Evogene (NYSE, TASE: EVGN) is a leading company for the improvement of crop productivity and economics for the food, feed and biofuel industries. 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 and nematodes), in key crops as corn, soybean, wheat and rice, and is also focused on the research and development of new products for crop protection (such as weed control). In addition, the Company has a wholly-owned subsidiary, Evofuel, developing seeds for second generation feedstock for biodiesel. For more information, please visit www.evogene.com and www.evo-fuel.com.
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 appropriate 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.
Press releases for 2015
- Evogene Appoints Eyal Leibovitz as Chief Financial Officer
- BASF and Evogene Sign Collaboration Agreement for Novel Herbicide Discovery and Development
- Evogene Officially Opens Research and Development Facility in St. Louis, Missouri
- Evogene Reports Third Quarter 2015 Financial Results
- Evogene’s Third Quarter 2015 Earnings Announcement Schedule
- Evogene to Present at Credit Suisse Annual Basic Materials Conference
- Evogene to Establish Validation Capabilities for Soybean Cyst Nematodes
- Evogene to Present at Jefferies 2015 Industrials Conference
- Evogene Reports Second Quarter 2015 Financial Results
- Evogene Announces Successful Completion of First Computational Discovery of Novel Microbial Genes for Insect Control
- Evogene to Participate at Piper Jaffray Technology Enabled Industrials Symposium
- Evogene Announces Discovery and Validation of Novel Plant Targets for Herbicides
- Evogene’s Second Quarter 2015 Earnings Announcement Schedule
- Evogene to Present at LD Micro Invitational
- Evogene Reports First Quarter 2015 Financial Results
- Evogene Files Annual Report for the Year Ended December 31, 2014
- Evogene’s First Quarter 2015 Earnings Announcement Schedule
- Evogene CEO Ofer Haviv and Marrone Bio Innovations CEO Pam Marrone to Participate in 'Profiling Tomorrow's Ag Solutions' Panel Discussion at AgriVest 2015
- Evogene Discloses First Collaboration with Leading Multinational Food Company for Improving Crop Productivity
- Evogene Reports Fourth Quarter and Full Year 2014 Financial Results
- Evogene Introduces Biology Driven Ag-Chemical Discovery Platform
- Evofuel Expands Castor Activity in Brazil with Insolo
- Evogene to Establish Research and Development Facility in the United States
- Evogene’s Fourth Quarter and Full Year 2014 Earnings Announcement Schedule
- Evogene New Gene Optimization Program Being Incorporated into Yield & Environmental Stress Collaboration with Monsanto
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