July 10, 1996
SAN DIEGO, Calif. -- Mycogen Corporation (Nasdaq: MYCO) recorded total revenues of $80.4 million for the third quarter, ended May 31, 1996, including results of operations for United AgriSeeds, which was acquired in February 1996. This compared to $57.8 million in the same period last year. Net income applicable to common shares, was $3.5 million, or $.11 per share, compared to $7 million, or $.36 per share, for the same period in 1995.
For the nine months ended May 31, 1996, total consolidated revenues were $132.2 million, compared to $98.6 million for the same period last year. Net loss applicable to common shares, including second quarter special charges for facility closures and acquired in-process technology, was $28.8 million, or $1.16 per share, compared to $1.6 million, or $.09 per share last year.
Combined Mycogen and United AgriSeeds operating revenues for the third quarter brought total seed segment revenues to $98.1 million, compared to $68.9 million for the same period last year. Crop protection segment revenues also increased, totaling $27.5 million compared to $24.1 million in 1995.
James A. Baumker, Mycogen�s vice president and chief financial officer, said that, despite cool, wet weather that delayed planting, preliminary indications are that both Mycogen Seeds and United AgriSeeds will have increased North American market share in corn and soybeans.
�We�re encouraged by top line growth in both the seed and crop protection segments,� Baumker said. �However, discards of seed products that were discontinued or did not meet quality standards increased seed costs, reducing gross margins. With the excellent United AgriSeeds production facilities we acquired and additional major production facility upgrades for our current production crop nearing completion, we expect to reduce costs and improve gross margins for fiscal 1997.�
Carl Eibl, Mycogen�s president and chief operating officer, said that increasing share owner value is management�s top priority for 1997.
�As we plan for the coming year, Mycogen has a good read on its revenue base and gross margin contribution against which to manage expenses,� Eibl said. �We understand that stockholders expect Mycogen to grow and demonstrate that our businesses can operate profitably in fiscal 1997.
�With the new Mycogen Seeds management team we�ve assembled, our increasing North American market share and higher quality and lower costs with the new production facilities we�re putting into place, the seeds business is moving toward critical mass. Biopesticide sales and market share also have grown strongly since we brought our new fermentation facility on line and revamped the crop protection sales organization.�
Mycogen�s forward-looking statements are based on projections and estimates regarding the economy and the seed and crop protection industries. Various factors could cause actual results to vary significantly from management�s expectations. These include the impact of weather on production and sales, actions by competitors and regulatory agencies, intellectual property positions, commodity prices, fluctuations in crop acreage and the effectiveness of internal expense controls.
Mycogen provides technology-based products and services to control agricultural pests and improve food and fiber production. Mycogen Seeds develops and markets seeds for improved crop varieties with genetically enhanced insect-resistance and other value-added characteristics. Mycogen Crop Protection develops and markets environmentally compatible biopesticides and provides crop protection services to growers of high value crops in California and Arizona.
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