Luminex Corporation Reports Fourth Quarter And Full Year 2012 Results

AUSTIN, Texas, Feb. 4, 2013 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the fourth quarter and year ended December 31, 2012.  Financial and operating highlights include the following:

  • Consolidated fourth quarter revenue of $55.5 million, a 16 percent increase over the fourth quarter of 2011; full-year 2012 revenue was $202.6 million, a 10 percent increase over 2011
  • Fourth quarter assay revenue of $23.8 million, a 45 percent increase over the fourth quarter of 2011; full-year 2012 assay revenue was $75.0 million, a 54 percent increase over 2011
  • Fourth quarter shipments of 226 multiplexing analyzers; cumulative life-to-date multiplexing analyzer shipments are 9,659  
  • Achieved a consolidated gross profit margin in the fourth quarter of 71 percent
  • Operating income for the fourth quarter of 2012 was $7.3 million. Non-GAAP operating income for the fourth quarter of 2012 was $8.6 million, excluding approximately $1.3 million of expenses related to integration costs associated with the purchase of GenturaDx (see Non-GAAP reconciliation)
  • GAAP net income for the fourth quarter and full-year of 2012 was $4.3 million and $12.4 million, or $0.10 and $0.30 per diluted share, respectively. Excluding the certain one-time costs associated with a strategic study and costs associated with the acquisition of GenturaDx, non-GAAP net income for the fourth quarter and 2012 was $5.1 million and $16.2 million or $0.12 and $0.39 per diluted share, respectively (see Non-GAAP reconciliation)

(Logo: http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)

"We are pleased with our fourth quarter execution, driven by another excellent performance in our proprietary assay segment. This performance reflects our unwavering focus on providing our customers with innovative, first-to-market assays that make a difference to patient outcomes. 2013 will be similar, as we received FDA clearance for our xTAG Gastrointestinal Pathogen Panel (GPP) in early January. This molecular diagnostic assay tests for greater than 90% of bacterial, viral, and parasitic causes of infectious gastroenteritis, a worldwide market we estimate at over $150 million. We believe this important assay will contribute meaningfully to the company's long-term growth," said Patrick J. Balthrop, president and chief executive officer of Luminex.        

"We are also excited about the company taking its next evolutionary step forward in serving our molecular diagnostic customers directly. We have planned this transition for some time and I am confident in our ability to execute on this plan. So with this powerful combination of unique platforms, differentiated test menu, a strong direct sales force and our focus on the customer, we are excited about the prospects in 2013 and beyond," Balthrop concluded. 

REVENUE SUMMARY

(in thousands, except percentages)








Three Months Ended






December 31,


Variance


2012


2011


($)


(%)


(unaudited)













System sales

$    7,149


$  10,449


$ (3,300)


-32%

Consumable sales

12,412


10,093


2,319


23%

Royalty revenue

7,513


7,087


426


6%

Assay revenue

23,774


16,401


7,373


45%

All other revenue

4,687


3,839


848


22%


$  55,535


$  47,869


$  7,666


16%


























Twelve Months Ended






December 31,


Variance


2012


2011


($)


(%)


(unaudited)













System sales

$  31,083


$  35,901


$ (4,818)


-13%

Consumable sales

48,012


55,457


(7,445)


-13%

Royalty revenue

31,160


29,205


1,955


7%

Assay revenue

75,020


48,670


26,350


54%

All other revenue

17,307


15,106


2,201


15%


$202,582


$184,339


$18,243


10%

 

 

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

(in thousands, except percentages)










Three Months Ended







December 31,


Variance



2012


2011


($)


(%)



(unaudited)





Revenue








Technology and strategic partnerships

$  29,674


$  29,715


$     (41)


0%

Assays and related products

25,861


18,154


7,707


42%

Total Revenue

55,535


47,869


7,666


16%










Operating income (loss)








Technology and strategic partnerships

2,325


4,239


(1,914)


-45%

Assays and related products

4,930


(307)


5,237


1706%

Total Operating income

7,255


3,932


3,323


85%






























Twelve Months Ended







December 31,


Variance



2012


2011


($)


(%)



(unaudited)





Revenue








Technology and strategic partnerships

$121,032


$127,779


$(6,747)


-5%

Assays and related products

81,550


56,560


24,990


44%

Total Revenue

202,582


184,339


18,243


10%










Operating income (loss)








Technology and strategic partnerships

15,047


29,895


(14,848)


-50%

Assays and related products

7,669


(6,052)


13,721


227%

Total Operating income

22,716


23,843


(1,127)


-5%

"In the fourth quarter, we experienced a healthy rebound in sales growth while maintaining tight cost controls, as demonstrated by both our gross and operating margins," said Harriss T. Currie, vice president and chief financial officer.  "Our 2013 revenue guidance takes into account our current progress combined with a cautiously optimistic view of the macro environment."

