REDWOOD CITY, Calif., Nov. 8, 2010 /PRNewswire-FirstCall/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended September 30, 2010.
Total revenue increased to $46.3 million in the third quarter of 2010, compared with $39.5 million in the third quarter of 2009. Product revenue was $45.8 million in the third quarter of 2010, an increase of 18 percent, compared with $38.9 million in the third quarter of 2009.
Net income was $3.7 million in the third quarter of 2010, compared with a net loss of $502,000 in the third quarter of 2009. Basic and diluted net income per share was $0.13 and $0.12, respectively, in the third quarter of 2010, compared with basic and diluted net loss per share of $0.02 in the third quarter of 2009.
"Our strong third quarter results reflect an increase in revenues and test volume across all segments of our business and increasing reimbursement worldwide," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "We delivered profit for the second consecutive quarter while continuing to invest in our global commercial infrastructure as well as multiple research and development initiatives aimed at expanding our reach to cancer patients in new markets throughout the world."
Additional Third Quarter 2010 Financial Results Total operating expenses for the third quarter of 2010 were $42.9 million, including cost of product revenues of $8.9 million, compared with total operating expenses for the comparable period in 2009 of $40.1 million, including cost of product revenues of $8.3 million. Included in operating expenses for the third quarter of 2010 were non-cash charges of $4.5 million, including $2.7 million of stock-based compensation expense and $1.8 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2009 of $4.2 million, including $2.5 million of stock-based compensation expense and $1.7 million of depreciation and amortization expenses.
Cash and cash equivalents and short-term investments at September 30, 2010 increased by $12.3 million to $69.7 million, compared with $57.4 million at December 31, 2009.
Financial Results for Nine Months Ended September 30, 2010Total revenue for the nine months ended September 30, 2010 was $131.0 million, compared with $110.0 million for the first nine months of 2009. Product revenue for the nine months ended September 30, 2010 was $128.6 million, compared with $107.5 million for the first nine months of 2009, an increase of 20 percent.
Net income was $2.6 million for the nine months ended September 30, 2010, compared with a net loss of $9.1 million for the first nine months of 2009. Basic and diluted net income per share was $0.09 for the nine months ended September 30, 2010, compared with basic and diluted net loss per share of $0.32 for the first nine months of 2009.
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Conference Call Details To access the live conference call on November 8 at 4:30 p.m. Eastern Time via phone, please dial (877) 303-7208 from the United States and Canada or +1(224) 357-2389 internationally. Please dial in approximately ten minutes prior to the start of the call. A telephone replay will be available beginning approximately two hours after the call through November 15, and may be accessed by dialing (800) 642-1687 from the United States and Canada or +1(706) 645-9291 internationally. The replay passcode is 19819777.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of the company's Web site at http://investor.genomichealth.com/eventdetail.cfm?eventid=87666. Please connect to the web site at least 15 minutes prior to the call to allow for any software download that may be necessary.
About Genomic Health Genomic HealthGenomic Health, Inc. (NASDAQ: GHDX) is a life science company focused on the global development and commercialization of genomic-based clinical laboratory services for cancer that allow physicians and patients to make individualized treatment decisions. In 2004, Genomic Health launched the Oncotype DX® breast cancer test, which has been shown to predict the likelihood of chemotherapy benefit as well as recurrence in early-stage breast cancer. In addition to the widely adopted Oncotype DX breast cancer test, Genomic Health launched its Oncotype DX colon cancer test in January 2010. As of September 30, 2010, more than 10,000 physicians in over 55 countries had ordered more than 175,000 Oncotype DX tests. The company was founded in 2000 and is located in Redwood City, California. For more information, please visit www.genomichealth.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to increasing reimbursement worldwide; the company's ability to continue to invest in its global commercial infrastructure and multiple research and development initiatives aimed at expanding its reach to cancer patients in new markets throughout the world; the outcome, success or results of clinical trials and the timing of such activities; the applicability of clinical study results to actual outcomes; and the ability of the company's tests to impact clinical practice. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the impact of the economy on our business; our ability to increase usage of our tests; the risk that we may not obtain or maintain sufficient levels of reimbursement for our existing tests and any future tests we may develop; our success retaining current contracts or levels of reimbursement coverage for our tests; the risks and uncertainties associated with the regulation of our tests by FDA; the impact of healthcare legislation on our business; our ability to compete against third parties; our ability to develop and commercialize new tests; unanticipated costs or delays in research and development efforts; our ability to obtain capital when needed; our history of operating losses; the results of clinical studies; the applicability of clinical study results to actual outcomes; and the other risks set forth in the company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010. These forward- looking statements speak only as of the date hereof. Genomic Health disclaims any obligation to update these forward-looking statements.
NOTE: The Genomic Health logo, Oncotype, Oncotype DX and Recurrence Score are trademarks or registered trademarks of Genomic Health, Inc. All other trademarks and service marks are the property of their respective owners.Genomic Health, Inc.Condensed Consolidated Statements of Operations (in thousands, except share and per share data)For the Three Months Ended For the Nine Months Ended September 30,September 30,2010
109,965OPERATING EXPENSES:Cost of product revenues
24,019Research and development
27,007Selling and marketing
45,719General and administrative
22,318Total operating expenses
119,063Income (loss) from operations
(9,098)Interest and other income
591Interest and other expense
(109)Income (loss) before income taxes
(8,616)Income tax provision (benefit)
454Net income (loss)
(9,070)Basic net income (loss) per share
(0.32)Diluted net income (loss) per share
(0.32)Shares used to compute basic net income (loss) per share
28,538,915Shares used to compute diluted net income (loss) per share
28,538,915Genomic Health, Inc.Condensed Consolidated Balance Sheets(in thousands)As of
As ofSeptember 30, 2010
December 31, 2009(Unaudited)
(Unaudited)Cash and cash equivalents
48,366Accounts receivable, net
11,123Prepaid expenses and other current assets
5,677Total current assets
74,248Property and equipment, net
,304Accrued expenses and other current liabilities
68,509Total liabilities and stockholders’ equity
88,107The condensed consolidated balance sheet at December 31, 2009 has been derived from the audited consolidated financial statements at that date included in the Company's Form 10-K for the fiscal year ended December 31, 2009.
|SOURCE Genomic Health, Inc.|
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