Intrexon Loss Widens On Expenses - Update

(RTTNews) - Intrexon Corp (XON), a synthetic biology company, Thursday reported a wider loss for the second quarter, hurt by operating expenses and one-time charges that offset growth in collaboration revenue. Revenue for the quarter topped Wall Street estimates.

Following the results, Intrexon shares gained more than 3 percent in after-hours trade on the New York Stock Exchange.

Intrexon, which became a public company in August 2013, collaborates with companies in health, environment and consumer sectors to create biologically-based products. Its proprietary technologies include UltraVector gene engineering and assembly, and RheoSwitch Therapeutic System platform.

The company's results for the quarter were hurt by a loss of $33.8 million from an unrealized depreciation in fair value of equity securities.

Also general expenses more than doubled to $15.4 million, due to higher employee costs and stock-option grants.

As a result, Intrexon, based in West Palm Beach, Florida, posted a quarterly net loss to stockholders of $52 million or $0.53 per share. This compares with a loss of $14 million or $2.45 per share last year.

Loss for the recent quarter reflected a lower share count.

The company's revenue for the quarter climbed to $11.8 million from $6.7 million a year ago, topping analysts' estimates of $9.4 million.

Recently, Intrexon closed its acquisition of Trans Ova Genetics L.C., a provider of bovine reproductive technologies and the largest producer of bovine embryos in the U.S. The deal comprises $60 million in cash and the issuance of about 1.44 shares of Intrexon common stock. Intrexon is obligated to pay an additional $20 million in staggered payments as well as contingent payments.

For the year ended December 2013, Trans Ova posted a profit of $4.4 million on sales of $63.2 million.

Intrexon stock closed Thursday at $22.40, up $0.12 or 0.54%, on a volume of 309k shares on the NYSE. In after hours, the stock gained $0.70 or 3.13% at 23.10.