Seed Energy Company Ceres Delivers Sprouts of Growth In Q2 2012
Product sales were up, along with expenses, as energy crop company Ceres (CERE :NASDAQ) reported its first quarterly report since its IPO on February 27, 2012.
Total revenues for Q2 2012 were $1.3 million, a 19 percent drop from the same quarter in the previous year. This was mainly due to a 0.4 million drop in research and government grants in the quarter. But investors can take hope in the fact that product sales were up 0.1 million.
The cost of product sales increased 66 percent to $0.5 million as the company increased its focus on U.S. activities.
Research and development costs increased $0.6 million to $5 million and selling and general administrative costs increased year-over-year by $0.6 million to $2.8 million.
Overall, achieved a net loss of $6.8 million, a 26 percent increase from the $5.4 million reported in the same quarter of the previous year.
While some investors may look at the loss and worry, most will probably recognize that the company is extremely well-funded with its current market cap of $374.9 million. Ceres also noted today that its ethanol mills in Brazil began harvesting sweet sorghum produced from their seeds last month.
And Ceres is currently working with a research collaborator in the U.K. on a genetic map of miscanthus, a promising energy grass that could help the company identify equivalent genes in sweet sorghum and switchgrass.
Shares of Ceres were up 1.45 percent in early afternoon trading.