NeoGenomics Reports 11% Revenue Growth to $106 Million
in the First Quarter
First-Quarter 2020 Highlights:
•Consolidated revenue increased 10.9% to $106.0 million
•Clinical Services revenue increased 7.9% to $93.0 million
•Pharma Services revenue increased 39.3% to $13.0 million
•Pharma Services backlog increased 46.5% to $147.7 million
Fort Myers, Florida (April 28, 2020) - NeoGenomics, Inc. (NASDAQ: NEO) (the “Company”), a leading provider of cancer-focused genetics testing services, today announced its first-quarter results for the period ended March 31, 2020.
“Our employees have worked with enormous dedication and professionalism to continue our essential testing service for cancer patients throughout this extraordinary time. We have been able to keep all of our main laboratory facilities open, and have maintained excellent quality and turn-around-time, without interruption or delay. I could not be more proud of our team.” said Douglas M. VanOort, Chairman and CEO of NeoGenomics. “Clearly, there has been a disruption in Oncology care like many other areas of our society. And while our business is not immune from the impact of COVID-19, it is certainly resilient. We are well positioned competitively, we fully believe in our growth potential and plans, and we are continuing to invest in important growth initiatives. Our long-term growth outlook remains compelling and we expect to emerge from this situation stronger than ever.”
Consolidated revenue for the first quarter of 2020 was $106.0 million, an increase of 11% over the same period in 2019. Clinical Services revenue increased year-over-year by 8% to $93.0 million. This was driven by a clinical test volume(1) increase of 7% year over year. Average revenue per clinical test (“revenue per test”) increased slightly by 1% to $371. Pharma Services revenue grew by 39% to $13.0 million compared to the first quarter of 2019, primarily due to the January 10, 2020 acquisition of the Oncology Division assets of Human Longevity, Inc. (“HLI - Oncology”). Disruptions in volume stemming from the COVID-19 pandemic reduced growth in both Divisions.
Gross profit decreased slightly by $0.7 million, or 1.6%, compared to the first quarter of 2019, to $46.4 million. Gross margin declined to 43.7%, primarily due to higher average cost per test of Clinical Services and the timing of Pharma Services revenue. Average cost of goods sold per clinical test (“cost per test”) increased by 7% year-over-year, reflecting the impact of higher costs due to the integration of Genoptix and additional testing capacity which was unused due to the impact of COVID-19.
Operating expenses increased by $7.1 million, or 16%, compared to the first quarter of 2019, reflecting the impact of investments in research and development, informatics, growth initiatives and the acquisition of HLI - Oncology.
Net loss for the quarter was $7.0 million compared to net loss of $2.4 million for the first quarter of 2019.
The following information was filed by Neogenomics Inc (NEO) on Tuesday, April 28, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.