NeoGenomics Reports Record Revenue of $16.9 Million, Adjusted EBITDA of $2.2 Million and Net Income of $900K for the Third

 NeoGenomics Reports Record Revenue of $16.9 Million, Adjusted EBITDA of $2.2
          Million and Net Income of $900K for the Third Quarter 2013

PR Newswire

FT. MYERS, Fla., Oct. 23, 2013

FT. MYERS, Fla., Oct. 23, 2013 /PRNewswire/ --NeoGenomics, Inc. (NASDAQ:
NEO), a leading provider of cancer-focused genetic testing services today
reported its results for the third quarter of 2013.

Third Quarter 2013 Highlights:

  oRevenue growth of 18.9%
  oTest volume growth of 19.1%
  oGross Profit Margin of 48.4% versus 41.5% last year
  oAdjusted EBITDA^(1) growth of 157%
  oNet Income of $0.02 per share versus a loss of $0.02 last year

Revenue for the third quarter was $16.9 million, an 18.9% increase from third
quarter 2012 revenue.Test volume increased by 19.1% year over year, while
average revenue per test was largely unchanged. Average cost of goods sold
per test declined by 12% as a result of continued productivity improvements,
increased leverage from higher volumes, and other cost containment
initiatives. As a result, gross profit increased by 38.7% from the prior
year.

Total operating expenses increased by 6.6% from last year's third quarter,
primarily as a result of additional sales representatives and increases in
billing and information technology expenses. This was partially offset by a
decrease in stock compensation expenses related to the decline in the
Company's stock price for the quarter.

Net income for the quarter was $900,000, or $0.02 per share, versus a net loss
of $(975,000), or $(0.02) per share, in last year's third quarter.Adjusted
EBITDA^(1) improved by 157% to $2.2 million for the quarter from $842,000 last
year.

Douglas M. VanOort, the Company's Chairman and CEO commented, "We are pleased
with our third quarter results. Solid growth in test volume was driven by
continued success with new products and growth in the number of customer
accounts.The productivity of our sales team improved with gains in all
geographic territories across the country.In addition, we have added five
sales representatives and two product managers since the end of the second
quarter to further accelerate growth."

Mr. VanOort continued, "We continued to improve productivity and increase our
efficiency and effectiveness during the quarter. As a result, we realized
strong reductions in average cost-per-test, which allowed us to drive 85% of
the incremental $2.7 million of revenue to gross profit. We are in the
process of redesigning and expanding our Fort Myers, Florida laboratory to
incorporate lean workflow concepts and improved automation. We expect this
new lab to be complete in the first quarter of 2014 and believe it will yield
further process improvements."

Mr. VanOort added, "As a result of our strategic focus on innovation and new
product development, NeoGenomics is increasingly being recognized as a leader
in cancer testing in this era of 'precision medicine'. We have now introduced
over 30 new Molecular tests and profiles to our menu since the beginning of
2013 and we expect to launch several more tests and next generation sequencing
for clinical use by early 2014. We believe we now have the broadest
oncology-focused clinical testing menu in the country, and we are beginning to
see increasing interest in our comprehensive genetic capabilities from the
pharmaceutical industry." 

Fourth Quarter and Full-Year 2013 Financial Outlook:

We expect revenue of $17.6-$18.1 million and earnings of $0.01 to $0.02 per
share in Quarter 4. For the full year 2013, we expect revenue to be
$65.7-$66.2 million with earnings per share of $0.03 to $0.04. 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, non-recurring moving expense for the move of our
facility in Irvine, California in 2012, 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 Q3
2013 results on Wednesday October 23, 2013 at 11:00 AM EDT. Interested
investors should dial (877) 407-8035 (domestic) and (201) 689-8035
(international) at least five minutes prior to the call and ask for Conference
ID Number 10000554. A replay of the conference call will be available until
11:59 PM on November 6, 2013 and can be accessed by dialing (877) 660-6853
(domestic) and (201) 612-7415 (international). The playback conference ID
Number is 10000554. 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=171755. An archive of the
web-cast will be available until 11:59 PM on January 23, 2014.

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, pharmaceutical firms, 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)
                                                                 

ASSETS                                            September 30,   December 31,

                                                  2013            2012
 Cash, cash equivalents                        $ 4,929         $ 1,868
 Accounts Receivable (net of allowance for
doubtful
                                                  15,727          14,034
 accounts of $4,355 and $3,002,
respectively)
 Other Current Assets                            3,171           2,679
TOTAL CURRENT ASSETS                              23,827          18,581
PROPERTY AND EQUIPMENT (net of accumulated
                                                  8,592           8,607
 depreciation of $13,404 and $10,289,
respectively)
INTANGIBLE ASSETS (net of accumulated
amortization                                      2,633           2,800
of $349 and $182, respectively)
OTHER ASSETS                                      178             83
 TOTAL                                       $ 35,230        $ 30,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES                             $ 12,246        $ 17,758
LONG TERM LIABILITIES                             2,657           3,097
 TOTAL LIABILITIES                             14,903          20,855
STOCKHOLDERS' EQUITY                              20,327          9,216
 TOTAL                                        $ 35,230        $ 30,071





NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
                                                           For the Nine-Months
                              For the Three-Months Ended   Ended
                              September 30,
                                                           September 30,
                              2013             2012        2013        2012
NET REVENUE                 $ 16,884     $     14,202    $ 48,144   $  44,973
                                                                    
COST OF REVENUE
                              8,713            8,310       25,570      24,571
                                                                    
GROSS PROFIT
                              8,171            5,892       22,574      20,402


OPERATING EXPENSES
General and administrative    4,335            3,929       12,573      11,745
Research and development      340              808         1,791       1,833
Sales and marketing           2,336            1,839       6,239       5,809
 Total operating expenses   7,011            6,576       20,603      19,387
INCOME (LOSS) FROM
                              1,160            (684)       1,971       1,015
OPERATIONS
INTEREST AND OTHER            (231)            (291)       (749)       (837)
INCOME (EXPENSE) - NET
INCOME (LOSS) BEFORE          929              (975)       1,222       178
TAXES
INCOME TAXES                  29               -           46          -
NET INCOME (LOSS)           $ 900        $     (975)     $ 1,176    $  178
NET INCOME (LOSS) PER
SHARE                      $ 0.02       $     (0.02)    $ 0.02     $  0.00

- Basic
- Diluted                   $ 0.02       $     (0.02)    $ 0.02     $  0.00
WEIGHTED AVG NUMBER

OF SHARES OUTSTANDING         48,933           45,175      48,007      44,944

- Basic
- Diluted                     53,173           45,175      52,599      48,226





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

                                                         Nine        Nine
                                                         Months      Months
                                                         Ended       Ended

                                                         September   September
                                                         30, 2013    30, 2012
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES    $ 2,732     $ (493)
NET CASH USED IN INVESTING ACTIVITIES                    (1,486)     (3,300)
NET CASH PROVIDED BY FINANCING ACTIVITIES                1,815       3,203
 NET INCREASE (DECREASE) IN CASH AND CASH             3,061       (590)
 EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD           1,868       2,628
CASH AND CASH EQUIVALENTS, END OF PERIOD               $ 4,929     $ 2,038
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid                                          $ 715       $ 809
 Income taxes paid                                  $ 19        $ -
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 Purchase of licenses                              $ -         $ 1,945
 Equipment leased under capital lease and          $ 1,815     $ 2,845
equipment loans





NeoGenomics, Inc.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(Unaudited, in thousands)
                                    For the Three-Months   For the Nine-Months
                                                           Ended September 30,
                                    Ended September 30,
                                    2013         2012      2013        2012
Net income (loss) (Per GAAP)      $ 900      $   (975)   $ 1,176   $   178
Adjustments to Net Income (Loss):
 Interest expense (income), net   231          291       749         837
 Amortization of intangibles      56           56        168         126
 Income tax expense               29           -         46          -
 Depreciation                     1,063        944       3,114       2,549
EBITDA                             2,279        316       5,253       3,690
Further Adjustments to EBITDA:
 Non-recurring costs               -            170       -           170
 Non-cash stock-based
                                    (116)        356       530         699
 compensation
Adjusted EBITDA (non-GAAP)       $ 2,163    $   842     $ 5,783   $   4,559

Non – GAAP Adjusted EBITDA Definition
"Adjusted EBITDA" is defined by NeoGenomics as net income from continuing
operations before (i) interest expense, (ii) tax expense, (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               For the     For the     

                    Three-Months Three-Months         Nine-Months Nine-Months 

                    Ended        Ended         % Inc    Ended       Ended       % Inc
                                               (Dec)                            (Dec)
                    September    September 30,          September   September
                    30,          2012                   30,         30,
                    2013                                2013        2012
Requisitions Rec'd  21,737       18,307        18.7%    63,216      53,802      17.5%
(cases)
Number of Tests     33,723       28,315        19.1%    98,330      84,093      16.9%
Performed
Avg. # of Tests /   1.55         1.55          0.3%     1.56        1.56        (0.5)%
Requisition
Total Testing       $ 16,884     $ 14,202      18.9%    $ 48,144   $ 44,973   7.0%
Revenue
Avg.                $ 777        $776          0.1%     $ 762       $ 836       (8.9)%
Revenue/Requisition
Avg. Revenue/Test   $ 501        $ 502         (0.2)%   $ 490       $ 535       (8.5)%
Total Cost of       $ 8,713      $ 8,310       4.8%     $ 25,570    $ 24,571   4.1%
Revenue
Avg.                $ 401        $ 454         (11.7)%  $ 404       $ 457       (11.6)%
Cost/Requisition
Avg. Cost/Test      $ 258        $ 293         (11.9)%  $ 260       $ 292       (11.0)%



SOURCE NeoGenomics, Inc.

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