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Applied DNA reports its growth in cotton industry in 2016
11 Nov '16
3 min read
Applied DNA Sciences, Inc., provider of DNA-based supply chain and anti-theft technologies, has reported on its progress in penetrating the American cotton industry with its botanical DNA-based supply chain solutions during the 2016 ginning season. In 2016, Applied DNA shipped orders for its SigNature T DNA concentrate to tag 93 million pounds of cotton.
The total cotton tagged consists of previously announced orders to tag 50 million pounds of HomeGrown Lonestar, 10 million pounds of Acala cotton, and a previously undisclosed order to tag 33 million pounds of Pima cotton. Due to extended payment terms under its current contract, Applied DNA does not always recognise all of the revenues in the fiscal quarter in which orders are shipped. In these instances, the balance is recorded as deferred revenue that converts to revenue within 12 months.
The company anticipates total market usage of marked cotton in the 2016 ginning season to be approximately 150 million pounds, which includes the usage of the excess SigNature T DNA from the 2015 ginning season that the company recognised as revenue during fiscal 2015. This compares to total market usage of marked cotton in the 2015 ginning season of approximately 40 million pounds, an expected increase of approximately 275 per cent year-over-year.
Dr. James Hayward, president and CEO of Applied DNA said, “The expected usage of SigNature T DNA to tag cotton in the current ginning season relative to the last is clear evidence that demand for marked cotton is growing. Not only is the market absorbing last ginning season's remaining taggant, but we are seeing absolute growth in market demand. Recent news of mislabelled Egyptian cotton, the growing awareness of the use of 'conflict cotton' in everyday products, and a greater focus on supply chain security by brands and retailers are driving momentum. SigNature T DNA is a proven, patented and incontestable solution that stands at the intersection of technology, market opportunity and the ability to transform our daily lives.”
“Given the nascence of the market, we cannot eliminate the possibility of taggant oversupply recurring in future ginning periods. However, we expect purchase orders placed by our partners to service the increasing needs of brand owners and retailers, and, for the first time in the company's history, interest from international cotton markets, to mitigate this possibility,” he added. (GK)
The total cotton tagged consists of previously announced orders to tag 50 million pounds of HomeGrown Lonestar, 10 million pounds of Acala cotton, and a previously undisclosed order to tag 33 million pounds of Pima cotton. Due to extended payment terms under its current contract, Applied DNA does not always recognise all of the revenues in the fiscal quarter in which orders are shipped. In these instances, the balance is recorded as deferred revenue that converts to revenue within 12 months.
The company anticipates total market usage of marked cotton in the 2016 ginning season to be approximately 150 million pounds, which includes the usage of the excess SigNature T DNA from the 2015 ginning season that the company recognised as revenue during fiscal 2015. This compares to total market usage of marked cotton in the 2015 ginning season of approximately 40 million pounds, an expected increase of approximately 275 per cent year-over-year.
Dr. James Hayward, president and CEO of Applied DNA said, “The expected usage of SigNature T DNA to tag cotton in the current ginning season relative to the last is clear evidence that demand for marked cotton is growing. Not only is the market absorbing last ginning season's remaining taggant, but we are seeing absolute growth in market demand. Recent news of mislabelled Egyptian cotton, the growing awareness of the use of 'conflict cotton' in everyday products, and a greater focus on supply chain security by brands and retailers are driving momentum. SigNature T DNA is a proven, patented and incontestable solution that stands at the intersection of technology, market opportunity and the ability to transform our daily lives.”
“Given the nascence of the market, we cannot eliminate the possibility of taggant oversupply recurring in future ginning periods. However, we expect purchase orders placed by our partners to service the increasing needs of brand owners and retailers, and, for the first time in the company's history, interest from international cotton markets, to mitigate this possibility,” he added. (GK)
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