Myriad Genetics Reports Fiscal 2011 Third Quarter Results
"Our fiscal third quarter results were strong, as we delivered the best revenue and operating income results for any quarter in our history," said
Analysis of Third Fiscal Quarter 2011 Results
Oncology revenue in the third fiscal quarter increased 13.5 percent year-over-year to
$73.0 millionand Woman's Health revenue rose 11 percent to $29.3 millionas a result of the Company's sales and marketing efforts which resulted in wider acceptance of its products by the medical community.
Revenue from the
BRACAnalysis® product was $90.3 million, compared to $79.8 millionin the same period last year. Revenue from COLARIS® and COLARIS AP® products grew 7 percent to $7.4 million. Myriad's remaining six products contributed $4.7 millionto third quarter revenue, an increase of 14 percent over the same period last year.
Gross profit in the third fiscal quarter rose to
$91.2 million, or 89.1 percent of revenue, from $80.0 million, or 88.0 percent of revenue, reported in the prior year.
Operating income grew to
$41.8 million, or 40.9 percent of revenue, compared with $33.2 million, or 36.6 percent of revenue, in the same fiscal quarter of the prior year.
Net income for the third fiscal quarter was
$27.9 million, or $0.31per diluted share, which included a $14.4 millionincome tax expense recorded for accounting purposes. The Company expects to offset the expense with net operating losses and therefore will pay minimal income tax in the third fiscal quarter. Net income for the third fiscal quarter of the prior year was $33.3 million, or $0.33per diluted share, which included a $1.3 millionincome tax expense.
- The Company repurchased 4.5 million shares of its common stock during the quarter. Diluted weighted average shares outstanding were 90.1 million in the third fiscal quarter.
The Company ended the quarter with
$451.5 millionin cash and marketable investment securities.
- Days sales outstanding for Myriad's accounts receivable improved to 41 days, compared with 48 days in the same period of the prior year. Bad debt expense also continued to improve and now stands at 3.7 percent of revenue compared with 5.5 percent in the same period of the prior year.
Revenue for the first three quarters of fiscal 2011 was
$294.7 million, an increase of 10 percent over $268.7 millionreported for the first three quarters of fiscal 2010.
Operating income for the first three quarters of fiscal 2011 was
$116.0 million, an increase of 19 percent year-over-year.
Net income for the first three quarters of fiscal 2011 equaled
$74.7 million, or $0.80per diluted share, which included a $42.9 millionincome tax expense recorded for accounting purposes. The Company expects to offset the expense with net operating losses and therefore will pay minimal income tax in the first three quarters of 2011. Net income for the first three quarters of the prior year was $99.1 million, or $1.00per diluted share, which included a $3.2 millionincome tax expense.
Fiscal Year 2011 Outlook
The Company has revised upward its expectation for fiscal year 2011 financial performance. Including the impact of the recently announced acquisition of Rules-Based Medicine, fiscal year 2011 revenue is now expected to range between
Conference Call and Webcast
A conference call will be held on
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Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the Company's outlook for fiscal year 2011, including exceeding the high end of the original guidance range given for fiscal year 2011; and the Company's expectation to offset income tax expense with net operating losses and therefore pay minimal income tax in the first three quarters of 2011, including the third fiscal quarter. These "forward-looking statements" are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our
existing molecular diagnostic products may decline or will not continue to increase at historical rates; the risk that we may be unable to expand into new markets outside of
|MYRIAD GENETICS, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)|
|(in thousands, except per share amounts)||Three Months Ended||Nine Months Ended|
|Mar. 31, 2011||Mar. 31, 2010||Mar. 31, 2011||Mar. 31, 2010|
|Revenue||$ 102,374||$ 90,830||$ 294,672||$ 268,720|
|Costs and expenses:|
|Cost of revenue||11,133||10,880||34,191||33,024|
|Research and development expense||6,667||5,885||18,520||16,620|
|Selling, general, and administrative expense||42,750||40,840||125,960||121,616|
|Total costs and expenses||60,550||57,605||178,671||171,260|
|Other income (expense):|
|Total other income||488||1,255||1,543||4,770|
|Income before income taxes||42,312||34,480||117,544||102,230|
|Income tax provision||14,372||1,229||42,874||3,177|
|Net income||$ 27,940||$ 33,251||$ 74,670||$ 99,053|
|Earnings per share:|
|Basic||$ 0.32||$ 0.34||$ 0.82||$ 1.03|
|Diluted||$ 0.31||$ 0.33||$ 0.80||$ 1.00|
|Weighted average shares outstanding|
|Condensed Consolidated Balance Sheets (Unaudited)|
|Mar. 31, 2011||Jun. 30, 2010|
|Cash, cash equivalents, and marketable investment securities||$ 451,491||$ 488,382|
|Trade receivables, net||46,436||47,801|
|Equipment and leasehold improvements, net||21,343||23,261|
|Deferred tax assets||32,580||27,964|
|Total assets||$ 557,280||$ 593,847|
|Accounts payable and accrued liabilities||$ 23,372||$ 27,466|
|Uncertain tax benefits||9,448||8,800|
|Total liabilities and stockholders' equity||$ 557,280||$ 593,847|
Rebecca ChambersDirector, Investor Relations and Corporate Communications (801) 584-1143 firstname.lastname@example.org
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