In the recent Form 10-Q filing, the management of NeoGenomics, Inc. (NASDAQ: NEO) outlined how the company was gearing up for future growth and also called to memory what has worked for the company in the past. NeoGenomics posted record revenue growth in 1Q2016 as a recent acquisition contributed significantly to sales and earnings in the quarter.
Future growth and how to attain it
In 2016, the management of NeoGenomics, Inc. (NASDAQ: NEO) disclosed that they were focused on gaining more market share and they have identified the approach to achieve that goal. The company is looking to continue providing highly differentiated medical tests products. NeoGenomics’ medical tests are mainly focused on cancer diagnosis, which include solid tumor and blood cancer tests.
By offering tests systems that feature broader menu, NeoGenomics is hoping to overcome competition in its industry in selling laboratory test materials.
NeoGenomics, Inc. Investing in competent sales team
NeoGenomics, Inc. (NASDAQ: NEO) credits its past successes to its highly influential sales team. The reason the sales team is doing well is that they are highly trained people who know who to compete with other laboratories by highlighting NeoGenomics’ unique offerings.
High customer retention
Besides the powerful sales team, the other thing that has worked well for NeoGenomics, Inc. (NASDAQ: NEO) is the ability to retain customers. The management explains the high customer retention rate is due to the strong service levels they provide. The company’s established culture of customer focus is also helping boost retention rates, thus enabling the company to extract maximum gain from each customer.
NeoGenomics credits its faster-than-industry-average growth to the high level of customer retention and it believes the trend will continue in 2016 and beyond.
NeoGenomics, Inc. (NASDAQ: NEO) said its 1Q2016 consolidated revenue rose 159% to $59.7 million, thanks largely to the 175% increase in testing volume. Adjusted diluted EPS for the quarter was $0.03.
The company said that its interest expense in 1Q2016 jumped by $1.4 million primarily because of the bank loan it took to enable it acquire Clarient.