For the quarter analysts expectations were $28.5M revenue and $0.28 EPS - this company should not be super exciting but slow, steady and with inelastic demand for services. Perfect for this market.
- Genoptix, Inc. (Nasdaq: GXDX - News), a specialized laboratory services provider, today reported revenues of $32.1 million for the third quarter of 2008, which includes a $2.5 million benefit from changes in accounting estimates relating to prior periods. This compares to revenues of $16.2 million for the same period in 2007, including $612 thousand from changes in prior period estimates. (So I'll call it a $29.6M quarter)
- Our expanded sales efforts have once again resulted in our diagnosing a greater number of cases, which increased to nearly 9,900 since the beginning of July, our seventeenth consecutive quarter of solid growth in revenues and the number of patients served.
- The Company also reported GAAP net income of $15.4 million for the third quarter ended September 30, 2008 and $26.0 million for the first nine months of 2008, compared to GAAP net income of $3.6 million and $8.7 million for the three and nine months ended September 30, 2007. Diluted earnings per share, or EPS, for the third quarter of 2008 was $0.87 based on 17.8 million weighted average common shares outstanding, including a $0.35 net benefit resulting primarily from the Company's recognition of deferred tax assets as it transitions to a fully taxed rate. 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 nine months ended September 30, 2007 would have been $0.28 and $0.68, respectively. (I think investors might be going with the $0.87 - $0.35 EPS = $0.52 and believe the company smashed earnings when pro forma they came in line at $0.28 actually - could explain part of the reaction after hours)
- As of September 30, 2008, the Company's total cash and investments were $101.3 million, of which $4.1 million was classified as long-term.
- "Our recent facilities expansion, coupled with recruiting and hiring efforts, is expected to nearly double our capacity to manage the increasing number of patient cases, supporting our continued growth for the foreseeable future," said Sam Riccitelli, Genoptix EVP and COO.
- "We have added eight new sales representatives during the quarter, bringing the total number to 52 and nearing our goal for the year.
- We also welcomed six additional hematopathologists to our Cartesian medical group. This brings our group to a total count of 25 on-site professionals to service our more than 950 currently ordering physicians nationwide, as we continue to effectively pace our expansion relative to our growing customer base."
- Based on results over the past nine months, Genoptix is adjusting its performance outlook upward for the full-year 2008. The Company now expects revenues of approximately $112 million, up from the most recent guidance of between $105 and $108 million. (analysts at $108M)
- The Company now expects diluted GAAP EPS for the full year 2008 to be between $1.60 and $1.65 on an estimated 17.7 million shares. This includes $0.33 per share of net tax benefit recognized in the first nine months of the year. (so roughly $1.27 - $1.33 EPS vs analysts $1.16 estimate ex the tax benefit - this might be the cause of the after hours glee)
- For 2009, the Company expects revenues of approximately $165 million and a tax rate of approximately 45%. (analysts at $148M for 2009)
While the stock has not gone anywhere fast the past quarter - when you consider what type of market it has been performing in, this is a 'good chart'. But it's been more of a trading vehicle - buy in low $30s sell in mid $30s. Rinse. Wash. Repeat.
[Sep 3: Starting Genoptix Position]Long Genoptix in fund; no personal position
