NeoGenomics, Inc. (NEO) saw its loss widen to $6.22 million, or $0.18 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.47 million, or $0.03 a share. On the other hand, adjusted net income for the quarter stood at $4.42 million, or $0.05 a share compared with $2.91 million or $0.05 a share, a year ago.

Revenue during the quarter surged 121.75 percent to $60.49 million from $27.28 million in the previous year period. Gross margin for the quarter expanded 24 basis points over the previous year period to 45.06 percent. Operating margin for the quarter stood at negative 4.85 percent as compared to a negative 19.12 percent for the previous year period.

Operating loss for the quarter was $2.94 million, compared with an operating loss of $5.22 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $8.15 million compared with $2.93 million in the prior year period. At the same time, adjusted EBITDA margin improved 273 basis points in the quarter to 13.47 percent from 10.74 percent in the last year period.

Douglas M. VanOort, the Company's chairman and chief executive officer, commented, "The acquisition of Clarient has clearly been transformational for NeoGenomics. During the fourth quarter, we completed the significant process of migrating all remaining Clarient clients to the NeoGenomics laboratory information system (LIS) and billing system. This required the dedication of our Sales and Operations teams, and temporarily disrupted normal operations and growth initiatives."

For fiscal year 2017, Neogenomics forecasts revenue to be in the range of $260 million to $275 million. The company projects net loss to be in the range of $8 million to $4 million. The company expects adjusted net income to be in the range of $15 million to $19.30 million. The company expects diluted loss per share to be in the range of $0.10 to $0.05. The company expects diluted earnings per share to be in the range of $0.17 to $0.22 on adjusted basis.

The company has spent $6.50 million cash to meet investing activities during the year as against cash outgo of $75.16 million in the last year.

The company has spent $25.87 million cash to carry out financing activities during the year as against cash inflow of $58.49 million in the last year period.

Cash and cash equivalents stood at $12.52 million as on Dec. 31, 2016, down 46.52 percent or $10.90 million from $23.42 million on Dec. 31, 2015.

Working capital drops significantly
NeoGenomics, Inc. has witnessed a decline in the working capital over the last year. It stood at $18.91 million as at Dec. 31, 2016, down 67.93 percent or $40.06 million from $58.97 million on Dec. 31, 2015. Current ratio was at 1.32 as on Dec. 31, 2016, down from 2.47 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 19 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 83 days for the same period last year.

Days inventory outstanding has decreased to 9 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went down to 41 days for the quarter from 80 for the same period last year.

Debt increases substantially
NeoGenomics, Inc. has witnessed an increase in total debt over the last one year. It stood at $106.17 million as on Dec. 31, 2016, up 48.74 percent or $34.79 million from $71.38 million on Dec. 31, 2015. Total debt was 31.49 percent of total assets as on Dec. 31, 2016, compared with 19.40 percent on Dec. 31, 2015. Debt to equity ratio was at 0.65 as on Dec. 31, 2016, up from 0.34 as on Dec. 31, 2015.