Genoptix Reports Strong Financial Results for First Qu...(of 2007 a 118% improvement year-over-yea...),Health

Operating expenses for the first quarter of 2008 increased to $9.0 million from $4.6 million in the first quarter of 2007. These expenses consisted primarily of additional investment in organizational growth efforts and ultimately contributed to operating income of $4.2 million in the first quarter of 2008, or 19% of revenues, as compared to $1.4 million, or 13% of revenues, during the same period in 2007.

As of March 31, 2008, the Company's cash and cash equivalents and investment securities available-for-sale totaled $84.7 million. For the first quarter of 2008, cash generated from operations was $581 thousand, while purchases of capital equipment for the same period totaled $1.3 million. The quarter closed with bad debt expense of 2.8% of total revenues and average days sales outstanding, or DSO, of 64 days, an increase over prior periods due to the timing of receipt of certain payments, which were collected at the beginning of April, 2008.

"We executed well on our major initiatives, hiring new sales representatives to drive increases in the number of active customers we service and adding hematopathologists to Cartesian's medical staff to effectively manage the resulting increase in case volumes," said Sam Riccitelli, Genoptix EVP and COO. "Our solid operational execution and resulting cash flows will continue to support our reinvestment in future growth as the year progresses."

Performance Outlook

Based on first quarter results, Genoptix is adjusting its performance outlook for the full-year 2008, and now expects revenues of between $90 and $95 million with net income near the high end of the previously provided range of between $15 and $17 million (assuming an average annual tax rate of 5%). This includes the impact of an estimated $6 million in non-cash stock-based co
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