EDEN Bioscience Announces Fourth Quarter and Year End 2001 Financial Results.Business Editors BOTHELL, Wash.--(BUSINESS WIRE)--Feb. 7, 2002 EDEN Bioscience(R) Corporation (Nasdaq:EDEN), which develops, manufactures and markets innovative, natural products for improving crop production and protecting plants, today announced financial results for its fourth quarter and fiscal year ended December 31, 2001. Separately, the company announced today that it has received approval from Germany's Federal Biological Research Centre for Agriculture and Forestry for the use of Messenger(R) as a plant strengthener. As the company reported on January 3, 2002, there were no sales of Messenger in the fourth quarter of 2001, which compares to net revenue of $439,000 in the third quarter of 2001 and $612,000 in the fourth quarter of 2000. Revenue is derived solely from sales of Messenger. Net revenue for the year ended December 31, 2001 was $3.5 million, compared to $1.2 million in 2000. As the company further reported on January 3, 2002, EDEN estimates that distributors sold approximately 760,000 ounces of Messenger to growers during 2001. Further, EDEN estimates that Messenger inventory owned by distributors increased during the year by approximately 450,000 ounces, leaving approximately 850,000 ounces in distributor inventory at year-end. Net loss in the fourth quarter was $7.5 million, or $0.31 per weighted average common share, compared to a net loss of $2.9 million, or $0.12 per weighted average common share in the fourth quarter of 2000. Net loss for 2001 was $23.7 million, or $0.99 per weighted average common share, compared to a net loss of $15.7 million, or $1.89 per weighted average common share in 2000. The results in 2000 include an expense of approximately $2.3 million or $0.28 per weighted average common share for a commitment fee Commitment Fee A fee lenders charge their borrowers for unused credit or credit that has been promised at a specified future date.Notes: A commitment fee is different from interest although, the two are often confused. A lender charges a borrower a commitment fee to keep a line of credit open, or to guarantee a loan at a certain future date even though the credit is not being used at that particular time. paid, and the fair value of warrants
issued, in connection with the establishment of credit facilities.
Per-share loss amounts for the quarter are based on weighted average
common shares of 24.0 million in 2001 and 23.6 million in 2000. Annual
per share loss amounts are based on weighted average common shares of
24.0 million in 2001 and 8.3 million in 2000."In 2001 we learned how challenging it is to introduce a new technology into a tough agricultural market," said Brad Powell, interim president and CFO. "In 2002, our focus will be to get Messenger used by growers. We will implement aggressive sales and marketing programs to increase Messenger adoption and use, allowing Messenger to demonstrate its value to growers." Cash and investments as of December 31, 2001 totaled $48.3 million, compared with $56.7 million at September 30, 2001. The company believes this balance is sufficient to fund operations for at least the next 18 months. CONFERENCE CALL EDEN Bioscience will host a live conference call and Web cast to discuss its fourth quarter and fiscal year end financial results for 2001 on Thursday, February 7, 2002 at 5 p.m. Eastern Time (2 p.m. Pacific Time), featuring remarks by Brad Powell, interim president and CFO, and Philip Romney, Director of Finance and Controller. The live Web cast and replay of the call will be available until February 14, 2002, 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, provides growers with a new tool to improve crop production and protection. Messenger, which received EPA 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 activate plant growth systems, improving crop yield and quality. It has been tested in hundreds of field trials in many countries and on more than 40 crops including: citrus, cotton, strawberries, tomatoes, peppers, melons, wheat, rice, corn, peanuts, tobacco, grapes and others. EDEN Bioscience's headquarters are at 3830 Monte Villa Parkway, Bothell, WA 98021, 425/806-7300; www.edenbio.com. CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, among which includes statements regarding financial projections, estimates of ounces of Messenger sold by distributors, estimates of Messenger owned by distributors, ability to increase Messenger usage and Messenger's benefits to agriculture. In some cases, you can identify forward-looking statements by terminology 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, 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 to produce projected revenue; unsuccessful development and commercialization of our single product; inability to produce a high quality product as manufacturing activity is increased; history of losses; unsuccessful research in specific target crops; unfavorable weather conditions; 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 quarterly report on Form 10-Q 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 AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31, December 31,
(unaudited) (audited)
2000 2001 2000 2001
Product sales,
net of sales
allowances $ 612,098 $ -- $ 1,229,067 $ 3,496,002
--------- -------- ----------- -----------
Operating expenses:
Cost of goods sold 308,907 919,484 661,590 4,878,900
Research and
development 2,330,561 3,199,437 9,567,817 12,528,967
Selling, general
and
administrative 2,356,913 3,602,267 6,039,601 12,557,328
--------- --------- ----------- -----------
Total operating
expenses 4,996,381 7,721,188 16,269,008 29,965,195
--------- --------- ----------- -----------
Loss from
operations (4,384,283)(7,721,188) (15,039,941) (26,469,193)
--------- --------- ----------- -----------
Other income (expense):
Interest income 1,463,094 340,104 1,802,946 2,896,108
Interest expense (28,033) (16,253) (131,978) (82,969)
Fee and fair
value of warrants -- -- (2,281,524) --
Loss on asset
disposals -- (58,913) (9,591) (58,913)
--------- -------- ----------- -----------
Total other income
(expense) 1,435,061 264,938 (620,147) 2,754,226
--------- -------- ----------- -----------
Loss before
income taxes (2,949,222)(7,456,250) (15,660,088) (23,714,967)
Provision for
income taxes -- -- -- --
Net loss $(2,949,222) $(7,456,250) $(15,660,088) $(23,714,967)
============ ============ ============= =============
Basic and diluted
net loss per
share $ (0.12) $ (0.31) $ (1.89) $ (0.99)
============ ============ ============= =============
Weighted average shares
outstanding used to
compute net loss
per share 23,625,028 24,029,233 8,289,947 23,967,711
============ ============ ============= =============
EDEN BIOSCIENCE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
December 31,
2000 2001
ASSETS
Current assets:
Cash and cash equivalents $ 86,556,865 $ 48,327,022
Accounts receivable 595,470 89,128
Inventory 1,321,241 2,117,953
Other current assets 236,458 897,825
------------ ------------
Total current assets 88,710,034 51,431,928
Property and equipment, net 9,479,872 22,385,662
Other assets 310,715 1,721,413
------------ ------------
Total assets $ 98,500,621 $ 75,539,003
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,415,730 $ 906,557
Accrued liabilities 3,238,398 3,967,113
Current portion of capital
lease obligations 275,316 216,452
------------ ------------
Total current liabilities 4,929,444 5,090,122
Capital lease obligations,
net of current portion 330,394 129,916
Other long-term liabilities -- 325,157
------------ ------------
Total liabilities 5,259,838 5,545,195
------------ ------------
Commitments and contingencies
Shareholders' equity:
Common stock, $.0025 par value,
100,000,000 shares authorized;
issued and outstanding shares -
23,894,680 shares at
December 31, 2000; 24,099,944
shares at December 31, 2001 59,737 60,250
Additional paid-in capital 131,844,183 132,326,759
Deferred stock option
compensation expense (28,625) (10,145)
Cumulative translation adjustment -- (33,577)
Accumulated deficit (38,634,512) (62,349,479)
------------ ------------
Total shareholders' equity 93,240,783 69,993,808
------------ ------------
Total liabilities and
shareholders' equity $ 98,500,621 $ 75,539,003
============ ============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion