Published on July 30, 2009
Exhibit
99.1
NEOGENOMICS,
INC
PRESS
RELEASE
FOR
IMMEDIATE RELEASE
NeoGenomics
Reports Second Quarter 2009 Results
Ft. Myers, Florida – July 28, 2009 -
NeoGenomics, Inc. (NASD OTC BB: NGNM), a leading provider of
cancer-focused genetic testing services today reported its results
for the second quarter of 2009.
Highlights:
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·
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Revenue increased 53% versus Q2
08 to $7.5 million
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·
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Revenue increased 8%
sequentially compared with Q1
09
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·
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Profitability achieved for
second straight quarter
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·
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Major new initiative to develop
a Melanoma FISH Test
announced
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Quarterly comparisons with
Q2 08 (year-over-year comparisons)
Revenue
increased by $2.6 million or 53% to $7.5 million in Q2 09 from $4.9 million in
Q2 08. The number of tests increased by 43% in Q2 09, and average
revenue per test increased by 7%. Gross profit margin of 55% was
essentially unchanged from last year. Selling, general &
administrative (SG&A) expenses increased by $1.4 million or 54% from Q2 08
as a result of continued investments in sales and marketing
activities. Sales and marketing expenses increased $920,000 or 116%,
and general and administrative expenses increased $450,000 or
26%. However, total SG&A expenses as a percentage of revenue
remained unchanged from Q2 08 at approximately 53%. Net Income was
$8,000 or $0.00/share, which was a modest decrease from the prior year as a
result of the increases in sales and marketing expense.
Quarterly comparison with Q1
09 (sequential comparisons)
Revenue
increased by $546,000 or 8% from Q1 09 driven by an 8% increase in the number of
tests completed. The number of tests per requisition increased by
6.6% primarily due to a change in the mix of test types
performed. Average revenue per test was flat versus last
quarter. Gross profit margin remained unchanged from Q1 09 at
approximately 55%. Significant investments in sales and marketing
continued during Q2 with expenses increasing by 29% or
$388,000. General and administrative expenses were tightly controlled
and decreased by 5% or $126,000 versus Q1 09. Total SG&A expenses
as a percentage of revenue remained unchanged at approximately
53%. Net income decreased slightly from Q1 09 as a result of the
increases in sales and marketing expense.
1
During
the second quarter, overall revenue growth was impacted by seasonality in our
Florida-based business. Revenues from Florida-based customers
decreased approximately 19% from Q1 09, but revenues from non-Florida-based
customers increased by approximately 28%. As a result of continuing
sales and marketing initiatives, our non-Florida-based business grew to 68% of
total revenue in Q2 09 compared with 57% in Q2 08, which we believe will lessen
the impacts of seasonality in the future. The number of new customers
also increased significantly during the quarter.
In
addition to seasonality, during the second quarter we began to restructure our
relationship with our largest customer, a Florida-based oncology services
company. During the quarter, we assisted this customer in developing
their own capability to perform a portion of their bladder cancer FISH testing
in-house while simultaneously working with them to expand the scope of other
testing services we perform for them as well as expand the number of their
locations to which we provide services. As a result, revenue from
this customer’s bladder cancer FISH testing declined by $278,000 in Q2 09
compared with Q2 08, which was partially offset by increases of approximately
$103,000 generated from expanding the scope of other testing
services.
“We
are pleased with our performance in the second quarter, and particularly with
the rate of growth of our business outside of the state of Florida,” said
Douglas VanOort, the Company’s Executive Chairman and Interim Chief Executive
Officer. “We are also delighted to have recently announced the
Strategic Supply Agreement with Abbott which provides us with the opportunity to
develop a FISH-based test for melanoma. We will be developing and
validating the melanoma test over the next six months and expect to launch it in
early 2010. In addition, we are pleased to have the opportunity to
develop certain other cancer tests over time, and to have Abbott as new 9.6%
owner of our common stock. Their investment of $4.8 million provides
additional liquidity and flexibility in funding our growth
initiatives.”
Robert
Gasparini, the Company’s President and Chief Scientific Officer, added,
“Melanoma is currently the fastest growing form of cancer in the United States
with the incidence rate doubling approximately every ten years. We
believe the timing is right to launch a gene-based test for
melanoma. Recent publications by multiple academic centers in the
United States and Europe have demonstrated that a very specific FISH panel test
containing the genes and IP covered by our agreement with Abbott can distinguish
malignant melanoma from pre-malignant or dysplastic nevi with a sensitivity of
approximately 87-90% and a specificity of approximately 95%. Over the
next six months, we will be analyzing the best possible combination of genes to
further maximize the sensitivity and specificity of this FISH test for the
diagnosis of melanoma. Given the already high levels of sensitivity
and specificity reported for this new test, we believe it will allow us to
significantly influence the current melanoma testing algorithm in the United
States.”
