NEW YORK (GenomeWeb) – NeoGenomics today reported a 26 percent year-over-year increase in first quarter revenues, including a 14 percent rise in testing revenue.
For the three months ended March 31, the Ft. Myers, Fla.-based cancer genetics testing company posted $23 million in revenues, up from $18.2 million in the year-ago quarter. During the recently completed quarter, NeoGenomics performed 49,396 tests for $20.7 million in testing revenues, compared to 38,734 million tests and $18.2 million in testing revenues in the year-ago period.
The balance of the company's revenues, $2.3 million, came from its acquisition of PathLogic. Organically, revenues grew 14 percent year over year, NeoGenomics said.
"NeoGenomics' base business test volume, service levels, and new account activities were very strong in the first quarter," the firm's Chairman and CEO Douglas VanOort said in a statement. "We continue to make excellent market-share gains in our base business where test volumes grew by 28 percent compared to last year's first quarter. [An] unusually harsh winter in the northern part of the country also impacted growth somewhat in January and February."
Average revenue per test, however, declined to $419 from $469. VanOort blamed the drop in reimbursement rates for fluorescent in situ hybridization testing from both Medicare and commercial insurers. NeoGenomics estimated that the reduction negatively impacted its revenues by about $2.1 million during the first quarter "and most of that amount similarly reduced profit," VanOort added. "Fortunately, some large commercial insurers have analyzed the rates and are now in the process of revising their FISH reimbursement upward."
The firm had a net loss of $761,000, or $.01 per share, in Q1 2015, compared to a profit of $102,000, or breakeven, in Q1 2014.
NeoGenomics increased its R&D spending 7 percent year over year to $669,000 from $628,000. Its SG&A costs were up 22 percent to $9.4 million from $7.7 million.
The firm ended the first quarter with $31.2 million in cash and cash equivalents.
For full-year 2015, NeoGenomics reaffirmed previously issued guidance of between $103 million and $108 million.
"Our genetic and molecular testing business is strong, and we continue to attract new customers with our comprehensive testing menu and service levels," VanOort said in a statement. "We believe that volume growth and process and productivity improvements will allow for a return to profitability in the second half of the year."
In morning trading on the Nasdaq on Tuesday, shares of NeoGenomics was down 3 percent at $4.47.