Growth has been less than expected for several reasons
They also lost one of their biggest customers, who took the work in-house.
So I think there has actually been modest progress if you look under the covers - they've been facing some headwinds in terms of lower margins and the loss of that customer, but I think those factors are now in the past, and despite those issues they've stayed around breakeven (they had positive adjusted EBITDA this quarter and margins have definitely stabilized).
From an investment perspective I see two key aspects. One is the prospect for their proprietary Melanoma FISH test. I suspect that they will not get traction for that until publication of their results (which were reportedly excellent). But this test and the others to come from their Abbott partnership do provide some significant possible upside in the medium (3-5 year) term. The second is that the M&A activity in the sector is significant, and given that GE paid 5X revenues for Clarient (although the other two recent transactions were lower at about 1.7X and 2.5X), the fact that NGNM is trading at around 1X provides some decent potential upside too. The recent share purchase must however mean that no deal is imminent, or even on the near horizon.
They stated that their incremental gross margin is in the 60% range, so they would get significant earnings if they manage to grow revenue from here. But they've been saying that for a while now, so nirvana appears always to be around the next corner.
I do own some shares with an average acquisition cost in the current vicinity. To date they have significantly underperformed the rest of my portfolio, but I think I will likely remain patient on this one as it looks to me to currently have a decent risk/reward.
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