Fort Myers-based NeoGenomics saw higher revenues, but wider losses in the third quarter.
The company, which specializes in genetic testing for cancer, reported a net loss of $755,000, or 2 cents a share. That compares to losses of $195,000, or 1 cent a share, in the same quarter a year ago.
Revenue increased by $2.2 million, or 44 percent, to $7.3 million in the quarter. That was up from $5.1 million a year ago.
Growth in the quarter was affected by the seasonality of the company's Florida-based accounts and the restructuring of a relationship with its largest customer.
NeoGenomics has helped its largest customer develop the capability to perform its own bladder cancer testing in-house, while seeking to expand the services it offers to that company. As a result, NeoGenomics lost $650,000 in revenue last quarter, while other testing services increased by only $240,000.
"We are pleased by the significant process across the company as we position ourselves for future growth," said Douglas VanOort, chairman and CEO, in a statement. "Although the results of the restructuring process with our largest customer are thus far below our expectations, there is considerable momentum in the other aspects of our business. Sales force productivity continues to increase as we emphasize training and new account development, and the pipeline of new business is strong."
VanOort, who was acting as interim CEO, has now accepted the job permanently. "NeoGenomics is an exciting company with a strong management team," he said. "I am excited to continue to execute on the strategic initiatives we have put in place as we expand the company's presence in many areas of cancer genetic testing across the country."
In the third quarter, the company received $4.8 million from the sale of 3.5 million shares of stock in Abbott Laboratories and another $640,000 from exercising certain warrants.
The company has been developing a new test for Melanoma and it's "off to a rapid start," said Robert Gasparini, president and chief scientific officer. A new laboratory for the testing is being built in California. A study involving more than 500 patient samples should be completed by the end of the year to validate the new test.
"We are currently working with four validation partners, each of which will also become our initial marketing partners," Gasparini said. "We expect to launch the melanoma FISH test in the first quarter of 2010 with our validation partners and then quickly follow this with a national roll-out."