This excerpt taken from the GXDX 8-K filed Apr 30, 2009.
GENOPTIX REPORTS STRONG GROWTH FOR THE FIRST QUARTER OF 2009
Company Reports Record Revenues of $39.2 Million
CARLSBAD, Calif. April 30, 2009 - Genoptix, Inc. (NASDAQ: GXDX), a specialized laboratory services provider, today reported revenues of $39.2 million for the first quarter of 2009, which includes a $2.0 million benefit from changes in accounting estimates relating to prior periods. This is an increase of approximately 76% over revenues of $22.3 million for the comparable period in 2008, which included a $651 thousand benefit from changes in accounting estimates.
We started 2009 with another quarter of solid performance, reaching a record 1,200 actively ordering physician customers as the appeal of our high quality service offerings continue to drive our growth and expansion of our market share, said Tina S. Nova, Ph.D., President and CEO of Genoptix. We managed nearly 13,000 patient cases in the first quarter of 2009, an increase of 65% from the first quarter of 2008. As we grow, it is our goal to facilitate personalized medicine by providing clinically relevant and actionable results with exceptional service, a strategy that is at the foundation of our success.
Gross profit for the first quarter of 2009 was $23.8 million, up from $13.1 million for the first quarter of 2008, or 60.6% of revenues as compared to 58.9% of revenues, respectively.
Operating expenses for the first quarter of 2009 increased to $13.6 million from $9.0 million for the first quarter of 2008, an increase driven by investment in infrastructure and personnel to support rapid organizational growth. Operating income for the first quarter of 2009 was $10.1 million, or 25.9% of revenues, as compared to operating income of $4.2 million, or 18.6% of revenues, for the same period in 2008.
Our tax rate was 44.2% for the first quarter, increasing from 2.1% for the first quarter of 2008. In the first quarter of 2009, the Company operated as a fully taxed corporation, following the recognition of the remaining available deferred tax assets in the last half of 2008.
Net income was $5.9 million for the first quarter of 2009, compared to net income of $5.0 million for the first quarter of 2008. Diluted earnings per share, or EPS, for the first quarter of 2009 was $0.33 based on 17.8 million weighted average common shares outstanding. This compares to EPS of $0.29 for the first quarter of 2008, which would have been reduced by approximately $0.13 if taxed at the current rate.
As of March 31, 2009, the Companys total cash, cash equivalents and investment securities were $111.5 million. For the first quarter of 2009, cash generated from operations was $5.3 million, while purchases of capital equipment for the same period totaled $1.6 million. The first quarter of 2009 ended with bad debt expense at approximately 3% of total revenues and days sales outstanding of 67 days, down from 71 days in the first quarter of 2008.
We have continued to develop and strengthen the organization in the first quarter, moving forward with our growth initiatives and our hiring plan. In the first quarter, our sales team grew to 62 field representatives, up from 55 at the end of 2008 and moving us closer to our goal of 85 representatives by the end of 2009, said Sam Riccitelli, Genoptix EVP and COO. We also increased the size of the Cartesian Medical Group, bringing the total number of hematopathologists to 26 and keeping us on track toward our goal of housing approximately 37 physicians by year-end.