S&W Seed (NASDAQ: SANW) reported Q2 EPS of ($0.19), $0.05 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $12.35 million versus the consensus estimate of $10.73 million.

"Our financial results for the first half and second quarter of fiscal year 2020 are in line with our expectations as our refined sales and marketing approach continues to result in growth in our core business," commented Mark Wong, President & CEO of S&W Seed Company. "I believe we continue to be well-positioned to deliver core revenue growth and gross margin expansion as we enter the high-volume selling season, which we expect to be driven by the investments we have made to integrate and align our sales organizations to benefit from a multi-crop portfolio."

"We continue to make excellent progress bringing to market herbicide tolerance that will allow over-the-top grass control in sorghum. Our ACCase Tolerant Sorghum ("ATS") trials in calendar year 2019 showed good crop tolerance and excellent hybrid performance. We have further research and collaborator trials planned for calendar year 2020 which will be designed to refine crop safety parameters and verify hybrid performance with multi-location strip trials planned to demonstrate hybrids, crop safety and weed control on a commercial scale," Mr. Wong continued. "At the same time, we are working on regulatory packages for herbicide registration and export approvals for the grain produced from ATS fields. Seed production of the first ATS hybrids planned for 2020 is expected to provide small quantities for initial commercial introduction in 2021. Grain produced from the 2021 crop will likely be sold in the U.S. only, but we expect to have full export approvals and seed supply to meet 2022 demand."

Mr. Wong concluded, "We are working diligently to pursue accretive acquisitions that will leverage our operating infrastructure, including our enhanced sales and distribution capabilities. Our objectives include continuing to broaden our product offerings and sales capabilities, with a focus on geographies where we have an established presence to facilitate cross-selling of our existing portfolio. Further, we plan to look for unique technologies that we can leverage through applications to other products or geographies and add incremental value on a go-forward basis. Given the strength of our balance sheet, which includes significant availability on our credit facilities, I believe we are well positioned to execute on this strategy."

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