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Bothell, Washington
June 22, 2001
EDEN Bioscience Corporation (Nasdaq:EDEN), which develops,
manufactures and markets innovative, natural products for
protecting plants and improving crop production, today revised
its
financial outlook for its second quarter ending June 30, 2001.
Based on preliminary results, the company expects that revenue
for the quarter will be approximately $1 million, compared to
previous expectations of $4 million to $6 million. The company
believes this lower-than-expected revenue is primarily due to
the severity of the growers' economic conditions in EDEN's
initially targeted markets, principally cotton and citrus.
Manufacturing activities have been scaled back as a result of
this reduced demand.
"Because of unfavorable commodity pricing and higher
fertilization and energy costs in our initially targeted crops,
combined with a historic drought in Florida, end-user sales and
application of Messenger(R) have been well below what we or our
distributors had forecasted," said Jerry Butler, president and
CEO. "While we continue to see acceptance of Messenger within
our distribution channel and with leading growers, at this early
stage of product roll-out our business is highly sensitive to
the adverse economic circumstances that farmers have faced this
growing season."
Separately, EDEN incurred an inventory charge during the
quarter, totaling approximately $1.4 million, related to changes
the company has made in manufacturing operations at its new
facility.
EDEN expects to announce results for the second quarter 2001 on
July 26, 2001.
EDEN Bioscience is a plant technology company focused on
developing, manufacturing and marketing innovative natural
products for agriculture. EDEN believes its technology and
initial product, Messenger(R), allows it to offer superior
alternatives to existing plant protection and crop yield
enhancement products in terms of both performance and safety,
and importantly, to avoid the substantial public resistance to
many chemical pesticides and genetically modified plants.
Messenger, which received EPA approval for full commercial use
in April 2000, is based on naturally occurring proteins called
"harpins", which activate natural plant defense systems to
protect against disease and pests, and simultaneously activate
plant growth systems, improving crop yield and quality. It has
been extensively tested in hundreds of field trials in several
countries and on more than 40 crops including: citrus, cotton,
strawberries, tomatoes, peppers, melons, wheat, rice, peanuts,
tobacco, grapes and others.
Company news release
N3604 |
