Navigation Links
Genoptix Reports Strong Financial Results for the Second Quarter and Raises Guidance for Full-Year 2008
Date:7/31/2008

CARLSBAD, Calif., July 31 /PRNewswire-FirstCall/ -- Genoptix, Inc. (Nasdaq: GXDX), a specialized laboratory services provider, today reported revenues of $27.8 million for the second quarter of 2008 and $50.1 million for the first half of 2008, as compared to revenues of $13.9 million and $24.6 million for the respective periods in 2007. Stated revenue for the first half of 2008 included a $1.3 million benefit from changes in accounting estimates relating to prior periods.

"Our strong performance in the first half of the year resulted in growth in all segments, as revenues increased by 99% over the second quarter of 2007 and 104% over the first half of last year," said Tina Nova Bennett, Ph.D., President and CEO of Genoptix. "Expanding our sales efforts and improving our ability to provide high quality diagnostic services to a wider audience continues to drive customer growth nationwide. Higher case volumes reflect the success of these initiatives, increasing 77% year-over-year to more than 9,300 cases since the beginning of April, our sixteenth consecutive quarter of solid growth in volumes and in revenues."

The Company also reported GAAP net income of $5.6 million for the second quarter ended June 30, 2008 and $10.6 million for the first half of 2008 compared to GAAP net income of $3.8 million for the second quarter ended June 30, 2007 and $5.1 million for the first half of 2007. Diluted earnings per share, or EPS, for the second quarter of 2008 was $0.32 based on 17.5 million weighted average common shares outstanding, including the $0.14 impact from increased costs associated with non-cash stock-based compensation expense, resulting from the launch of our employee stock purchase program following our initial public offering, or IPO. Diluted EPS was $0.60 for the first half of the year, including $0.19 of non-cash stock-based compensation expense.

The Company completed its IPO on November 2, 2007. On a pro forma basis, assuming conversion of all outstanding preferred stock, diluted EPS for the three and six months ended June 30, 2007 would have been $0.30 and $0.40, respectively (see "Pro Forma Net Income Per Share" table below).

Gross profit for the second quarter of 2008 improved 94% to $16.6 million from $8.6 million for the second quarter of 2007, or 59.7% of revenues as compared to 61.3% of revenues, respectively. Gross margins reflect the impact of additional costs associated with stock-based compensation and the investment in additional personnel to support our growing operations. For the first half of 2008, gross profits totaled $29.7 million, improving 104% as compared to $14.6 million for the same period in 2007, with gross profit at approximately 59.3% of revenues for the first half of 2008 being effectively flat year-over-year.

Operating expenses for the second quarter of 2008 increased to $11.4 million from $4.7 million in the second quarter of 2007 and to $20.4 million in the first half of 2008 from $9.3 million during the same period in 2007. These expenses were higher primarily due to investment in additional personnel to support organizational growth efforts, stock-based compensation expense and the increased costs associated with operating as a public company. Operating income for the second quarter of 2008 was $5.2 million, or 18.6% of revenues, as compared to $3.9 million, or 27.7% of revenues, during the same period in 2007. Operating income was $9.3 million, or 18.6% of revenues for the first half of 2008, up from $5.2 million, or 21.3% of revenues, for the first half of 2007.

As of June 30, 2008, the Company's cash and cash equivalents and investment securities available-for-sale totaled $96.1 million. For the six months ended June 30, 2008, cash generated from operations was $12.9 million, while purchases of capital equipment for the same period totaled $2.6 million. The quarter closed with bad debt expense of 3.0% of total revenues and days sales outstanding of 54 days.

"We closed another quarter of solid execution and superior growth, all while enhancing our capability to reach more customers and the capacity to manage increasing case volumes," said Sam Riccitelli, Genoptix EVP and COO. "Our staff has expanded to include 44 sales representatives and 19 Cartesian hematopathologists on-site to service our more than 850 ordering physicians nationwide, as we continue to effectively pace our expansion relative to our growing customer base."

Performance Outlook

Based on second quarter results and the recent confirmation of Medicare reimbursement rates, Genoptix is adjusting its performance outlook upward for the full-year 2008, and now expects revenues of between $105 and $108 million, up from the most recent guidance of between $90 and $95 million, which was provided following the first quarter of 2008.

Net income expectations for the year are moving up from the previously provided range of between $15 and $17 million to approximately $20 million for the year, assuming an average annual tax rate of 5%. This includes the impact of an estimated $7 million in non-cash stock-based compensation for 2008, an increase resulting primarily from expenses associated with the initiation of the Company's equity incentive programs. Diluted GAAP EPS, which includes non-cash stock-based compensation of approximately $0.40 per share, is now expected to be between $1.11 and $1.16 on an estimated 17.6 million shares for the full year 2008.

