NeoGenomics Inc. (OTCBB: NGNM) today announced its results and achievements for the first quarter of fiscal 2008, posting increases across the board. For the first time in the company’s history, it was free cash flow and positive for the entire quarter.
NeoGenomics increased year-over-year revenues 86 percent to $4.2 million, and year-over-year gross margin 55 percent to $2.3 million. The company also announced its successful transition into a retail business model, the launch of a major hematology/oncology initiative in California, and the opening of a new immunohistochemistry, histology and cytology lab in Florida.
“I am also excited to report that in January we wound down our relationship with our final large reference lab customer. We have now completed the process we started almost three years ago to transition NeoGenomics from a lab focused on providing wholesale services to other reference labs into a lab predominantly focused on providing services directly to oncologists, urologists, pathologists and other service providers,” Bob Gasparini, NeoGenomics president and chief scientific officer stated in the press release.
Gasparini said the transition is better for the long-term welfare of the company, and will allow it to expand its retail business without the “drag of a shrinking wholesale business that we have been experiencing over the last few years.” The company also announced the addition of hematopathologists Dr. Joel Chan and Dr. Christopher Felten to its staff in California.
“By augmenting their traditional flow cytometry and morphology testing services with our FISH and cytogenetics services, we believe we can better meet the needs of the hematology/oncology community in Southern California. Although they just started with us in late April, they are already fully engaged and volumes are increasing each week. During the next 12 months, we expect that they will help us generate approximately $3-5 million of incremental revenue out of our California facility over and above what we had originally planned,” Gasparini stated.
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