EDEN Bioscience Announces First Quarter Financial Results; Company Receives Conditional Approval for Sale of Messenger in New York State.Business Editors BOTHELL, Wash.--(BUSINESS WIRE)--April 25, 2001 EDEN Eden, in the Bible Eden, in the Bible. 1 Son of Joah. 2 Priest. Perhaps this is the same as (1.) 3 See Eden, Garden of. 4 Unidentified trading center, possibly in Mesopotamia. Hires Industry Veteran to Direct Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and Operations EDEN Bioscience bioscience /bio·sci·ence/ (-si´ens) the study of biology wherein all the applicable sciences (physics, chemistry, etc.) are applied. bi·o·sci·ence n. See life science. (R) Corporation (Nasdaq:EDEN), which develops, manufactures and markets innovative, natural products for protecting plants and improving crop production, today announced financial results for its first quarter ended March 31, 2001. "We achieved very good financial results this quarter," said Jerry Butler Jerry Butler is the name of:
Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and citrus citrus Any of the plants that make up the genus Citrus, in the rue family, that yield pulpy fruits covered with fairly thick skins. The genus includes the lemon, lime, sweet and sour oranges, tangerine, grapefruit, citron, and shaddock (C. maxima, or C. grandis; also called pomelo). market." Revenue for the first quarter of 2001 was $3.8 million, all of which was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. solely from sales of the company's first product, Messenger. Net loss in the quarter was $2.5 million or $0.10 per weighted average common share, which compares to a net loss of $3.1 million or $0.18 per pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma weighted average common share in the first quarter of 2000. Pro forma per-share computations reflect the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a conversion of all EDEN convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". into common stock, which took place on September September: see month. 26, 2000. Pro forma weighted-average common shares for the two quarters are based upon 23.9 million shares and 16.5 million shares, respectively. RECENT HIGHLIGHTS -- The Company announced it has received conditional approval from the State of New York for the sale of Messenger(R) for use on all crops. The approval is effective immediately. The conditions are similar to the conditions mandated by the US EPA. Previously, on March 23, 2001, EDEN announced that it received registration from the California Department of Pesticide Regulation (California DPR) for the sale and use of Messenger on strawberry. -- EDEN strengthened its management team with the addition of Dan Burdett as Business Unit Manager for the Midwest. Burdett is a seasoned agriculture executive with more than 20 years of experience in product and human resources management, training, and sales with leading agriculture companies. Commenting on Burdett's appointment, Butler noted, "We are pleased to welcome Dan to the EDEN team, and believe his strong background in agriculture sales management will help us move forward in developing product usage, marketing, and sales for the region, with emphasis on the major U.S. row crops -- corn, soybeans and wheat." Prior to joining EDEN, he was the Director of Field Business with Garst Seed Company, where he was responsible for managing all sales functions. BUSINESS OUTLOOK In 2001, the initial launch year of Messenger, management estimates the following revenue guidance for the second quarter and the remainder of the year: -- For the second quarter, revenue is expected to be in the range of $4 million to $6 million. -- For the full year, ending December December: see month. 31, 2001, revenue is expected to be in the range of $15 million to $22 million. EDEN advises that forecasting at this time of the year is subject to uncertainty due to many factors, including but not limited to: weather, product adoption rates, and general economic conditions in agriculture. CONFERENCE CALL EDEN Bioscience will host a live conference call and Web cast to discuss its first-quarter financial results and revised outlook for the balance of 2001 on Wednesday Wednesday: see week. , April 25 at 5 p.m. Eastern Time (2 p.m. Pacific Time), featuring remarks by Jerry Butler, president and CEO, and Brad Powell Powell See Osceola. , CFO See Chief Financial Officer. . The live Web cast and replay of the call will be available at www.edenbio.com/in/inmain.html ABOUT EDEN BIOSCIENCE EDEN Bioscience is a plant technology company focused on developing, manufacturing and marketing innovative natural products for agriculture. EDEN believes its technology and initial product, Messenger(R), allows it to offer superior alternatives to existing plant protection and crop yield enhancement products in terms of both performance and safety, and importantly, to avoid the substantial public resistance to many chemical pesticides and genetically modified plants Genetically modified plants are genetically engineered to contain one or more genes of another species. The aim is to introduce a new trait to the plant species which does not occur naturally in this species, for example resistance to certain pests, diseases or environmental . Messenger, which received EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. approval for full commercial use in April 2000, is based on naturally occurring proteins called "harpins", which activate natural plant defense systems to protect against disease and pests, and simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics activate plant growth systems, improving crop yield and quality. It has been extensively tested in hundreds of field trials in four countries and on more than 40 crops including: citrus, cotton strawberries, tomatoes, peppers, melons, wheat wheat, cereal plant of the genus Triticum of the family Gramineae (grass family), a major food and an important commodity on the world grain market. Wheat Varieties and Their Uses , rice, peanuts pea·nut n. 1. A prostrate southern Brazilian plant (Arachis hypogaea) widely cultivated in tropical and warm temperate regions, having yellow flowers on stalks that bend over so that the seed pods ripen underground. 