Response Genetics, Inc. Announces First Quarter 2013 Financial Results
Q1 Revenue Increases Over 40% to $5.6 Million Relative to Q1 2012 and Gross
Margin Increases to 55%
First Quarter Losses decrease to $0.8 million relative to Q1 2012 loss of $3.1
LOS ANGELES, May 14, 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 first quarter ended March 31, 2013.
Total revenue for the first quarter ended March 31, 2013 was $5.6 million
compared to $4.0 million for the quarter ended March 31, 2012 and $5.5 million
for the quarter ended December 31, 2012. The Company's pharmaceutical client
revenue increased by 137% and the Company's ResponseDX® revenue increased 8%
relative to the quarter ended March 31, 2012. The Company's pharmaceutical
client revenue was consistent with that of the fourth quarter of 2012 and the
Company's ResponseDX® revenues increased 4% relative to the quarter ended
December 31, 2012.
The Company also increased its gross margin to 55% for the quarter ending
March 31, 2013 compared to 32% for the first quarter of 2012 and 54% for the
quarter ended December 31, 2012. Gross margin is calculated as net revenue
less cost of revenue.
Excluding cost of revenue, total operating expenses for the first quarter were
$3.9 million, compared to $4.4 million for the same period last year and $3.5
million for the quarter ended December 31, 2012. The sequential increase
relates to the Company's planned increasing investment in sales and marketing.
Cash and cash equivalents at March 31, 2013, were $8.0 million, compared to
$9.0 million at December 31, 2012.
"We are once again pleased with the financial results for the quarter ended
March 31, 2013. Despite the pricing headwinds brought about by Medicare in
2013, we have managed to once again grow our Dx revenues while maintaining
strong gross margins," said Thomas Bologna, the Company's Chairman & Chief
Mr. Bologna added, "As we continue to leverage our strong balance sheet to
invest in sales and marketing, we expect to deliver meaningful top-line growth
in our Dx business in the second half of 2013. We believe recent additions to
both our sales force infrastructure and sales and marketing management,
coupled with a constant focus on cost structure and operational efficiencies,
which were the hallmarks of our 2012 turnaround, will help further drive our
strategic and financial performance."
The Company's net loss for the first quarter ended March 31, 2013 decreased to
$0.8 million, or $(0.03) per share, compared to a net loss of $3.1 million, or
$(0.14) per share, for the quarter ended March 31, 2012 and a net loss of $0.5
million, or $(0.01) per share, for the quarter ended December 31, 2012.
CONFERENCE CALL DETAILS
To access the conference call by phone on May 14 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 May
16, 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 64250935.
To access the live and archived webcast of the conference call, go to the
Investor Relations section of the Company's Web site 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.
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
December 31, March 31,
Cash and cash equivalents $ 9,041,478 $ 8,034,310
Accounts receivable, net 5,373,023 5,269,551
Prepaid expenses and other current 576,112 1,053,860
Total current assets 14,990,613 14,357,721
Property and equipment, net 1,023,198 991,898
Intangible assets, net 575,409 555,124
Total assets $ 16,589,220 $ 15,904,743
Accounts payable $ 1,191,122 $ 898,819
Accrued expenses 2,438,954 3,289,873
Deferred revenue 483,052 --
Other current liabilities 1,158,669 150,270
Total current liabilities 5,271,797 4,338,962
Other liabilities 83,910 1,053,101
Common stock classified outside of 11,775,724 5,500,000
stockholders' equity (deficit)
Total stockholders' equity (deficit) (542,211) 5,012,680
Total liabilities, common stock
classified outside of stockholders' $ 16,589,220 $ 15,904,743
equity (deficit) and stockholders'
The condensed consolidated balance sheet at December 31, 2012 is 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, 2012.The condensed
consolidated balance sheet at March 31, 2013 is derived from the unaudited
financial statements included in the Company's Form 10-Q for the quarter ended
March 31, 2013.
RESPONSE GENETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
Ended March 31,
Net revenue $ 3,981,644 $ 5,624,191
Cost of revenue 2,700,858 2,533,722
Gross profit 1,280,786 3,090,469
Selling and marketing 1,453,807 1,442,235
General and administrative 2,358,450 2,135,186
Research and development 569,955 297,200
Total operating expenses 4,382,212 3,874,621
Operating loss (3,101,426) (784,152)
Other income (expense):
Interest expense (23,177) (19,410)
Interest income 14 43
Other — (20,785)
Net loss $ (3,124,589) $ (824,304)
Unrealized gain (loss) on foreign (512) (1,853)
Comprehensive loss $ (3,125,101) $ (826,157)
Net loss per share—basic and diluted $ (0.14) $(0.03)
Weighted-average shares—basic and 22,948,916 32,797,625
The condensed consolidated statement of operations at March 31, 2012 and 2013
are derived from the unaudited financial statements included in the Company's
Form 10-Q for the quarter ended March 31, 2013.
CONTACT: Investor Relations Contact:
Thomas A. Bologna
Chairman & Chief Executive Officer
Response Genetics Logo
Press spacebar to pause and continue. Press esc to stop.