Evogene Ltd. (TASE: EVGN), a leader in plant genomics underlying crop productivity for the food, feed and biofuel industries, today announced its financial results for the second quarter and half year ended June 30, 2013.
“The second quarter of this year saw significant progress and achievements as we further broadened our unique discovery and validation capabilities supporting our four market focused operating divisions, and continued to successfully meet objectives for both our partnered and Evogene sponsored product programs.”
Ofer Haviv, Evogene's President and CEO, stated: "The second quarter of this year saw significant progress and achievements as we further broadened our unique discovery and validation capabilities supporting our four market focused operating divisions, and continued to successfully meet objectives for both our partnered and Evogene sponsored product programs."
Mr. Haviv continued, "During the first half of 2013, and in particular the second quarter, we significantly increased our activities devoted to strengthening the infrastructure and expanding product offerings in our two newest operating divisions, Evofuel and Ag-chemicals. Evofuel, whose mission is the development of second generation feedstock for biodiesel, is in the process of completing the third year of field trials for our advanced castor varieties in northeast Brazil. We remain on track in our efforts to introduce a commercially viable alternative feedstock for biodiesel based on castor seeds in Brazil and Argentina."
"With respect to Ag-chemicals, which is the focus of our newest operating division, we believe our computational biology capabilities and plant genomic knowledge provide us with a unique opportunity to address the growing need for new and innovative products that can overcome the growing resistance of weeds and other pests to available chemical solutions. During the past quarter, in preliminary discussions with several leading companies in this field, we received initial confirmation that others share our belief."
"In our two operating divisions targeted at improving seed traits, one focused on yield and abiotic stress tolerance and the other on biotic stress tolerance, we continue to successfully meet the discovery and product candidate objectives under our existing collaborations with leading seed companies and evaluate new collaborations. During the past quarter, we announced the signing of a yield and abiotic stress tolerance focused collaboration for rice with DBN, a leading Chinese biotechnology company. In the area of biotic stress, we were pleased to recently announce successful field trial results in our program with Rahan Meristem to develop banana varieties expressing tolerance to Black Sigatoka disease. In addition to the potential value of this specific achievement, these results, although initial, provide a strong validation of the applicability of our predictive computational biology and gene discovery capabilities to biotic stress conditions, in addition to yield and abiotic stress conditions."
"Looking forward, it is our belief that the increased use of high-end agriculture technologies to provide improved seeds and new ag-chemical solutions will be an absolute requirement in order to address the growing worldwide needs for food, feed and fuel. Therefore, with the constantly increasing recognition by leading agriculture companies worldwide of Evogene as a unique and attractive solution provider, we are very optimistic regarding the future for our company," concluded Mr. Haviv.
Revenues for the first six months ended June 30, 2013 were $8.9 million, compared to $8.3 million for the same period in 2012. Revenues for the second quarter of 2013 were $4.3 million, compared to $4.1 million reported for the same period in 2012. Revenues for the first half and the second quarter of 2013 consist primarily of research and development fees under the company's various collaboration agreements with seed companies.