Based on continued infrastructure expansion and implementation of its strategic plan, the Company is now projecting capital expenditures of approximately $11.0 million for the full-year 2008, up from prior estimates of approximately $6.0 million due to the accelerated growth experienced during the first half of 2008 and higher than expected capitalized costs associated with related facilities expansion.

Conference Call Information

A conference call will take place on Thursday, July 31, 2008, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), hosted by President and CEO Tina Nova Bennett, Ph.D., and other members of senior management. To access the live conference call via phone, dial 800-599-9829 in the U.S. or Canada and 617-847-8703 for international callers. Please specify to the operator that you would like to join the "Genoptix Second Quarter 2008 Earnings Conference Call." The participant code for the call is 23465316. If you are unable to listen to the live webcast, a replay of the call will be available through Thursday, August 7, 2008. Interested parties can access the rebroadcast by dialing 1-888-286-8010 or 1-617-801-6888 internationally and entering the reservation number 31909392.

The conference call will also be webcast live under the investor relations section of the Genoptix website at http://www.genoptix.com. Please connect to the Genoptix website several minutes prior to the start of the webcast to ensure adequate time for any software download that may be necessary. If you are unable to listen to the live webcast, a replay will be available through Friday, August 29, 2008, on the Genoptix website at http://www.genoptix.com.

About Genoptix, Inc.

Genoptix is a specialized laboratory service provider focused on delivering personalized and comprehensive diagnostic services to community-based hematologists and oncologists. Genoptix is headquartered in Carlsbad, California.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with generally accepted accounting principles (GAAP), this release contains non-GAAP financial measures. The non-GAAP diluted EPS information for the three and six months ended June 30, 2008 assumes the conversion of all outstanding preferred stock at the beginning of the period. The Company believes that the non-GAAP financial measures included in this release provide meaningful supplemental information to both management and investors that is indicative of the Company's core operating results. The Company further believes these non-GAAP financial measures facilitate comparison of operating results across reporting periods, and uses these non-GAAP financial measures when evaluating its financial results, as well as for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP that are also included in this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding the Company's business that are not historical facts may be considered "forward-looking statements," including statements regarding the value of the Company's services, the success of the Company's business model, improving case volumes, increasing revenues, customer adoption and growth, the Company's ability to continue to invest in future growth and expand its business and consistently provide specialized, personalized and comprehensive diagnostic services, the Company's growth prospects and the Company's financial guidance for 2008. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause the Company's results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from the results predicted include, without limitation, commercial and governmental reimbursement decisions, compliance and regulatory risks, the Company's ability to hire personnel and manage its growth and the competitive landscape within our industry. These and other risks and uncertainties are detailed in the Company's Annual Report on Form 10-K for the full-year period ended December 31, 2007, most recent Quarterly Report on Form 10-Q and subsequent filings with the United States Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

[Financial tables follow]

GENOPTIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

Revenues $27,825 $13,948 $50,123 $24,599

Cost of revenues 11,206 5,393 20,381 10,030

Gross profit 16,619 8,555 29,742 14,569

Operating expenses:

Sales and marketing 5,170 2,421 9,431 4,742

General and administrative 5,918 2,131 10,306 4,265

Research and development 354 142 671 320

Total operating expenses 11,442 4,694 20,408 9,327

Income from operations 5,177 3,861 9,334 5,242

Interest income 677 79 1,608 127

Interest expense - (77) - (159)

Other income 17 13 45 42

Income before income taxes 5,871 3,876 10,987 5,252

Provision for income taxes 300 109 409 160

Net income $5,571 $3,767 $10,578 $5,092

Net income per share: (1)(2)

Basic $0.34 $0.31 $0.65 $0.33

Diluted $0.32 $0.03 $0.60 $0.03

Shares used to compute net income per

share: (1)(2)

Basic 16,337 178 16,235 166

Diluted 17,512 1,663 17,507 1,652

(1) As a result of the conversion of the Company's preferred stock into 11,032 shares of common stock upon completion of the Company's initial public offering in November 2007, there is a lack of comparability in the basic and diluted net income per share amounts for the periods presented above.

(2) For the three and six months ended June 30, 2007, the Company had net income of $3.8 million and $5.1 million, respectively, of which $3.7 million and $5.0 million, respectively, was allocated to preferred stockholders for purposes of calculating net income per share pursuant to the terms of the preferred stock, resulting in $55,000 of net income allocable to common stockholders for both periods.

GENOPTIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, December 31,

2008 2007

(unaudited)

Assets

Current assets:

Cash and cash equivalents $51,223 $50,624

Investment securities available-for-sale 44,907 34,836

Accounts receivable, net 13,074 9,013

Other current assets 1,782 1,409

Total current assets 110,986 95,882

Property and equipment, net 4,800 1,950

Other long-term assets 161 -

Total assets $115,947 $97,832

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses $6,522 $4,312

Accrued compensation 4,317 2,496

Deferred revenues 68 95

Total current liabilities 10,907 6,903

Deferred rent, net of current portion 313 324

Commitments and contingencies

Stockholders' equity:

Preferred stock - -

Common stock 17 16

Additional paid-in capital 136,200 132,532

Accumulated other comprehensive

(loss) income (72) 53

Accumulated deficit (31,418) (41,996)

Total stockholders' equity 104,727 90,605

Total liabilities and stockholders' equity $115,947 $97,832

GENOPTIX, INC.