FINANCIAL OUTLOOK AND GUIDANCE

The Company intends to provide annual revenue guidance, to be updated, as appropriate, at each quarterly reporting period. Guidance for fiscal 2013 is as follows:

  • The Company expects fiscal 2013 revenue to be between $220 million to $230 million, or an increase of between 9 to 14 percent over reported 2012 revenue.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the fourth quarter ended December 31, 2012, on Monday, February 4, 2013, at 5:00 p.m. Eastern time / 4:00 p.m. Central time.  The conference call will be webcast live and will be accompanied by a slide presentation, both of which may be accessed at Luminex Corporation's website at http://www.luminexcorp.com.  Simply log on to the web at the address above, go to the Company section and access the Investor Relations link.  Please go to the website at least 15 minutes prior to the call to register, download and install any necessary audio/video software. If you are unable to participate during the live webcast, the call and slides will be archived for six months on the website using the 'replay' link.

Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences industry.  The Company's xMAP system is an open-architecture, multi-analyte technology platform that delivers fast, accurate and cost-effective bioassay results to markets as diverse as pharmaceutical drug discovery, clinical diagnostics and biomedical research, including the genomics and proteomics research markets.  The Company's xMAP technology is sold worldwide and is in use in leading research laboratories as well as major pharmaceutical, diagnostic and biotechnology companies.  Further information on Luminex or xMAP can be obtained on the Internet at http://www.luminexcorp.com.

Statements made in this release that express Luminex's or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements. Forward-looking statements in this release include statements regarding: the expansion of our installed base; distribution for our instruments; purchases of our consumable products; the development progress and market acceptance of our assay products, including Gastrointestinal Pathogen Panel (GPP) and products developed and manufactured by Luminex Madison and Luminex Molecular Diagnostics; direct sales of our molecular diagnostic products to customers and transition from our distribution partners; FDA clearance of our products, including GPP, the acquisition of GenturaDx and the status of the integration; Luminex's long-term strategic plan; the ability of our investment in current initiatives and new products to deliver high performance solutions, and drive long-term value for our shareholders; and, projected 2013 revenue. The words "believe," "expect," "intend," "estimate," "anticipate," "will," "could," "should" and similar expressions are intended to further identify such forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.  It is important to note that the Company's actual results or performance could differ materially from those anticipated or projected in such forward-looking statements.  Factors that could cause Luminex's actual results or performance to differ materially include risks and uncertainties relating to, among others, market demand and acceptance of Luminex's products and technology, the Company's dependence on strategic partners for development, commercialization and distribution of products, concentration of the Company's revenue in a limited number of strategic partners, fluctuations in quarterly results due to a lengthy and unpredictable sales cycle and bulk purchases of consumables, ability to effectively develop, manufacture, market and sell our products; ability to obtain regulatory clearance for our products; Luminex's ability to scale manufacturing operations and manage operating expenses, gross margins and inventory levels, potential shortages of components, competition, the timing of regulatory approvals, the implementation, including any modification, of the Company's strategic operating plans, the uncertainty regarding the outcome or expense of any litigation brought against Luminex, risks relating to Luminex's foreign operations, risks and uncertainties associated with implementing our acquisition strategy and the ability to integrate acquired companies, or selected assets into our consolidated business operations, including the ability to recognize the benefits of our acquisitions, as well as the risks discussed under the heading "Risk Factors" in Luminex's Reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange Commission.  The forward-looking statements, including the financial guidance and 2012 outlook, contained herein represent the judgment of Luminex as of the date of this press release, and Luminex expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Luminex's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 

Contacts:

Harriss T. Currie

Matthew Scalo


Vice President, Finance and Chief Financial Officer

Sr. Director, Investor Relations


512-219-8020

512-219-8020


hcurrie@luminexcorp.com

mscalo@luminexcorp.com

 

 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)






December 31,


December 31,


2012


2011


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$         42,789


$         58,282

Restricted cash

-


1,006

Short-term investments

13,607


42,574

Accounts receivable, net

33,273


23,016

Inventories, net

29,937


24,579

Deferred income taxes

6,148


5,991

Prepaids and other

4,388


3,529





Total current assets

130,142


158,977





Property and equipment, net

26,229


25,192

Intangible assets, net

65,218


29,437

Deferred income taxes

12,819


12,817

Long-term investments

3,000


6,151

Goodwill

51,128


42,763

Other

8,463


7,310





Total assets

$       296,999


$       282,647





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$          9,650


$          5,941

Accrued liabilities

12,690


11,047

Deferred revenue

4,134


4,057

Current portion of long term debt

1,138


999





Total current liabilities

27,612


22,044





Long-term debt

1,702


2,573

Deferred revenue

2,933


3,344

Other

5,085


3,831





Total liabilities

37,332


31,792





Stockholders' equity:




