Response Genetics, Inc. Announces Second Quarter 2013 Financial Results
Second Quarter 2013 Revenue Increases Over 38% to $5.3 Million and Loss
Decreases Over Two-Fold to $1.3 Million Relative to Q2 2012
LOS ANGELES, Aug. 8, 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 second quarter ended June 30, 2013.
Total revenue for the second quarter ended June 30, 2013 was $5.3 million
compared to $3.8 million for the quarter ended June 30, 2012. The Company's
pharmaceutical client revenue increased by 121% and the Company's ResponseDX®
revenue increased 10% relative to the quarter ended June 30, 2012.The
Company's pharmaceutical client revenue, which is characteristically
inconsistent, decreased 10% from the first quarter of 2013.This decrease was
primarily related to a timing delay on one large pharma project which
subsequently restarted late in the second quarter. The Company's ResponseDX®
revenues were relatively consistent with the prior quarter.
The Company also increased its gross margin to 49% for the quarter ending June
30, 2013 compared to 37% for the second quarter of 2012.Gross margin
decreased by 6% relative to the quarter ended March 31, 2013 which was
primarily related to the pharma project delay discussed above. Gross margin is
calculated as gross profit as a percentage of net revenue.
Excluding cost of revenue, total operating expenses for the second quarter
were $3.9 million, compared to $4.1 million for the same period last year and
were relatively consistent with the quarter ended March 31, 2013.
Cash and cash equivalents at June 30, 2013, were $5.9 million, compared to
$9.0 million at December 31, 2012.
"We believe our financials speak for themselves.Our pharma segment continued
to be strong and our Dx revenues continued to grow year-over-year while we
concurrently increased our gross margin from 37% just a year ago to over 49%
for the quarter," said Thomas Bologna, the Company's Chairman & Chief
Mr. Bologna added, "We view 2012 as the year of our turnaround and 2013 as the
year we work our top line.As we continue to aggressively build a marketing
department and restructure and grow our sales organization, we expect to
deliver meaningful top-line growth in our Dx business in the second half of
2013. During the last six months of the year, we expect to begin implementing
several new marketing initiatives which are well underway including, but not
limited to, introducing a completely new web-based portal to enhance the
customer experience and a pathology partnering program that we believe will be
the best in our space.Additionally, we plan on introducing several new assays
as well as updating our messaging and branding.We believe the further
strengthening of our sales and marketing organizations, combined with enhanced
technological infrastructure, and a constant focus on operational efficiencies
which were the hallmarks of our 2012 turnaround, will drive our strategic and
The Company's net loss for the second quarter ended June 30, 2013 decreased to
$1.3 million, or $(0.04) per share, compared to a net loss of $2.7 million, or
$(0.11) per share, for the quarter ended June 30, 2012 and a net loss of $0.8
million, or $(0.03) per share, for the quarter ended March 31, 2013.
Total revenues for the six months ended June 30, 2013 were $10.9 million
compared to $7.8 million for the six months ended June 30, 2012.The increase
is largely a result of an increase in Dx revenues of $0.5 million to $6.3
million for the six months ended June 30, 2013 and an increase in
pharmaceutical client revenue of $2.6 million to $4.6 million for the six
months ended June 30, 2013.
The Company's net loss for the six months ended June 30, 2013 was $2.1
million, compared with a net loss of $5.9 million for the six months ended
June 30, 2012.
Total operating expenses for the six months were $7.8 million, compared to
$8.4 million for the same period last year.This decrease in total operating
expense of $0.6 million was due to primarily to a decrease in sales and
marketing expenses of $0.2 million and a decrease in research and development
expenses of $0.5 million.
CONFERENCE CALL DETAILS
To access the conference call by phone on August 8, 2013 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 August 10, 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 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, June 30,
Cash and cash equivalents $ 9,041,478 $ 5,881,961
Accounts receivable, net 5,373,023 6,449,691
Prepaid expenses and other current 576,112 984,033
Total current assets 14,990,613 13,315,685
Property and equipment, net 1,023,198 1,181,470
Intangible assets, net 575,409 572,386
Total assets $ 16,589,220 $ 15,069,541
Accounts payable $ 1,191,122 $ 705,247
Accrued expenses 2,438,954 3,666,626
Deferred revenue 483,052 --
Other current liabilities 1,158,669 208,503
Total current liabilities 5,271,797 4,580,376
Other liabilities 83,910 1,184,155
Common stock classified outside of 11,775,724 5,500,000
stockholders' equity (deficit)
Total stockholders' equity (deficit) (542,211) 3,805,010
Total liabilities, common stock
classified outside of stockholders' $ 16,589,220 $ 15,069,541
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 June 30, 2013 is derived from the unaudited
financial statements included in the Company's Form 10-Q for the quarter ended
June 30, 2013.
RESPONSE GENETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
Three MonthsEnded Six Months Ended
June 30, June 30,
2012 2013 2012 2013
Net revenue $ 3,835,006 $ 5,313,914 $7,816,651 $10,938,105
Cost of revenue 5,126,976 5,241,688
Gross profit 2,689,675 5,696,417
Selling and marketing 1,495,321 1,321,760 2,949,128 2,763,995
General and 1,863,380 2,109,268 4,216,488 4,244,433
Research and 699,791 447,686 1,269,746 744,886
Total operating 4,058,492 3,878,714 8,435,362 7,753,314
Operating loss (5,745,687) (2,056,897)
Interest expense (22,882) (20,756) (46,059) (40,186)
Interest income 8 2 21 45
Other (57,183) (3,634) (62,525) (24,420)
Net loss (2,729,661) (1,297,154) (5,854,250) (2,121,458)
Unrealized loss on
foreign currency (1,794) (2) (2,306) (1,855)
Comprehensive loss $ (2,731,455) $ (1,297,156) $ (5,856,556) $ (2,123,313)
Net loss per
share—basic and $ (0.11) $ (0.04) $(0.25) $(0.06)
common shares—basic 23,873,270 32,798,010 23,873,270 32,797,819
The condensed consolidated statement of operations at June 30, 2012 and 2013
are derived from the unaudited financial statements included in the Company's
Form 10-Q for the quarter ended June 30, 2013.
CONTACT: Investor Relations Contact:
Thomas A. Bologna
Chairman & Chief Executive Officer
Response Genetics Logo
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