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Genoptix, Inc. (GXDX) Reports Financial Results for Third Quarter 2007

Genoptix, Inc. (GXDX) is a specialized laboratory service provider focused on delivering personalized and comprehensive diagnostic services to community-based hematologists and oncologists. Utilizing sophisticated diagnostic technologies, the company provides a differentiated, specialized and integrated assessment of a patient’s condition, aiding physicians in making vital decisions concerning the treatment of malignancies of the blood and bone marrow, in addition to other forms of cancer.

In December 2007, Genoptix reported its third quarter revenues of $16.2M, an increase of 134% compared to revenues of $6.9M for the same period in 2006. The company also reported GAAP net income of $3.6M compared to a net loss of $0.8M in the previous year. Gross profit for the quarter improved to $9.7M from the $3.1M of third quarter 2006. For the nine months ended September 30, 2007, the Company reported net income of $8.7M compared to a net loss of $3.4M, for the same period 2006.

Operating expenses for the quarter increased $2.1M to $6.0M from $3.9M for the third quarter 2006. In addition, operating expenses for the nine months ended September 30, 2007 increased to $15.3 million from $10.5 million for the same period 2006.

As of September 30, 2007, the Company’s cash and cash equivalents were $10.1M compared to $3.9M at December 31, 2006. For the nine months ended September 30, 2007, cash generated from operations was $9.1M, while purchases of capital equipment for the same period totaled $0.8M, principal payments on notes payable totaled $1.2 million and costs paid in connection with the Company’s IPO totaled $1.1 million. Following completion of its IPO in November 2007, the company received net proceeds of $72.8M (after underwriting discounts, commissions and estimated offering costs).

Sam Riccitelli, executive vice president and chief operations officer, said, “This was a quarter of solid cash generation and improved cost management as we continued to drive strong demand for our unique service offerings. We continued to achieve better than industry average performance in our Days Sales Outstanding metric, or DSOs, which decreased to 54 days as of September 30, 2007.”

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