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Clinical Genetic Testing Pushes NeoGenomics' Q1 Revenues Up 3 Percent

NEW YORK (GenomeWeb) – NeoGenomics today reported a 3 percent year-over-year rise in revenues for the first quarter, while clinical testing revenues grew 4 percent.

For the three months ended March 31, the Fort Myers, Florida-based cancer genetic testing firm recorded $61.7 million in total revenues, slightly above the consensus Wall Street estimate of $61.4 million, and up from $59.7 million in the year-ago period.

Clinical testing brought in $56.7 million in revenues, up from $54.6 million in Q1 2016. Pharma service revenues slipped 2 percent year over year to $5.0 million from $5.1 million.

Clinical genetic testing revenues were up almost 5 percent year over to $55.1 million from $52.8 million, as the number of tests performed increased 15 percent to 155,567 in the recently completed quarter from 134,904 a year ago.

NeoGeomics Chairman and CEO Douglas VanOort said in a statement that the Q1 results were largely in line with expectations, given the impact of the integration of Clarient, acquired in late 2015, into the business. That process has been completed, he said.

"While we still expect some residual impacts to growth in [the second quarter], the vast majority of the integration distractions should be behind us by the end of the second quarter," he said in a statement.

The company's R&D costs were sliced 39 percent to $862,000 from $1.4 million a year ago, while its SG&A costs grew 11 percent to $26.4 million in Q1 2017 from $23.8 million in Q1 2016.

For the quarter, NeoGenomics posted a net loss attributable to common shareholders of $3.2 million, or $.04 per share, compared to a net loss attributable to common shareholders of $5.4 million, or $.07 per share, a year ago.

Adjusted EPS for Q1 2017 was $.03, matching the analysts' average estimate.

NeoGenomics finished the first quarter with $11.0 million in cash and cash equivalents.

The firm issued second quarter revenue guidance of between $62 million and $64 million. Net loss per share is expected to be between $.04 and $.03, with adjusted EPS anticipated to be between $.03 and $.04.

The company also revised its full-year 2017 revenue guidance to a new range of between $255 million and $265 million from an earlier range of between $260 million and $275 million. Net loss per share is expected to be in the range of $.10 to $.06, revised from a previous range of a loss of $.10 to $.05. Adjusted EPS was changed to a new range of between $.17 and $.21 from an earlier estimate of between $.17 and $.22.

In early morning trading, NeoGenomic shares on the Nasdaq were down 12 percent at $7.46.