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Test Volume Drives Up NeoGenomics' Q4 Revenues 47 Percent

NEW YORK (GenomeWeb News) – Cancer genomics testing service firm NeoGenomics today said that fourth-quarter revenues rose 47 percent year over year.

The Fort Myers, Fla.-based company posted $12.9 million in revenues for the three months ended Dec. 31, 2011, up from $8.8 million a year ago. The firm said that while test volume increased 57 percent year over year, the average revenue per test decreased 6 percent.

The firm's SG&A spending rose to $5.5 million, up 22 percent from $4.5 million a year ago, due mostly to an increase in payroll and bad debt expense, NeoGenomics said. The company did not report its R&D costs.

It had a profit of $152,000, or break-even on an earnings-per-share basis, in the quarter, compared to a loss of $377,000, or $.03 per share, a year ago.

For full-year 2011, NeoGenomics brought in $43.5 million in revenues, up 26 percent from $34.4 million in 2010. While test volume bounced 33 percent year over year, average revenue per test was down 5 percent, it said.

Its SG&A costs increased 6 percent to $19.8 million from $18.7 million in 2010. The company did not report R&D costs for 2011.

NeoGenomics saw its net loss for the year improve to $1.2 million, or $.03 per share, from a net loss of $3.3 million, or $.09 per share, a year ago.

The company reported $2.6 million in cash and cash equivalents as of Dec. 31.

The company provided guidance of $13.5 million to $14 million in revenues for the first quarter of 2012, resulting in EPS of break-even to $.01. For full-year 2012, revenues are anticipated to be between $54 million and $59 million, with EPS in the range of $.02 to $.04.

NeoGenomics Chairman and CEO Douglas VanOort said in a statement that looking ahead to 2012 the company has a healthy sales pipeline and plans to launch several new sales and marketing initiatives to expand its strategic partnerships with large clients.

"We also expect a stable reimbursement environment this year, which should allow us to make further improvements in gross margin and profitability," he said.

The company expects to "significantly" expand its molecular and immunohistochemistry test menus, launch a second test under an agreement with Abbott Molecular, and make investments to begin developing technology and tests it licensed from Health Discovery Corp., VanOort said.

Under a 2009 agreement Abbott is supplying materials to NeoGenomics to develop its own fluorescence in situ hybridization-based test for diagnosing melanoma.

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