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Biotech / Medical : NeoGenomics, Inc. (NGNM)

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To: caly who wrote (4)7/20/2006 8:25:42 AM
From: Max Fletcher  Read Replies (1) of 30
 
I listened to the Q2 conference call. Much of what was said was included in the Q2 Press Release, but there were a few comments that expanded on that writeup:
- management believes the results demonstrate they can scale profitably. Revenues grew 32% while Net Income grew 52%. The infrastructure is in place for dramatically increased revenue without significantly increased SG&A expenses.
- there's a very astute analysis in the AMI research report on the economics of testing and the number of tests per requisition/avg revenue per requisition and the operating leverage that can be achieved (the full report can be downloaded here: americanmicrocapinstitute.com )
- they are testing a new product with a handful of customers that they hope will help differentiate their services in the marketplace. Details to be released later if they decide to expand the program
- sufficient cash for 12 months, unless any strategic initiatives are undertaken
- some of the large customers they've been targeting have been 'woefully underserved' in the past by the large labs, opening up a large opportunity for NGNM
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