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Cancer Genetics, Inc. Announces Strong Third Quarter with 68% Year Over Year Revenue Growth and Highlights Path to Future Profitability

  • Company reports third quarter revenues of $6.8 Million, an increase of 68% over the third quarter of 2015
  • The revenue growth rate was 58% for the first 9 months of 2016 as compared to 2015
  • Company continues to decrease operating expenses both in sequential quarters and year over year
  • Signed contracts for expected future revenue with pharmaceutical and biotech companies have increased to $49 Million
  • Cancer Genetics will host a conference call Thursday, November 10, 2016 at 8:30 AM Eastern Time (ET) / 5:30 AM Pacific Time (PT)

RUTHERFORD, N.J., Nov. 10, 2016 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc. (CGIX), an emerging leader in enabling precision medicine for oncology through the use of molecular markers and information, announced today financial and operating results for the third quarter ended September 30, 2016 and provided other company and business updates.

Total revenues were $6.8 million in the third quarter of 2016 and included $3.8 million from Biopharma services, $2.7 million from Clinical services, and $0.3 million from Discovery services compared with total revenue of $4.0 million in the third quarter of 2015, an increase of 68 percent. For the first nine months of 2016 revenues were $19.8 million as compared to $12.6 million for the first nine months of 2015, a 58% increase. The company also improved its loss from operations by 28% year over year, from $5.6 million during Q3 of 2015 to $4.0 million during Q3 of 2016.

Panna Sharma, Cancer Genetics CEO and President commented, “During this past quarter we improved all aspects of our business: organic growth, cost of operations, contracts with biotech and pharmaceutical companies, capturing cost and revenue synergies from our Center of Excellence in Solid Tumor Profiling, and advancements in our disease-specific NGS panels for Renal Cancer, Lymphomas, and Multiple Myeloma.”

Financial results and highlights for the quarter ended September 30, 2016 include:

  • Revenues were $6.8 million, a 68% increase over the third quarter of 2015 with Biopharma services contributing $3.8 million, Clinical services contributing $2.7 million, and Discovery services contributing $0.3 million.
  • Gross profit margins improved by $1.4 million or 12% to 34% or $2.3 million as compared to only $0.9 million or 22% during the 3rd quarter of 2015.
  • Organic revenue growth was 19% when excluding tests and services performed at the Solid Tumor Center of Excellence, formerly Response Genetics.
  • Q3 Clinical services test volumes increased by 204% to 7,334 over Q3 of 2015 – driven by an increase in immuno-oncology testing, companion diagnostic testing for PD-L1 and solid tumor profiling.
  • Clinical services revenue also grew in sequential quarters from Q2 to Q3 of 2016 by 6%.
  • Operating expenses continue to decrease, with an improvement of 6% over sequential quarters, from Q2 to Q3 of 2016 or $0.4 million – from $6.7 million to $6.3 million.
  • Operating expenses have decreased 20% over the past 3 quarters, from $7.9 million in Q4 of 2015, after the acquisition of Response Genetics, to $6.3 million in the most recent quarter, as the Company progresses towards being profitable.
  • Total expenses for Q3 were $10.8 million, which includes non cash items of $1.1 million and were down 2% from $11.0 million during Q2 and down 4% from $11.3 million during Q1 of 2016.
  • Total cash at the end of the quarter was $10.7 million.

For the third quarter ended September 30, 2016, Cancer Genetics reported a net loss of $3.7 million or $0.23 per diluted share, as compared with a net loss of $5.2 million or $0.56 per diluted share for the Q3 of 2015. Earnings also improved in sequential quarters, from Q2 to Q3 of 2016 from a net loss of $4.0 million to $3.7 million.

Jay Roberts, Cancer Genetics COO and EVP of Finance commented, “We continue to find ways to streamline our processes, lower operating costs and improve our efficiency so that we can effectively deliver state-of-the-art biomarker and genomic information to our customers and collaborators. We are continuing to add to our Biopharma contracts and expect to improve our margin profile from the delivery of these projects by taking concrete and measured steps to integrate teams and technologies.”

Mr. Roberts continued, “Our facility in India continues to grow the customer base for NGS and Discovery services, and our focus is to also use this infrastructure and capability to improve our cost profile for key operational activity in finance, analytics and billing – all functions that require on-demand availability, and can leverage technology enabled processes. This will accelerate our ability to drive higher margins and get to profitability in our core operations.”

During the third quarter of 2016, Cancer Genetics continued to make progress on advancing our portfolio in both liquid biopsy...