Davis, California, USA
August 7, 2014
- Quarterly results impacted by adverse weather in U.S.
- Continued progress on execution of growth strategy - increased adoption, international expansion, new products and new crop segments
- Extensive pipeline review and prioritization
Marrone Bio Innovations, Inc. (NASDAQ:MBII), a provider of bio-based pest management and plant health products, today announced financial results for the second quarter ended June 30, 2014.
Financial Highlights for the Second Quarter of 2014
- Revenues for the second quarter totaled $3.6 million, compared to $4.5 million in the second quarter of 2013. As in the first quarter of 2014, this comparison primarily reflects the ongoing impact of adverse weather across the Company's growing regions, partially offset by increased adoption rates for all of its products, including Venerate, which began shipments and sold out all available inventory in the second quarter.
- Net loss for the second quarter was $10.4 million compared to $10.2 million in first quarter 2014.
Pam Marrone, Chief Executive Officer of Marrone Bio Innovations stated, "We believe our momentum will build in the second half as our bio-based agricultural products, capable of both supplementing and substituting for many traditional solutions, demonstrate excellent value due to their combination of effectiveness, environmental friendliness and wide application. Additionally, we have now focused our development efforts on a suite of our best opportunities to ensure we maximize our return on investment and, at the same time, deepen our leadership position in this developing and disruptive category."
As a result of the impact of bad weather on the year and the late Tuesday resignation of its COO, the Company is unable to give annual guidance at this time, but may be able to provide annual guidance at a later date.
Ms. Marrone concluded, "We still expect to close the year with considerable momentum for Regalia Rx in row crops, as well as Regalia, Grandevo and Venerate in specialty crops, increases from our new product introductions and finally international expansion. Since the close of the second quarter, it has become evident that the market conditions, particularly in the Southeastern US, will be meaningful. Nonetheless, our fundamental view of our opportunity and of our ability to achieve our potential has not changed."
Recent Business Highlights
- Inaugurated the M3 Production Facility; completed construction of Phase 1C; now operating three 20,000 liter fermentation tanks; M3 now producing Regalia, Grandevo and Zequanox.
- Received $10 million loan guarantee from USDA with Five Star Bank for M3 development funding.
- Completed extensive pipeline review and prioritized a select group of development products with a combined addressable market of approximately $40 billion.
- Received EPA approval for open-water environment use of Zequanox molluscicide.
- Signed multi-year collaboration with Evogene, an Israeli plant biotechnology company, for joint discovery and commercialization of products with novel modes of biological action for insect control.
- Reached agreement with DSM Food Specialties to exchange microorganisms from respective libraries to advance research in respective areas of interest, food ingredients and crop protection/health.
- Entered into collaborative agreement with Valagro for biostimulant development and acceleration of international market penetration.
- Compelling results from field studies on effectiveness of Regalia on European wheat crops and for cotton crop enhancement.
- Secured two patents for Grandevo, covering a key insecticidal compound and root treatment for corn rootworm, a problematic and widespread corn pest.
- Brazil ANVISA published favorable registration decision for Regalia Maxx, now to be finalized by MAPA.
- Received Colombia registration for Regalia, triggering milestone payment from FMC.
- UK Data Assessment Report completed with recommendation to register Regalia in Europe, trigging milestone payment from Syngenta.
- Began regulatory approval process for Grandevo in Europe and Brazil; began product trials.
- Began European trials for MBI-110 on grape downy mildew, with favorable results.
Jim Boyd, Chief Financial Officer, commented, "We enjoy a strong balance sheet, reinforced by approximately $40 million in proceeds from our recent secondary offering. As we go forward, we will deploy capital in a disciplined manner to accelerate growth. We believe we are well positioned financially as well as strategically and with regard to our operating capabilities."
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