(RTTNews) - Tuesday, molecular diagnostic products company Myriad Genetics Inc. (MYGN) said its first quarter of 2010 profit surged from last year, primarily due to a 22% growth in molecular diagnostic revenues as a result of its ongoing increased sales and marketing efforts during the later part of the quarter. The company's quarterly earnings, however, missed analysts' estimate, as did revenues.

The Salt Lake City, Utah-based company reported net income for the first quarter of $30.44 million or $0.31 per share, compared to $14.45 million or $0.15 per share in the year-ago quarter.

On average, seventeen analysts polled by Thomson Reuters expected the company to earn $0.34 per share for the quarter. Analysts estimates typically exclude special items.

The first quarter of fiscal 2008 included a loss of $10.1 million from discontinued operations related to the company's former research and drug development businesses.

Operating income for the quarter grew 27% to $29.7 million, compared with $23.4 million in the same period last year.

Molecular diagnostic revenues for the quarter increased 22% to $85.12 million from $69.97 million in the prior-year quarter. Fifteen analysts had a revenue consensus of $88.28 million for the third quarter.

Myriad said that despite weak economic environment that continued to restrain overall revenue growth, it witnessed 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, the company's direct-to-consumer marketing campaigns that were initiated in late August are performing well and are beginning to show results.

In the immediately preceding quarter, Myriad Genetics reported that its fourth quarter profit declined to $23.6 million or $0.24 per share from last year hurt by a loss from discontinued operations despite a 33% growth in revenue that totaled $86.1 million.

Among the others in the industry, Lexington, Massachusetts-based AMAG Pharmaceuticals, Inc. (AMAG) reported third quarter net loss of $22.06 million, or $1.29 per share, as compared to a net loss of $23.6 million, or $1.39 per share, for the same period in 2008. The company's quarterly revenues rose to $3.02 million from $260 thousand in the same quarter a year ago.

Another runner, IDEXX Laboratories, Inc. (IDXX) reported a rise in third-quarter profit to $31.54 million or $0.52 per share from last year, reflecting higher revenues of $259.12 million, mainly due to international performance particularly in Asia, as well as lower operating expenses. For the full year, the company expects earnings well ahead of Street view.

Myriad's gross profit for the fiscal first quarter was $74.1 million, or 87% of molecular diagnostic revenue, compared to $60.2 million, or 86% of molecular diagnostic revenue last year, reflecting technology improvements and efficiency gains in the operation of the company's molecular diagnostics laboratory.

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