NEW YORK (GenomeWeb) – Genomic Health announced today that it expects preliminary revenue for the year ended December 31, 2015, to be between $285 million and $286 million, an approximate 4 percent increase over 2014's $275.7 million, but slightly below the company's 2015 guidance and below analysts' estimates for the year, which averaged $291.6 million.
For the fourth quarter specifically, Genomic Health said it anticipates reporting between $73 million and $74 million in revenue, a 6 percent increase year over year. Analysts had estimated the company would make about $79 million in Q4 2015.
However, Genomic Health did deliver more than 106,850 Oncotype DX tests in 2015, a 12 percent increase over its test volume in 2014, and within the company's 2015 guidance. The company delivered more than 27,520 tests in Q4, an increase of approximately 11 percent compared to Q4 2014.
According to Genomic Health, test volume — and consequently Q4 revenue — were affected by a disruption in order and test processing associated with a mid-quarter implementation of a new enterprise-wide platform "designed to add novel capabilities and scale to the company's growing business."
Because the transition required a new ordering process for more than 10,000 customers, test volume was lower than expected, lowering revenue by more than $3 million, the company said. Revenue from prostate cancer tests specifically was also lower than expected, due to delays associated with Medicare requirements.
The company's CEO and President Kim Popovits said in a statement that she remains confident in the company's ability to deliver "double-digit revenue growth in 2016."
The firm's initial revenue guidance for 2016 predicts between $320 million and $335 million in revenue, a 12 percent to 17 percent growth compared to 2015.
Genomic Health's stock was down less than 1 percent to $32.72 in mid-morning trading on the Nasdaq.