NeoGenomics, Inc. (OTC Bulletin Board: NGNM), a leading provider of cancer-focused genetic testing services today reported its results for the fourth quarter 2009 and fiscal year ended December 31, 2009.
Fourth Quarter 2009 Highlights:
- Revenue increase of 32% versus Q4 08 to $7.8 million
- Revenue growth rate of 60% after adjusting for in-sourcing by one large customer
- 34% increase in number of tests performed versus Q4 08
- Avg. number of tests/case increased 13% to 1.48 versus 1.31 in Q4 08
Fiscal Year 2009 Highlights:
- Revenue increase of 47% versus FY 08 to $29.5 million
- Revenue growth rate of 70% after adjusting for in-sourcing by one large customer
- 40% increase in the number of tests performed versus 2008
For the fourth quarter 2009, revenue was $7.8 million, a 32% increase over fourth quarter 2008 revenue of $5.9 million. Revenue increases were driven by significant growth in all key testing services. Revenue grew by 60% after adjusting for the adverse impact caused by the internalization of bladder cancer FISH testing by the Company's largest customer beginning in mid 2009. Requisitions increased by approximately 19% while average revenue/requisition increased by 11%.
The company continued to aggressively invest in growth. Sales and marketing expenses increased by approximately $1.0 million or 100%, driven by significant additions in the size of the sales force and in marketing capabilities. As was previously disclosed, NeoGenomics recorded approximately $500,000 in certain restructuring and other charges in Q4 09 and $933,000 of special charges in Q4 08. After adjusting for these special charges, general and administrative expenses increased by approximately 34% primarily due to our investment in the new Melanoma FISH test. Net loss for the quarter was ($1,529,000) or ($0.04)/share versus a net loss of ($994,000) or ($0.03)/share in Q4 08.
For the full year 2009, revenue was $29.5 million, a 47 percent increase over 2008 revenue of $20.0 million. Requisitions increased by approximately 28% while average revenue/requisition increased by 15% primarily as a result of a 10% increase in the number of tests per case and favorable changes in our test mix. Sales and marketing expenses increased by approximately $3.5 million or 105% in 2009. General and administrative expenses increased by approximately $1.9 million or 23%, but G&A expenses as a percentage of revenue declined from approximately 41% in 2008 to approximately 34% in 2009. Net loss in 2009 was ($2.2) million or ($0.06)/share versus a net loss of ($1.4) million or ($0.04)/share in 2008.
NeoGenomics also announced that it has completed the validation study for its new laboratory developed melanoma FISH test, which has been branded MelanoSITE™. In the study, NeoGenomics analyzed over 500 biopsy specimens of known melanoma, normal and dysplastic nevi cases using four specific DNA probes. Based on this validation study, the specificity (a measure of true negatives/false positives) was determined to be 97% and the sensitivity (a measure of true positives/false negatives) was determined to be 77%. The MelanoSITE™ test was launched in mid February with the NeoGenomics' sales force, and it is in the process of being launched through Aurora Diagnostics, Dermatopathology Laboratory of Central States ("DLCS") and Path Logic, each of whom cooperated with us in the validation study. The Company anticipates that each of these laboratories will offer the MelanoSITE™ test through their own customer networks.