Evogene(EVGN) - 2019 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of June 30, 2019, the company maintained approximately $46 million in cash and cash-related accounts, with cash usage of approximately $8.7 million in the first half of 2019 and $4.2 million in the second quarter of 2019 [36] - The gross profit for the first half of 2019 was approximately $0.4 million, compared to approximately $0.2 million for the same period in 2018, while the gross profit for the second quarter of 2019 remained stable at approximately $0.1 million [39] - The loss for the first half of 2019 decreased to $7.9 million compared to a loss of $10.1 million during the first half of 2018, and the loss for the second quarter of 2019 decreased to $4.1 million compared to a loss of $4.8 million in the second quarter of 2018 [43] Business Line Data and Key Metrics Changes - The company has established subsidiaries focused on agriculture, human health, and life-science based industrial applications, with specific subsidiaries like Lavie Bio focusing on bio-stimulants and bio-pesticides [9][10] - Lavie Bio reported positive second-year field results in its bio-stimulant program for wheat, showing significant yield improvement across multiple locations and conditions [22] Market Data and Key Metrics Changes - The agriculture market is shifting towards consumer-driven demand for sustainable practices, health, and quality of produce, which is influencing the development of ag-biological products [26] - The company identified spring wheat as a high commercial value crop, with a market of over 25 million acres in North America, allowing for independent go-to-market strategies [30] Company Strategy and Development Direction - The company aims to support its subsidiaries in accelerating product development towards commercialization, leveraging its unique computational technological capabilities through the CPB platform [7][12] - Evogene intends to remain a major stakeholder in its subsidiaries following any external fundraising to maintain a significant share of future profits and market value [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of technological, corporate, and funding support for subsidiaries to achieve their strategic plans and product development milestones [12][16] - The company plans to financially support its subsidiaries until they reach maturity and can generate revenues or secure external funding [18] Other Important Information - The company amended its plant disease collaboration agreement with Bayer to include genome editing targets, following positive results in corn stalk rot fungal disease control [21] - The company has initiated dedicated fundraising processes for several subsidiaries to meet their financial requirements for achieving milestone roadmaps [20] Q&A Session Summary - The call concluded without any recorded questions or answers, indicating a lack of engagement during the Q&A segment [44][45]