Conference
Call
The
Company has scheduled a webcast and conference call to discuss their Q2 2009
results and their recent initiatives with Abbott at 11:00 AM EST
today. Interested investors should dial (877) 407-9210 (domestic) and
(201) 689-8049 (international) at least five minutes prior to the
call. A replay of the conference call will be available until 11:59
PM on August 11, 2009 and can be accessed by dialing (877) 660-6853 (domestic)
and 1 (201) 612-7415 (international). The playback conference ID
Number is 328921 and the PIN Number is 286. The web-cast may be
accessed under the Investor Relations section of our website at http://www.neogenomics.org
or at http://www.investorcalendar.com/IC/CEPage.asp?ID=147921. An
archive of the web-cast will be available until 11:59 PM EST on July 28,
2010.
2
About
NeoGenomics, Inc.
NeoGenomics,
Inc. is a high-complexity CLIA–certified clinical laboratory that specializes in
cancer genetics diagnostic testing, the fastest growing segment of the
laboratory industry. The company’s testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
morphology studies, anatomic pathology and molecular genetic
testing. Headquartered in Fort Myers, FL, NeoGenomics has labs in
Nashville, TN, Irvine, CA and Fort Myers and services the needs of pathologists,
oncologists, urologists, and hospitals throughout the United States. For
additional information about NeoGenomics, visit http://www.neogenomics.org.
For more
news and information on NeoGenomics, please visit www.IRGnews.com/coi/NGNM where you can
find a fact sheet on the company, investor presentations, and
more. Interested parties can also access additional investor
relations material, including an investment profile and an equity research
report, from Hawk Associates at http://www.hawkassociates.com
or from the American Microcap Institute at http://www.americanmicrocapinstitute.com/ngnm/.
Forward
Looking Statements
Except for historical
information, all of the statements, expectations and assumptions contained in
the foregoing are forward-looking statements. These forward
looking statements involve a number of risks
and uncertainties that could cause actual future results to differ materially
from those anticipated in the forward looking statements, Actual results
could differ materially from such statements expressed or implied herein.
Factors that might cause such a difference include, among others, the company’s
ability to continue gaining new customers, offer new types of tests, and
otherwise implement its business plan. As a result, this press release should be
read in conjunction with the company's periodic filings with the
SEC.
For
further information, please contact:
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NeoGenomics,
Inc.
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The
Investor Relations Group
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Steven
C. Jones
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Investor
Relations:
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Director
of Investor Relations
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Rachel
Colgate
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(239)
325-2001
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(212)
825-3210
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sjones@neogenomics.org
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rcolgate@investorrelationsgroup.com
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or
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Hawk
Associates, Inc.
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Media
Relations:
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Ms.
Julie Marshall
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Janet
Vasquez
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(305)-451-1888
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(212)
825-3210
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neogenomics@hawkassociates.com
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jvasquez@investorrelationsgroup.com
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3
NeoGenomics,
Inc.
