REDWOOD CITY, Calif., Nov. 1, 2011 /PRNewswire/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended September 30, 2011.
Total revenue increased to $52.1 million in the third quarter of 2011, compared with $46.3 million in the third quarter of 2010. Product revenue was $51.7 million in the third quarter of 2011, an increase of 13 percent, compared with $45.8 million in the third quarter of 2010.
Net income was $3.2 million in the third quarter of 2011, compared with net income of $3.7 million in the third quarter of 2010. Basic net income per share was $0.11 and diluted net income per share was $0.10 in the third quarter of 2011, compared with basic net income per share of $0.13 and diluted net income per share of $0.12 in the third quarter of 2010.
"In the third quarter we delivered strong financial results highlighted by continued topline growth, and were pleased to announce Medicare's decision to cover the Oncotype DX® colon cancer test," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "We have built a solid foundation designed to deliver future growth through international expansion, the planned launch of the Oncotype DX DCIS Score and the advancement of our colon, prostate and next generation cancer diagnostics."
Total operating expenses for the third quarter of 2011 were $48.7 million, including cost of product revenues of $9.2 million, compared with total operating expenses for the comparable period in 2010 of $42.9 million, including cost of product revenues of $8.9 million. Included in operating expenses for the third quarter of 2011 were non-cash charges of $4.7 million, including $2.9 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 2010 of $4.5 million.
In the third quarter of 2011, more than 16,890 Oncotype DX test results were delivered, an increase of 15 percent, compared with 14,730 test results delivered in the third quarter of 2010.
Financial Results for Nine Months Ended September 30, 2011Total revenue for the nine months ended September 30, 2011 was $152.7 million, compared with $131.0 million for the first nine months of 2010. Product revenue for the nine months ended September 30, 2011 was $151.6 million, compared with $128.6 million for the first nine months of 2010, an increase of 18 percent.
Net income was $5.3 million for the nine months ended September 30, 2011, compared with net income of $2.6 million for the first nine months of 2010. Basic net income per share was $0.18 and diluted net income per share was $0.17 for the nine months ended September 30, 2011, compared with basic and diluted net income per share of $0.09 for the first nine months of 2010.
Cash and cash equivalents and investments in marketable securities at September 30, 2011 were $87.4 million compared with $76.8 million at December 31, 2010.
Financial Guidance Update"Due to ongoing strength and leverage in our business, continued reimbursement success, and an amendment to a PCR licensing arrangement, we are raising our full year 2011 net income guidance from $3-$5 million to approximately $8 million," said Dean Schorno, Chief Financial Officer of Genomic Health.
Quarterly Highlights Oncotype DX Breast Cancer Commercial Progress
Oncotype DX Colon Cancer Commercial Progress
Product Pipeline, Peer-Reviewed Publications and Medical Meeting Presentations
Conference Call Details To access the live conference call today, November 1 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 8, and may be accessed by dialing (855) 859-2056 from the United States and Canada or +1(404) 537-3406 internationally. The replay passcode is 19902340.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of the company's website at http://investor.genomichealth.com/events.cfm. 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 Health, Inc. (NASDAQ: GHDX) is a molecular diagnostics company focused on the global development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Its lead product, the Oncotype DX breast cancer test, has been shown to predict the likelihood of chemotherapy benefit as well as recurrence in early-stage breast cancer. In addition to this widely adopted test, Genomic Health provides the Oncotype DX colon cancer test, the first multigene expression test developed for the assessment of risk of recurrence in patients with stage II disease. As of September 30, 2011, more than 10,000 physicians in over 60 countries had ordered more than 230,000 Oncotype DX tests. Genomic Health has a robust pipeline focused on developing tests to optimize the treatment of prostate and renal cell cancers, as well as additional stages of breast and colon cancers. The company is based in Redwood City, California with European headquarters in Geneva, Switzerland. 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 the company's 2011 third quarter and annual results; the company's belief that it has built a solid foundation designed to deliver future growth, as well as its belief that its expansion, investment, pipeline and business strategy will drive future growth; the company's beliefs regarding its revised 2011 net income guidance; the company's belief that it is on track to launch tests for DCIS and MMR by the end of 2011 and to initiate a clinical validation study of its prostate cancer test currently in development in 2011; the attributes and focus of the company's product pipeline, including the prospects for its next generation cancer diagnostic programs; 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: 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, both domestically and abroad; our success in retaining current contracts or levels of reimbursement coverage for our tests; the risks and uncertainties associated with the regulation of our tests by the FDA and other agencies abroad; our ability to compete against third parties; our ability to develop and commercialize new tests and the timing thereof; unanticipated costs or delays in research and development efforts; our ability to successfully commercialize our products outside of the U.S.; our ability to obtain capital when needed; our ability to leverage our existing infrastructure and generate net income while continuing to invest in future growth drivers; our history of operating losses; fluctuations in levels of growth; 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 period ended June 30, 2011. 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 per share amounts)For the Three Months Ended
September 30,For the Nine Months Ended
September 30, 2011
$ 45,773$ 151,611
$ 128,553Contract revenues
130,985OPERATING EXPENSES:Cost of product revenues
25,927Research and development
23,953Selling and marketing
52,868General and administrative
25,640Total operating expenses
128,388Income from operations
174Other income (expense), net
14Income before income taxes
2,785Income tax expense (benefit)
2,603Basic net income per share
.09Diluted net income per share
.09Shares used to compute basic net income per share
28,784Shares used to compute diluted net income per share
29,625Genomic Health, Inc.Condensed Consolidated Balance Sheets(in thousands)As ofSeptember 30,
December 31, 2011
2010(Unaudited)Cash and cash equivalents
45,635Accounts receivable, net
14,306Prepaid expenses and other current assets
6,541Total current assets
-Property and equipment, net
3,968Accrued expenses and other current liabilities
86,110Total liabilities and stockholders' equity
,861The condensed consolidated balance sheet at December 31, 2010 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, 2010.
|SOURCE Genomic Health, Inc.|
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