Printer Friendly

CALGENE ANNOUNCES 1992 FINANCIAL RESULTS; FLAVR SAVR TOMATO TEST MARKET TO BE EXPANDED

 CALGENE ANNOUNCES 1992 FINANCIAL RESULTS;
 FLAVR SAVR TOMATO TEST MARKET TO BE EXPANDED
 DAVIS, Calif., Sept. 9 /PRNewswire/ -- Calgene Inc. (NASDAQ: CGNE) today announced a net loss of $19.9 million ($1.42 per share) on revenues of $24.2 million for the fiscal year ended June 30, 1992. This compares with prior year's loss of $27 million ($2.54 per share), on revenues of $27.7 million. The fiscal 1991 loss included $12.6 million in losses related to discontinued operations. The fiscal 1992 loss reflects $1.3 million additional loss reserves for these discontinued operations. Research and development expenses were $13.4 million in fiscal 1992 and $11.2 million in the prior fiscal period. The year-end balance of cash and equivalents and short-term investments was approximately $41.3 million.
 On June 26, 1992, Calgene called for redemption all outstanding shares of its convertible exchangeable preferred stock. At the July 27, 1992, redemption date, 1,239,757 shares were converted into common stock and 4,159 shares were redeemed. Call of the preferred stock will save Calgene approximately $2.8 million per year in dividends.
 Roger Salquist, Calgene's chairman and chief executive officer said, "The $4.2 million increased loss from continuing operations reflects an initial $2 million payment to Campbell Soup Co. for the exclusive North American commercialization rights to fresh market tomatoes genetically engineered with the FLAVR SAVR(TM) gene as well as a $2.3 million increase in total research and development expenditures primarily associated with expanded field trial activity. The losses also reflect accelerated start-up expenses of Calgene Fresh Inc., a subsidiary formed in January 1992 to commercialize the FLAVR SAVR tomato for grocery and food service industries. Key management personnel are now in place at Calgene Fresh and supply agreements have been established that will assure a year-round source of premium quality tomatoes. The production and market development investments made to date help position Calgene Fresh for its 1993 launch of the FLAVR SAVR tomato."
 Salquist added, "In light of the FDA's favorable position on the regulation of food products developed through biotechnology, Calgene Fresh plans to expand its tomato test market this winter to over 100 grocery stores. The expanded test market, initially using conventionally developed vine-ripened premium tomatoes and later to include FLAVR SAVR varieties, will allow Calgene Fresh to validate marketing strategies and distribution logistics prior to the planned mid-year 1993 regional launch of the FLAVR SAVR tomato."
 With the expanded test market, costs and expenses are expected to significantly increase in the tomato subsidiary. Anticipated fiscal 1993 financial improvements from Calgene's seed and oleochemical businesses are expected to be offset by another decline in research contract revenues as projects move out of the laboratory and toward product development and commercialization. As a consequence of these factors, Calgene's fiscal 1993 losses are expected to remain at a high level.
 During the past year, significant progress has been made toward commercialization of Calgene's genetically engineered products. Major developments include:
 -- Progress continues to made toward commercialization of Calgene's herbicide resistant cotton. In November, the company completed the industry' largest field trial to date, conducted at 33 sites in 12 states. Data from this trial demonstrates the safety of the product and will be submitted to the FDA and USDA in September. Counterseasonal seed increase trials are underway. The target date for product introduction is 1994.
 -- In January, Calgene announced that it had genetically engineered canola plants to produce laurate, a key raw material currently produced from coconut and palm kernel oils for the soap, detergent, oleochemical, personal care and food industries. Canola plants producing laurate are currently in field trials. Calgene is also conducting field trials evaluating canola engineered to increase the level of stearate. This oil has potentially valuable applications in margarine, shortening and confectionery products.
 -- In April, Calgene was granted a U.S. patent that covers antisense technology used to turn down the expression of genes in plants. The patent on this important technology strengthens the company's proprietary position in fresh tomatoes and modified oils.
 -- On the regulatory front, in May 1992, the FDA announced its policy on the regulation of foods developed through biotechnology. The policy removes much of the uncertainty which has existed regarding the FDA's role in biotechnology food regulation. Subject to any policy modifications based on public comments received by the FDA prior to the expected close of the comment period in October 1992, Calgene remains on schedule to bring the FLAVR SAVR tomato to market in 1993. In July 1992, Calgene submitted the first petition to the U.S. Department of Agriculture (USDA) to grow genetically engineered tomatoes commercially.
 -- In July, Calgene acquired Hodag Chemical Corp., a specialty oleochemical manufacturer that produces a wide line of specialty esters, surfactants, ethoxylates and other vegetable oil-based ingredients for the food, cosmetic, lubricant and textile markets. The acquisition of Hodag is a key step in the development of Calgene's vertically integrated oils business. Hodag will be merged with Calgene Chemical, Calgene's oleochemical marketing company.
 Calgene is an agribusiness biotechnology company that is developing improved plant varieties and plant products for the seed, food and specialty chemical industries. The company has four operating subsidiaries: Ameri-Can Pedigreed Seed Co., Calgene Chemical, Calgene Fresh, and Stoneville Pedigreed Seed Co.
 CALGENE
 Condensed Consolidated Statements of Operations
 (In thousands except per share amounts)
 (Unaudited)
 Fiscal Year
 ended June 30,
 1992 1991
 Revenues:
 Product sales, net $18,211 $20,810
 Product development revenues 3,666 5,294
 Interest income 1,919 1,508
 Other income, net 403 93
 Total 24,199 27,705
 Costs and expenses:
 Cost of goods sold 16,160 19,727
 Research and development:
 Contact 4,166 5,406
 Other 9,256 5,745
 License purchase 2,000 --
 Selling, general and administrative 11,318 10,161
 Interest expense 816 898
 Total 43,706 41,937
 Minority interest share of net loss 961 603
 Equity in net loss of affiliate (39) (692)
 Gain from sale of assets 30 3
 Loss from continuing operations
 before income taxes (18,555) (14,318)
 Provision for income taxes 61 61
 Loss from continuing operations (18,616) (14,379)
 Loss from discontinued operations -- (1,985)
 Loss on disposal of discontinued
 operations including losses during
 phase-out period (1,300) (10,615)
 Net loss $(19,916) $(26,979)
 Preferred stock dividends $2,799 $1,970
 Net loss applicable to common
 shareholders $(22,715) $(28,949)
 Net loss per share:
 Loss from continuing operations $(1.34) $(1.43)
 Loss from discontinued operations (0.08) (1.11)
 Net loss $(1.42) $(2.54)
 Shares used per share calculations 15,965,518 11,390,355
 -0- 9/9/92
 /CONTACT: Mike Motroni or Carolyn Hayworth of Calgene, 916-753-6313/
 (CGNE) CO: Calgene ST: California IN: MTC SU: ERN


