Response Genetics, Inc. Announces Fourth Quarter and Year-End 2012 Financial
--- Q4 Revenue Increases 11% to $5.5 Million Relative to Q4 2011 and Gross
Margin Increases to 54% ---
--- Fourth Quarter Losses Decrease to $0.5 Million Relative to Q4 2011 Loss of
$3.9 Million ---
LOS ANGELES, March 21, 2013 (GLOBE NEWSWIRE) -- Response Genetics, Inc.
(Nasdaq:RGDX), a company focused on the development and sale of molecular
diagnostic tests that help determine a patient's response to cancer therapy,
today announced its consolidated financial results and business progress for
the full year and fourth quarter ended December 31, 2012.
Total revenue for the fourth quarter ended December 31, 2012 was $5.5 million
compared to $4.9 million for the quarter ended December 31, 2011 and $5.4
million for the quarter ended September 30, 2012. The Company's pharmaceutical
client revenue increased by 36% and the Company's ResponseDX® revenue
decreased 1% relative to the quarter ended December 31, 2011 and the Company's
pharmaceutical client and ResponseDX® revenues increased 3% and 2%,
respectively, relative to the quarter ended September 30, 2012.
The Company's net loss for the fourth quarter ended December 31, 2012
decreased to $0.5 million, or $(0.01) per share, compared to a net loss of
$3.9 million, or $(0.20) per share, for the quarter ended December 31, 2011
and a net loss of $1.4 million, or $(0.05) per share, for the quarter ended
September 30, 2012. This is the fourth consecutive quarter the Company
decreased its net loss.
The Company also increased its gross margin to 54% for the quarter ending
December 31, 2012 compared to 25% for the fourth quarter of 2011 and 49% for
the quarter ended September 30, 2012. Gross margin is calculated as net
revenue less cost of revenue.
Excluding cost of revenue, total operating expenses for the fourth quarter
were $3.5 million, compared to $5.2 million for the same period last year and
$4.0 million for the quarter ended September 30, 2012.
Cash and cash equivalents at December 31, 2012, were $9.0 million, compared to
$1.7 million at December 31, 2011.
"We are once again very pleased with the financial results for the quarter
ended December 31, 2012, which improved for the fourth consecutive time
relative to the prior quarter.Since the fourth quarter of last year, we
continued to realize consecutive quarter-over-quarter positive results from
the many changes implemented by the Company.Gross margins have increased more
than two-fold from the fourth quarter of last year, and operating loss has
continued to decrease significantly, or nearly three-fold, since the third
quarter of 2012 and by nearly eight-fold from the fourth quarter of last
year," said Thomas Bologna, the Company's Chairman & Chief Executive Officer.
Mr. Bologna added, "Of equal importance, the Company currently has a strong
balance sheet which will provide the means for implementing the structure
needed to build top-line growth.We are well on our way to developing a
dynamic ResponseDX® sales force which we expect will deliver top-line testing
growth in the second half of 2013.We believe strong top-line growth coupled
with the Company's new management team, cost structure and focus on
operational efficiencies, which were the hallmarks of our 2012 efforts, will
help to further drive our strategic and financial performance."
Total revenue for the year ended December 31, 2012 decreased to $18.7 million,
compared to $22.6 million for the year ended December 31, 2011.The reduction
was due primarily to the expected decrease in pharmaceutical client revenue
during the first half of 2012 which resulted in a year over year decrease to
$6.9 million for the year ended December 31, 2012, compared to $10.1 million
for the year ended December 31, 2011.The Company's ResponseDX® revenue
decreased slightly to $11.9 million for the year ended December 31, 2012,
compared to $12.5 million for the prior year.
The Company's net loss for the year ended December 31, 2012 was $7.8 million
or a loss of $0.29 per share, compared with a net loss of $5.8 million, or a
loss of $0.30 per share, for the year ended December 31, 2011.
Additional Year-End 2012 Financial Results
Gross margin for the year ended December 31, 2012 was approximately 44%
compared to approximately 48% for the previous year and was largely the result
of decreased pharmaceutical revenue in the first two quarters of 2012.
Excluding cost of revenue, total operating expenses for the year ended
December 31, 2012 were $16.0 million, compared with $16.6 million for the year
ended December 31, 2011.The decrease in total operating expenses of $0.6
million was due to a general focus on re-structuring the Company's resources
and cost reduction primarily impacting the second half of the year.
CONFERENCE CALL DETAILS
To access the conference call by phone on March 21 at 10:00 a.m. EDT, dial
(800) 537-0745 or (253) 237-1142 for international participants.A telephone
replay will be available beginning approximately two hours after the call
through March 23, 2013, and may be accessed by dialing (855) 859-2056 or (404)
537-3406.The conference passcode for both the live call and replay is
To access the live and archived webcast of the conference call, go to the
Investor Relations section of the Company's website at
http://investor.responsegenetics.com. It is advised that participants connect
at least 15 minutes prior to the call to allow for any software downloads that
might be necessary.
