REHOVOT, Israel, March 11, 2009 (GLOBE NEWSWIRE) -- Evogene Ltd. (TASE:EVGN) announced today its financial results for the fourth quarter and year ended December 31, 2008. These results include initial activities under the Monsanto Collaboration Agreement and the Monsanto Investment Agreement, both signed in August 2008.
Ofer Haviv, Evogene's president and CEO, stated: "We are very pleased with our continuing and accelerated progress during 2008, further strengthening our position as a leader in improved traits for a wide diversity of key commercial crops and improved feedstock for biofuels. We are proud of the company's commercial, technical and financial progress during the past year, all of which were achieved during a period of rapid corporate expansion and a challenging financial environment."
Evogene's key achievements for the year included:
* Initiation of a multi-year collaboration with Monsanto Company,
the world's leading seed company, to improve yield in corn,
soybeans, canola and cotton. Pursuant to this collaboration,
Evogene received a $5 million initial payment and expects to
receive annual research payments totaling approximately $30
million during the next five years plus milestone payments and
royalties based on seed sales incorporating Evogene discovered
genes.
* Investment agreement with Monsanto, pursuant to which Monsanto
purchased an $18 million equity stake in Evogene, and shall be
obligated, subject to certain Evogene diligence requirements
under the collaboration and at Evogene's request, to purchase in
the future an additional $12 million of Evogene equity.
* Successful field trial results for Evogene discovered genes in
corn. The field trials, conducted as part of Evogene's
collaboration with Biogemma SAS, demonstrated that corn
containing Evogene discovered genes displayed significant yield
increases under both normal and drought conditions.
* Continued progress under collaborations with other leading
international ag-biotech companies, including new agreements
signed during 2008 with Vilmorin and Viterra.
* Expansion, as planned, of our activities in the field of
biofuels.
* Substantial increases in our R&D capabilities and capacities,
including significant strengthening of Evogene's professional
staff and additions to our facilities and infrastructure to
support the Company's rapidly growing R&D programs and
collaboration activities. This includes construction of
state-of-the-art greenhouses, additional laboratory space and
offices, and computational equipment.
Mr. Haviv continued: "With respect to our financial status, during 2008 we substantially strengthened our balance sheet through the signing of the collaboration and investment agreements with Monsanto. We ended the year with $29 million in cash, plus more than an additional $30 million in expected future payments under existing agreements."
Revenues for the year ended December 31, 2008 were $3.4 million, compared to $251 thousand for the same period in 2007. Net loss for the year ended December 31, 2008 was $4.8 million, or $0.22 per share, compared to a net loss of $4.9 million, or $0.29 per share, for the same period in 2007.
Revenues for the fourth quarter of 2008 were $2.4 million, compared to $67 thousand for the same period in 2007. Net profit for the fourth quarter of 2008 was $4.6 million, including financial income of $3.9 million (including $3.6 million financial income due to revaluation of index linked publicly traded Options according to the IFRS) and a profit of $800 thousand from ordinary operations. This is compared to a net loss of $1.3 million, including financial expenses of $76 thousand (including $295 thousand financial expenses due to revaluation of Options) and a loss of $1.2 million from ordinary operations, for the corresponding quarter of 2007.
Revenues for the year ended December 31, 2008 and the fourth quarter of 2008 include revenues generated under the collaboration with Monsanto.
As of December 31, 2008, Evogene had $29 million in cash, cash equivalents, cash deposits and short-term marketable securities.
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 agro-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)
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As of December 31,
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2008 2007
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ASSETS
Current assets
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Cash and cash equivalents 14,490 8,668
Short term bank deposits and marketable
securities 14,883 572
Trade receivables 1,890 --
Other account receivables and prepaid expenses 322 354
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Total current assets 31,585 9,594
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Non-current assets
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Investment in associate company 136 --
Long term deposits 22 21
Property and equipment, net 1,359 742
Finance derivative 585 --
Intangible assets 261 312
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2,363 1,075
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Total Assets 33,948 10,669
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Current liabilities
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Current maturities of other long-term liabilities 2,037 25
Trade payable 403 152
Other accounts payable and accruals 842 634
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3,282 811
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Long-term Liabilities
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Liability related to finance lease 123 126
Liability related to traded warrants 2,650 2,286
Liability related to government grants 2,828 1,132
Deferred revenues 15,446 595
Accrued severance pay, net 9 11
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21,056 4,150
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Total shareholders' equity 9,610 5,708
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Total liabilities and shareholders' equity 33,948 10,669
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STATEMENTS OF OPERATIONS (Dollar in thousands)
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Three Months Year ended
Ended December 31, December 31,
2008 2007 2008 2007
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Unaudited Unaudited Audited Audited
Revenues 2,357 67 3,426 251
Cost of revenues 917 3 1,414 54
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Gross profit 1,440 64 2,012 197
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Operating expenses
Research and development
expenses 204 894 4,078 2,789
Business development
expenses 125 108 922 478
General and administrative
expenses 311 284 1,160 839
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Profit (Loss) from ordinary
operation 800 (1,222) (4,148) (3,909)
Financing (income) expenses (226) 13 (376) (44)
Financing (income) expenses
due to Revaluation of
Options and Obligation to
the OCS (3,688) 63 922 1,005
Share of losses of an
associate company (114) -- (114) --
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Profit (Loss) 4,600 (1,298) (4,808) (4,870)
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