Genomic Health (GHDX) Prelim. Q4, FY15 Revenues Miss Expectations

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 Street sees FY15 revenue of $291.6 million.

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.

*** The Street expected Q4 revenue of $79 million.

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.

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