CARLSBAD, Calif., Dec. 12 /PRNewswire-FirstCall/ -- Genoptix, Inc. , a specialized laboratory service provider, today reported revenues of $16.2 million for the third quarter ended September 30, 2007, an increase of 134% over revenues of $6.9 million for the comparable period in 2006. For the nine months ended September 30, 2007, the Company reported revenues of $40.8 million, an increase of 152% over revenues of $16.2 million for the comparable period in 2006.
The Company also reported GAAP net income of $3.6 million, or diluted earnings per share (EPS) of $0.06, for the third quarter ended September 30, 2007, compared to a net loss of $0.8 million, or a net loss of $6.07 per diluted share, for the comparable period in 2006. For the nine months ended September 30, 2007, the Company reported net income of $8.7 million, or EPS of $0.10, compared to a net loss of $3.4 million, or a net loss of $34.50 per diluted share, for the comparable period in 2006.
The Company completed its initial public offering (IPO) on November 2, 2007, following the close of the third quarter of 2007. On a pro forma basis, assuming conversion of all outstanding preferred stock, EPS for the three and nine-months ended September 30, 2007 would have been $0.28 and $0.68, respectively (see "Pro Forma Net Income (Loss) Per Share" table below). Further, assuming the IPO was completed at the beginning of each respective period thereby increasing the weighted average shares by 4.7 million, and assuming an effective tax rate of 40%, EPS for the three and nine months ended September 30, 2007 would have decreased from the above pro forma EPS amounts by $0.15 and $0.37, respectively.
"The value of our differentiated service offerings is evidenced by our significant growth in revenue and earnings per share, both of which have increased substantially from just one year ago," said the Company's President and CEO Tina Nova Bennett, Ph.D. "This is our thirteenth consecutive quarter of growth in case volume and revenues, results that further validate our business model. We are proud of our ability to consistently provide specialized, dedicated support to our physician partners and will continue to deliver our high quality services directly to the hematologists and oncologists at the community level."
Gross profit for the quarter improved to $9.7 million, or 60% of revenues, from $3.1 million, or 45% of revenues, for the third quarter of 2006. Gross profit for the nine months ended September 30, 2007 improved to $24.2 million, or 59% of revenues, from $6.9 million, or 43% of revenues, for the comparable period in 2006.
Operating expenses for the quarter increased $2.1 million to $6.0 million from $3.9 million for the third quarter of 2006. In addition, operating expenses for the nine months ended September 30, 2007 increased to $15.3 million from $10.5 million for the comparable period in 2006.
As of September 30, 2007, the Company's cash and cash equivalents were $10.1 million compared to $3.9 million at December 31, 2006. For the nine months ended September 30, 2007, cash generated from operations was $9.1 million, while purchases of capital equipment for the same period totaled $0.8 million, principal payments on notes payable totaled $1.2 million and costs paid in connection with the Company's IPO totaled $1.1 million. Following completion of its IPO in November 2007, the Company received net proceeds of $72.8 million (after underwriting discounts, commissions and estimated offering costs).
"This was a quarter of solid cash generation and improved cost management as we continued to drive strong demand for our unique service offerings," said Sam Riccitelli, Genoptix EVP and COO. "We continued to achieve better than industry average performance in our Days Sales Outstanding metric, or DSOs, which decreased to 54 days as of September 30, 2007."
Performance Outlook
For the full-year 2007, Genoptix expects results from operations to produce revenues of approximately $59 million and net income of approximately $12 million.
Based on continued infrastructure expansion and implementation of its strategic plan, the Company is projecting annualized revenue growth of approximately 50% for the full-year 2008.
Conference Call Information
A conference call will take place on Wednesday, December 12, 2007, 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. The conference call will 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. The conference call also may be accessed by dialing 866-770-7120 for domestic callers and 617-213-8065 for international callers. The participant code for the call is 28579553. If you are unable to listen to the live webcast, a replay of the call will be available through Monday, January 14, 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.
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, the Company's ability to consistently provide specialized, dedicated and high quality services, the Company's growth prospects, DSOs, and the Company's financial guidance for 2007 and 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 and the Company's ability to hire personnel and manage its growth and the competitive landscape within our industry. Certain other risks and uncertainties are detailed in the final prospectus for the Company's initial public offering that was filed with the United States Securities and Exchange Commission on October 30, 2007, and in its quarterly report on Form 10-Q for the quarterly period ended September 30, 2007. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Genoptix 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.
CONTACT: Marcy Graham, Sr. Director, Investor Relations, Genoptix, Inc.,
+1-760-930-7150, investorrelations@genoptix.com, or Joleen Schultz,
Principal, Mentus, +1-858-455-5500 ext 215, jschultz@mentus.com
Web site: http://www.genoptix.com/
