LOS ANGELES, Aug. 8, 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 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(R) 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(R) 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 Executive Officer.

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 financial performance."

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.

Read the original here:
Response Genetics, Inc. Announces Second Quarter 2013 Financial Results

Comments are closed.