Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Geoff Meacham with JPMorgan.
Geoff Meacham - JPMorgan
Thanks for taking the question. I know that July, August are seasonally light months, given the summer holidays, but is there anything you can tell us about the current quarter, just in sort of broad brush strokes, how it compares to probably the past two?
Peter Meldrum
Really not prepared to talk too much about this quarter. Historically, the summer quarter has been a weaker quarter for the company, because of the vacation periods. Women go on vacation, physicians go on vacation, genetic counselors go on vacation.
Typically, we see a smaller revenue flow in July and August primarily because of the vacation, and a much stronger revenue growth in September, so it is very difficult to comment on this particular quarter given that we have no insight yet really into September, which is a key driver of the quarter.
Geoff Meacham - JPMorgan
Okay, then a follow-up to that. Have you guys seen any economic impact on oncology revenues for BRCA, specifically? Obviously that's pretty clear with the OB/GYN segment?
Peter Meldrum
Greg can expand on this a little bit, but yes, we have seen an impact on our oncology revenues, particularly for BRAC analysis.
Do we believe to the recession? As I mentioned, it's not nearly as significant as what we've seen in the OB/GYN sector, but we've definitely seen a slowdown across both sectors.
Gregory Critchfield
Yeah, again, Geoff, I'll reiterate what I said earlier. The reason that we believe there is less impact on the Oncology segment is that the decisions are more critical for immediate decision making that the doctor and patient need in order to treat the disease, because the oncologist is seeing people that have cancer, there's a need to get that information in order to know what to do next.
It's less urgent in the OB/GYN segment of the market, and we believe that's one of the key reasons that is more susceptible to the recessionary effect.
Geoff Meacham - JPMorgan
Just one final question for Jim. Can you talk about how much of the SG&A spend during the fiscal fourth quarter was non-recurring from the spinoff, et cetera, and then maybe anything about SG&A run rate for the year, if you guys can talk about that.
Jim Evans
Well, in the fourth quarter, we had just shy of $1 million of spin costs. I think it's somewhere between $700,000 and $1 million of cost associated with the spin, and so taking that out, the fourth quarter obviously does not have the full impact of the increase of the sales force, nor does it have the additional spend that we are going to have for the programs that Greg has listed out.
- To read the full transcript on Seeking Alpha, click here »
