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 CINNAMINSON, N.J., July 29 /PRNewswire/ -- DNA Plant Technology Corporation (NASDAQ: DNAP) today reported a reduced net loss of $4,195,000 ($.23 per share) for the second quarter ending June 30, 1993, compared with a net loss of $5,000,000 ($.27 per share) for the same period a year ago. Operating expenses were reduced to $4,710,000 in the second quarter from $5,278,000 in the second quarter of 1992. Revenues for the second quarter, which exclude sales from DNAP's FreshWorld and InterMountain Canola joint ventures, were $2,261,000 compared to $2,728,000 for the same period in 1992.
 Sales from DNAP's two joint ventures with DuPont, FreshWorld in branded produce and InterMountain Canola in specialty edible oils, increased by 152 percent from $821,000 in the second quarter of 1992 to $2,072,000 in the second quarter of 1993.
 DNAP's second quarter product development revenues decreased due to the company's strategic decision to focus on its three primary business areas: premium fruits and vegetables, healthy edible oils, and environmental diagnostics. Also, certain contract research that was being done by DNAP was transferred to its InterMountain Canola joint venture. Investment income was also reduced because of lower cash balances.
 For the first six months of 1993, DNAP's net loss was $7,742,000 ($.42 per share) down from $7,800,000 ($.44 per share) for the first six months of 1992. Sales from FreshWorld and InterMountain Canola increased 138 percent from $1,325,000 in the first six months of 1992 to $3,152,000 in the first six months of 1993.
 "The best indicator of DNAP's growth and of our move towards profitability is our more than doubling of our joint venture sales in the second quarter and in the first six months," said Robert Serenbetz, president and chief executive officer of DNAP. "The second quarter was full of major milestones. DNAP launched three new products under the FreshWorld Farms(TM) brand name: fresh market tomatoes, cherry tomatoes, and VegiSweet(TM) mini peppers."
 Test marketing began on fresh market tomatoes and cherry tomatoes in April. The fresh market tomato is a vine-ripened tomato that stays fresh for 10 to 14 days compared to most tomatoes which have a shelf life of three to seven days. DNAP developed its new breed of tomato to have improved taste, a heartier texture, and a deep red color. The cherry tomato was also bred for better taste, color, firmness and extended shelf life.
 In May, FreshWorld launched the VegiSweet mini pepper, which is now already in over 2,500 supermarkets across the country, including selected supermarkets of the Grand Union Company, A & P Tea Company, Dominick's Finer Foods, Safeway, Food Lion, Winn Dixie, King Soopers, and Kings Super Markets.
 DNAP's other joint venture, InterMountain Canola, contracted for over 70,000 acres, more than doubling last year's acreage.
 During the quarter, Quantix, DNAP's environmental diagnostic business unit, expanded its product line to include a portable test for jet fuel, kerosene, home fuel oil and diesel fuel."
 "DNAP also had a number of major milestones in genetic engineering during the second quarter which helped to affirm DNAP's technological leadership in agricultural biotechnology," said Serenbetz. "We received notice that our Transwitch(TM) gene suppression technology will have expanded patent coverage for use in all plants. This is at the core of our genetic engineering program and will also serve as an additional source of licensing revenues. The other genetic engineering breakthrough was DNAP's isolation of a plant gene that regulates acidity through the use of transposon tagging. DNAP will use the acidity- controlling gene to improve our next generation of fruits and vegetables."
 DNAP is a leading agricultural biotechnology company, applying a spectrum of technologies to develop and commercialize plant-based products and environmental diagnostic products for consumer and industrial markets. DNAP's two major operating joint ventures are FreshWorld in premium fruits and vegetables and InterMountain Canola Company in special varieties of healthy edible oils.
 Condensed Consolidated Statements of Operations
 (Unaudited, in thousands except per share amounts)
 Three Months Six Months
 Periods ended June 30 1993 1992 1993 1992
 Revenues (excluding revenues of
 the company's branded produce
 and edible oil joint ventures
 which are shown below)
 Product development agreements $1,722 $1,862 $3,261 $3,805
 Product sales 222 264 507 356
 Investment and royalty income 317 602 818 1,297
 Total revenues 2,261 2,728 4,586 5,458
 Operating expenses:
 Research and product development 3,067 3,487 5,750 6,884
 Cost of product sales 246 145 382 241
 Selling, general and
 administrative 1,397 1,646 2,724 2,781
 Total operating expenses 4,710 5,278 8,856 9,906
 Total (2,449) (2,550) (4,270) (4,448)
 Gain on sale of assets 202 --- 202 1,207
 Loss before equity in loss
 of joint ventures (2,247) (2,550) (4,068) (3,241)
 Equity in loss of joint venture (1,948) (2,450) (3,674) (4,559)
 Net loss (4,195) (5,000) (7,742) (7,800)
 Preferred stock dividends (776) (776) (1,552) (1,552)
 Net loss applicable to common
 stockholders $(4,971) $(5,776) $(9,294) $(9,352)
 Net loss per common share $(.23) $(.27) $(.42) ($.44)
 Weighted average number of common
 shares outstanding 21,986 21,576 21,961 21,411
 Revenues of the company's branded
 produce and edible oil joint
 ventures (A) $2,072 $821 $3,152 $1,325
 (A) The revenues of the Company's branded produce and edible oil joint ventures are shown separately since such revenues are accounted for under the equity method.
 Condensed Consolidated Balance Sheets
 (Unaudited, in thousands)
 6/30/93 12/31/92
 Cash and temporary investments $17,470 $27,364
 Other current assets 2,066 2,300
 Net property, plant and
 equipment 3,222 3,383
 Other assets 2,915 3,123
 Total assets 25,673 36,170
 Liabilities and stockholders equity:
 Current liabilities 4,045 5,609
 Stockholders' equity 21,628 30,561
 Total liabilities and
 stockholders' equity 25,673 36,170
 -0- 7/29/93
 /CONTACT: Stacy Berns or Cara Kiewel of Edelman Worldwide, 212-704-8111, for DNA Plant Technology, or Morton Sosland, of DNA Plant Technology, 609-829-0110/

CO: DNA Plant Technology Corporation ST: New Jersey IN: AGR SU: ERN

MP-LG -- NY020 -- 7157 07/29/93 09:38 EDT
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Publication:PR Newswire
Date:Jul 29, 1993

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