Welcome!

Microsoft Cloud Authors: Jayaram Krishnaswamy, Yung Chou, David Bermingham, Dana Gardner, Pat Romanski

News Feed Item

Genomic Health Announces Third Quarter 2012 Financial Results and Business Progress

Product Revenue Increased 13% Compared with Prior Year

REDWOOD CITY, Calif., Nov. 7, 2012 /PRNewswire/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended September 30, 2012.

Total revenue increased to $58.6 million in the third quarter of 2012, compared with $52.1 million in the third quarter of 2011, an increase of 13 percent.  Product revenue was $58.4 million in the third quarter of 2012, compared with $51.7 million for the same period in 2011, an increase of 13 percent.

Net income was $3.7 million in the third quarter of 2012, compared with net income of $3.2 million in the third quarter of 2011. 

Basic and diluted net income per share applicable to common stockholders was $0.12 and $0.11, respectively in the third quarter of 2012, compared with basic and diluted net income per share of $0.11 and $0.10, respectively, for the same period in 2011.

"In the third quarter, we delivered strong net income and a 13 percent increase in year-over-year product revenue, led by significant international growth reflecting the diversification of our business and continued progress in capturing an important global opportunity," said Kim Popovits, Chairman of the Board, Chief Executive Officer and President of Genomic Health. "Further, with the announcement of positive prostate cancer validation study results, we are now positioned to leverage our proven commercial infrastructure in addressing a third major cancer, and one of the greatest needs in medicine, by making the Oncotype® DX prostate cancer test available in the first half of 2013."

Total operating expenses for the third quarter of 2012 were $54.9 million, including cost of product revenues of $9.0 million, compared with total operating expenses for the comparable period in 2011 of $48.7 million, including cost of product revenues of $9.2 million.  Included in operating expenses for the third quarter of 2012 were non-cash charges of $4.6 million, including $3.4 million of stock-based compensation expense and $1.2 million of depreciation and amortization expenses, compared with 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 for the same period in 2011.

In the third quarter of 2012, more than 18,030 Oncotype DX test results were delivered, an increase of 7 percent, compared with 16,890 test results delivered in the third quarter of 2011.

Financial Results for Nine Months Ended September 30, 2012

Total revenue for the nine months ended September 30, 2012 was $174.7 million, compared with $152.7 million for the first nine months of 2011, an increase of 14 percent.  Product revenue for the nine months ended September 30, 2012 was $173.5 million, compared with $151.6  million for the first nine months of 2011, an increase of 14 percent.

Net income was $6.3 million for the nine months ended September 30, 2012, compared with net income of $5.3 million for the first nine months of 2011. 

Basic and diluted net income per share was $0.21 and $0.20, respectively, for the nine months ended September 30, 2012, compared with basic and diluted net income per share of $0.18 and $0.17, respectively, for the same period in 2011.

Cash and cash equivalents and investments in marketable securities at September 30, 2012 were $127.0 million, compared with $100.5 million at December 31, 2011.

Recent Business Highlights:

Oncotype DX Breast and Colon Cancer Commercial Progress

  • Established reimbursement with three additional state Medicaid programs for node-negative breast cancer patients.
  • Secured incremental international reimbursement for the Oncotype DX breast cancer test in France, Greece, Kuwait and Spain.
  • The Journal of Medical Economics and Bulletin du Cancer published studies demonstrating that the Oncotype DX breast cancer test is expected to be cost saving in Germany and France, respectively.

Medical Meeting Presentations and Pipeline

  • Announced positive topline results from a large clinical validation study of the Oncotype DX Genomic Prostate Score (GPS).  Complete data from this study has been submitted for presentation at the 2013 ASCO Genitourinary Cancers Symposium in February.  Based on the positive results, the company plans to make the test available to physicians and patients in the first half of 2013.
  • Presented data from three studies at the 2012 European Society of Medical Oncology (ESMO) Congress that support expanded use of Oncotype DX tests in optimizing treatment decisions for breast and colon cancer patients at various stages of disease.
  • Presented new data from two studies at the 2012 ASCO Breast Cancer Symposium that reinforce the value of Oncotype DX in node-positive breast cancer patients and provide further background on the development of the Oncotype DX DCIS (ductal carcinoma in situ of the breast) Score.
  • Received acceptance for six Oncotype DX studies at the upcoming San Antonio Breast Cancer Symposium (SABCS) in December.

