Evogene(US:EVGN)2023-11-15 17:21Financial Data and Key Metrics Changes - Evogene reported revenues of approximately $3.8 million for Q3 2023, a significant increase from approximately $0.5 million in the same period the previous year, primarily due to revenues from Lavie Bio's licensing agreement with Corteva and Casterra's castor seed sales [33][6][20] - The operating loss for Q3 2023 was approximately $4.2 million, down from an operating loss of approximately $7.1 million in the same period last year, reflecting improved revenue performance [35] - The net loss for Q3 2023 was approximately $3.9 million, compared to a net loss of approximately $7.2 million in the same period last year, indicating a positive trend in financial performance [36] Business Line Data and Key Metrics Changes - Lavie Bio generated approximately $2.5 million in licensing fees from its collaboration with Corteva, which significantly contributed to the revenue increase [6][24] - Casterra reported approximately $0.9 million in revenue from castor seed sales, marking its initial revenue contributions [6][28] - Biomica is advancing its clinical trials for BMC128, with the trial currently in Phase 1, indicating progress in its product development [18][26] Market Data and Key Metrics Changes - Evogene's cash balance at the end of Q3 2023 was approximately $37.2 million, with Lavie Bio holding $7.1 million and Biomica holding $14.6 million [19][50] - Casterra secured an $11.3 million order from a leading energy company for castor cultivation, reflecting strong demand in the biodiesel market [28] Company Strategy and Development Direction - Evogene's strategic focus remains on leveraging its AI tech engines for product development through collaborations and establishing independent subsidiaries [7][8] - The company plans to invest more resources in Casterra due to its significant potential in the biodiesel market while reducing investment in Canonic due to challenging market conditions in the medical cannabis sector [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing operations despite external challenges, emphasizing a commitment to innovation and progress [4] - The company anticipates additional orders for Casterra's castor seeds and new collaborations to enhance cash flow throughout 2024 [20] Other Important Information - Evogene's subsidiaries are utilizing AI tech engines under exclusive licenses for product development, showcasing the effectiveness of its technology [22] - The company is actively working on expanding its seed production capabilities and addressing logistical challenges in overseas operations [44][73] Q&A Session Summary Question: What is the expected seasonality for future Casterra orders? - Management indicated that the current order's delivery schedule reflects a typical seasonality pattern, with expectations for future orders to follow a similar trend [56] Question: Can you elaborate on the timing of the remaining purchase orders? - Management confirmed that the majority of the remaining seeds from the current order are expected to be delivered by the first half of 2024, with ongoing efforts to build infrastructure for seed production [60][74] Question: What is the expected timeline for collaboration on AgPlenus' APTH1 target? - Management noted that collaborations with large corporations typically take time due to validation and negotiation processes, but there is growing interest in AgPlenus' product pipeline [66][78] Question: How is Casterra addressing production challenges? - Management acknowledged the complexities of expanding seed production and emphasized ongoing investments in workforce and infrastructure to ensure reliable supply [44][73] Question: What are the expectations for gross margins in the upcoming quarters? - While specific gross margin figures were not disclosed, management indicated that margins in the seed business are generally high due to significant R&D investments [63][76]