Portland, Ore.--Aug. 14, 2000--Agritope, Inc. (Nasdaq:AGTO) today reported that strong product sales and continued increases in research activities contributed to record revenues.
For the third fiscal quarter ended June 30, 2000, total revenues increased 121 percent to $3.4 million compared to $1.5 million in the like quarter a year ago. Research related revenues jumped more than 230 percent to $1.0 million for the quarter. The net loss for the quarter narrowed significantly to $677,000, or $.16 per share (basic and diluted), compared to a loss of $1.3 million, or $.32 per share, for the quarter ended June 30, 1999.
Revenues for the first nine months of fiscal 2000 rose 133 percent to $5.1 million compared to $2.2 million in the like period a year ago. Revenues from research activities increased over 260 percent to $2.3 million in the nine-month period. The net loss for the period was $3.0 million, or $.74 per share (basic and diluted) compared to a net loss of $3.8 million, or $.94 per share, in the first nine months of fiscal 1999.
"We have been increasing the depth and breadth of our research programs over the last several months,'' said Adolph J. Ferro, president and chief executive officer. "We've added to our scientific staff, been awarded government grants, discovered new technologies, received new patents and filed for others. This activity has contributed significantly to our revenues. This quarter's revenues alone nearly reached total revenues for all of fiscal 1999.''
"Our investment in R&D increased in support of the projects we have initiated internally and with our affiliate, Agrinomics, LLC,'' added Ferro. Research and development expenses in the third quarter were $1.2 million compared to $814,000 in the like quarter a year ago. Selling, general and administrative expenses were $852,000 for the quarter, compared to $917,000 in the year ago quarter. The loss from operations narrowed to $864,000 compared to $1.4 million for the third fiscal quarter last year.
"Vinifera's peak selling season continued into this quarter, as product sales increased nearly 500 percent from the second quarter and 95 percent from a year ago,'' said Ferro. Grapevine shipments are highly seasonal and primarily occur during the spring and summer planting seasons. The revenue contribution from Vinifera was up 95 percent to $2.4 million for the quarter and up 81 percent to $2.8 million for the first nine months of the fiscal year. At June 30, 2000, Vinifera had firm orders totaling $1.7 million for delivery in the remaining months of fiscal 2000, and $1.1 million for delivery in spring and summer of 2001.
Agritope is an Oregon-based agricultural functional genomics and biotechnology company that develops improved plant products and provides technology to the agricultural industry. Its fruit and vegetable division specializes in the development of improved fruit, vegetable and flower varieties. Agrinomics LLC, its 50 percent owned joint venture with Aventis CropScience (NYSE:AVE) conducts a research, development and commercialization program in the field of plant functional genomics. Vinifera, Inc., its majority owned subsidiary, offers superior grapevine plants to the premium wine industry together with disease testing and elimination services.
Certain statements in this release constitute "forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that expressly or by implication predict future results, performance or events are forward-looking. The words "believes,'' "intends,'' "expects,'' "anticipates,'' "estimates,'' and similar expressions often identify forward looking-statements. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. With respect to Agritope, these factors include its limited independent operating history; uncertainty of additional funding; loss or impairment of sources of capital; dependence on strategic partners; uncertainties relating to patents and proprietary information; dependence on key personnel; technological change and competition; uncertainties as to consumer acceptance of genetically engineered products; changes in laws or regulations; as well as the other factors discussed in Exhibit 99 to the Company's 1999 Annual Report on Form 10-K, which is hereby incorporated by reference. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements. Agritope does not intend to update any forward-looking statements.
A tabulation of operating highlights and balance
sheet data follows: (in thousands, except per share data):
Three Months Ended Nine Months Ended
June 30, June 30,
Operating Highlights 2000 1999 2000 1999
Revenues
Product sales $ 2,383 $ 1,225 $ 2,831 $ 1,560
Government research
grants 111 97 290 230
Research projects
with strategic
partners 185 206 328 398
Research projects
with affiliate 706 -- 1,648 --
-------- -------- -------- --------
Total revenues 3,385 1,528 5,097 2,188
Costs and expenses
Product costs 2,242 1,195 2,663 1,540
Research and
development expenses 1,155 814 3,165 2,266
Selling, general and
administrative
expenses 852 917 2,725 2,729
-------- -------- -------- --------
Loss from operations (864) (1,398) (3,456) (4,347)
Other income (expense),
net 116 1 117 267
Minority interest in
subsidiary net loss 71 93 298 246
Net loss $ (677) $ (1,304) $ (3,041) $ (3,834)
Net income per share
(basic and diluted) $ (0.16) $ (0.32) $ (0.74) $ (0.94)
Weighted average shares
outstanding (basic
and diluted) 4,128 4,066 4,107 4,059
June 30, Sept. 30, June 30,
Balance Sheet Data 2000 1999 1999
Assets
Cash and cash
equivalents(a) $ 1,463 $ 4,204 $ 1,656
Accounts receivable,
net 1,046 640 461
Inventories 5,208 5,054 4,790
Other current assets 660 73 380
Other assets 5,025 5,500 5,566
$ 13,402 $ 15,471 $ 12,853
Liabilities and
Stockholders' Equity
Current liabilities $ 5,017 $ 4,184 $ 3,956
Long-term debt, less
current portion 3 5 7
Minority interest 1,699 1,959 1,368
Stockholders' equity 6,683 9,323 7,522
$ 13,402 $ 15,471 $ 12,853
Working capital $ 3,360 $ 5,787 $ 3,331
(a) Does not include $1.9 million cash and cash equivalents held
by Agritope's 50 percent-owned subsidiary Agrinomics LLC.
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