RM -- SF004 -- 7709 09/09/92 17:19 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 9, 1992
Words:1134
Previous Article:ALAN FRIEDMAN NAMED WANG VICE PRESIDENT
Next Article:DISASTERS TAKE TOLL ON CLAIMS ADJUSTERS
Topics:


Related Articles
CALGENE ANNOUNCES THIRD QUARTER RESULTS; FDA FOOD BIOTECHNOLOGY GUIDELINES IMMINENT
CALGENE PROVIDES INFORMATION ON RECENT REGULATORY AND BUSINESS DEVELOPMENTS
CALGENE ANNOUNCES FIRST QUARTER RESULTS
CALGENE ANNOUNCES FIRST HALF RESULTS; SUCCESSFUL OFFERING PUTS PROFORMA CASH AT $45 MILLION
CALGENE ANNOUNCES FIRST HALF RESULTS; SUCCESSFUL OFFERING PUTS PROFORMA CASH AT $45 MILLION
CALGENE ANNOUNCES THIRD QUARTER RESULTS; FLAVR SAVR PRODUCT LAUNCH INVESTMENTS INCREASE
CALGENE ANNOUNCES 1993 FINANCIAL RESULTS; FLAVR SAVR(TM) PRODUCT LAUNCH INVESTMENTS CONTINUE
CALGENE ANNOUNCES FIRST QUARTER RESULTS
CALGENE ANNOUNCES 1994 FINANCIAL RESULTS
CALGENE ANNOUNCES FIRST QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters