NeoGenomics Reports Revenue of $87 Million
in the Second Quarter amid COVID-19 Pandemic
Second-Quarter 2020 Results and Highlights:
•Consolidated revenue decreased 14% to $87 million
•Clinical Services revenue decreased 17% to $74 million
•Pharma Services revenue increased 3% to $13 million
•Pharma Services backlog increased 63% to $173 million
•Financial position strengthened with $322 million net convertible note and equity offerings
•Test menu expanded with suite of solid tumor liquid biopsy tests
•Strategic collaboration and minority investment in Inivata established
•High-capacity COVID-19 testing lab operationalized
Fort Myers, Florida (July 28, 2020) - NeoGenomics, Inc. (NASDAQ: NEO) (the “Company”), a leading provider of cancer-focused genetics testing services, today announced its second-quarter results for the period ended June 30, 2020.
“As expected, second quarter financial results were challenging due to the global COVID-19 crisis, which reduced both revenue and earnings,” said Douglas M. VanOort, Chairman and CEO of NeoGenomics.
“Even in the midst of this pandemic, we made several strategic moves and invested in our business. We fortified our balance sheet with a successful offering of both common stock and convertible securities, we strategically invested in Inivata for access to liquid biopsy and minimal residual disease testing capabilities, we launched a suite of liquid biopsy tests, we moved forward with investments to further globalize our Pharma Services business, and we built and operationalized a high-capacity COVID-19 testing laboratory. We believe these investments will deliver both near-term and long-term growth, and that we exited the second quarter in a stronger competitive position for the future.”
Consolidated revenue for the second quarter of 2020 was $87 million, a decrease of 14% over the same period in 2019. Clinical Services revenue decreased year-over-year by 17% to $74 million driven by a clinical test volume(1) decrease of 18%. Average revenue per clinical test (“revenue per test”) remained stable at $351. Pharma Services revenue grew by 3% to $13 million compared to the second quarter of 2019, primarily due to the January 10, 2020 acquisition of the Oncology Division assets of Human Longevity, Inc. (“HLI - Oncology”). While disruptions in volume stemming from the COVID-19 pandemic reduced growth in both Divisions, there was steady improvement throughout the quarter.
Gross profit was $28.0 million, a decline of 42.8%, compared to the second quarter of 2019. This reduction was the result of the combined effect of lower test volume due to the impact of the COVID-19 pandemic and our decision to retain employees.
Operating expenses increased by $2 million, or 5%, compared to the second quarter of 2019, reflecting investments in informatics, growth initiatives and costs associated with the integration of HLI - Oncology.
The following information was filed by Neogenomics Inc (NEO) on Tuesday, July 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.