Response Genetics Inc. (Nasdaq: RGDX), a company focused on the development and sale of molecular diagnostic tests for cancer, today announced its consolidated financial results and business progress for the second quarter ended June 30, 2011.
“With revenue in all of our sales channels increasing and net loss decreasing, Response Genetics continues to trend toward profitability,” said Denise McNairn, Interim CEO of Response Genetics. “And through innovation, both scientific and technical, we remain on track to meet our business objectives as we bring value to our shareholders.”
Second Quarter 2011 Financial Results
Total revenue increased by 18.8 percent to $6.7 million for the second quarter ended June 30, 2011, compared to $5.6 million for the same period last year. The increase was primarily due to increases in pharmaceutical service revenues of $1.6 million. Revenue from ResponseDX™ genetic tests decreased by 15 percent to $3.0 million for the second quarter, compared to $3.5 million for the same period in 2010. The decrease in ResponseDX™ revenue was artificially caused by the one-time revenue adjustment of $1.5 million recorded in the second quarter of 2010 for the adoption of the accrual basis of accounting. Pharmaceutical client revenue increased 74.4 percent to $3.7 million, compared to $2.1 million in the second quarter of 2010.Cost of revenue was $2.8 million for the second quarter ended June 30, 2011, compared with $2.5 million for the same period in 2010. Research and development expenses were $0.2 million for the second quarter of 2011, compared with $0.4 million for the same period in 2010. General and administrative expenses were $2.3 million for the second quarter, compared with $1.7 million for the same period in 2010. Selling and marketing expenses were $1.4 million for the second quarter of 2011, compared with $1.4 million for the same period in 2010. Total operating expenses for the second quarter were $6.8 million, compared with $6.1 million for the same period last year. The primary reasons for the increase in total operating expenses are costs related to an increase in personnel, consulting, bad debt, and billing service expenses. Stock compensation expense was $0.3 million for the second quarter of 2011, compared to $0.1 million for the same period in 2010.
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