 

Conference Call Details

To access the live conference call today, November 7, 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.  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 global healthcare company that provides actionable genomic information to personalize cancer treatment decisions.  The company's lead product, the Oncotype DX® breast cancer test, has been shown to predict the likelihood of chemotherapy benefit as well as recurrence in invasive breast cancer and has been shown to predict the likelihood of recurrence in ductal carcinoma in situ (DCIS).  In addition to this widely adopted test, Genomic Health provides the Oncotype DX colon cancer test, the first multi-gene expression test developed for the assessment of risk of recurrence in patients with stage II and stage III disease.  As of September 30, 2012, more than 10,000 physicians in over 65 countries had ordered more than 320,000 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 treatment decisions in 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. To learn more about Oncotype DX tests, visit: www.OncotypeDX.com and www.mybreastcancertreatment.org

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our belief that the growth in our international business reflects our continued progress in capturing an important global opportunity; our belief that we are positioned to leverage our proven commercial infrastructure in addressing a new cancer; our expectations regarding the timing of an expected launch of a test for prostate cancer; our expectations regarding the possible benefits of  any new prostate cancer test; the focus and attributes of the company's product pipeline; the ability of the company to develop additional tests in the future; and the ability of any potential tests the company may develop to optimize cancer treatment. 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: risks related to the commercial launch of a new test for prostate cancer; the results of clinical and developmental studies; the applicability of clinical study results to actual outcomes; our ability to develop and commercialize new tests and the timing thereof; unanticipated costs or delays in research and development efforts; the applicability of initial next generation sequencing studies to future results; 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 ability to compete against third parties; the risks and uncertainties associated with the regulation of our tests by the FDA and other agencies abroad; 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, 2012. 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 Income

(In thousands, except per share amounts)




Three Months Ended


Nine Months Ended




September 30,


September 30,




2012


2011


2012


2011


REVENUES:










Product revenues


$

58,371


$

51,661


$

173,459


$

151,611


Contract revenues


277


397


1,287


1,102


Total revenues


58,648


52,058


174,746


152,713












OPERATING EXPENSES (1):










Cost of product revenues


9,037


9,195


27,377


26,480


Research and development


12,267


9,611


35,775


29,582


Selling and marketing


21,526


20,157


69,657


61,220


General and administrative


12,107


9,696


35,518


29,904


Total operating expenses


54,937


48,659


168,327


147,186


Income from operations


3,711


3,399


6,419


5,527


Interest income


77


77


226


217


Other income (expense), net


33


(113)


(112)


(191)


Income before income taxes


3,821


3,363


6,533


5,553












Income tax expense


109


138


243


266


Net income


$

3,712


$

3,225


$

6,290


$

5,287


Basic net income per share


$

0.12


$

0.11


$

0.21


$

0.18


Diluted net income per share


$

0.11


$

0.10


$

0.20


$

0.17


Shares used in computing basic net income per share


30,580


29,491


30,233


29,311


Shares used in computing diluted net income per share


32,578


30,808


32,095


30,661


 

(1)     Included in operating expenses for the three months ended September 30, 2012 were non-cash charges of $4.6 million, including $3.4 million of stock-based compensation expense and $1.2 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2011 of $4.7 million, including $2.9 million of stock-based compensation expense and $1.8 million of depreciation and amortization expenses.

Included in operating expenses for the nine months ended September 30, 2012 were non-cash charges of $14.8 million, including $10.8 million of stock-based compensation expense and $4.0 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2011 of $14.3 million, including $8.8 million of stock-based compensation expense and $5.5 million of depreciation and amortization expenses.

 

GENOMIC HEALTH, INC.

Condensed Consolidated Balance Sheets

(In thousands)




As of

June 30,
2012


As of December 31,
2011




(Unaudited)












Cash and cash equivalents


$

57,959


$

32,869


Short-term marketable securities


68,251


67,605


Accounts receivable, net


19,926


21,077


Prepaid expenses and other current assets


8,630


7,444


Total current assets


154,766


128,995








Long-term marketable securities


771



Property and equipment, net


11,799


9,443


Other assets


5,837


4,560


Total assets


$

173,173


$

142,998




















Accounts payable


$

3,392


$

7,025


Accrued expenses and other current liabilities


19,933


17,265


Deferred revenues


800


2,060


Other liabilities


2,211


1,289


Stockholders' equity


146,837


115,359


Total liabilities and stockholders' equity


$

173,173


$

142,998


The condensed consolidated balance sheet at December 31, 2011 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, 2011.

 

SOURCE Genomic Health, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...