This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

“I am very excited to have joined Response Genetics in late December and am quite enthusiastic about the significant role the Company can have in personalized medicine,” said Thomas Bologna, Chairman and Chief Executive Officer. “We are pleased to see that ResponseDX ® testing revenues grew 11 percent year over year while appreciating that our bottom line was negatively affected by various expenditures in the fourth quarter that are not expected to reoccur in 2012. There remains a lot of hard work to do. Now that we completed the successful financing in February of this year, our primary near-term priorities are to build out the management team, implement several operational enhancements, expand our sales force, strengthen our marketing and back-office capabilities and focus on growing our suite of ResponseDX products. We will also be looking to establish new collaborations with pharmaceutical clients through our services business.”

Additional Year-End and Fourth Quarter 2011 Financial Results

Gross margin for the year ended December 31, 2011 was approximately 48 percent compared to approximately 51 percent for the year ended December 31, 2010. Gross margin is Net Revenue less Cost of Revenue. The decrease in gross margin was largely the result of decreased pharmaceutical revenue in the third and fourth quarter and certain expenses incurred in the fourth quarter, which are not expected to reoccur in 2012. Excluding cost of revenue, total operating expenses for the year ended December 31, 2011 were $16.6 million, compared with $15.7 million for the year ended December 31, 2010. The increase in total operating expenses of $0.9 million was due to an increase in general and administrative expenses of $1.6 million, offset by a decrease in sales and marketing expenses of $0.4 million and a decrease in research and development expenses of $0.3 million. The increase in general and administrative expenses was due to higher personnel costs, consulting fees and bad debt expense ( see paragraph below).

Gross margin for the fourth quarter ended December 31, 2011 was approximately 25 percent compared to approximately 52 percent for the comparable period in 2010. The decrease in gross margin was largely the result of a decrease in pharmaceutical revenue of $1.5 million and other incremental expenses totaling $0.6 million related to recruiting costs and regulatory and laboratory management consulting expenses which are not expected to reoccur in 2012.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs