NeoGenomics, Inc. Announces Results for Second Quarter of FY 2005
Friday July 22, 7:00 am ET
FT. MYERS, Fla., July 22 /PRNewswire-FirstCall/ -- NeoGenomics, Inc. (OTC Bulletin Board: NGNM - News) today announced its results for the three months ending June 30, 2005. Significant accomplishments during the quarter included the following:
* 184% increase in Q2 FY 2005 revenues vs. Q2 FY2004
* 50% sequential increase in Q2 FY 2005 revenues vs. Q1 FY2005
* Gross profit increased 183% from Q1 FY2005, resulting in a near
doubling of gross profit margins to 43.8%
* 65% increase in testing volume in Q2 FY 2005 vs. Q1 FY 2005
* 30% of cases ordered more than one test per case vs. 24% of cases in Q1
FY2005
* Landed five new clients outside of the state of Florida
* Entered into $5.0 million Standby Equity Distribution Agreement to fund
strategic initiatives
Robert Gasparini, the Company's President, stated, "I am pleased with the progress we made across the board during the second quarter. We began to experience economies of scale during the quarter, which enabled us to perform more tests in the quarter with only modest increases in laboratory staff. Our revenues increased $115,000 from the first quarter and approximately 85% of this increase fell to gross profit. In addition, our customers continue to embrace our advanced cancer testing algorithm that combines our traditional cytogenetics testing services with our newly initiated Fluorescence In-Situ Hybridization (FISH) and Flow Cytometry testing services. This drove a 65% increase in our testing volume versus the first quarter and a an increase in our number of tests per case."
Mr. Gasparini went on to say, "During the second quarter, we also picked up five new customers outside the state of Florida, many during the month of June, which should further mitigate the seasonality we experienced in previous years."
Steve Jones, the Company's acting Principal Financial Officer and a Director, stated, "Our second quarter results included several General and Administrative expenses that were non-recurring in nature in connection with the roll-out of our new information technology platform and our recent financing activities. In addition, during the second quarter we entered into a $5.0 million Standby Equity Distribution Agreement with Cornell Capital Partners, which will allow us to draw down, at our discretion, as much as $750,000 of equity capital during any seven day period. We believe this access to capital should enable us to take advantage of strategic opportunities that may arise in the future."
The attached financial results should be read in conjunction with the Company's full financial statements, included in the Quarterly Report on Form 10-QSB that will be filed with the SEC shortly.
AI
