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Bothell, Washington
October 25, 2001
EDEN Bioscience Corporation (Nasdaq:EDEN), which develops,
manufactures and markets innovative, natural products for
protecting plants and improving crop production, today announced
financial results for its third quarter ended September 30,
2001.
In a separate release today, EDEN Bioscience(R) announced it had
received temporary registration for use of Messenger(R) in China
on tomatoes and peppers.
Revenue for the third quarter was $644,000, which compares to $1
million in the third quarter of 2000 - the first quarter EDEN(R)
began to sell Messenger, the company's first product. Revenue is
derived solely from sales of Messenger.
Net loss in the quarter was $5.9 million or $0.25 per weighted
average common share, compared to a net loss of $5.9 million or
$0.35 per pro forma weighted average common share in the third
quarter of 2000. The results in 2000 included an expense of
approximately $2.3 million or $0.14 per pro forma weighted
average share for a commitment fee 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
24.0 million weighted average shares in 2001 and 16.9 million
pro forma weighted average shares in 2000. The pro forma
weighted average shares reflect the retroactive conversion of
all EDEN convertible preferred stock into common stock, which
took place on September 26, 2000.
"We continue to concentrate on getting growers to use Messenger,
with a greater focus on higher-value crops and crops that
traditionally require high input levels, which include grapes,
fresh and processing vegetables, and small fruits," said Jerry
Butler, president and CEO. "Messenger has demonstrated success
in these crops, which we believe will drive future growth. We
are also streamlining our R & D efforts with greater emphasis on
high value crops in accordance with sustainable market growth."
On October 17, EDEN announced a workforce reduction in certain
research, administrative and senior leadership positions,
resulting in a severance charge of up to $300,000 in the fourth
quarter of 2001. EDEN expects all reductions to date to decrease
salaries and related expenses by approximately $2.9 million on
an annualized basis.
BUSINESS OUTLOOK
"As we continue to drive our business through its initial phase
of development, our visibility remains limited," Butler said,
"except for the coming quarter, which we expect to be somewhat
in line with the quarter just completed."
Cash and investments as of September 30, 2001 totaled $56.7
million, compared with $63.4 million at June 30, 2001. The
company believes this balance is sufficient to fund operations
for at least the next 12 months.
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, allow 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.
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 extensively tested in hundreds of field trials in four
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
Company news release
N3910
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