NeoGenomics in Fort Myers reports profitable second quarter

Investments are paying off for NeoGenomics Inc.

The Fort Myers-based company, a leading provider of genetic testing for cancer, on Thursday reported another profitable quarter.

Profits rose to $551,000, or 1 cent a share, in the second quarter. That compared to a loss of $293,000 a year ago.

The company reported a 49 percent year-over-year increase in revenue for the second quarter. Revenue rose to a record $15.6 million, driven in part by significant improvements in laboratory productivity.

The addition of new molecular and immunohistochemistry tests are beginning to fuel growth, said Douglas M. VanOort, the company's chairman and CEO.

The company, he said, now has one of the most advanced molecular testing capabilities in the U.S. This year, 20 new molecular diagnostic tests have been launched and by year-end another 15 to 20 will be introduced.

In the second quarter, test volume grew by 57 percent.

On average, the number of tests completed per lab employee has increased by 16 percent, while the average cost per test has dropped 9 percent since the end of last year, VanOort said.

The newer molecular and immunohistochemistry tests are less expensive, but they are helping to attract more business from existing customers.

"We're rapidly developing one of the most advanced molecular labs in America," VanOort said in a conference call with analysts.

The company is building out a larger, state-of-the art laboratory in Irvine, Calif. It has outgrown its existing lab.

The management team is focused on continuing the growth momentum in the coming quarters, VanOort said.

The goal is to become a one-stop shop for all of its clients' cancer-testing needs.

In the first six months of the year, NeoGenomics has seen its revenue grow 60 percent to $30.8 million. Profits rose to $1.2 million, compared to losses of about the same amount for the same six months last year.

"As we look ahead, we believe that this industry remains an exciting place to be," VanOort said. "Industry dynamics are changing at a rapid pace and we are positioning ourselves to take advantage of these changes."

Connect with Laura Layden at www.naplesnews.com/staff/laura_layden

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