About Response Genetics, Inc.
Response Genetics, Inc. (the "Company") is a CLIA-certified clinical
laboratory focused on the development and sale of molecular diagnostic testing
services for cancer.The Company's technologies enable extraction and analysis
of genetic information derived from tumor cells stored as formalin-fixed and
paraffin-embedded specimens.The Company's principal customers include
oncologists and pathologists.In addition to diagnostic testing services, the
Company generates revenue from the sale of its proprietary analytical
pharmacogenomic testing services of clinical trial specimens to the
pharmaceutical industry.The Company's headquarters is located in Los Angeles,
California.For more information, please visit www.responsegenetics.com.
The Response Genetics, Inc. logo is available at
Forward-Looking Statement Notice
Except for the historical information contained herein, this press release and
the statements of representatives of the Company related thereto contain or
may contain, among other things, certain forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve significant risks and
uncertainties.Such statements may include, without limitation, statements
with respect to the Company's plans, objectives, projections, expectations and
intentions, such as the ability of the Company, to provide clinical testing
services to the medical community, to continue toexpand its sales force, to
continue to build its digital pathology initiative, to attract and retain
qualified management, to strengthen marketing capabilities, to expand the
suite of ResponseDX® products, to continue to provide clinical trial support
to pharmaceutical clients, to enter into new collaborations with
pharmaceutical clients, to enter into areas of companion diagnostics, to
continue to execute on its business strategy and operations, to continue to
analyze cancer samples and the potential for using the results of this
research to develop diagnostic tests for cancer, the usefulness of genetic
information to tailor treatment to patients, and other statements identified
by words such as "project," "may," "could," "would," "should," "believe,"
"expect," "anticipate," "estimate," "intend," "plan" or similar expressions.
These statements are based upon the current beliefs and expectations of the
Company's management and are subject to significant risks and uncertainties,
including those detailed in the Company's filings with the Securities Exchange
Commission.Actual results, including, without limitation, actual sales
results, if any, or the application of funds, may differ from those set forth
in the forward-looking statements.These forward-looking statements involve
certain risks and uncertainties that are subject to change based on various
factors (many of which are beyond the Company's control).The Company
undertakes no obligation to publicly update forward-looking statements,
whether because of new information, future events or otherwise, except as
required by law.
RESPONSE GENETICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents $1,700,295 $9,041,478
Accounts receivable, net 4,047,059 5,373,023
Prepaid expenses and other current assets 991,351 576,112
Total current assets 6,738,705 14,990,613
Property and equipment, net 1,045,287 1,023,198
Intangible assets 66,815 575,409
Total assets $7,850,807 $16,589,220
Accounts payable $1,492,526 $1,191,122
Accrued expenses 3,251,262 2,438,954
Deferred revenue — 483,052
Other current liabilities 1,149,253 1,158,669
Total current liabilities 5,893,041 5,271,797
Other liabilities 240,928 83,910
Common stock classified outside of 7,854,682 11,775,724
stockholders' equity (deficit)
Total stockholders' equity (deficit) (6,137,844) (542,211)
Total liabilities, common stock classified
outside of stockholders' equity (deficit) $7,850,807 $16,589,220
and stockholders' equity (deficit)
The condensed consolidated balance sheets at December 31, 2011 and 2012 are
derived from the audited consolidated financial statements at the date
included in the Company's Form 10-K for the fiscal year ended December 31,
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
ThreeMonths Twelve Months
Ended December 31, Ended December 31,
2011 2012 2011 2012
Net Revenue $ 4,911,943 $ 5,516,481 $ 22,642,728 $ 18,736,669
Cost of revenue 3,693,698 2,520,043 11,733,700 10,415,913
Selling and marketing 1,452,998 920,884 5,560,637 5,065,998
General and 3,215,267 2,112,463 9,708,347 8,783,414
Research and 483,275 432,760 1,321,897 2,128,610
Total operating 8,845,238 5,986,150 28,324,581 26,393,935
Operating loss (3,933,295) (469,669) (5,681,853) (7,657,266)
Other income (expense):
Interest expense (9,339) (19,283) (20,718) (85,838)
Interest income (13) 2 149 27
Other — 1,608 — (14,002)
Net loss $ (3,942,647) $(487,342) $ (5,702,422) $ (7,757,079)
Unrealized gain (loss)
on foreign currency 10,467 4,518 (73,217) 3,180
Comprehensive loss $ (3,932,180) $ (482,824) $ (5,775,639) $ (7,753,899)
Net loss per
share—basic and $(0.20) $(0.01) $(0.30) $(0.29)
shares—basic and 19,539,237 32,797,625 19,124,806 26,742,345
The condensed consolidated statement of operations at December 31, 2011 and
2012 are derived from the audited financial statements included in the
Company's Form 10-K for the year ended December 31, 2012.
CONTACT: Investor Relations Contact:
Thomas A. Bologna
Chairman & Chief Executive Officer
Response Genetics Logo
Press spacebar to pause and continue. Press esc to stop.