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Genomic Health's Q1 Revenues Increase 45 Percent

NEW YORK (GenomeWeb News) – Genomic Health reported after the close of the market on Tuesday that its first-quarter revenues increased 45 percent, while it trimmed its net loss 30 percent.

The Redwood City, Calif.-based molecular diagnostics firm reported total revenues of $33.9 million compared to revenues of $23.4 million in the first quarter of 2008. All of the Q1 revenue, except for $469,000, came from sales of the firm's Oncotype DX breast cancer test.

Genomic Health noted that around 50 percent of its product revenue was recorded on an accrual basis in the first quarter and was recognized at the time test results were delivered, "reflecting established payment patterns from payors with coverage policies or contracts in place." It also said that it delivered 11,210 test results during the quarter, up from 9,150 test results delivered in the first quarter of 2008.

Genomic Health posted a net loss of $4.6 million, or $.16 per share, compared to a net loss in Q1 2008 of $6.6 million, or $.24 per share.

The EPS figure beat analysts' consensus estimate by $.01.

Its R&D expenses increased 34 percent to $8.6 million from $6.4 million, while its SG&A spending increased 27 percent to $22 million from $17.3 million.

Genomic Health President and CEO Kim Popovits said in a statement that the revenue growth and decline in net loss "are a result of our business discipline and focus on making the Oncotype DX breast cancer test standard practice."

The firm finished the quarter with cash, cash equivalents, and short-term investments of $53.4 million.

In early Wednesday trade on the Nasdaq, shares of Genomic Health were down 17 percent at $19.50.