CARLSBAD, Calif., June 16 /PRNewswire-FirstCall/ -- Genoptix, Inc. (Nasdaq: GXDX), a specialized laboratory services provider, today provided a first look at performance for the second quarter of 2010 and announced an update to annual guidance expectations for full-year 2010.
Based on quarterly performance to-date, revenues in the second quarter are expected to approximate $50.4 million, representing a 6% sequential growth rate from the first quarter of 2010. Earnings per share (EPS) is expected to be approximately $0.30, an increase of 3.4% over the first quarter of 2010, based upon 18.3 million diluted shares outstanding and an estimated tax rate of 47% for the second quarter.
"Demand for our personalized diagnostic services continues to expand, even as we face the challenges of the changing healthcare environment," said President and CEO Tina S. Nova, Ph.D. "To meet this growing demand we remain focused on strengthening our nationwide sales organization, growing from 77 to 89 sales representatives so far in the second quarter. We will also complete our previously announced laboratory expansion by this July and our new customer service facility later in the year. We expect to realize economies of scale as we continue to grow toward our goal of a 15-20% share of the bone marrow market in the U.S. by 2015."
"However, physician practices are under intense economic pressure, which when combined with increased competitive presence in the market, is reducing our field sales productivity. We are answering these challenges by supporting our physician customers with new service offerings, by increasing market presence and investing in new technologies," said Dr. Nova. "Growth is expected to slow as the market moves through the current transition. Over the long term, we remain confident in our ability to take advantage of the market's preference for our high-quality diagnostic offerings, our exceptional team of hematopathologists and our adaptability to a changing environment."
As a result of these developments, Genoptix is revising full-year revenue guidance to approximately $210 million for 2010, including approximately $750 thousand in benefits from changes in accounting estimates per quarter for the remaining three quarters of the year. This revenue guidance for 2010 reflects 14% growth over total revenues for 2009, an adjustment from our most recent revenue guidance of $235-240 million. Operating income percentage is expected to be in the high-teens, while EPS is expected to be approximately $1.20 for the full-year 2010 based upon 18.4 million diluted shares outstanding and an annual effective tax rate of approximately 46%. This is an adjustment from our previous EPS guidance of $1.80-1.85.
President and CEO Tina S. Nova, Ph.D., and Sam Riccitelli, EVP and COO, will take part in a web cast presentation at the William Blair 2010 Growth Stock Conference later today, beginning at 11:20 a.m. CDT, to provide an overview of the Company's growth strategies and financial performance. The presentation will be web cast live through the "Investors" section of the Genoptix website at www.genoptix.com. Those who would like to listen to the presentation should go to this site at least 15 minutes prior to the event to register, download and install any necessary software. An audio replay will be available for 30 days following the initial presentation web cast.
About Genoptix, Inc.
Genoptix is a leading specialized laboratory service provider focused on delivering personalized and comprehensive diagnostic services to its physician customers, community-based hematologists and oncologists. On the forefront of personalized diagnostic services, Genoptix's highly trained group of hematopathologists utilize sophisticated technology to provide integrated testing and actionable diagnostic reports. Its diagnostic services are designed to optimize the care of patients suffering from hematomalignancies, or cancers of the blood and bone marrow, including leukemia and lymphoma, and other forms of cancer. Founded in 1999, Genoptix is a member of the Nasdaq Global Select Market, the S&P SmallCap 600 Index and the Russell 2000 Index and is headquartered in Carlsbad, California. For more information, please visit www.genoptix.com.
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding the business of the company that are not historical facts may be considered "forward-looking statements," including statements regarding projected financial performance and guidance, anticipated growth in Genoptix's bone marrow market share, and Genoptix's ability to take advantage of market dynamics, adapt to a changing environment, create new service offerings, invest in new technologies and expand its reach and provide high quality specialized laboratory and comprehensive diagnostic services in regions across the country. Forward-looking statements are based on current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially and adversely from those set forth in the forward-looking statements. These risks and uncertainties with respect to Genoptix are detailed in its most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q as well as in subsequent filings with the United States Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The company undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
SOURCE Genoptix, Inc.