NEW YORK (GenomeWeb) - NeoGenomics today reported that its third quarter revenues increased 8 percent, just shy of Wall Street's consensus estimate. The firm also announced a change to its testing services agreement with Covance.
For the three months ended Sept. 30, revenues for the Fort Myers, Florida cancer genetic testing firm increased to $25.1 million from $23.2 million in the prior-year period. On average, analysts had expected $25.6 million in revenues.
On a conference call following the release of results, NeoGenomics officials said that the firm saw volume growth in every product offering and that it continues to take market share and grow its client list.
Total testing revenue for the firm's base business, which excludes PathLogic, was $23.1 million, up almost 11 percent from $20.8 million in Q3 2014, while the number of tests performed jumped 25 percent to 56,380 from 44,975. However, average revenue per test fell 11 percent, due to significant decreases in reimbursement for fluorescent in situ hybridization (FISH) testing.
Revenue from the firm's PathLogic unit totaled $2 million.
Officials also said the firm has amended its collaboration on specialty testing for clinical trials with Covance, following the latter firm's acquisition by Laboratory Corporation of America. NeoGenomics will no longer be the exclusive anatomic pathology services provider for Covance but will receive a $2 million payment from LabCorp by Nov. 9, 2015.
NeoGenomics posted a net loss of $125,000 for Q3 and no measureable gain or loss per share, compared to a net loss of $291,000, or $.01 per share, for the third quarter of 2014, in line with the consensus Wall Street estimate of no gain or loss per share.
The firm reported R&D expenses of $871,000, a 14 percent decrease from $1 million in Q3 2014. Its SG&A spending increased 9 percent to $10.2 million from $9.4 million. NeoGenomics officials said that some of the increase in SG&A expenses resulted from non-cash, stock-based compensation for employees and were it not for this increase, the company would have been profitable.
NeoGenomics finished the quarter with $34 million in cash and cash equivalents.
The firm said it expects full-year revenues to fall towards the lower end of its guidance, which is between $100 million and $103 million.