REDWOOD CITY, Calif., Feb. 8, 2011 /PRNewswire/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended December 31, 2010.
Total revenue for the year ended December 31, 2010 increased to $178.1 million, compared with $149.5 million in 2009, an increase of 19 percent. Product revenue was $174.9 million for the year ended December 31, 2010, compared with $146.6 million in 2009. Contract revenue comprised the balance of total revenue for each of these periods. Net income was $4.3 million for the year ended December 31, 2010, compared with a net loss of $9.4 million in 2009. Basic and diluted net income per share applicable to common stockholders was $0.15 and $0.14, respectively, for the year ended December 31, 2010, compared with basic and diluted net loss per share of $0.33 in 2009.
Total revenue for the fourth quarter of 2010 increased to $47.1 million, compared with $39.6 million in the fourth quarter of 2009, an increase of 19 percent. Product revenue was $46.3 million in the fourth quarter of 2010, compared with $39.1 million for the fourth quarter of 2009. Net income in the fourth quarter of 2010 was $1.7 million, compared with a net loss of $0.3 million in the fourth quarter of 2009. Basic and diluted net income per share applicable to common stockholders was $0.06 in the fourth quarter of 2010, compared with basic and diluted net loss per share of $0.01 in the fourth quarter of 2009.
"In 2010, we delivered our first full year of profit and launched our second product franchise with the Oncotype DX® colon cancer test while continuing to invest in our global commercial infrastructure," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "In 2011, we plan to continue to make significant investments in the global expansion of both our breast and colon cancer franchises, and in our pipeline, including the acceleration of our prostate cancer program and next generation sequencing."
Additional Year-End and Fourth Quarter 2010 Financial ResultsTotal operating expenses for the year ended December 31, 2010 were $174.1 million, including cost of product revenues of $34.6 million, compared with total operating expenses for the comparable period in 2009 of $158.9 million, including cost of product revenues of $32.6 million. Included in operating expenses for the year ended December 31, 2010 were non-cash charges of $17.5 million, including $10.3 million of stock-based compensation expense and $7.2 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2009 of $16.8 million, including $10.2 million of stock-based compensation expense and $6.6 million of depreciation and amortization expenses.
Cash and cash equivalents and short-term investments at December 31, 2010 were $76.8 million, compared with $57.4 million at December 31, 2009, an increase of $19.4 million.
Total operating expenses for the fourth quarter of 2010 were $45.7 million, including cost of product revenues of $8.7 million, compared with total operating expenses for the comparable period in 2009 of $39.9 million, including cost of product revenues of $8.5 million. Included in operating expenses for the fourth quarter of 2010 were non-cash charges of $4.2 million, including $2.3 million of stock-based compensation expense and $1.9 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2009 of $4.3 million, including $2.6 million of stock-based compensation expense and $1.7 million of depreciation and amortization expenses.
More than 57,270 Oncotype DX test results were delivered for the year ended December 31, 2010, an increase of 17 percent, compared with more than 49,030 test results delivered in 2009. In the fourth quarter of 2010, more than 15,180 Oncotype DX test results were delivered, an increase of 14 percent, compared with more than 13,340 test results delivered in the same period in 2009.
2011 Financial GuidanceThe company is providing the following financial guidance for the full year ending December 31, 2011:
"In 2011, we expect top-line revenue growth to be primarily driven by the breast cancer franchise as we continue to secure reimbursement for our colon cancer test," said Dean Schorno, Chief Financial Officer of Genomic Health. "This year we intend to continue an increased level of investment in our business while targeting full year profitability consistent with 2010 levels."
Fourth Quarter 2010 Highlights:Oncotype DX Breast Cancer Commercial Progress
Oncotype DX Colon Cancer Commercial Progress
Product Pipeline, Peer-Reviewed Publications and Medical Meeting Presentations
Conference Call DetailsTo access the live conference call today, February 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 February 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 40255560.
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=91899. 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 HealthGenomic 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 December 31, 2010, more than 10,000 physicians in over 60 countries had ordered more than 190,000 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 2010 fourth quarter and annual results; the company's belief's in its ability to generate profit in 2011 and to operate its business on a cash flow positive basis; the company's intent to invest in its business and the areas in which it expects to make such investments, including international expansion, its product pipeline and driving reimbursement for and adoption of its colon cancer test; 2011 financial guidance, including expectations regarding the number of test results delivered, revenue, and net income; the company's intent to invest in it's business while targeting full year profitability consistent with 2010 levels; the company's belief that its 2010 results prove that its business model delivers results; the company's expectation that growth in top-line revenue will be driven almost exclusively by increasing adoption of its breast cancer test; the company's ability to accelerate the development of a test for prostate cancer and the potential timing of the launch of a new test for prostate cancer; the 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: 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; 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 successfully commercialize our products outside of the US; 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 September 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 per share amounts)For the Three Months Ended For the Twelve Months Ended December 31,December 31,2010
149,548OPERATING EXPENSES:Cost of product revenues
32,562Research and development
35,691Selling and marketing
61,132General and administrative
29,564Total operating expenses
158,949Income (loss) from operations
(9,401)Interest and other income
670Interest and other expense
120Income (loss) before income taxes
(8,851)Income tax provision (benefit)
560Net income (loss)
(9,411)Basic net income (loss) per share
(0.33)Diluted net income (loss) per share
(0.33)Shares used to compute basic net income (loss) per share
28,563Shares used to compute diluted net income (loss) per share
28,563Genomic Health, Inc.Condensed Consolidated Balance Sheets(in thousands)As of
As ofDecember 31, 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.|
Copyright©2010 PR Newswire.
All rights reserved