NeoGenomics Reports Record Quarterly Revenue of $15.7 Million, Adjusted EBITDA of $1.8 Million and 46.3% Gross Margin for the

NeoGenomics Reports Record Quarterly Revenue of $15.7 Million, Adjusted EBITDA
         of $1.8 Million and 46.3% Gross Margin for the First Quarter

Successfully completes $10 Million Equity Raise

PR Newswire

FT. MYERS, Fla., April 25, 2013

FT. MYERS, Fla., April 25, 2013 /PRNewswire/ --NeoGenomics, Inc. (NASDAQ:
NEO), a leading provider of cancer-focused genetic testing services today
reported its results for the first quarter of 2013.

First Quarter 2013 Highlights:

  oTest Volume Growth of 19%
  oRecord Quarterly Revenue of $15.7 Million
  oAdjusted EBITDA^(1) of $1.8 Million
  oSequential Improvement in Gross Margin to 46.3%
  oSuccessful Completion of $10 Million Equity Raise

Revenue for the first quarter was $15.7 million, a 3%, increase over first
quarter 2012 revenue on test volume growth of 19%. Revenue growth was
achieved despite the $1.3 million reduction in quarterly revenue from the
expiration of the Medicare Technical Component Grandfather Clause (TCGF) in
July 2012 and two fewer reporting days than in last year's first quarter.
Both of these factors negatively impact year-over-year comparisons.

Gross margin declined to 46.3% from 47.1% in last year's first quarter, but
increased by over 300 basis points from the fourth quarter of 2012. Average
revenue-per-test decreased by 13% from Quarter 1 2012, primarily as a result
of the TCGF expiration, but was unchanged from last quarter. Average
cost-per-test improved by 12% from the first quarter of 2012 and 5% from
Quarter 4 2012.

Operating expenses increased by 10% to $6.9 million from $6.3 million in
Quarter 1 of last year. This increase was driven by additional investments to
increase sales staff and for new test development activities. In addition,
the Company recognized $289,000 of additional variable stock-based
compensation expense in the first quarter as a result of the 58% increase in
the Company's stock price over the quarter.

Adjusted EBITDA of $1.8 million for the quarter was largely unchanged from
last year's first quarter as a result of the $1.3 million reduction in
quarterly revenues from the TCGF expiration and higher depreciation and
stock-based compensation expense. Net income was $3,000 or $0.00/share versus
$603,000 or $0.01/share in Quarter 1 last year.

Douglas M. VanOort, the Company's Chairman and CEO, commented, "We made solid
progress in the first quarter. Revenue was at a record level, despite having
fewer revenue days and significant Medicare reimbursement changes as compared
to last year. Our 19% test volume growth demonstrates that we continue to
gain market share. We are also pleased to have completed a stock offering
that resulted in gross proceeds of $10 million to the Company. The offering
was well-received with 39 institutional investors participating, most of whom
were new investors to the Company."

Mr. VanOort continued, "Over the last year, we have faced a challenging
macroeconomic environment and encountered significant reimbursement
pressures. Fortunately, we have been working hard to execute process
improvements and to prepare for future growth. Our Best Practice Teams are
making outstanding progress driving productivity up and costs down. The
average number of tests completed per lab FTE increased by 6% from last year
and is now at its highest level ever. As a result of these initiatives, our
gross margin is back above 46%, despite the 13% year over year decrease in
unit prices."

Mr. VanOort continued "During the first quarter, we also expanded our sales
force to improve our geographic coverage and to optimize the capabilities of
our new and expanded California laboratory. Our high-complexity testing
services require an investment in sales training and market development, and
we are optimistic about the intermediate to longer term payback from these
sales investments."

Mr. VanOort concluded by saying, "Innovation remains a focus area for us again
in 2013. We launched 17 new molecular tests, two new molecular disease
profiles, and five new or modified FISH tests in the first quarter. In just
18 months, our Medical team has distinguished NeoGenomics in the marketplace
by building one of the most comprehensive Molecular testing menus in the
United States When combined with our FISH, flow cytometry, digital pathology,
and other advanced testing services, NeoGenomics' molecular test offerings are
helping clients answer questions about even the most difficult cancer cases
they encounter. We believe these innovations will continue to fuel our
growth." 

