Molecular diagnostic revenue increased 22% to $85.1 million in the fiscal first quarter ended September 30, 2009, compared with $70.0 million in the same period last year. While the weak economic environment continued to restrain overall revenue growth compared to the prior year, the Company has begun to see stronger demand return for its products during the latter half of September and continuing through October as a result of its ongoing increased sales and marketing efforts. In particular, our direct-to-consumer marketing campaigns that were initiated in late August are performing well and are beginning to show results.

Operating income grew 27% to $29.7 million, compared with $23.4 million for the same period last year. Net income more than doubled to $30.4 million, or $0.31 per diluted share, compared with $14.5 million, or $0.15 per diluted share, in the first fiscal quarter of the prior year, which included a loss of $10.1 million from discontinued operations of the Company's former research and drug development businesses.

"While our revenues during the first fiscal quarter continued to be affected by the weakened economy, we are still comfortable with the First Call consensus revenue and earnings per share projections for fiscal 2010," said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "Supporting our confidence is the recent uptick in sample flow in October and positive signs that our DTC campaigns are beginning to produce results."

Gross profit for the fiscal first quarter was $74.1 million, or 87% of molecular diagnostic revenue, compared with $60.2 million, or 86% of molecular diagnostic revenue last year. The growth in gross margin primarily reflected technology improvements and efficiency gains in the operation of the Company's molecular diagnostics laboratory.

Research and development expense was $5.7 million compared with $4.4 million for the same period last year, a 30% increase, reflecting primarily an increased investment in the Company's product pipeline and new product development. Selling, general and administrative expense was $38.7 million compared with $32.4 million in the prior year and $36.0 million in the prior quarter. The 19% increase over the same period last year was due primarily to costs associated with the Company's 22% revenue growth. The 7% increase over the prior quarter resulted primarily from a $4.2 million increase in sales and marketing expenses to expand the Company's women's healthcare sales force, accelerate its Midwest direct-to-consumer marketing campaign, renew its South direct-to-consumer marketing campaign and expand its Ob/Gyn Speakers Program.

At September 30, 2009, the Company had approximately $417.0 million in cash, cash equivalents and marketable investment securities, compared with $392.2 million at June 30, 2009. This cash increase reflects the Company's strong cash generating capability from operating activities which contributed over $23 million last quarter. The Company has no debt and no convertible securities.

Conference Call and Webcast

A conference call with Company management to discuss these results and recent events will be held today, November 3, 2009, at 4:30 p.m. Eastern Time. The dial-in number for domestic callers is (800) 785-6380. International callers may dial (212) 231-2906. All callers will be asked to reference reservation number 21438735. An archived replay of the call will be available for seven days by dialing (800) 633-8625 or (402) 977-9141, and entering the reservation number above.