S&W Seed Company, a producer of warm climate, high-yield alfalfa seed varieties, today announced financial results for its second fiscal quarter of 2012 for the three months ended December 31, 2011.
The company reported second-quarter revenues of $4.7 million compared to revenues of $0.9 million in the comparable quarter last year, representing a 420 percent increase. The company attributes the significant increase to strong demand of its proprietary alfalfa seed and to increased price competitiveness stemming from its strategic purchase of its distributor's customer list and its sales directly to dealers and large farms in key international markets.
Operating income of $635,000 increased over an operating loss of $216,000 in the comparable period of the prior year.
S&W's second-quarter net income totaled $443,000, or $0.08 per basic and diluted share, compared to a net loss of $82,000 or $(0.01) per basic and diluted share in the second quarter of the prior year.
For the six months ended December 31, 2011, S&W increased revenues by 488 percent to $10.8 million compared to $1.8 million reported in the comparable period last year.
Six-month operating income of $1.5 million is a significant increase over an operating loss of $573,000 in the comparable period of the prior year.
The company reported six-month net income at $966,000, or $0.17 per basic and diluted share, compared to a net loss of $336,000, or $(0.06) per basic and diluted share, in the six months ended December 31, 2010.
As of December 11, 2011, the company reported a cash balance of $6.8 million and net working capital of $11.8 million, as well as an undrawn $5 million line of credit with Wells Fargo.
S&W also highlighted its stevia operations, which recorded its first revenue at approximately $25,000.The company said it expects stevia revenue to increase substantially as it refines its harvesting techniques.
"We intend to significantly expand stevia acreage in 2012. The company is producing several million stevia plants in the greenhouse for transplantation onto between 80 and 150 additional acres. After several years of research and development and based on the results of our test harvest, we now feel sufficiently confident to start a measured expansion in our stevia leaf production program," Mark Grewal, president and CEO of S&W stated in the press release. "Fiscal year 2012 is on pace to be an excellent year for S&W Seed Company and, as we approach the end of 2012, we are optimistic about fiscal 2013. We look forward to capitalizing on our core assets to build shareholder value into the future."
For more information visit www.swseedco.com
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