Myriad Genetics Reports First Quarter Fiscal Year 2013 Results
"In what has historically been a challenging summer quarter, Myriad achieved record revenue and higher operating profits," said
First Fiscal Quarter 2013 Results
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Molecular diagnostic testing revenue in the first fiscal quarter equaled
$127.3 million , an increase of 22 percent compared to the prior year period. Revenue from the Oncology segment equaled$86.2 million , an increase of 16 percent over the first fiscal quarter of 2012.Women's Health revenue totaled$41.1 million , an increase of 38 percent over the same period in the prior year.
- Revenue from the BRACAnalysis® test, which represented 78.7 percent of total revenue in the first quarter, was
$105.0 million , a 17 percent increase over the same period of the prior year.- Revenue from the COLARIS® and COLARIS AP® tests, which represented 9.1 percent of total revenue during the quarter, was
$12.1 million , an increase of 26 percent compared to the same fiscal quarter of the prior year.- Revenue from the BART™ test, which represented 5.7 percent of total revenue during the quarter, was
$7.6 million , an increase of 188 percent compared to the same fiscal quarter of the prior year.- Myriad's other molecular diagnostic tests contributed
$2.6 million to first quarter revenue, an increase of 17 percent over the same period in the prior year.
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Companion diagnostic service revenue in the first fiscal quarter equaled
$6.2 million and represented 4.6 percent of total company revenue, compared to$6.5 million in the prior fiscal year. -
Operating income was
$48.6 million , an increase of 17 percent from the prior year period. This record level of operating income included the impact of increased investment in research and development to support existing molecular diagnostic tests and future products, as well as investments for international expansion and sales force expansion. -
Net income for the first fiscal quarter was
$30.1 million , an increase of 20 percent over the$25.1 million reported in same period of the prior year. -
During the quarter the Company repurchased 1.8 million shares or
$46.2 million of its common stock at an average price of$25.17 under its previously announced stock repurchase program. First fiscal quarter diluted weighted average shares outstanding were 83.9 million as compared to 87.0 million in the same period of the prior year. - Days sales outstanding for Myriad's accounts receivable were 44 days and bad debt expense was 5.4 percent of total revenue.
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The Company ended the quarter with
$466.3 million in cash, cash equivalents and marketable investment securities, an increase of 16% over the$401.7 million cash balance atSeptember 30, 2011 .
Business Highlights during the First Quarter of Fiscal 2013
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Received a decision from
Noridian Administrative Services , the Company's Medicare Administrative Contractor, that effectiveOctober 1, 2012 Medicare would reimburse BART testing for patients with a personal history of breast or ovarian cancer. -
Announced the inclusion of BRACAnalysis in the demonstration projects initiated by
TRICARE , the health care program for Uniformed Service members, retirees and their families worldwide, providing for reimbursement of BRACAnalysis for their members with a personal or family history of breast or ovarian cancer. -
Published a study in the
British Journal of Cancer which highlighted the ability of the Company's Homologous Recombination Deficiency (HRD) Assay to detect loss of DNA repair in ovarian tumors. The HRD test may identify cancer patients who have a high likelihood of responding to platinum drugs as well as PARP inhibitors. -
The United States Court of Appeals for the Federal Circuit declared that the Company's composition of matter patent claims covering isolated DNA of the BRCA 1 and BRCA 2 genes are patent-eligible material under Section 101 of the United States Patent Act. Subsequently, the plaintiffs filed a Petition for a Writ of Certiorari with theSupreme Court .
Fiscal Year 2013 Outlook
The Company has increased its expectations for fiscal year 2013 financial performance. Total revenue is now expected to be in a range of
Conference Call and Webcast
A conference call will be held on
About
Myriad, the Myriad logo, BART, BRACAnalysis, Colaris, Colaris AP, Melaris, TheraGuide, Prezeon, OnDose, Panexia and Prolaris are trademarks or registered trademarks of
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 belief that its initiatives of growing existing tests and markets has fueled its financial results and its continued excitement about the future potential contributions from the Company's strategic directives of expanding internationally and launching new tests across a diverse set of major disease indications; the ability of the HRD test to identify cancer patients who have a high likelihood of responding to platinum drugs as well as PARP inhibitors; the Company's fiscal year 2013 financial guidance under the caption "Fiscal Year 2013 Outlook;" the impact of the recent severe storm affecting the
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CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) | ||
(in thousands, except per share amounts) | Three Months Ended | |
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Molecular diagnostic testing | $ 127,268 | $ 103,969 |
Companion diagnostic services | 6,169 | 6,483 |
Total revenue | 133,437 | 110,452 |
Costs and expenses: | ||
Cost of molecular diagnostic testing | 13,932 | 11,300 |
Cost of companion diagnostic services | 3,395 | 3,061 |
Research and development expense | 11,400 | 8,505 |
Selling, general, and administrative expense | 56,128 | 46,114 |
Total costs and expenses | 84,855 | 68,980 |
Operating income | 48,582 | 41,472 |
Other income (expense): | ||
Interest income | 1,368 | 473 |
Other | (128) | (140) |
Total other income | 1,240 | 333 |
Income before income taxes | 49,822 | 41,805 |
Income tax provision (benefit) | 19,686 | 16,706 |
Net income | $ 30,136 | $ 25,099 |
Earnings per share: | ||
Basic | $ 0.37 | $ 0.29 |
Diluted | $ 0.36 | $ 0.29 |
Weighted average shares outstanding | ||
Basic | 81,572 | 85,241 |
Diluted | 83,914 | 87,037 |
Condensed Consolidated Balance Sheets (Unaudited) | ||
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(In thousands) | ||
Cash, cash equivalents, and marketable investment securities | $ 466,290 | $ 454,224 |
Trade receivables, net | 62,503 | 60,441 |
Other receivables | 1,970 | 2,660 |
Inventory, net | 10,602 | 11,574 |
Prepaid expenses | 2,516 | 1,713 |
Equipment and leasehold improvements, net | 24,757 | 24,231 |
Note receivable | 19,667 | 19,000 |
Other assets | 8,000 | 8,000 |
Intangibles, net | 15,447 | 15,722 |
Goodwill | 56,850 | 56,850 |
Deferred tax assets | 34,459 | 36,220 |
Total assets | $ 703,061 | $ 690,635 |
Accounts payable and accrued liabilities |
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Deferred revenue | 3,275 | 2,054 |
Uncertain tax benefits | 10,138 | 10,008 |
Stockholders' equity | 635,567 | 635,660 |
Total liabilities and stockholders' equity | $ 703,061 | $ 690,635 |
CONTACT: Investor RelationsSource:Jim Evans , Chief Financial Officer (801) 584-1143 investors@myriad.com Media RelationsStephanie Ashe Continuum Health Communications sashe@continuumhealthcom.com
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