Genomic Health Inc. (GHDX, Financial) filed Quarterly Report for the period ended 2012-06-30.
Genomic Health, Inc. has a market cap of $962.4 million; its shares were traded at around $36.22 with a P/E ratio of 114.4 and P/S ratio of 4.7.
The increase in product revenues for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 resulted, in part, from increased adoption, as evidenced by a 16% and 15% period over period increase in test volume, respectively, as well as payments from Medicare, during the first three months of 2012, for colon tests performed prior to the establishment of reimbursement coverage. We also experienced an increase in revenues recorded on an accrual basis. Approximately $38.4 million, or 67%, and $77.1 million, or 67 %, of product revenues for the three and six months ended June 30, 2012, respectively, were recorded on an accrual basis and recognized at the time the test results were delivered, compared to $33.9 million, or 67%, and $65.5, or 66%, for the three and six months ended June 30, 2011, respectively. For both periods, the balance of product revenues was recognized upon cash collection as payments were received. The timing of recognition of revenues related to third-party payments may cause fluctuations in product revenues from period to period.
Product revenues related to Medicare patients for the three and six months ended June 30, 2012 were $12.7 million, or 22%, and $25.9 million, or 23%, of product revenues, respectively, compared to $10.3 million, or 20%, and $20.7 million, or 21%, of product revenues for the three and six months ended June 30, 2011, respectively. There were no other third-party payors representing product revenues of 10% or more for those periods. International product revenues increased to $5.8 million, or 10%, and $10.9 million, or 9%, of product revenues for the three and six months ended June 30, 2012, respectively, from $4.8 million, or 9%, and $8.8 million, or 9%, of product revenues for the three and six months ended June 30, 2011, respectively.
Tissue sample processing costs increased $865,000, or 14%, for the three months ended June 30, 2012 compared to the three months ended June 30, 2011. Tissue sample processing costs increased $1.9 million, or 16%, for the six months ended June 30, 2012 compared to the six months ended June 30, 2011. These increases were primarily due to increases in test volume. The decreases in license fees for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 of $92,000, or 4% and $887,000, or 18%, resulted from an amendment in 2011 to a license agreement that reduces the rate paid on PCR-based product revenues recorded after July 1, 2011. License fees for the three and six months ended June 30, 2011 were reduced by an $800,000 payment under a legal settlement related to the abandonment of a patent. We expect the cost of product revenues to increase in future periods to the extent we process more tests.
Net cash provided by operating activities was $8.4 million for the six months ended June 30, 2012, compared to $3.6 million for the six months ended June 30, 2011. Net cash provided by operating activities includes net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities for the six months ended June 30, 2012 reflected net income of $2.6 million, adjusted for $10.2 million of stock-based compensation and depreciation and amortization expense, a $958,000 increase in accrued expenses and other liabilities and a $307,000 increase in accrued compensation, partially offset by a $3.5 million decrease in accounts payable, a $901,000 decrease in prepaid expenses and other liabilities, a $670,000 decrease in deferred revenues and a $622,000 decrease in accounts receivable. Net cash provided by operating activities for the six months ended June 30, 2011 reflected net income of $2.1 million, adjusted for $9.6 million of stock-based compensation and depreciation and amortization expense, partially offset by a $5.1 million increase in accounts receivable, a $2.1 million decrease in accounts payable and a $1.3 million decrease in accrued expenses and other liabilities.
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Genomic Health, Inc. has a market cap of $962.4 million; its shares were traded at around $36.22 with a P/E ratio of 114.4 and P/S ratio of 4.7.
Highlight of Business Operations:
We recorded net income of $1.8 million and $2.6 million for the three and six months ended June 30, 2012, respectively, compared to net income of $2.3 million and $2.1 million for the three and six months ended June 30, 2011, respectively. On a basic per share basis, net income was $0.06 and $0.09 for the three and six months ended June 30, 2012, respectively, compared to net income of $0.08 and $0.07 for the three and months ended June 30, 2011, respectively. On a diluted per share basis, net income was $0.06 and $0.08 for the three and six months ended June 30, 2012, respectively, compared to net income of $0.08 and $0.07 for the three and six months ended June 30, 2011, respectively. We may incur net losses in future periods due to future spending and fluctuations in our business, and we may not achieve or maintain sustained profitability in the future.The increase in product revenues for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 resulted, in part, from increased adoption, as evidenced by a 16% and 15% period over period increase in test volume, respectively, as well as payments from Medicare, during the first three months of 2012, for colon tests performed prior to the establishment of reimbursement coverage. We also experienced an increase in revenues recorded on an accrual basis. Approximately $38.4 million, or 67%, and $77.1 million, or 67 %, of product revenues for the three and six months ended June 30, 2012, respectively, were recorded on an accrual basis and recognized at the time the test results were delivered, compared to $33.9 million, or 67%, and $65.5, or 66%, for the three and six months ended June 30, 2011, respectively. For both periods, the balance of product revenues was recognized upon cash collection as payments were received. The timing of recognition of revenues related to third-party payments may cause fluctuations in product revenues from period to period.
Product revenues related to Medicare patients for the three and six months ended June 30, 2012 were $12.7 million, or 22%, and $25.9 million, or 23%, of product revenues, respectively, compared to $10.3 million, or 20%, and $20.7 million, or 21%, of product revenues for the three and six months ended June 30, 2011, respectively. There were no other third-party payors representing product revenues of 10% or more for those periods. International product revenues increased to $5.8 million, or 10%, and $10.9 million, or 9%, of product revenues for the three and six months ended June 30, 2012, respectively, from $4.8 million, or 9%, and $8.8 million, or 9%, of product revenues for the three and six months ended June 30, 2011, respectively.
Tissue sample processing costs increased $865,000, or 14%, for the three months ended June 30, 2012 compared to the three months ended June 30, 2011. Tissue sample processing costs increased $1.9 million, or 16%, for the six months ended June 30, 2012 compared to the six months ended June 30, 2011. These increases were primarily due to increases in test volume. The decreases in license fees for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 of $92,000, or 4% and $887,000, or 18%, resulted from an amendment in 2011 to a license agreement that reduces the rate paid on PCR-based product revenues recorded after July 1, 2011. License fees for the three and six months ended June 30, 2011 were reduced by an $800,000 payment under a legal settlement related to the abandonment of a patent. We expect the cost of product revenues to increase in future periods to the extent we process more tests.
Net cash provided by operating activities was $8.4 million for the six months ended June 30, 2012, compared to $3.6 million for the six months ended June 30, 2011. Net cash provided by operating activities includes net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities for the six months ended June 30, 2012 reflected net income of $2.6 million, adjusted for $10.2 million of stock-based compensation and depreciation and amortization expense, a $958,000 increase in accrued expenses and other liabilities and a $307,000 increase in accrued compensation, partially offset by a $3.5 million decrease in accounts payable, a $901,000 decrease in prepaid expenses and other liabilities, a $670,000 decrease in deferred revenues and a $622,000 decrease in accounts receivable. Net cash provided by operating activities for the six months ended June 30, 2011 reflected net income of $2.1 million, adjusted for $9.6 million of stock-based compensation and depreciation and amortization expense, partially offset by a $5.1 million increase in accounts receivable, a $2.1 million decrease in accounts payable and a $1.3 million decrease in accrued expenses and other liabilities.
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