Cancer Genetics jumps after reporting better than expected Q4 results

Cancer Genetics (CGIX) shares are higher in late morning trading after the company, which is in engaged in enabling precision medicine for oncology through molecular markers and diagnostics, reported fourth quarter results that topped analysts' estimates. EARNINGS: Cancer Genetics reported a loss per share for the quarter of (15c), beating analysts' estimates of (22c), while its revenue of $7.23M also beat the $7.1M consensus. The company also reported Q4 gross profit margins of 41%, an increase from 13% during the same period of 2015, driven by successful integration of the Response acquisition and greater operating efficiencies across all U.S. sites. EXECUTIVE COMMENTARY: Cancer Genetics President and Chief Executive Officer Panna Sharma commented that during 2016, the company grew topline revenue over 50%, reduced its operating expenses significantly, and continued to launch "innovative new tests and capabilities that are industry leading." Sharma said the business continues to scale, and shows "tremendous demand" going into 2017. "CGI is now working with 9 of the top 10 pharma and biotech companies and has made significant gains in our clinical market share due to our expansion into solid tumors, hereditary cancers and immuno-oncology." Sharma continued, adding that "All categories of our business showed improvement throughout 2016 as we fully integrated our acquisitions, generated greater operating leverage across CGI, and increased market share. As we integrated our U.S. sites, we achieved record margins during Q4 which we expect will continue rising as we grow revenue and capabilities. We have also started a major initiative to make our information and molecular data more valuable to both our biopharma customers and healthcare systems. We expect that this big-data and artificial intelligence initiative will further expand our margins while increasing our value to the oncology ecosystem." OUTLOOK: Sharma said he expects the business to continue high double-digit, durable growth in 2017. The executive said, "We believe that we have a clear path towards achieving profitability, and accelerating our market share through partnerships and collaborations in areas that are becoming increasingly critical to the next generation of breakthroughs in patient care." PRICE ACTION: Shares of Cancer Genetics are up 15.34% to $3.35 in late morning trading.