Genomic Health fourth quarter total revenue increases to $60.4 million

Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter and year ended December 31, 2012.

Total revenue for the fourth quarter of 2012 increased to $60.4 million, compared with $53.4 million in the fourth quarter of 2011.  Product revenue was $60.0 million in the fourth quarter of 2012, compared with $53.2 million for the fourth quarter of 2011, an increase of 13 percent. 

Net income in the fourth quarter of 2012 was $2.0 million, compared with $2.6 million in the fourth quarter of 2011.  Basic and diluted net income per share applicable to common stockholders was $0.06 and $0.06, respectively, for the fourth quarter of 2012, compared with $0.09 and $0.08 per share in the fourth quarter of 2011.

Total revenue for the year ended December 31, 2012 increased to $235.2 million, compared with $206.1 million in 2011, an increase of 14 percent.  Product revenue was $233.5 million for the full-year 2012, compared with $204.8 million in 2011, an increase of 14 percent.  Contract revenue comprised the balance of total revenue for each of these periods.

Net income was $8.2 million for the year ended December 31, 2012, compared with $7.8 million in 2011. Basic and diluted net income per share applicable to common stockholders was $0.27 and $0.26, respectively, in both 2012 and 2011.

"We delivered strong full-year 2012 financial results highlighted by 14 percent revenue growth and record revenue in the fourth quarter, reflecting continued market expansion in the U.S. and diversification of our business led by significant international growth," said Kim Popovits, Chairman of the Board, Chief Executive Officer and President of Genomic Health. "With the planned launch of the Oncotype DX prostate cancer test, our third product franchise, we believe we are uniquely positioned to further diversify our business for long-term growth, and look forward to sharing full results of the prostate clinical validation study at AUA in early May."

Additional Year-End and Fourth Quarter 2012 Financial Results

Total operating expenses for the year ended December 31, 2012 were $226.7 million, compared with total operating expenses for the comparable period in 2011 of $197.9 million.

Cash and cash equivalents and short-term investments at December 31, 2012 were $99.1 million after funding a $30 million share repurchase in the fourth quarter, compared with $100.5 million at December 31, 2011.  Net cash provided by operating activities for the full year was $25.8 million.

Total operating expenses for the fourth quarter of 2012 were $58.4 million, compared with total operating expenses for the comparable period in 2011 of $50.7 million.  

More than 74,520 Oncotype DX® test results were delivered for the year ended December 31, 2012, an increase of 12 percent, compared with more than 66,600 test results delivered in 2011.  In the fourth quarter of 2012, more than 18,820 Oncotype DX test results were delivered, an increase of 10 percent, compared with more than 17,080 test results delivered in the same period in 2011.

2013 Financial Outlook

The company is providing the following financial guidance for the full-year ending December 31, 2013:

• Total revenue of $258 to $266 million
• GAAP basic net income (loss) per share between a net loss of ($0.12) and net income of $0.08
• Oncotype DX tests delivered of 82,000 to 84,000

"In 2013, we plan to continue to invest in near-term opportunities to expand our global breast and colon cancer businesses in order to drive top-line revenue growth, and in our prostate cancer launch to build long-term value, and expect losses in the first and second quarters," said Dean Schorno, Chief Financial Officer of Genomic Health. 

Of note, non-GAAP basic net income per share, excluding stock compensation expense, is expected to be between $0.48 to $0.68.

Recent Business Highlights:

• Presented data from six Oncotype DX studies from the United States and Europe at the San Antonio Breast Cancer Symposium (SABCS) in December across invasive breast cancer and DCIS (ductal carcinoma in situ), including a second comparison study highlighting clinically meaningful differences between the Oncotype DX Recurrence Score^® and a commercially available prognostic 70-gene genomic classifier.
• Announced that the full positive results from the large clinical validation study of the Oncotype DX prostate cancer test were accepted for oral presentation at the AUA Annual Meeting in early May.  Following the presentation of these positive results, the company plans to make the test available to physicians and patients in the second quarter of 2013.
• Announced that the results from the second large colon cancer clinical validation study, which provided confirmation of the landmark QUASAR results, were accepted for publication in the Journal of Clinical Oncology.
• Presented data in three presentations at the 2013 Gastrointestinal Cancers Symposium in January that reinforce the clinical utility and cost effectiveness of the Oncotype DX test in stage II colon cancer patients.
• The December 2012 issue of Value in Health published results from a modeling study showing that the use of the Oncotype DX test in stage II colon cancer patients may lead to health care cost savings while improving clinical outcomes.