NeoGenomics Inc (NEO)

[cashprofitsss]

NeoGenomics enjoys $1.6M revenue growth

NeoGenomics has added employees, tripling its staff in Nashville and doubling the size of its sales team.

By Laura Layden

Saturday, November 11, 2006

It's all in the genes.

Fort Myers-based NeoGenomics Inc. is growing along with its industry.

The genetic testing company saw revenues climb to more than $1.6 million in the third quarter, a 186 percent increase from the same quarter a year ago.

Profits grew by $271,800 to $32,000, from a loss of $239,900 a year ago.

"This was quite the exciting quarter for us here at NeoGenomics," said Robert Gasparini, the company's president and chief scientific officer, in a conference call Friday.

He said the most significant accomplishment during the quarter was the development of physical and human resources needed to "begin to scale" the company. NeoGenomics has completed an expansion of its Fort Myers headquarters and the build-out of a new 5,400-square-foot laboratory in Nashville, Tenn.

In July, NeoGenomics opened a new laboratory in California, giving it a "bicoastal presence," company officials said.

At the same time, the company has added employees, tripling its staff in Nashville and doubling the size of its sales team.

New hires include Matthew Moore, who has a doctorate in molecular biology and is expected to expand the company's intellectual property and its reach to pharmaceutical research and development organizations. In the past, the company has primarily performed diagnostic testing for patients, not for research.

Also joining NeoGenomics as associate medical director is Frank Yang, a noted hematopathologist.

Steven Jones, acting principle financial officer, said the company's accomplishments in the third quarter are a testament to the strength of its business model.

In the quarter, the company saw a 160 percent increase in the number of tests performed, and a 10 percent increase in the average revenue per test.

Year-over-year the company's profits are up 242 percent. Revenues are up 316 percent.

Based on the growth NeoGenomics has seen so far this year, company officials on Friday raised guidance for 2007. Revenues are now pegged at $14 million to $16 million and profits are estimated at $1.3 million to $1.7 million. The new estimates are based on internal growth, not on acquisitions or new strategic alliances.

The company has been asked to make a presentation to investors at the JP Morgan Small Cap Conference on Wednesday at the Four Seasons Hotel in Boston. Company officials said it was a great honor to be invited. In the past, the company has attracted individual and high net worth investors. Now institutional investors are taking notice.

"We're excited to begin to tell our story," Jones said.

The company reached the milestone of monthly profitability in February. It provides testing services to oncologists, pathologists, urologists, hospitals, and other laboratories. It specializes in genetic testing for cancer.

The company trades under the symbol NGNM on the Over-the-Counter Bulletin Board. Shares closed at $1.59, down 9 cents, on Friday.

© 2006 Naples Daily News and NDN Productions. Published in Naples, Florida, USA by the E.W. Scripps Co.

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