Eden Bioscience Announces Second Quarter 2005 Financial ResultsBOTHELL, WA -- 07/26/2005 -- Eden Bioscience Corporation (NASDAQ: EDEN), which develops, manufactures and markets innovative, natural protein-based products for improving crop production and protecting plants, today announced financial results for its second quarter ended June 30, 2005.
Product sales, net of sales allowances, for the second quarter of 2005 were $1,677,000, which compares to net product sales of $290,000 in the same period of 2005. Net loss in the second quarter of 2005 was $1.4 million, or $0.06 per weighted average common share, compared to a net loss of $2.0 million, or $0.08 per weighted average common share, in the second quarter of 2004. Per-share loss amounts for the quarters are based on weighted average common shares of 24.4 million in 2005 and 2004.
"We are glad to report that our second quarter sales to distributors have surpassed first quarter sales. This performance is a result of revenue from new products and increased sales of our existing product line. Fifty-eight percent of year-to-date revenue has been derived from new products. Sales of Messenger products to distributors increased substantially in both US and non-US markets. Our second quarter sales are up 479% compared to the same quarter of last year and our year-to-date sales are up 463% over the comparable period in 2004. Our second quarter sales in the US are up over 600% compared to the same quarter of last year and up 456% year-to-date over the comparable period in 2004. Sales outside the US are up 200% for the quarter just completed compared to the same quarter in 2004 and up 494% year-to-date over the comparable period in 2004. Sales of our Home & Garden products are up 114% in the second quarter of 2005 compared to 2004 and up 119% for the first six months of 2005 compared to 2004," said Rhett Atkins, President and CEO. "We have had a good second quarter and first half because we now have a portfolio of Harp-N-Tek products. Our year-to-date sales among the various elements of our portfolio were well balanced with Messenger products contributing 28% of total sales, ProAct 25%, N-Hibit 23%, Home & Garden 12% and other products 12%."
Cash and investments as of June 30, 2005 totaled $9.3 million, compared with $9.9 million at March 31, 2005 and $11.9 million at December 31, 2004.
Conference Call
Eden Bioscience will host a live conference call and Web cast to discuss its second quarter 2005 financial results on Tuesday, July 26, 2005 at 5 p.m. Eastern Time (2 p.m. Pacific Time), featuring remarks by Rhett Atkins, President and CEO, and Brad Powell, CFO. The live Web cast and replay of the call will be available until August 5, 2005 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 protein-based products for agriculture. We believe that our technology and products provide growers with new tools to improve crop production and plant protection. Our products are based on naturally occurring proteins called "harpins," which activate a plant's intrinsic ability to protect itself through growth and stress-defense responses. These responses enhance overall plant health, improve plant vigor and stamina, and result in improved crop quality, yield, and/or shelf life. Our headquarters are at 3830 Monte Villa Parkway, Suite 100, Bothell, WA 98021-7266, 425-806-7300; www.edenbio.com.
(c) 2005 Eden Bioscience Corporation. Messenger® and Eden Bioscience® are registered trademarks of Eden Bioscience Corporation.
FORWARD-LOOKING STATEMENTS: Certain statements contained in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 the Company's actual results include, among others, unsuccessful development and commercialization of our products; inability to develop adequate sales and marketing capabilities; history of losses and expectation that losses will continue; unsuccessful research in specific target crops; economic conditions in agriculture; and unfavorable weather conditions. More information about these and other factors that potentially could affect the Company's financial results is included in Eden Bioscience's most recent annual report on Form 10-K 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 Bioscience undertakes no obligation to update any forward-looking statements.
EDEN BIOSCIENCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2005 2004
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 9,276,094 $ 11,860,385
Accounts receivable, net of
sales allowances 561,835 39,946
Inventory 3,919,826 3,487,586
Prepaid expenses and other current
assets 407,081 498,670
------------ ------------
Total current assets 14,164,836 15,886,587
Property and equipment, net 12,267,847 13,887,573
Other assets 1,555,501 1,561,902
------------ ------------
Total assets $ 27,988,184 $ 31,336,062
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 274,787 $ 190,648
Accrued liabilities 1,047,659 1,206,411
Current portion of accrued
loss on facility subleases 492,919 507,748
Current portion of capital
lease obligations 3,785 11,572
------------ ------------
Total current liabilities 1,819,150 1,916,379
Accrued loss on facility
subleases, net of current portion 1,800,336 2,037,613
Capital lease obligations,
net of current portion - 761
Other long-term liabilities 810,884 771,934
------------ ------------
Total liabilities 4,430,370 4,726,687
------------ ------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized;
no shares issued and outstanding
at June 30, 2005 and
December 31, 2004 - -
Common stock, $.0025 par value,
100,000,000 shares authorized;
issued and outstanding shares -
24,395,870 shares at June 30, 2005
and 24,381,870 shares at
December 31, 2004 60,990 60,955
Additional paid-in capital 132,541,547 132,535,982
Accumulated other comprehensive
loss (16,348) (37,675)
Accumulated deficit (109,028,375) (105,949,887)
------------ ------------
Total shareholders' equity 23,557,814 26,609,375
------------ ------------
Total liabilities and
shareholders' equity $ 27,988,184 $ 31,336,062
============ ============
EDEN BIOSCIENCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Product sales, net
of sales
allowances $ 1,677,463 $ 289,937 $ 2,831,949 $ 503,338
Operating expenses:
Cost of goods
sold 646,042 492,896 1,174,359 1,150,893
Research and
development 979,531 720,878 1,905,848 1,397,187
Selling, general
and administrative 1,514,786 1,117,869 2,969,490 2,394,567
------------ ------------ ------------ ------------
Total operating
expenses 3,140,359 2,331,643 6,049,697 4,942,647
------------ ------------ ------------ ------------
Loss from
operations (1,462,896) (2,041,706) (3,217,748) (4,439,309)
------------ ------------ ------------ ------------
Other income (expense):
Interest income 71,421 46,696 139,726 98,619
Interest expense (185) (571) (466) (1,290)
------------ ------------ ------------ ------------
Total other
income 71,236 46,125 139,260 97,329
------------ ------------ ------------ ------------
Loss before
income taxes (1,391,660) (1,995,581) (3,078,488) (4,341,980)
Income taxes - - - -
------------ ------------ ------------ ------------
Net loss $ (1,391,660) $ (1,995,581) $ (3,078,488) $ (4,341,980)
============ ============ ============ ============
Basic and diluted
net loss per
share $ (0.06) $ (0.08) $ (0.13) $ (0.18)
============ ============ ============ ============
Weighted average
shares outstanding
used to compute
net loss per share 24,391,255 24,368,875 24,386,562 24,365,432
============ ============ ============ ============
CONTACT
Bradley S. Powell
Eden Bioscience
425-984-2135
fax: 425-806-7400
investorinfo@edenbio.com
