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Genomic Health Announces Year-End 2012 Financial Results, Provides 2013 Financial Outlook



   Genomic Health Announces Year-End 2012 Financial Results, Provides 2013
                              Financial Outlook

Record 4th Quarter Revenue of $60.4 Million

14% Increase in Full-Year Revenue

Positive Prostate Cancer Data Accepted for Oral Presentation at American
Urological Association (AUA) Annual Meeting; Oncotype DX® Prostate Cancer Test
Launch on Track for Second Quarter 2013

Conference Call Today at 4:30 p.m. ET

PR Newswire

REDWOOD CITY, Calif., Feb. 6, 2013

REDWOOD CITY, Calif., Feb. 6, 2013 /PRNewswire/ -- 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:

  o Total revenue of $258 to $266 million
  o GAAP basic net income (loss) per share between a net loss of ($0.12) and
    net income of $0.08
  o 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:

  o 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.
  o 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.
  o 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.
  o 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.
  o 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.

Conference Call Details
To access the live conference call today, February 6, 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
December 31, 2012, more than 10,000 physicians in over 65 countries had
ordered approximately 335,000 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 statements
relating to the company's 2012 fourth quarter and full year results; 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, driving reimbursement for and adoption of its colon cancer test, and
in connection with its planned prostate cancer test launch; full year 2013
financial guidance, including expectations regarding total revenue, GAAP and
non-GAAP basic net income per share, stock compensation expense and the number
of test results delivered; the company's expectations with respect to the
timing of its planned launch of a test for prostate cancer and the attributes
of any such test; the company's belief that it is positioned for long-term
growth; the company's intent to invest in its business, the areas of
investment and the expected results of those investments; the success or
results of clinical trials and the timing of such activities; the
applicability of clinical study results to actual outcomes; the ability of the
company's tests to impact clinical practice; and the focus and attributes of
the company's product pipeline. 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:
completion of the audit of the company's 2012 financial results; risks related
to the commercial launch of a new test for prostate cancer; the company's
ability to increase usage of its tests; the risk that the company may not
obtain or maintain sufficient levels of reimbursement, domestically or abroad,
for its existing tests and any future tests it may develop; the company's
success retaining current contracts or levels of reimbursement coverage for
its tests; the risks and uncertainties associated with regulation of the
company's tests by the FDA and other regulatory organizations; the company's
ability to compete against third parties; the company's ability to develop and
commercialize new tests; unanticipated costs or delays in research and
development efforts; the success of the company's next generation sequencing
technology; the company's ability to successfully commercialize its tests
outside of the United States; the ability to obtain capital when needed; the
company's 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, 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, Recurrence Score and
DCIS 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  Twelve Months Ended
                                      December 31,        December 31,
                                      2012      2011      2012       2011
                                        Unaudited         Unaudited
REVENUES:
Product revenues                      $ 59,998  $ 53,155  $ 233,457  $ 204,766
Contract revenues                     430       242       1,716      1,345
Total revenues                        60,428    53,397    235,173    206,111
OPERATING EXPENSES (1):
Cost of product revenues              9,641     7,352     37,018     33,832
Research and development              13,329    10,282    49,104     39,864
Selling and marketing                 23,896    22,393    93,553     83,613
General and administrative            11,546    10,638    47,064     40,543
Total operating expenses              58,412    50,665    226,739    197,852
Income from operations                2,015     2,732     8,434      8,259
Interest income                       70        4         295        221
Other income (expense), net           54        (14)      (58)       (205)
Income before income taxes            2,139     2,722     8,671      8,275
Income tax expense                    187       163       422        429
Net income                            $ 1,960   $ 2,559   $ 8,249    $ 7,846
Basic net income per share            $ 0.06    $ 0.09    $ 0.27     $ 0.27
Diluted net income per share          $ 0.06    $ 0.08    $ 0.26     $ 0.26
Shares used in computing basic net    30,602    29,644    30,326     29,395
income per share
Shares used in computing diluted net  32,308    31,062    32,151     30,754
income per share

 

    Included in operating expenses for the three months ended December 31,
    2012 were non-cash charges of $5.8 million, including $4.3 million of
    stock-based compensation expense and $1.5 million of depreciation and
(1) 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 $1.7 million of depreciation and amortization
    expenses.
    Included in operating expenses for the twelve months ended December 31,
    2012 were non-cash charges of $20.6 million, including $15.1 million of
    stock-based compensation expense and $5.5 million of depreciation and
    amortization expenses, compared with non-cash charges for the same period
    in 2011 of $19.0 million, including $11.7 million of stock-based
    compensation expense and $7.3 million of depreciation and amortization
    expenses.

 

 

GENOMIC HEALTH, INC.

Condensed Consolidated Balance Sheets

(In thousands)
                                  As of                           As of
                                                                  December 31,
                                  December 31,
                                                                  2011
                                  2012
                                    (Unaudited)                   (1)
Cash and cash equivalents         $            18,005             $   32,869
Short-term marketable securities  81,060                          67,605
Accounts receivable, net          22,253                          21,077
Prepaid expenses and other        8,891                           7,444
current assets
Total current assets              130,209                         128,995
Property and equipment, net       14,104                          9,443
Other assets                      9,421                           4,560
Total assets                      $            153,734            $   142,998
Accounts payable                  $            4,881              $   7,025
Accrued expenses and other        19,842                          17,265
current liabilities
Deferred revenues                 374                             2,060
Other liabilities                 2,311                           1,289
Stockholders' equity              126,326                         115,359
Total liabilities and             $            153,734            $   142,998
stockholders' equity

 

    The condensed consolidated balance sheet at December 31, 2011 has been
(1) 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.

Website: http://www.genomichealth.com
Contact: Investors, Dean Schorno, Genomic Health, +1-650-569-2281,
investors@genomichealth.com, or Media, Emily Faucette, Genomic Health,
+1-650-569-2824, media@genomichealth.com
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