LOS ANGELES, Nov. 13, 2012 /PRNewswire/ --Response Genetics, Inc. (RGDX), a company focused on the development and sale of molecular diagnostic tests for helping determine a patient's response to cancer therapy, today announced its consolidated financial results for the third quarter ended September 30, 2012.

Total revenues for the quarter ended September 30, 2012 increased to $5.40 million, compared to $3.84 million for the quarter ended June 30, 2012 and $5.10 million for the quarter ended September 30, 2011. The Company's pharmaceutical client revenue increased by $1.37 million and the ResponseDX revenue increased by $189 thousand relative to the quarter ended June 30, 2012.

The Company's net loss for the quarter ended September 30, 2012 decreased by $1.3 million to $1.4 million compared to a net loss of $2.7 million for the quarter ended June 30, 2012 and a net loss of $1.4 million for the quarter ended September 30, 2011. This is the third consecutive quarter the Company decreased its net loss.

The Company also increased its gross margin in three consecutive quarters from approximately 25% for the fourth quarter of 2011, to approximately 32% for the quarter ended March 31, 2012 to approximately 37% for the quarter ended June 30, 2012, to approximately 49% for the quarter ended September 30, 2012. Gross margin is Net Revenue less Cost of Revenue.

Excluding cost of revenue, total operating expenses for the third quarter were $4.0 million, compared to $4.1 million for the quarter ended June 30, 2012 and $4.0 million for the same period last year.

"We are very pleased with the financial results for the quarter ended September 30, 2012, which improved again relative to the prior quarter. Since the fourth quarter of last year, we continued to realize consecutive quarter-over-quarter positive results from the many changes implemented by the Company. Gross margins have increased nearly two-fold from the fourth quarter of last year, and operating loss has continued to decrease significantly, or nearly two-fold, since last quarter and by a factor of nearly 2.8 from the fourth quarter of last year," said Thomas Bologna, the Company's Chairman & Chief Executive Officer.

Total revenues for the nine months ended September 30, 2012 were $13.2 million compared to $17.7 million for the nine months ended September 30, 2011. The decrease is largely a result of the expected decrease in pharmaceutical client revenue of $3.9 million from $8.3 million for the nine months ended September 30, 2011 to $4.4 million for the nine months ended September 30, 2012. Additionally, early in 2012, the Company made the strategic decision to focus much of its pharmaceutical resources on working with GSK as it moves its drugs, for which the Company did extensive patient testing, through the FDA approval process. The Company's ResponseDX revenue was $8.8 million for the nine months ended September 30, 2012, compared to $9.4 million for the nine months ended September 30, 2011, largely as a result of tactical changes the Company is undergoing in building and directing its sales force.

The Company's net loss for the nine months ended September 30, 2012 was $7.3 million, compared with a net loss of $1.8 million for the nine months ended September 30, 2011.

Excluding cost of revenue, total operating expenses for the nine months were $12.5 million, compared to $11.4 million for the same period last year. The increase in total operating expense of $1.1 million was due to an increase in general and administrative expenses of $0.2 million and an increase in research and development expenses of $0.9 million.

The Company's cash position increased substantially to $10.8 million at September 30, 2012 compared to $2.6 million at June 30, 2012.

Link:
Response Genetics, Inc. Announces Third Quarter Financial Results

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