NeoGenomics Reports Record Revenue of $67.7 Million with 14% Increase in Clinical Volume Growth and 95% Increase in Pharma Services Backlog

NeoGenomics (NASDAQ:NEO) has announced its results for the second quarter of 2018.

As quoted in the press release:

Second Quarter 2018 Highlights:

•  9% increase in consolidated revenue; 12% excluding PathLogic
•  14% increase in clinical genetic testing volume⁽¹⁾
•  22% increase in Pharma Services revenue; 95% increase in Pharma Services backlog
•  Announced global strategic affiliation with PPD
•  Redeemed 100% of outstanding preferred stock

Consolidated revenues for the second quarter of 2018 were $67.7 million, an increase of 8.8% over the same period in 2017.  After adjusting 2017 results for the divestiture of PathLogic, revenue growth was 11.6%.  Clinical genetic test volume⁽¹⁾ increased by 14.4% year over year.  Average revenue per clinical genetic test (“Revenue per Test”) decreased by 3.6% to $318, primarily due to changes in Medicare reimbursement and regulation.

Consolidated gross profit improved by $3.2 million, or 11.6%, to $30.5 million and consolidated gross margin improved by approximately 120 basis points year-over-year to 45.1%. Gross margin improvement was primarily driven by productivity gains, cost efficiencies and the divestiture of PathLogic. Average cost-of-goods-sold per clinical genetic test (“Cost per Test”) decreased by 4.5%.

Consolidated operating expenses increased by $4.2 million, or 16.6% from the prior year, primarily due to the opening of our new Houston laboratory in May 2018, and continued investments in sales and marketing. Excluding the one-time costs related to the Houston expansion, general and administrative expenses increased by 4.0%.

 Net loss in Quarter 2 was $0.4 million compared to net income of $0.5 million in the prior year’s second quarter. One-time costs related to the Houston expansion reduced net income by $1.8 million in the quarter. Net income available to common shareholders was $5.9 million, including a $9.1 million gain on the redemption of the preferred stock.

Adjusted EBITDA⁽²⁾ was $10.1 million in Quarter 2, a 3.9% improvement from the prior year.  Adjusted Net Income⁽²⁾ was $4.5 million compared to $3.5 million in the prior year.

Click here to read the full press release.