AMI Research Press Releases
Cancer Genetic Testing Lab Achieves Positive Cash Flow From Operations; Revenue and Tests Exceed Projections. New Price Target $0.90 - $1.05KEY LARGO, Fla., July 31, 2006 -- The American Microcap Institute (AMI), a leading online resource for microcap investors and a division of Hawk Associates Inc., announced today that it issued an update to its analyst coverage on NeoGenomics, Inc. (OTC Bulletin Board: NGNM) based on the company's second quarter earnings.
AMI updates its "long-term accumulate" rating to "strong buy" and set a price target range of $0.90 to $1.05 by the end of 2006. The previous target range of $1.50 to $1.75 by the end of 2007 may also be accelerated based on developments over the next few quarters. The company closed at $0.74 on Friday.
NeoGenomics is an independent medical laboratory company specializing in genetic testing for cancer.
During the second quarter of 2006, NeoGenomics' cash flow from operations was positive for the first time in the company's history. Total revenues grew 413% year-over-year and 32% sequentially, while net income was up 52% sequentially as gross margin increased to 59% from 57% in Q1 '06. Average revenue per requisition increased to $715 for the quarter, as 41% of requisitions ordered more than one test. This was NeoGenomics' second consecutive profitable quarter.
The second quarter results exceeded AMI's previously published expectations. Results in the quarter were particularly notable because NeoGenomics was completing the integration of its recently acquired Nashville facility. When combining projections of long-term profit margins with the company's developing scale and leverage, AMI believes shares at recent prices represent a significant opportunity for long-term investors.
The second quarter analyst update and previous reports on the company can be accessed from the AMI website, http://www.americanmicrocaps.com.
About AMI Research
AMI Research, a service of the American Microcap Institute, provides
fundamental research on promising small companies that do not have
traditional Wall Street analyst coverage. These detailed issuer-paid
research reports provide investors with an in-depth understanding of a
company and its technology, industry, business model, financials and growth
prospects.
AMI Research does not accept payment of fees in company stock. Principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in AMI reports accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by the company is in any way related to the specific ratings or views contained in the report. Please read all disclosures and certifications in each report prior to investing.
About The American Microcap Institute (AMI)
The American Microcap Institute (AMI) is a leading online resource for
microcap investors and a division of Hawk Associates Inc. AMI is dedicated
to providing investors with timely and accurate information on companies
trading under $10. The AMI website provides investors with a free stock
watch list and information about featured microcaps, company headlines,
20-minute delayed Level II price quotes, email alerts, CEO interviews and
research reports. No registration is required to access the site. For more
information, visit http://www.americanmicrocaps.com.
About NeoGenomics, Inc.
NeoGenomics, Inc. is a high-complexity CLIA-certified clinical
laboratory that offers cancer genetic diagnostic testing services including
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry and
molecular genetic testing. NeoGenomics is headquartered in Fort Myers,
Fla., and services the needs of oncologists, pathologists, urologists,
hospitals and other reference laboratories not offering genetic testing
throughout the United States. For additional information about NeoGenomics,
visit http://www.neogenomics.org.
An investment profile about NeoGenomics may be found online at http://www.hawkassociates.com/ngmnprofile.aspx. Interested parties can also access in-depth equity research from the American Microcap Institute at http://www.americanmicrocaps.com/ngnm.
An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com. For investor relations questions regarding NeoGenomics, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com .
SOURCE American Microcap Institute