Myriad Genetics Reports Fiscal 2011 Second Quarter Results

SALT LAKE CITY, Jan. 27, 2011 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (Nasdaq:MYGN) today announced results for its second fiscal quarter ending December 31, 2010. Revenue for the second fiscal quarter was $100.4 million, an increase of 8 percent over the $92.8 million reported in the second fiscal quarter of 2010. Operating income was $38.6 million, an increase of 12 percent from the prior-year period.

"We are pleased with our results for the quarter, which included our best revenue and operating income results for any second quarter in our history," said Peter D. Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "The initiatives we have put in place to broaden our existing product markets are yielding results and more than offset the slight decrease seen in office visits during the quarter. Additionally, our efforts to improve efficiencies resulted in operating margin expansion of 120 basis points year-over-year. We continued to enhance shareholder value by utilizing our strong cash position to repurchase and retire 2.9 million common shares during the quarter."  

Analysis of Second Fiscal Quarter 2011 Results

• Oncology revenue in the second fiscal quarter increased 5 percent year-over-year to $69.4 million and Woman's Health revenue rose 16 percent to a record $31.0 million.
• Revenue from the BRAC Analysis ^® product was $89.2 million, an increase of 8.5 percent over the same period last year.  Revenue from COLARIS ^® and COLARIS AP ^® tests was $7.0 million, compared with $6.8 million in the same period last year. Myriad's remaining six products contributed $4.3 million to second quarter revenue, an increase of 13.5 percent over the same period last year.
• Gross profit in the second fiscal quarter rose to $88.4 million, or 88 percent of revenue, from $81.7 million, or 88 percent of revenue, reported in the prior year.
• Operating income grew to $38.6 million, or 38.4 percent of revenue, compared with $34.5 million, or 37.2 percent of revenue, in the same fiscal quarter of the prior year. 
• Net income for the second fiscal quarter was $24.2 million, which included a $14.9 million income tax provision, with earnings per share of $0.26.
• Diluted average weighted shares outstanding were 93.6 million in the second fiscal quarter. The Company repurchased 2.9 million shares of its common stock during the quarter. 
• Cash flow from operating activities for the fiscal second quarter was $37.1 million. The Company ended the quarter with $494.4 million in cash and marketable investment securities.
• Days sales outstanding for Myriad's accounts receivable improved to 37 days, compared with 47 days in the same period of the prior year. Bad debt expense also continued to improve and now stands at 4.2 percent of revenue compared with 5.0 percent in the same period of the prior year.

Year-to-Date Performance

• Revenue for the first half of fiscal 2011 was $192.3 million, an increase of 8 percent over $177.9 million reported for the first half of fiscal 2010.
• Operating income for the first half of fiscal 2011 was $74.2 million, an increase of 15.5 percent year-over-year.
• Net income equaled $46.7 million, or $0.50 per diluted share, for the first half of fiscal 2011.

Fiscal Year 2011 Outlook

Subject to the risks summarized in the safe harbor statement at the end of this press release, the Company reiterated its expectations for fiscal year 2011 financial performance.  Fiscal year 2011 revenue is expected to range between $380 million and $400 million, resulting in earnings per share of $0.95 to $1.00. The Company will provide further detail on its business outlook during the conference call it is holding today to discuss its fiscal second quarter financial performance.