Agritope, Inc. today reported increased research funding contributed to its 156% increase in
quarterly revenues. For the first fiscal quarter ended December 31, 1999, total revenues increased 156% to $601,000 compared to $235,000 in the like quarter a year ago. The net loss for the quarter was $1.32 million, or $.32 per share (basic and diluted), compared to a loss of $1.26 million, or $.31 per share, for the quarter ended December 31, 1998.

"Fiscal 2000 is off to a great start," said Adolph J. Ferro, president and chief executive officer. "Research contracts and grants accounted for 93% of the quarter's revenues compared to 68% a year ago. Both our internal efforts and programs through Agrinomics -- our 50%-owned joint venture with the Aventis CropScience unit of Aventis, S.A. (NYSE: AVE) -- showed excellent
growth. Our research efforts continue to receive strong support from both government agencies and private companies."

Agritope's majority-owned subsidiary, Vinifera, Inc., a grapevine nursery, experienced a typical seasonal decrease in sales for the quarter. "Most shipments occur during the spring and summer planting seasons, so we are not surprised by the slowdown in the quarter. However, through the efforts of our sales force, at December 31, 1999, Vinifera already had firm orders totaling $3.0 million for delivery this spring and summer, a 58% increase from a year ago when orders totaled $1.9 million," said Ferro. Vinifera contributed $45,000 in revenues during the quarter, compared to $74,000 in the like quarter a year ago. Vinifera improved its gross margin to 9% in the quarter, compared to a negative gross margin for the first fiscal quarter of 1999. 

"We have bolstered our research and development activities to support our internal programs focusing on improved varieties of melons, tomatoes and raspberries as well as the functional genomics programs of Agrinomics," added Ferro. Reflecting the increased activity, research and development expenses in the first quarter were $1.0 million compared to $700,000 in the like quarter a year ago. Selling, general and administrative expenses were $974,000 for the quarter, compared to $875,000 in the year ago quarter. The loss from operations remained even quarter-over-quarter at $1.4 million.

Agrinomics LLC, Agritope's 50% owned joint venture with the Aventis CropScience unit of Aventis, S.A., was formed in 1999 to identify, develop and commercialize novel genes expected to be discovered under a program called the ACTTAG(TM) Gene Discovery Program. ACTTAG utilizes activation tagging, a technique that enables researchers to rapidly discover genes and the traits
they confer. Agritope and its academic collaborators will each generate genetically modified seeds that will be screened for a wide variety of traits such as disease resistance, insect resistance, new morphologies, abiotic stress intolerance, improved flowering characteristics, herbicide targets, herbicide tolerance and improved nutritional qualities. Agrinomics recently announced its first research project agreement with a joint venture formed by Vilmorin Clause & Cie of France and Biotech M.A.H. Plant Genomic Fund of Israel, a fund managed by a partnership between Hazera Quality Seeds Ltd. and Makhteshim-Agan Industries Ltd. of Israel. Under the agreement, the Vilmorin/Biotech M.A.H. joint venture will sponsor a five-year $7.5 million research program to discover genes that confer desirable traits in certain vegetables. Agrinomics expects to form a series of third party collaborations such as this one to sponsor specific research in a variety of crops.

Agritope is an Oregon-based agricultural functional genomics and biotechnology company that develops improved plant products and provides technology to the agricultural industry. Its fruit and vegetable division specializes in the development of improved fruit, vegetable and flower varieties. Vinifera, Inc., its majority owned subsidiary, offers superior grapevine plants to the premium wine industry together with disease testing and elimination services.

Company news release
N2488