REDWOOD CITY, Calif.,
Jan. 8, 2016 /PRNewswire/ -- Genomic
Health, Inc. (Nasdaq: GHDX) today announced preliminary revenue for
the year ended December 31, 2015, is
expected to be between $285 and $286
million, compared with $275.7
million in 2014, representing an increase of approximately 4
percent, slightly below the Company's 2015 guidance.
The Company delivered more than 106,850 Oncotype DX® tests in
2015, an increase of approximately 12 percent compared with 2014,
within the Company's 2015 guidance.
For the fourth quarter 2015, the Company anticipates reporting
between $73 and $74 million in
revenue, representing an increase of approximately 6 percent
compared to the fourth quarter of 2014, and more than 27,520 tests
delivered, an increase of approximately 11 percent compared to the
fourth quarter of 2014.
Preliminary fourth quarter revenue and tests delivered were
affected by a disruption in order and test processing associated
with a mid-quarter implementation of a new enterprise-wide platform
(ERP) designed to add novel capabilities and scale to the Company's
growing business. This transition, requiring a new ordering
process for more than 10,000 customers, led to lower than expected
tests delivered during the quarter, impacting revenue by more than
$3 million. In addition, revenue from
prostate cancer tests in the quarter was lower than expected due to
delays in collecting patient data required by Medicare for revenue
recognition.
"Having delivered in the third quarter our highest test growth
in more than two years, we are pleased to report similar test
levels in the fourth quarter despite these challenges," said
Kim Popovits, Chairman of the Board,
Chief Executive Officer and President of Genomic Health. "By
successfully activating the majority of customers in our new ERP
system and implementing more efficient mechanisms for collecting
prostate patient data, we remain confident in our ability to
deliver double-digit revenue growth in 2016."
At this time, the Company is providing initial 2016 revenue
guidance between $320 and $335
million, representing growth of between approximately 12 and
17 percent compared to 2015.
These statements about estimated results are preliminary, as
Genomic Health's fourth-quarter and fiscal year-end books are not
yet closed. The Company will announce full financial results for
the quarter and year in February and will provide complete annual
2016 guidance at that time.
About Genomic Health
Genomic Health, Inc.
(NASDAQ: GHDX) is the world's leading provider of genomic-based
diagnostic tests that address both the overtreatment and optimal
treatment of early-stage cancer, one of the greatest issues in
healthcare today. The company is applying its world-class
scientific and commercial expertise and infrastructure to lead the
translation of massive amounts of genomic data into
clinically-actionable results for treatment planning throughout the
cancer patient's journey, from diagnosis to treatment selection and
monitoring. The company is based in Redwood
City, California, with international headquarters
in Geneva, Switzerland. For more information, please
visit, www.GenomicHealth.com and follow the company on
Twitter: @GenomicHealth, Facebook, YouTube and LinkedIn.
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 preliminary
fourth quarter and full year 2015 revenue and tests delivered; the
company's initial 2016 revenue guidance; the company's ability to
deliver double-digit topline growth in 2016; and the company's
beliefs regarding the factors affecting fourth quarter and full
year 2015 results. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially, and reported results should not be considered as an
indication of future performance. These risks and uncertainties
include, but are not limited to: the completion of the company's
quarter and year end close processes, and adjustments that may
result from such processes; the impact of ERP implementation on the
company's business; challenges associated with collection of
prostate patient data required by Medicare; the risks and
uncertainties associated with the regulation of the company's
tests; the results and timing of results of clinical studies and
their impact on reimbursement and adoption; the applicability of
clinical study results to actual outcomes; the company's ability to
develop and commercialize new tests and expand into new markets
domestically and internationally; the risk that the company may not
obtain, within its time expectations or at all, or maintain
sufficient levels of reimbursement, domestically or abroad, for its
existing tests and any future tests it may develop; the risks
of competition; unanticipated costs or delays in research and
development efforts; and the other risks set forth in the company's
filings with the Securities and Exchange Commission, including the
risks set forth in the company's quarterly report on Form 10-Q for
the quarter ended September 30, 2015.
These forward-looking statements speak only as of the date hereof.
Genomic Health disclaims any obligation to update these
forward-looking statements.
NOTE: The Genomic Health logo, Oncotype, Oncotype
DX, Recurrence Score, and DCIS Score are trademarks or registered
trademarks of Genomic Health, Inc. All other trademarks
and service marks are the property of their respective
owners.
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SOURCE Genomic Health, Inc.