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EDEN
BIOSCIENCE
FOR IMMEDIATE RELEASE
CONTACT
Bradley S. Powell
EDEN Bioscience
425-481-7509
fax: 425-806-7400
investorinfo@edenbio.com
EDEN Bioscience Announces First Quarter 2003 Financial Results
BOTHELL, Wash., April 24, 2003 -- 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 first quarter ended March 31, 2003.
Product sales, net of sales allowances, for the first quarter of 2003 were
$847,000. This includes the elimination of $126,000 of sales allowance
liabilities recognized in prior quarters that will not be paid because of
changes in distribution programs implemented in 2003 and actual amounts earned
by distributors being less than amounts previously estimated. Excluding this
reduction in sales allowance liabilities, net product sales totaled $721,000.
Net product sales totaled $555,000 in the first quarter of 2002. Net loss in the
first quarter of 2003 was $2.9 million, or $0.12 per weighted average common
share, compared to a net loss of $5.5 million, or $0.23 per weighted average
common share, in the first quarter of 2002. Per-share loss amounts for the
quarters are based on weighted average common shares of 24.3 million in 2003 and
24.2 million in 2002.
The company estimates that distributors sold approximately 158,000 ounces of
Messenger to growers in the first quarter of 2003, compared with 144,000 ounces
in the first quarter of 2002. Based on preliminary information, EDEN estimates
that 685,000 ounces remained in distributors' inventories at March 31, 2003.
"We are continuing our full sales effort on communicating the plant health,
yield and post-harvest benefits of Messenger to growers and retailers in our
focus crops," said Rhett Atkins, President and CEO. "While we are pleased that
total estimated distributor sales to growers increased 10% in the first quarter
of 2003 over the comparable quarter in 2002, we still believe that distributors'
inventories of Messenger are high. We expect our sales to distributors in the
second quarter of 2003 to be minor as grower demand for Messenger will most
likely be filled from current distributor inventory."
Cash and investments as of March 31, 2003 totaled $26.1 million, compared with
$30.7 million at December 31, 2002.
CONFERENCE CALL
EDEN Bioscience will host a live conference call and Web cast to discuss its
first quarter 2003 financial results on Thursday, April, 24, 2003 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 May 1, 2003, 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. EDEN Bioscience believes its technology and initial product,
Messenger, provide growers with a new tool to improve crop production and plant
protection. Messenger is 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. EDEN Bioscience's headquarters are at 3830 Monte Villa Parkway,
Bothell, WA 98021, 425-806-7300; www.edenbio.com.
(c) 2003 EDEN Bioscience Corporation. Always read and follow label instructions
before buying or using this product. Messenger(R), EDEN(R), and EDEN
Bioscience(R) are registered trademarks of EDEN Bioscience Corporation.
Messenger is not currently registered for sale or use in Colorado. In
California, Messenger is labeled for disease management on strawberries, grapes,
and fruiting vegetables only and to increase overall production on citrus and
tomato.
CAUTIONARY STATEMENT: Certain statements contained in this press release are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, among which include statements regarding
increasing grower usage of Messenger, estimates of distributor sales to growers,
estimates of distributors' inventories of Messenger, estimated sales for the
second quarter of 2003 and Messenger's benefits to agriculture. 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 EDEN's actual results
include, among others, dependence on a single product; unsuccessful development
and commercialization of our single product; inability to develop adequate sales
and marketing capabilities; history of losses and expectation the losses will
continue; inability to produce a high quality product; 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 EDEN's financial results is included in EDEN'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 undertakes no obligation to update any forward-looking
statements.
(tables to follow)
EDEN Bioscience Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2003 2002
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 26,088,535 $ 30,729,828
Accounts receivable, net of sales allowances 645,381 218,529
Inventory 2,191,862 2,135,188
Other current assets 930,373 770,136
------------- -------------
Total current assets 29,856,151 33,853,681
Property and equipment, net 17,915,103 18,410,909
Other assets 1,638,908 1,647,304
------------- -------------
Total assets $ 49,410,162 $ 53,911,894
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 241,469 $ 361,801
Accrued liabilities 1,916,263 3,546,339
Current portion of accrued loss on facility sublease 349,588 292,482
Current portion of capital lease obligations 60,569 95,426
------------- -------------
Total current liabilities 2,567,889 4,296,048
Accrued loss on facility sublease, net of current portion 2,516,380 2,613,651
Capital lease obligations, net of current portion 23,522 29,592
Other long-term liabilities 582,020 378,816
------------- -------------
Total liabilities 5,689,811 7,318,107
------------- -------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares
authorized; no shares designated at March 31, 2003 and
December 31, 2002 -- --
Common stock, $.0025 par value, 100,000,000 shares
authorized; issued and outstanding shares - 24,329,995 at
March 31, 2003; 24,307,495 at December 31, 2002 60,825 60,769
Additional paid-in capital 132,489,350 132,466,906
Cumulative translation adjustment (86,974) (78,842)
Accumulated deficit (88,742,850) (85,855,046)
------------- -------------
Total shareholders' equity 43,720,351 46,593,787
------------- -------------
Total liabilities and shareholders' equity $ 49,410,162 $ 53,911,894
============= =============
EDEN Bioscience Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31,
-------------------------------
2003 2002
------------ ------------
Product sales, net of sales allowances $ 846,860 (a) $ 555,007
Operating expenses:
Cost of goods sold 578,196 692,323
Research and development 1,517,248 2,895,474
Selling, general and administrative 1,665,402 2,681,899
------------ ------------
Total operating expenses 3,760,846 6,269,696
------------ ------------
Loss from operations (2,913,986) (5,714,689)
------------ ------------
Other income (expense):
Interest income 93,655 223,135
Interest expense (3,965) (13,163)
------------ ------------
Total other income (expense) 89,690 209,972
------------ ------------
Loss before income taxes and cumulative effect of
adoption of SFAS No. 143 (2,824,296) (5,504,717)
Provision for income taxes -- --
------------ ------------
Loss before cumulative effect of adoption of SFAS No. 143 (2,824,296) (5,504,717)
Cumulative effect of adoption of SFAS No. 143 (63,508) --
------------ ------------
Net loss $ (2,887,804) $ (5,504,717)
============ ============
Basic and diluted net loss per share:
Loss before cumulative effect of adoption of SFAS No. 143 $ (0.12) $ (0.23)
Cumulative effect of adoption of SFAS No. 143 -- --
------------ ------------
Net loss $ (0.12) $ (0.23)
============ ============
Weighted average shares outstanding used to
compute net loss per share 24,308,106 24,166,638
============ ============
(a) Includes the elimination of $126,301 of sales allowance liabilities
recognized in prior quarters that will not be paid because of changes in
distribution programs implemented in 2003 and actual amounts earned by
distributors being less than amounts previously estimated. Excluding this
reduction in sales allowance liabilities, net product sales totaled
$720,559.