Response Genetics Inc. (RGDX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Response Genetics Inc. has a market cap of $43.9 million; its shares were traded at around $2.4 with and P/S ratio of 4.8.
Revenues: Revenues were $5,574,649 for the quarter ended September 30, 2010, as compared to $2,259,523 for the quarter ended September 30, 2009, an increase of $3,315,126, or 146.7%. Revenues, excluding the net revenue impact of $254,355 resulting from the conversion to the accrual basis of revenue recognition for Private Payors, were $5,320,294 for the quarter ended September 30, 2010, as compared to $2,259,523 for the quarter ended September 30, 2009, an increase of $3,060,771, or 135.5%. The increase was primarily due to increases in ResponseDX revenue of $2,067,974 and pharmaceutical revenues of $1,247,169. Excluding the net revenue impact of $254,355 for the quarter ended September 30, 2010, ResponseDX revenue accounted for 51.3% of total revenue compared to 48.7% for the quarter ended September 30, 2009. Excluding the net revenue impact of $254,355, ResponseDX revenues for the quarter ended September 30, 2010, as compared to the quarter ended September 30, 2009, increased 198.3%. For the quarter ended September 30, 2010, our two most significant pharmaceutical customers accounted for approximately 43.6% of our revenue, as compared to approximately 57.5% of our revenue for the quarter ended September 30, 2009.
Cost of Revenues: Cost of revenues for the quarter ended September 30, 2010 were $2,738,693 as compared to $1,161,329 for the quarter ended September 30, 2009, an increase of $1,577,364 or 135.8%. This increase resulted primarily from increases in personnel and temporary help costs of $750,089, lab supplies and reagent costs of $282,630, equipment repair costs of $67,723, consultation costs of $62,141, royalties of $305,024 and shipping costs of $126,700. Cost of revenues as a percentage of revenues was 49.1% for the quarter ended September 30, 2010, as compared to 51.4% for the quarter ended September 30, 2009, a decrease of 2.3%. Excluding the net revenue impact of $254,355 resulting from the conversion to accrual for Private Payors, cost of revenues as a percentage of revenue was 51.5% as compared to 51.4% for the quarter ended September 30, 2009, a decrease of 0.1%.
Revenues: Revenues were $14,914,212 for the nine months ended September 30, 2010, as compared to $5,694,988 for the nine months ended September 30, 2009, an increase of $9,219,224, or 161.9%. Revenues, excluding the net revenue impact of $1,754,010 resulting from the conversion to the accrual basis of revenue recognition for Private Payors, were $13,160,202 for the nine months ended September 30, 2010, as compared to $5,694,988 for the nine months ended September 30, 2009, an increase of $7,465,214, or 131.1%. The increase was primarily due to increases in ResponseDX revenue of $6,589,830 and pharmaceutical revenues of $2,629,409. Excluding the net revenue impact of $1,754,010 for the nine months ended September 30, 2010, ResponseDX revenue accounted for 49.1% of total revenue compared to 28.5% for the nine months ended September 30, 2010. Excluding the net revenue impact of $1,754,010, ResponseDX revenues for the nine months ended September 30, 2010, as compared to the nine months ended September 30, 2009, increased 297.8%. For the nine months ended September 30, 2010, our two most significant pharmaceutical customers accounted for approximately 42.2% of our revenue, as compared to approximately 65.0% of our revenue for the nine months ended September 30, 2009.
Cost of Revenues: Cost of revenues for the nine months ended September 30, 2010 were $7,392,756 as compared to $3,918,311 for the nine months ended September 30, 2009, an increase of $3,474,445 or 88.7%. This increase resulted primarily from increases in personnel and temporary help costs of $1,728,888, lab supplies and reagent costs of $627,726, equipment repair and service costs of $159,839, consultation costs of $173,422, royalties of $467,817 and shipping costs of $286,233. Cost of revenues as a percentage of revenues was 49.6% for the nine months ended September 30, 2010, as compared to 68.8% for the nine months ended September 30, 2009, a decrease of 19.2%. Excluding the net revenue impact of $1,754,010 resulting from the conversion to accrual for Private Payors, cost of revenues as a percentage of revenue was 56.2% as compared to 68.8% for the nine months ended September 30, 2009, a decrease of 12.6%. This decrease was primarily due to the increased revenue during the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009. In addition, the revenue recorded during the nine months ended September 30, 2010 included a technology access fee recorded during the three months ended March 31, 2010, which had no costs associated with it (see note 6 in the accompanying consolidated financial statements).
General and Administrative Expenses: General and administrative expenses were $5,399,445 for nine months ended September 30, 2010, as compared to $4,501,635 for the nine months ended September 30, 2009, an increase of $897,810 or 19.9%. This increase resulted primarily from increases in personnel costs of $445,869, legal costs of $575,719, billing service costs of $192,029 and bad debt expense of $132,186, offset by a decrease in travel costs of $164,349, stock-based compensation expense of $172,233 and accounting service costs of $136,667.
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Response Genetics Inc. has a market cap of $43.9 million; its shares were traded at around $2.4 with and P/S ratio of 4.8.
