(Source: PrimeNewswire)
SALT LAKE CITY, Aug. 25, 2009 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (Nasdaq:MYGN) today reported financial results for its fourth quarter and fiscal year ended June 30, 2009. It should be noted that as a result of the successful spin off of the Company's pharmaceutical and research businesses on June 30, 2009, the Company's financial statements include a new line for discontinued operations. The Company has reported as discontinued operations all of the expenses generated by the pharmaceutical and research businesses netted against pharmaceutical and research revenue. Financial results from continuing operations reflect only the activities of the Company's molecular diagnostic business.
Financial Results - Fiscal Year 2009
Molecular diagnostic revenue for fiscal 2009 increased 47% to $326.5 million from $222.9 million in fiscal 2008. The revenue improvement in the 2009 fiscal year was due primarily to Myriad's increased sales and marketing efforts, which have resulted in higher demand for the Company's molecular diagnostic products.
Operating income more than doubled to $126.5 million from $61.6 million in fiscal 2008. Net income, including a loss from discontinued operations of $51.6 million, was $84.6 million or $0.86 per diluted share for fiscal 2009. This compares with fiscal 2008 net income, including a loss from discontinued operations of $26.5 million, of $47.8 million or $0.51 per diluted share.
Gross profit for fiscal 2009 was $283.3 million, or 87% of molecular diagnostic revenue, compared with $190.5 million, or 85% of molecular diagnostic revenue last year. The margin growth was primarily as a result of technology improvements and efficiency gains in the operation of the Company's molecular diagnostics laboratory.
Research and development expense was $17.9 million for fiscal 2009, compared with $18.5 million for fiscal 2008. Selling, general and administrative expense was $138.9 million compared with $110.4 million in the prior year, reflecting a 26% increase in sales and marketing investments commensurate with the company's 47% revenue growth.
Financial Results - Fiscal Fourth Quarter 2009
Molecular diagnostic revenue increased 33% to $86.1 million in the fourth quarter of fiscal 2009, from $64.7 million in the fourth quarter of last year. Operating income rose 80% to $34.5 million, compared to $19.2 million for the fiscal 2008 fourth quarter. Net income, including loss from discontinued operations of $13.1 million, was $23.6 million or $0.24 per diluted share. This compares with fiscal 2008 fourth quarter net income, including income from discontinued operations of $44.0 million which contained an extraordinary one-time license payment of $100.0 million, of $65.5 million or $0.70 per diluted share.
Gross profit was $74.9 million or 87% of molecular diagnostic revenue for the fiscal 2009 fourth quarter, compared with $55.6 million or 86% of molecular diagnostic revenue in last year's fourth quarter. Research and development expense was $4.4 million for the fourth quarter of fiscal 2009, compared with $4.8 million for the fiscal 2008 fourth quarter. Selling, general and administrative expense was $36.0 million, compared with $31.6 million in the prior year fourth quarter.
"While our revenue growth has moderated during the second half of the fiscal year due to the current recession, we are comfortable with current research analyst consensus guidance for our 2010 fiscal year," said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "Additionally, we have recently implemented a number of measures in an attempt to spur sales. We have added 50 new professional sales representatives; accelerated our Midwest direct-to-consumer campaign, which began on August 17, 2009; renewed our South DTC campaign; and, expanded the Company's OB/GYN Speaker Program to increase physician awareness about the new ACOG professional guidelines."
At June 30, 2009, the Company had approximately $392 million in cash, cash equivalents and marketable investment securities, compared with $420 million at June 30, 2008. The 7% decrease resulted from the transfer of $188 million to Myriad Pharmaceuticals in conjunction with the spin off of that business, offset by $160 million of cash generated from operations and the exercise of employee stock options.