Second Quarter 2013 Financial Outlook

The Company also issued guidance for the fiscal second quarter today. In
Quarter 2, the Company expects revenue of $15.8 - $16.4 million and net income
of $0.00 to $0.01 per share. This guidance is based on organic growth in the
current business, and the Company reserves the right to adjust this guidance
at any time based on the ongoing execution of its business plan. Current and
prospective investors are encouraged to perform their own due diligence before
buying or selling any of the Company's securities, and are reminded that the
foregoing estimates should not be construed as a guarantee of future
performance.

(1) Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation, amortization, and non-cash stock-based compensation expenses.
See table for a reconciliation to net income.

Conference Call

The Company has scheduled a web-cast and conference call to discuss their Q1
2013 results on April 25, 2013 at 11:00 AM EDT. Interested investors should
dial (877) 407-8033 (domestic) and (201) 689-8033 (international) at least
five minutes prior to the call and ask for Conference ID Number 412952. A
replay of the conference call will be available until 11:59 PM on May 9, 2013
and can be accessed by dialing (877) 660-6853 (domestic) and (201) 612-7415
(international). The playback Conference ID Number is 412952. The web-cast
may be accessed under the Investor Relations section of our website at
www.neogenomics.com or
http://www.investorcalendar.com/IC/CEPage.asp?ID=170897. An archive of the
web-cast will be available until 11:59 PM EST on July 25, 2013.

About NeoGenomics, Inc.

NeoGenomics, Inc. is a high-complexity CLIA–certified clinical laboratory that
specializes in cancer genetics diagnostic testing, the fastest growing segment
of the laboratory industry. The company's testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
immunohistochemistry, anatomic pathology and molecular genetic testing.
Headquartered in Fort Myers, FL, NeoGenomics has labs in Nashville, TN,
Irvine, CA, Tampa, FL and Fort Myers, FL. NeoGenomics services the needs of
pathologists, oncologists, other clinicians and hospitals throughout the
United States. For additional information about NeoGenomics, visit
http://www.neogenomics.com. 

Interested parties can also access investor relations material from Hawk
Associates at http://www.hawkassociates.com or neogenomics@hawk.com and from
Zack's Investment Research at http://www.zacks.com or scr@zacks.com.

Forward Looking Statements

Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking statements. These
forward looking statements involve a number of risks and uncertainties that
could cause actual future results to differ materially from those anticipated
in the forward looking statements, Actual results could differ materially from
such statements expressed or implied herein. Factors that might cause such a
difference include, among others, the company's ability to continue gaining
new customers, offer new types of tests, and otherwise implement its business
plan. As a result, this press release should be read in conjunction with the
company's periodic filings with the SEC.

NeoGenomics, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
                                                      March 31,   December 31,
ASSETS
                                                      2013        2012
 Cash, cash equivalents                            $ 4,628     $ 1,868
 Accounts Receivable (net of allowance for
doubtful                                              15,628      14,034

 accounts of $3,615 and $3,002, respectively)
 Other Current Assets                                2,487       2,679
TOTAL CURRENT ASSETS                                  22,743      18,581
PROPERTY AND EQUIPMENT (net of accumulated
                                                      8,045       8,607
 depreciation of $11,279 and $10,289,
respectively)
INTANGIBLE ASSETS (net of accumulated amortization    2,744       2,800
of $238 and $182, respectively)
OTHER ASSETS                                          84          83
 TOTAL                                           $ 33,616    $ 30,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES                                 $ 11,949    $ 17,758
LONG TERM LIABILITIES                                 2,837       3,097
 TOTAL LIABILITIES                                 14,786      20,855
STOCKHOLDERS' EQUITY                                  18,830      9,216
 TOTAL                                            $ 33,616    $ 30,071



NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
                                            For the      For the

                                            Three        Three

                                            Months       Months

                                            Ended        Ended

                                            March 31,   March 31,

                                            2013         2012
REVENUE                                   $ 15,657     $ 15,160
COST OF REVENUE                             8,411        8,016
GROSS PROFIT                                7,246        7,144
OPERATING EXPENSES:
General and administrative                  4,175        3,750
Research and development                    835          497
Sales and marketing                         1,931        2,036
 Total operating expenses                  6,941        6,283
INCOME FROM OPERATIONS                      305          861
INTEREST AND OTHER INCOME (EXPENSE) - NET   (285)        (258)
INCOME BEFORE INCOME TAXES                  20           603
INCOME TAXES                                17           -
NET INCOME                                $ 3          $ 603
NET INCOME PER SHARE
- Basic                                   $ 0.00       $ 0.01
- Diluted                                 $ 0.00       $ 0.01
WEIGHTED AVERAGE NUMBER

