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Evogene's Q2 Revenues Drop 9 Percent

NEW YORK (GenomeWeb) – Israel-based plant genetics firm Evogene today reported that its second quarter revenues declined 9 percent year over year, due to a sharp drop in revenues related to share purchases.

The firm posted total revenues of $3.9 million for the three months ended June 30, down from $4.3 million. Its revenue from research and development payments was $3.8 million, up from $3.5 million for Q2 2013, while its share purchase-related revenue was $83,000 versus $810,000. It noted that the share purchase-related revenue were the result of a required accounting treatment for past acquisitions of Evogene ordinary shares by Monsanto and Bayer.

Evogene's net loss climbed to $3.2 million, or $.13 per share, from $1.9 million, or $.10 per share.

The firm's R&D spending jumped 36 percent to $3.4 million from $2.5 million, while its business development costs rose to $562,000 from $305,000, and its general and administrative expenses nearly doubled to $1.2 million from $642,000.

As of June 30, Evogene had cash and cash equivalents of $8.7 million, marketable securities of $78.5 million, and short-term bank deposits totaling $24 million.

The company said that it anticipates its cash burn for the remainder of 2014 will be in the range of $15 million to $18 million.