CONSOLIDATED
BALANCE SHEETS AS OF
June
30, 2009 and December 31, 2008
(unaudited)
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June
30,
2009
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December
31,
2008
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||||||
| ASSETS | ||||||||
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Cash
and cash equivalents
|
$ | 697,722 | $ | 468,171 | ||||
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||||||||
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Accounts
Receivable (net of allowance for
doubtful accounts of $541,387 and
$358,642, respectively)
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4,171,363 | 2,913,531 | ||||||
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Other
Current Assets
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1,233,884 | 973,867 | ||||||
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TOTAL
CURRENT ASSETS
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6,102,969 | 4,355,569 | ||||||
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PROPERTY AND EQUIPMENT
(net of accumulated depreciation
of $2,105,596 and $1,602,594, respectively)
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3,190,587 | 2,875,297 | ||||||
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OTHER
ASSETS
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88,283 | 64,509 | ||||||
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TOTAL
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$ | 9,381,839 | $ | 7,295,375 | ||||
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LIABILITIES AND STOCKHOLDERS’
EQUITY
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||||||||
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CURRENT
LIABILITIES
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$ | 5,503,061 | $ | 4,390,994 | ||||
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LONG
TERM LIABILITIES
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1,530,946 | 1,403,271 | ||||||
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TOTAL
LIABILITIES
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7,034,007 | 5,794,265 | ||||||
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STOCKHOLDERS’
EQUITY
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2,347,832 | 1,501,110 | ||||||
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TOTAL
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$ | 9,381,839 | $ | 7,295,375 | ||||
4
NeoGenomics,
Inc.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
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For the
Three-
Months
Ended
June 30,
2009
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For the
Three-Months
Ended
June 30,
2008
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For the
Six-Months
Ended
June 30,
2009
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For the
Six-Months
Ended
June 30,
2008
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|||||||||||||
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REVENUE
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$ | 7,459,326 | $ | 4,881,402 | $ | 14,372,846 | $ | 9,044,164 | ||||||||
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COST
OF REVENUE
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3,384,035 | 2,183,758 | 6,474,477 | 4,042,231 | ||||||||||||
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GROSS
PROFIT
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4,075,291 | 2,697,644 | 7,898,369 | 5,001,933 | ||||||||||||
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OPERATING
EXPENSES:
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||||||||||||||||
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Selling,
general and administrative
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3,936,778 | 2,556,121 | 7,611,863 | 5,070,676 | ||||||||||||
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Interest
(income) expense, net
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130,452 | 69,246 | 245,268 | 124,342 | ||||||||||||
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Total
operating expenses
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4,067,230 | 2,625,367 | 7,857,131 | 5,195,018 | ||||||||||||
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NET
INCOME (LOSS)
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$ | 8,061 | $ | 72,277 | $ | 41,238 | $ | (193,085 | ) | |||||||
| NET INCOME (LOSS) PER SHARE | ||||||||||||||||
|
-
Basic
|
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
|
-
Diluted
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$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
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WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING –
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||||||||||||||||
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Basic
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33,066,941 | 31,367,144 | 32,655,972 | 31,383,824 | ||||||||||||
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Diluted
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38,485,914 | 35,727,192 | 36,864,793 | 31,383,824 | ||||||||||||
5
NeoGenomics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
For the
Six-Months
Ended
June 30, 2009
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For the
Six-Months
Ended
June 30, 2008
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|||||||
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NET
CASH USED IN OPERATING ACTIVITIES
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$ | (532,578 | ) | $ | (521,601 | ) | ||
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NET
CASH USED IN INVESTING ACTIVITIES
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(139,447 | ) | (170,764 | ) | ||||
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NET
CASH PROVIDED BY FINANCING ACTIVITIES
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901,576 | 923,979 | ||||||
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NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
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229,551 | 231,614 | ||||||
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CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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468,171 | 210,573 | ||||||
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CASH
AND CASH EQUIVALENTS, END OF PERIOD
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$ | 697,722 | $ | 442,187 | ||||
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SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
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||||||||
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Interest
paid
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$ | 214,258 | $ | 107,820 | ||||
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Income
taxes paid
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$ | - | $ | - | ||||
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SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
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||||||||
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Equipment
leased under capital lease
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$ | 685,923 | $ | 234,833 | ||||
6
NeoGenomics,
Inc.
Supplemental
Information on Customer Requisitions Received and Tests Performed
|
For
the
Three-
Months
Ended
June
30,
2009
|
For
the
Three-
Months
Ended
June
30,
2008
|
%
Inc
(Dec)
|
For
the
Six-Months
Ended
June
30,
2009
|
For
the
Six- Months
Ended
June
30,
2008
|
%
Inc
(Dec)
|
|||||||||||||||||||
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Requisitions
Rec’d (cases)
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7,829 | 5,845 | 33.9 | % | 15,510 | 11,250 | 37.9 | % | ||||||||||||||||
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Number
of Tests Performed
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11,316 | 7,906 | 43.1 | % | 21,773 | 14,665 | 48.5 | % | ||||||||||||||||
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Avg.
# of Tests / Requisition
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1.45 | 1.35 | 7.4 | % | 1.40 | 1.30 | 7.7 | % | ||||||||||||||||
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Total
Testing Revenue
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$ | 7,459,326 | $ | 4,881,402 | 52.8 | % | $ | 14,372,846 | $ | 9,044,164 | 58.9 | % | ||||||||||||
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Avg
Revenue/Requisition
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$ | 952.78 | $ | 835.14 | 14.1 | % | $ | 926.68 | $ | 803.93 | 15.3 | % | ||||||||||||
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Avg
Revenue/Test
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$ | 659.18 | $ | 617.43 | 6.8 | % | $ | 660.12 | $ | 616.72 | 7.0 | % | ||||||||||||
7