Evogene sales up 3% in Q2 2014

Evogene’s revenues from research and development payments for the six months of 2014 were up by 3.1% to $7.5 million, compared to $7.3 million for the same period in 2013. Revenues for second quarter of 2014 were $3.7 million, compared to $3.5 million for the same period in 2013. These revenues include periodic payments for research and development services generated under the Company's various collaboration agreements with seed companies, as well as up-front payments made under the Company's agreements with collaborators, which are recognized as revenues over the duration of the relevant agreement. 

 

Cost of Revenues largely consists of research and development expenses related to the support of the Company’s on-going activities under collaboration agreements with seed companies, all of which provide for future milestone and royalty revenues. Cost of Revenues for the six months ended June 30, 2014 was $5.0 million (including a non-cash expense of $386 thousand for amortization of share-based compensation), compared to $4.7 million (including a non-cash expense of $159 thousand for amortization of share-based compensation) for the same period in 2013. Cost of Revenues during the second quarter of 2014 was $2.4 million (including a non-cash expense of $205 thousand for amortization of share-based compensation), compared to $2.5 million (including a non-cash expense of $66 thousand for amortization of share-based compensation) for the same period in 2013.

 

Research and Development Expenses, net for the six months of 2014, were $6.0 million (including a non-cash expense of $417 thousand for amortization of share-based compensation), compared to $4.7 million (including a non-cash expense of $159 thousand for amortization of share-based compensation) for the same period in 2013. Research and development expenses, net for the second quarter of 2014 were $3.3 million (including a non-cash expense of $221 thousand for amortization of share-based compensation), compared to $2.5 million (including a non-cash expense of $67 thousand for amortization of share-based compensation) for the same period in 2013. 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.

 

Operating Loss for the six months of 2014 was $6.4 million, compared to an operating loss of $2.1 million for the same period in 2013. Operating loss for the second quarter of 2014 was $3.8 million, compared to an operating loss of $1.5 million for the same period in 2013. This increase is mainly attributable to the increase in self-funded research and development expenses, among other operating expenses and non cash expenses, as described above.