PRO FORMA NET INCOME PER SHARE (1)

(Unaudited)

(in thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

Pro Forma Pro Forma

2008 2007 2008 2007

(in thousands, except per share data)

Numerator:

Pro forma net income allocable to

common stockholders $5,571 $3,767 $10,578 $5,092

Denominator:

Weighted average shares of common

stock outstanding 16,380 230 16,283 214

Weighted average unvested shares of

common stock subject to repurchase (43) (52) (48) (48)

Adjustments to reflect the weighted

average effect of the assumed

conversion of convertible preferred

stock - 11,032 - 11,032

Pro forma weighted average shares of

common stock outstanding - basic 16,337 11,210 16,235 11,198

Dilutive effect of common equivalent

shares 1,175 1,548 1,272 1,547

Pro forma weighted average shares of

common stock outstanding - diluted 17,512 12,758 17,507 12,745

Pro forma net income per share:

Basic $0.34 $0.34 $0.65 $0.45

Diluted $0.32 $0.30 $0.60 $0.40

(1) As a result of the conversion of the Company's preferred stock into 11,032 shares of common stock upon completion of the Company's initial public offering in November 2007, there is a lack of comparability in the basic and diluted net income per share amounts for the periods presented above.


'/>"/>
SOURCE Genoptix, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Genoptix Reports Strong Financial Results for First Quarter 2008
2. Genoptix Announces Participation at the Bank of America 2008 Healthcare Conference
3. Genoptix Announces 2008 Annual Stockholders Meeting and Date of Record
4. Genoptix Announces Participation at Lehman Brothers 11th Annual Global Health Care Conference
5. Genoptix Announces Participation at Cowen and Company 28th Annual Health Care Conference
6. Genoptix Announces Pricing of Secondary Public Offering
7. Genoptix Announces Filing of Registration Statement for Secondary Public Offering of Common Stock
8. Genoptix Reports Strong Financial Results for the Fourth Quarter and Full Year 2007
9. Genoptix, Inc. to Announce Fourth Quarter and Full Year 2007 Financial Results on February 12, 2008
10. Genoptix, Inc. Announces Pricing for Initial Public Offering
11. Poniard Pharmaceuticals Reports Second Quarter 2008 Financial Results and Corporate Update
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... Canada (PRWEB) , ... June 25, 2016 , ... Conventional ... pursuit of success. In terms of the latter, setting the bar too high can ... risk more than just slow progress toward their goal. , Research from ...
(Date:6/24/2016)... ... ... Those who have experienced traumatic events may suffer from a complex set of ... or alcohol abuse, as a coping mechanism. To avoid this pain and suffering, Serenity ... event. , Trauma sufferers tend to feel a range of emotions, from depression, guilt, ...
(Date:6/24/2016)... ... ... Marcy was in a crisis. Her son James, eight, was out of control. Prone to ... , “When something upset him, he couldn’t control his emotions,” remembers Marcy. “If there ... my other children and say he was going to kill them. If we were ...
(Date:6/24/2016)... ... 24, 2016 , ... Global law firm Greenberg Traurig, P.A. announced that 20 ... by their peers for this recognition are considered among the top 2 percent of ... honors as members of this year’s Legal Elite Hall of Fame: Miami Shareholders ...
(Date:6/24/2016)... Diego, CA (PRWEB) , ... June 24, 2016 , ... ... with the American Cancer Society and the Road To Recovery® program to drive cancer ... to seniors and other adults to ensure the highest quality of life and ongoing ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... and INDIANAPOLIS , June 23, 2016 ... Lilly Diabetes Tomorrow,s Leaders Scholarship is any indication, the ... announced today online at www.diabetesscholars.org by the ... diabetes stand in the way of academic and community ... Foundation,s scholarship program since 2012, and continues to advocate ...
(Date:6/23/2016)... -- Revolutionary technology includes multi-speaker listening to ... leaders in advanced audiology and hearing aid technology, has ... the world,s first internet connected hearing aid that opens ...      (Photo: http://photos.prnewswire.com/prnh/20160622/382240 ) , ... firsts,: , TwinLink™ - the first dual ...
(Date:6/23/2016)... 23, 2016 The vast majority of dialysis ... facility.  Treatments are usually 3 times a week, with ... including travel time, equipment preparation and wait time.  This ... grueling for patients who are elderly and frail.  Many ... and rehabilitation centers for some duration of time. ...
Breaking Medicine Technology: