S&W Seed Co. posts $7.2M loss in first quarter

LONGMONT — S&W Seed Co. (Nasdaq: SANW) reported a net loss of $7.2 million for the first quarter of the 2021 fiscal year. The loss for the period ended Sept. 30 compared with a loss of $4.9 million for the same period a year ago.

The first-quarter loss amounted to negative 21 cents per share, compared with a loss of 15 cents per share for the first quarter of 2020.

The Longmont-based alfalfa-seed company reported revenue of $13.9 million, up from $12.3 million in the first quarter of fiscal 2020.

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“The seasonally slow first quarter came in line with our internal expectations and should become a critical pivot quarter for S&W as we expect the remainder of the fiscal year to show strong core revenue growth and improvements in gross margins,” Mark Wong, president and CEO of S&W Seed, said in a press release.

“While the first quarter was comprised primarily of lower margin alfalfa seed sales to select regions of the world, we continue to be encouraged by the strong margin profile of our sorghum business,” he said. “As we enter the remainder of the fiscal year, we expect the strength of our high margin sorghum business, coupled with continued realization of investments we have made within our sales and marketing, and research and development functions, to highlight the leveraged power of the S&W business model.”

S&W expects total revenue for fiscal 2021 of $88 million to $94 million.

The company last week inked an exclusive licensing agreement to sell alfalfa seed developed by Calyxt Inc. (Nasdaq: CLXT).

S&W’s stock closed at $2.26 Thursday, down 6 cents from Wednesday’s close.

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