NEW YORK (GenomeWeb News) – Myriad Genetics reported after the close of the market Tuesday that its third-quarter revenues increased 5 percent, despite "economic challenges," which it said restrained sales.
The Salt Lake City-based molecular diagnostics firm had total revenues of $90.8 million for the three-month period ended March 31, compared to revenues of $86.5 million for the third quarter of 2009.
Its revenues fell well short of analysts' consensus estimate of $97.8 million, and in Wednesday morning trade on the Nasdaq its shares tumbled 25 percent to $17.98.
"While revenues for the quarter followed seasonal growth patterns, macroeconomic conditions continued to impact the frequency of physician visits, which remain well below historic levels," Peter Meldrum, president and CEO of Myriad Genetics, said in a statement. "Amid this backdrop, we have been extremely active in refining and extending certain sales and marketing programs to drive growth. We believe these are the appropriate strategic actions to help drive further adoption and use of Myriad's growing product lineup."
Myriad's net income for the quarter jumped to $33.3 million, or $.33 per share, from $25.3 million, or $.25 per share for Q3 2009. Analysts, on average, had expected EPS of $.39.
The prior year's results included a loss from discontinued operations of $12.9 million, or $.13 per share, related to the company's former research and pharmaceutical business, which was spun off in 2009.
The company's R&D expenses for the quarter increased 31 percent to 45.9 million from $4.5 million, while its SG&A spending increased 15 percent to $40.8 million from $35.5 million.
Myriad finished the quarter with $511.2 million in cash, cash equivalents, and marketable securities.
The firm expects to report full-year revenues of between $360 million and $365 million, with EPS of between $1.30 and $1.35. Its fiscal year ends on June 30.
Myriad said separately on Tuesday that its board of directors has authorized the repurchase of $100 million of its outstanding common stock. It expects to complete the buyback on or before Dec. 31, 2010.