Highlight of Business Operations:
We have licensed technology for the extraction of RNA and DNA from FFPE tumor specimens from USC in exchange for royalty fees on revenue generated by use of this technology. These royalties are calculated as a fixed percentage of revenue that we generate from use of the technology licensed from USC. Total license fees expensed in cost of revenue under the royalty agreement to USC were $58,361 and $142,594 for the three months ended September 30, 2009 and 2010, respectively, and $135,369 and $380,263 for the nine months ended September 30, 2009 and 2010, respectively. We also maintain a non-exclusive license to use Roche s polymerase chain reaction (PCR), homogenous PCR, and reverse transcription PCR processes. We pay Roche a fixed percentage royalty fee for revenue that we generate through use of this technology. Royalties expensed in cost of revenue under this agreement totaled $(84,058) and $148,144 for the three months ended September 30, 2009 and 2010, respectively, and $116,402 and $359,507 for the nine months ended September 30, 2009 and 2010, respectively.Revenues: Revenues were $5,574,649 for the quarter ended September 30, 2010, as compared to $2,259,523 for the quarter ended September 30, 2009, an increase of $3,315,126, or 146.7%. Revenues, excluding the net revenue impact of $254,355 resulting from the conversion to the accrual basis of revenue recognition for Private Payors, were $5,320,294 for the quarter ended September 30, 2010, as compared to $2,259,523 for the quarter ended September 30, 2009, an increase of $3,060,771, or 135.5%. The increase was primarily due to increases in ResponseDX revenue of $2,067,974 and pharmaceutical revenues of $1,247,169. Excluding the net revenue impact of $254,355 for the quarter ended September 30, 2010, ResponseDX revenue accounted for 51.3% of total revenue compared to 48.7% for the quarter ended September 30, 2009. Excluding the net revenue impact of $254,355, ResponseDX revenues for the quarter ended September 30, 2010, as compared to the quarter ended September 30, 2009, increased 198.3%. For the quarter ended September 30, 2010, our two most significant pharmaceutical customers accounted for approximately 43.6% of our revenue, as compared to approximately 57.5% of our revenue for the quarter ended September 30, 2009.
Cost of Revenues: Cost of revenues for the quarter ended September 30, 2010 were $2,738,693 as compared to $1,161,329 for the quarter ended September 30, 2009, an increase of $1,577,364 or 135.8%. This increase resulted primarily from increases in personnel and temporary help costs of $750,089, lab supplies and reagent costs of $282,630, equipment repair costs of $67,723, consultation costs of $62,141, royalties of $305,024 and shipping costs of $126,700. Cost of revenues as a percentage of revenues was 49.1% for the quarter ended September 30, 2010, as compared to 51.4% for the quarter ended September 30, 2009, a decrease of 2.3%. Excluding the net revenue impact of $254,355 resulting from the conversion to accrual for Private Payors, cost of revenues as a percentage of revenue was 51.5% as compared to 51.4% for the quarter ended September 30, 2009, a decrease of 0.1%.
Revenues: Revenues were $14,914,212 for the nine months ended September 30, 2010, as compared to $5,694,988 for the nine months ended September 30, 2009, an increase of $9,219,224, or 161.9%. Revenues, excluding the net revenue impact of $1,754,010 resulting from the conversion to the accrual basis of revenue recognition for Private Payors, were $13,160,202 for the nine months ended September 30, 2010, as compared to $5,694,988 for the nine months ended September 30, 2009, an increase of $7,465,214, or 131.1%. The increase was primarily due to increases in ResponseDX revenue of $6,589,830 and pharmaceutical revenues of $2,629,409. Excluding the net revenue impact of $1,754,010 for the nine months ended September 30, 2010, ResponseDX revenue accounted for 49.1% of total revenue compared to 28.5% for the nine months ended September 30, 2010. Excluding the net revenue impact of $1,754,010, ResponseDX revenues for the nine months ended September 30, 2010, as compared to the nine months ended September 30, 2009, increased 297.8%. For the nine months ended September 30, 2010, our two most significant pharmaceutical customers accounted for approximately 42.2% of our revenue, as compared to approximately 65.0% of our revenue for the nine months ended September 30, 2009.
Cost of Revenues: Cost of revenues for the nine months ended September 30, 2010 were $7,392,756 as compared to $3,918,311 for the nine months ended September 30, 2009, an increase of $3,474,445 or 88.7%. This increase resulted primarily from increases in personnel and temporary help costs of $1,728,888, lab supplies and reagent costs of $627,726, equipment repair and service costs of $159,839, consultation costs of $173,422, royalties of $467,817 and shipping costs of $286,233. Cost of revenues as a percentage of revenues was 49.6% for the nine months ended September 30, 2010, as compared to 68.8% for the nine months ended September 30, 2009, a decrease of 19.2%. Excluding the net revenue impact of $1,754,010 resulting from the conversion to accrual for Private Payors, cost of revenues as a percentage of revenue was 56.2% as compared to 68.8% for the nine months ended September 30, 2009, a decrease of 12.6%. This decrease was primarily due to the increased revenue during the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009. In addition, the revenue recorded during the nine months ended September 30, 2010 included a technology access fee recorded during the three months ended March 31, 2010, which had no costs associated with it (see note 6 in the accompanying consolidated financial statements).
General and Administrative Expenses: General and administrative expenses were $5,399,445 for nine months ended September 30, 2010, as compared to $4,501,635 for the nine months ended September 30, 2009, an increase of $897,810 or 19.9%. This increase resulted primarily from increases in personnel costs of $445,869, legal costs of $575,719, billing service costs of $192,029 and bad debt expense of $132,186, offset by a decrease in travel costs of $164,349, stock-based compensation expense of $172,233 and accounting service costs of $136,667.
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