Myriad Genetics' profits jumped 67 percent in its fiscal second quarter, earning the biotechnology company $35.4 million.
The company that develops and sells genetic tests for diseases said the earnings represented 36 cents per share, compared with $21.2 million, or 22 cents per diluted share, in the same quarter of 2008. The latter included a loss of $15.6 million from discontinued operations of the company's spin-off of its research and pharmaceutical businesses.
Revenue rose 11 percent, to $92.8 million, for the three-month period ending Dec. 31, compared with the same time period of the prior fiscal year. Revenues were up 9 percent from the previous quarter, the company said.
"We attribute this revenue growth to improved economic conditions and the increased sales and marketing initiatives that were implemented last August, particularly the company's two direct-to-consumer marketing campaigns and the expansion of our OB/GYN speakers bureau," CEO and President Peter Meldrum said in a conference call this week.
The sales effort, including expanding its force to 300 from 250 people, caused selling, general and administrative expenses for the second quarter to increase to $42.1 million, compared with $35 million for the same quarter last year, a jump of 20 percent.
For the first six months of its 2010 fiscal year, revenues increased 16 percent, to $177.9 million from $153.9 million, in the same period last year. Net income for the six months that ended Dec. 31 was $65.8 million, or 66 cents a share, compared with $35.7 million, or 37 cents per share, for the same period of 2008.
Myriad Genetics also reported it has $457.6 million in cash on hand, cash equivalents and marketable investment securities. The company has no debt or convertible securities. Myriad shares closed at $24.71 Wednesday, up 73 cents. Its 52-week range is $22.06 to $47.08.
"With no debt and an improving revenue and profit picture, we now have the flexibility to explore various uses of our cash, including returning some of it back to our shareholders through payment of the cash dividend and/or a stock repurchase program," Meldrum said.
Myriad also said Wednesday that co-founder Mark Skolnick would step down as a board member. Skolnick, a genetic researcher, will remain part-time with the company as senior scientist emeritus and scientific visionary.
The company also announced Greg Critchfield, president of the company's wholly owned subsidiary, Myriad Genetic Laboratories, will retire March 1. He will be replaced by Mark Capone, chief operating officer for the laboratories.
Headwaters Inc., the South Jordan-based supplier for the energy and construction industries, reported Wednesday it had narrowed its losses in the first quarter.
The company reported a net loss of $13.9 million, or 23 cents a share, compared with a loss of $22.1 million, or 54 cents a share, for the same quarter of 2008, which excluded a one-time gain from a debt exchange.
Headwaters reported revenue of $139.6 million, down 16 percent from the same quarter of 2008.
"Despite adverse weather conditions in October, our revenue trend in the first quarter was positive, as the decline in revenue narrowed to 16 percent year over year, and further to 8 percent in December 2009," Kirk A. Benson, chairman and CEO, said in a statement.
