Evogene sales up 3% in 2013

Evogene revenues for 2013 were approximately $17.6 million, compared to revenues of $17.1 million for 2012. Revenues for the fourth quarter of 2013 were $4.4 million, compared with $4.8 million for the same period in 2012. At present, revenues consist primarily of research and development payments generated under the company's various Yield and A-biotic related collaboration agreements with seed companies.

Cost of revenues primarily consists of research and development costs incurred in support of our ongoing collaborations. Cost of revenues for 2013 was $10.1 million, compared with $9.6 million in 2012. Cost of revenues for the fourth quarter of 2013 was $2.8 million, compared with $2.6 million for the same period in 2012. This increase in cost of revenues reflects growth in the activities and associate expenses within work programs supporting the collaborations.

Research and development expenses for 2013 were $11.1 million, representing an increase of approximately 53% compared with $7.3 million in 2012. Research and development expenses for the fourth quarter of 2013 were $3.5 million, compared with $2.1 million for the same period in 2012. These expenses largely relate to self-funded activities primarily focused on the development of new computational genomics and validation technologies in support of both existing and new activities, such as the areas of Biotic Stress and Ag-chemicals. 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.

General and administrative expenses for 2013 were $3.6 million (including a non-cash expense of $936 thousand for amortization of share-based compensation), compared with $2.2 million in 2012 (including a non-cash expense of $248 thousand for amortization of share-based compensation). General and administrative expenses for the fourth quarter of 2013 were $1.5 million (including a non-cash expense of $433 thousand for amortization of share-based compensation), compared with $0.7 million for the same period in 2012 (including a non-cash expense of $59 thousand for amortization of share-based compensation). These increases primarily relate to non-cash share based compensation as stipulated above, as well as one-time costs associated with the recently completed equity offering in the US and listing on the New York Stock Exchange and the general growth in the Company’s activities.

Operating loss for 2013 was $8.7 million (including a non-cash expense of $2.7 million for amortization of share-based compensation), compared to an operating loss of $3.1 million in 2012 (including a non-cash expense of $1.1 million for amortization of share-based compensation). Operating loss for the fourth quarter of 2013 was $4.0 million (including a non-cash expense of $1.2 million for amortization of share-based compensation), compared to an operating loss of $0.9 million for the same period in 2012 (including a non-cash expense of $247 thousand for amortization of share-based compensation). The increase for 2013 compared to 2012 primarily relates to growth in research and development expenses and general and administrative expenses, each as described above and an increase in non-cash share based compensation.

Total comprehensive loss for 2013 was $8.9 million (including a non-cash expense of $2.7 million for amortization of share-based compensation), compared to a total comprehensive loss of $2.5 million in 2012 (including a non-cash expense of $1.1 million for amortization of share-based compensation). Total comprehensive loss for the fourth quarter of 2013 was $4.2 million (including a non-cash expense of $1.2 million for amortization of share-based compensation), compared to a total comprehensive loss of $0.8 million for the same period in 2012 (including a non-cash expense of $247 thousand for amortization of share-based compensation).

Cash position: As of December 31, 2013, Evogene had approximately $127 million in cash, cash equivalents and marketable securities, compared to approximately $55 million as of December 31, 2012, largely reflecting the net proceeds of approximately $77 million from the recently completed equity offering in the US.

Key achievements to date:
•    Launch of PlaNet version 2.0 with enhanced gene stacking capabilities
•    Launch of PoinTar target discovery platform for novel herbicides
•    Extension and expansion of Collaboration with Monsanto
•    Expansion of soybean rust resistance collaboration with DuPont-Pioneer
•    Extension of soybean Nematode resistance collaboration with Syngenta
•    Completion by Evofuel of three years of successful field trials for improved castor seeds in Brazil
•    Successful field trial results for Black Sigatoka resistance in bananas
•    Collaboration with Chinese Biotechnology Company DBN on improving key rice traits
•    Launch of model plant validation system for monocot plants
•    Launch of Gene2ProductTM computational ag-bio platform