 OF SHARES OUTSTANDING –                  46,624       44,697

- Basic
- Diluted                                   50,923       47,424



NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                         For the     For the

                                                         Three       Three

                                                         Months      Months

                                                         Ended       Ended

                                                         March 31,   March 31,

                                                         2013        2012
NET CASH USED IN OPERATING ACTIVITIES                  $ (1,330)   $ (1,065)
NET CASH USED IN INVESTING ACTIVITIES                    (239)       (1,314)
NET CASH PROVIDED BY FINANCING ACTIVITIES                4,329       2,507
 NET INCREASE IN CASH AND CASH EQUIVALENTS    2,760       128
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD           1,868       2,628
CASH AND CASH EQUIVALENTS, END OF PERIOD               $ 4,628     $ 2,756
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid                                          $ 274       $ 250
Income taxes paid                                      $ 17        $ -
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 Purchase of licenses                              $ -         $ 1,945
 Equipment leased under capital lease and          $ 381       $ 1,174
equipment loans



NeoGenomics, Inc.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED
EBITDA
(Unaudited, in thousands)
                                            For the Three Months Ended

                                            March 31,
                                            2013                   2012
Net income                             $    3             $        603
Adjustments to Net Income:
 Interest expense (income), net           285                    258
 Amortization of intangibles              55                     14
 Depreciation                             990                    749
 Income taxes                             17                     -
EBITDA                                     1,350                  1,624
Further Adjustments to EBITDA:
 Non-cash stock-based compensation        444                    151
Adjusted EBITDA                       $    1,794         $        1,775



Non – GAAP Adjusted EBITDA Definition

"Adjusted EBITDA" is defined by NeoGenomics as net income (loss) from
continuing operations before (i) interest expense, (ii) tax expense and
therapeutic discovery tax grants, (iii) depreciation and amortization expense,
(iv) non-cash stock-based compensation and warrant amortization expense and
(v) other extraordinary or non-recurring charges. NeoGenomics believes that
Adjusted EBITDA provides a more consistent measurement of operating
performance and trends across reporting periods by excluding these cash and
non-cash items of expense not directly related to ongoing operations from
income. Adjusted EBITDA also assists investors in performing analysis that is
consistent with financial models developed by research analysts.

Adjusted EBITDA as defined by NeoGenomics is not a measurement under GAAP and
may differ from non-GAAP measures used by other companies. There are
limitations inherent in non-GAAP financial measures such as Adjusted EBITDA
because they exclude a variety of charges and credits that are required to be
included in a GAAP presentation, and do not therefore present the full measure
of NeoGenomics recorded costs against its net revenue. Accordingly, investors
should consider non-GAAP results together with GAAP results in analyzing
NeoGenomics financial performance.



NeoGenomics, Inc.
Supplemental Information on Customer Requisitions Received and Tests Performed
(Unaudited, in thousands, except test and requisition data)
                                                 

                                   For the        For the       

                                   Three          Three        

                                   Months         Months        

                                   Ended          Ended         % Increase

                                   March 31,      March 31,     (Decrease)

                                   2013           2012
Requisitions Received              20,604         16,934        21.7%
Number of Tests Performed          32,088         26,932        19.1%
Avg. # of Tests / Requisition      1.56           1.59          (2.1)%
Total Testing Revenue              $15,657        $15,160       3.3%
Avg. Revenue/Requisition           $ 760          $ 895         (15.1)%
Avg. Revenue/Test                  $ 488          $ 562         (13.3)%
Total Cost of Revenue              $8,411         $8,016        4.9%
Avg. Cost/Requisition              $408           $473          (13.7)%
Avg. Cost/Test                     $262           $298          (12.1)%

SOURCE NeoGenomics, Inc.

Website: http://www.neogenomics.org
Contact: NeoGenomics, Inc. , Steven C. Jones, Director of Investor Relations,
(239) 325-2001, sjones@neogenomics.com, or Hawk Associates, Inc. Ms. Julie
Marshall, (305) 451-1888, neogenomics@hawkassociates.com
 
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