Government cuts hurt lab company

FORT MYERS — Cancer testing firm NeoGenomics says lower Medicare reimbursements hurt the company's financial results in the quarter ending June 30.

NeoGenomics' net income fell 50% to $273,000 in the second quarter on flat revenues of $15.6 million compared with the same quarter one year ago. Test volume grew 12.7% but average revenue per test fell 11.3%, the company says.

“Innovation continues to be an important focus for NeoGenomics,” says Douglas M. VanOort, the company's chairman and CEO, in a statement. “In the past six quarters, we developed and launched over 60 new molecular tests and now have the most comprehensive oncology-focused molecular test menu in America.”

The company says that for the full year 2013, it expects revenue to be $63 million to $66 million with earnings per share of 1 to 4 cents. The company's shares are publicly traded (symbol: NEO; recent price: $3).

Read a recent story about the company's growth plans in the Business Observer.