--- Q4 Revenue Increases 11% to $5.5 Million Relative to Q4 2011 and Gross Margin Increases to 54% ---

--- Fourth Quarter Losses Decrease to $0.5 Million Relative to Q4 2011 Loss of $3.9 Million ---

LOS ANGELES, March 21, 2013 (GLOBE NEWSWIRE) -- Response Genetics, Inc. (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 full year and fourth quarter ended December 31, 2012.

Total revenue for the fourth quarter ended December 31, 2012 was $5.5 million compared to $4.9 million for the quarter ended December 31, 2011 and $5.4 million for the quarter ended September 30, 2012. The Company's pharmaceutical client revenue increased by 36% and the Company's ResponseDX(R) revenue decreased 1% relative to the quarter ended December 31, 2011 and the Company's pharmaceutical client and ResponseDX(R) revenues increased 3% and 2%, respectively, relative to the quarter ended September 30, 2012.

The Company's net loss for the fourth quarter ended December 31, 2012 decreased to $0.5 million, or $(0.01) per share, compared to a net loss of $3.9 million, or $(0.20) per share, for the quarter ended December 31, 2011 and a net loss of $1.4 million, or $(0.05) per share, for the quarter ended September 30, 2012. This is the fourth consecutive quarter the Company decreased its net loss.

The Company also increased its gross margin to 54% for the quarter ending December 31, 2012 compared to 25% for the fourth quarter of 2011 and 49% for the quarter ended September 30, 2012. Gross margin is calculated as net revenue less cost of revenue.

Excluding cost of revenue, total operating expenses for the fourth quarter were $3.5 million, compared to $5.2 million for the same period last year and $4.0 million for the quarter ended September 30, 2012.

Cash and cash equivalents at December 31, 2012, were $9.0 million, compared to $1.7 million at December 31, 2011.

"We are once again very pleased with the financial results for the quarter ended December 31, 2012, which improved for the fourth consecutive time relative to the prior quarter. Since the fourth quarter of last year, we continued to realize consecutive quarter-over-quarter positive results from the many changes implemented by the Company. Gross margins have increased more than two-fold from the fourth quarter of last year, and operating loss has continued to decrease significantly, or nearly three-fold, since the third quarter of 2012 and by nearly eight-fold from the fourth quarter of last year," said Thomas Bologna, the Company's Chairman & Chief Executive Officer.

Mr. Bologna added, "Of equal importance, the Company currently has a strong balance sheet which will provide the means for implementing the structure needed to build top-line growth. We are well on our way to developing a dynamic ResponseDX(R) sales force which we expect will deliver top-line testing growth in the second half of 2013. We believe strong top-line growth coupled with the Company's new management team, cost structure and focus on operational efficiencies, which were the hallmarks of our 2012 efforts, will help to further drive our strategic and financial performance."

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Response Genetics , Inc. Announces Fourth Quarter and Year-End 2012 Financial Results

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