2. , tobacco, grapes Grapes - A Modula-like system description language. E-mail: <peter@cadlab.cadlab.de>. ["GRAPES Language Description. Syntax, Semantics and Grammar of GRAPES-86", Siemens Nixdorf Inform, Berlin 1991, ISBN 3-8009-4112-0]. and others. EDEN Bioscience's headquarters are at 11816 North Creek Parkway N., Bothell, WA 98011, 425/806-7300; www.edenbio.com. CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, among which includes statements about the growing acceptance of Messenger. In some cases, you can identify forward-looking statements by terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "may," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms or other terminology. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect EDEN's actual results include, among others, unfavorable weather conditions; economic conditions in agriculture; inability to transition from a company with a research focus to a company capable of supporting commercial activities; dependence on a single product, the development and commercialization of which may not be successful; inability to produce a high quality product as manufacturing capacity is increased; history of losses; unsuccessful field trials; and inability to develop adequate sales and marketing capabilities. More information about these and other factors that potentially could affect EDEN's financial results is included in EDEN's most recent annual report on form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and in its other public filings filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. EDEN undertakes no obligation to update any forward-looking statements.
EDEN BIOSCIENCE CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2001 2000 2000
------------ ------------ ------------
Revenues:
Product sales $ 3,840,952 $ 988,234 $ --
Sales allowances 1,359,529 376,136 --
------------ ------------ ------------
Net revenues 2,481,423 612,098 --
------------ ------------ ------------
Operating expenses:
Cost of goods sold 974,603 308,907 --
Research and
development 2,094,426 2,330,561 2,263,418
Selling, general
and administrative 3,023,078 2,356,913 916,685
------------ ------------ ------------
Total operating
expenses 6,092,107 4,996,381 3,180,103
------------ ------------ ------------
Loss from operations (3,610,684) (4,384,283) (3,180,103)
------------ ------------ ------------
Other income (expense):
Interest income 1,165,138 1,463,094 160,461
Interest expense (24,975) (28,033) (38,482)
------------ ------------ ------------
Total other
income (expense) 1,140,163 1,435,061 121,979
------------ ------------ ------------
Net loss $ (2,470,521) $ (2,949,222) $ (3,058,124)
============ ============ ============
Historical basic and
diluted net loss
per share $ (0.10) $ (0.12) $ (1.11)
============ ============ ============
Historical weighted
average shares
outstanding used to
compute net loss
per share 23,908,272 23,625,028 2,753,792
============ ============ ============
Pro forma basic and
diluted net loss
per share $ (0.10) $ (0.12) $ (0.18)
============ ============ ============
Weighted average
shares outstanding
used to compute
pro forma net loss
per share 23,908,272 23,625,028 16,547,895
============ ============ ============
EDEN BIOSCIENCE CORPORATION
BALANCE SHEET
March 31, December 31,
2001 2000
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 75,163,076 $ 86,556,865
Accounts receivable 2,023,657 595,470
Inventory 2,463,429 1,321,241
Other current assets 690,991 236,458
------------- -------------
Total current assets 80,341,153 88,710,034
Property and equipment, net 14,607,183 9,479,872
Other assets 1,483,191 310,715
------------- -------------
Total assets $ 96,431,527 $ 98,500,621
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,647,315 $ 1,415,730
Accrued expenses 3,285,929 3,238,398
Current portion of capital
lease obligations 269,716 275,316
------------- -------------
Total current liabilities 5,202,960 4,929,444
Capital lease obligations, net
of current portion 264,614 330,394
Other long-term liabilities 169,905 --
------------- -------------
Total liabilities 5,637,479 5,259,838
------------- -------------
Commitments and contingencies
Shareholders' equity:
Convertible preferred stock,
$.01 par value, 10,000,000
shares authorized; no
shares designated at
December 31, 2000 and
March 31, 2001
Common stock, $.0025 par
value, 100,000,000 shares
authorized; issued and
oustanding shares -
23,894,680 at December
31, 2000; 23,927,346 at
March 31, 2001 59,818 59,737
Additional paid-in capital 131,863,268 131,844,183
Deferred stock option
compensation expense (24,005) (28,625)
Accumulated deficit (41,105,033) (38,634,512)
------------- -------------
Total shareholders' equity 90,794,048 93,240,783
------------- -------------
Total liabilities and
shareholders' equity $ 96,431,527 $ 98,500,621
============= =============
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