“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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV