NEW YORK – NeoGenomics on Wednesday reported a 1 percent year-over-year rise in its first quarter revenues.
For the three months ended March 31, the Fort Myers, Florida-based company recorded revenues of $117.2 million compared to $115.5 million a year ago, beating the consensus Wall Street estimate of $116.7 million.
Excluding 2021 COVID-19 PCR testing revenue, consolidated revenues increased 3 percent year over year.
NeoGenomics Q1 clinical services revenues grew 2 percent to $98.8 million from $96.5 million a year ago. Excluding COVID-19 PCR testing revenues, its year-over-year clinical services revenues grew 4 percent.
Meanwhile, its Q1 clinical test volume grew 2 percent year-over-year to 266,035 from 260,941; the average revenue per clinical test rose 2 percent to $371 from $364; and the average cost per clinical test rose 11 percent to $229 from $206.
NeoGenomics' clinical testing excludes requisitions, tests, revenues, and costs for pharma services and COVID-19 PCR tests.
Its Q1 pharma services revenues fell 3 percent to $18.4 million from $19.0 million a year ago.
"While our first quarter performance was disappointing and inconsistent with our company's strong track record, we are taking immediate actions to improve our operating performance and return to profitable growth," NeoGenomics Executive Chair Lynn Tetrault said in a statement.
The firm's stock price fell in March after it announced the departure of its CEO and board member Mark Mallon and said that its Q1 revenues would be lower than expected.
"With an effective interim management structure and team in place and the CEO search well underway, we are confident that we are on track to overcome the current challenges facing our business," Tetrault added.
"Unfortunately, our performance over the past year has been inconsistent with [our] historical track record, as [is evident] by slowing growth and decreased profitability," Tetrault said on a conference call to discuss the financial results. "The company experienced a number of challenges in 2021, including the transition of our long-standing Chairman and Chief Executive Officer Doug VanOort, continuing headwinds from COVID, and shifting dynamics in the external environment.
"Though the company's market position remains strong, and our overall strategy is sound, our execution over the last year was poor," she said, adding, "The board of directors took decisive action last month to change leadership in order to restore the operational performance of the business and better position the company for long-term success."
The management team "has moved swiftly and collaboratively to identify actions to improve performance," Tetrault said.
NeoGenomics' appointments of David Sholehvar as clinical services division president and Shashi Kulkarni as CSO has helped it "identify additional opportunities for improvement," she said.
"While my focus will be primarily on next-generation sequencing, I believe I can help drive improvements in operational productivity through process improvement and automation across laboratories," Kulkarni said on the conference call. "I will look to develop and launch cutting-edge NGS solutions for our clinical and pharma divisions and create an NGS center of excellence."
NeoGenomics posted a Q1 net loss of $49.4 million, or $.40 per share, compared to a net loss of $22.1 million, or $.19 per share, a year ago. On an adjusted basis, its loss per share was $.20, beating the consensus Wall Street estimate for a loss per share of $.23.
For Q1 2022, NeoGenomics' R&D costs rose more than threefold to $7.7 million from $2.5 million a year ago. Its SG&A expenses rose 52 percent to $82.5 million from $54.2 million in the year-ago quarter.
NeoGenomics finished the quarter with $305.9 million in cash and cash equivalents.
Earlier this week, the company announced it will work with Eli Lilly on a program designed to provide no-cost genomic testing to patients with metastatic non-small cell lung cancer (NSCLC).
In morning trading on the Nasdaq, NeoGenomics shares were up 2 percent at $11.10.