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NeoGenomics Q3 Revenues Increase 37 Percent

NEW YORK (GenomeWeb) – NeoGenomics today reported a 37 percent year-over-year increase in its third quarter revenues.

For the three months ended Sept. 30, the Ft. Meyers, Fla.-based cancer genetics testing services company said that revenues rose to $23.2 million from $16.9 million in the year-ago quarter. Revenues from PathLogic, which NeoGenomics acquired in July, accounted for $2.4 million of the revenue growth, it said. Excluding PathLogic, revenues were up 23 percent year over year, driven by a 33 percent uptick in test volume.

NeoGenomics recorded a net loss of $291,000, or $.01 per share, for Q3 2014, compared to a profit of $900,000, or $.02 per share, a year ago.

Its R&D costs increased sharply to more than $1 million during the recently completed quarter, compared to $340,000 a year ago. Its SG&A expenses were up 40 percent to $9.4 million from $6.7 million.

The firm ended the quarter with $34.4 million in cash and cash equivalents. In August, NeoGenomics raised $34.5 million in a public offering.

"As we exit the third quarter, we are in the strongest position we have ever been in," NeoGenomics Chairman and CEO Douglas VanOort said in a statement. "Momentum is accelerating throughout the business, and our recent equity raise has given us a strong balance sheet and greater strategic flexibility to achieve our long-term objectives. We are pleased with our progress in the third quarter and believe we are well-positioned for sustained future growth and success."

The company guided fourth quarter revenues to a range of $23 million to $24.5 million and EPS to a range of break-even to $.01.

It adjusted its guidance for full-year 2014 to between $85 million and $86.5 million in revenues and between $.01 and $.03 in EPS. NeoGenomics had previously provided guidance in the range of $83 million to $86 million in revenues and break-even to $.03 in EPS.