NeoGenomics Inc., a leading provider of cancer-focused genetic testing services, today reported its results for the fourth quarter 2010 and fiscal year ended December 31, 2010.
Douglas VanOort, chairman and CEO, noted difficult times for the company, as well as positive achievements.
“We experienced many headwinds in 2010 that impacted our revenue growth and our profitability. Despite these headwinds, we grew our core revenue faster than many in our laboratory peer group,” VanOort stated in the press release. “In addition, the quality of our service to clients is outstanding and our recent cost cutting initiatives and productivity enhancements are starting to pay dividends. I am particularly pleased that we saw a healthy incremental increase in operating income on our fourth-quarter revenue increase. We also reported positive Adjusted EBITDA in the fourth quarter for the first time all year.”
The company posted fourth quarter 2010 revenue at approximately $8.8 million, a 12 percent increase compared to $7.8 million reported for the fourth quarter of 2009. For the full year 2010, revenue increased 17 percent to $34.4 million compared to $29.5 million for full year 2009.
Total selling, general and administrative (SG&A) expenses for the fourth quarter decreased 12 percent, or $600,000, compared to the comparable quarter of 2009. SG&A for the full year 2010 increased 9 percent, or $600,000 compared to 2009.
NeoGenomics was awarded a $374,000 Therapeutic Discovery grant in the fourth quarter, which the company reported in other income. Net loss for the quarter was ($377,000), or ($0.01) per share, versus a net loss of ($1,529,000), or ($0.04) per share, in last year’s fourth quarter. Net loss in 2010 was approximately ($3.3) million, or ($0.09) per share, versus a net loss of ($2.2) million, or ($0.06) per share, in 2009.
VanOort said the company is moving through 2011 with increased strength and that he expects revenues to increase as the year progresses.
“We are in a stronger position than we have ever been moving into 2011. We have a firm control on costs and are aggressively implementing many sales and marketing initiatives to improve sales force productivity. We continue to believe that the flexibility of our tech-only service offering positions us well to assist clients navigating the rapidly changing health care environment. With the managed care contracting process largely behind us, modestly favorable average Medicare reimbursement rates for our mix of business in 2011, and successful implementation of our sales & marketing initiatives, we believe revenue growth momentum will increase as we move further into the year. Although the severe weather in much of the country is impacting our first quarter trends, we are re-iterating our previously issued guidance for 2011 of $41-$45 million of revenue, $3-$5 million of Adjusted EBITDA, and a return to quarterly profitability later in 2011,” VanOort stated.
For more information visit www.neogenomics.com