Common stock

41


41

Additional paid-in capital

293,392


297,104

Accumulated other comprehensive gain

1,101


984

Accumulated deficit

(34,867)


(47,274)





Total stockholders' equity

259,667


250,855





Total liabilities and stockholders' equity

$       296,999


$       282,647

 

 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


















Three Months Ended


Twelve Months Ended


December 31,


December 31,


2012


2011


2012


2011


(unaudited)


(unaudited)











Revenue

$ 55,535


$ 47,869


$   202,582


$ 184,339

Cost of revenue

16,178


15,350


60,008


58,849









Gross profit

39,357


32,519


142,574


125,490









Operating expenses:








Research and development

10,990


9,882


40,775


33,394

Selling, general and administrative

20,083


17,610


74,840


64,878

Amortization of acquired intangible assets

1,029


1,095


4,243


3,375









Total operating expenses

32,102


28,587


119,858


101,647









Income from operations

7,255


3,932


22,716


23,843

Interest expense from long-term debt

(36)


(73)


(198)


(308)

Other income, net

138


107


262


394









Income before income taxes

7,357


3,966


22,780


23,929

Income taxes

(3,105)


(524)


(10,373)


(9,455)









Net income

$   4,252


$   3,442


$     12,407


$   14,474









Net income per share, basic

$    0.10


$     0.08


$         0.30


$       0.35









Shares used in computing net income per share, basic

40,724


41,153


40,927


41,262









Net income per share, diluted

$    0.10


$    0.08


$        0.30


$      0.34









Shares used in computing net income per share, diluted

41,332


42,376


41,884


42,537

 

 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)










Three Months Ended


Twelve Months Ended


December 31,


December 31,


2012


2011


2012


2011


(unaudited)


(unaudited)



Cash flows from operating activities:








Net income

$    4,252


$    3,442


$         12,407


$  14,474

Adjustments to reconcile net income to net cash provided by operating activities:








Depreciation and amortization

3,696


3,462


14,364


11,887

Stock-based compensation

2,363


3,116


9,915


11,417

Deferred income tax expense (benefit)

(217)


(2,058)


2,699


(592)

Excess income tax expense (benefit) from employee stock-based awards

(4,274)


(1,269)


(6,457)


(7,614)

Other

502


354


1,157


232

Changes in operating assets and liabilities:








Accounts receivable, net

(2,041)


(2,303)


(10,267)


(899)

Inventories, net

(2,742)


1,410


(5,346)


4,783

Other assets

1,677


(575)


(617)


(1,279)

Accounts payable

1,580


(786)


3,286


(2,680)

Accrued liabilities

5,470


5,131


3,463


9,324

Deferred revenue

(84)


(283)


(321)


(763)









Net cash provided by operating activities

10,182


9,641


24,283


38,290









Cash flows from investing activities:








Purchases of available-for-sale securities

(1,498)


(13,474)


(14,987)


(47,743)

Sales and maturities of available-for-sale securities

4,042


8,037


47,117


33,753

Purchase of property and equipment

(2,258)


(2,434)


(9,767)


(9,554)

Business acquisition consideration, net of cash acquired

78


-


(48,199)


(33,914)

Purchase of cost method investment

-


-


(1,000)


(2,000)

Acquired technology rights

(1,250)


(1,331)


(1,592)


(1,857)









Net cash used in investing activities

(886)


(9,202)


(28,428)


(61,315)









Cash flows from financing activities:








Payments on debt

-


-


(1,025)


(885)

Proceeds from employee stock plans and issuance of common stock

798


109


4,022


3,543

Payments for stock repurchases

-


(8,600)


(20,916)


(18,340)

Excess income tax (expense) benefit from employee stock-based awards

4,274


1,269


6,457


7,614









Net cash provided by (used in) financing activities

5,072


(7,222)


(11,462)


(8,068)









Effect of foreign currency exchange rate on cash

(65)


(16)


114


(112)

Change in cash and cash equivalents

14,303


(6,799)


(15,493)


(31,205)

Cash and cash equivalents, beginning of period

28,486


65,081


58,282


89,487









Cash and cash equivalents, end of period

$  42,789


$  58,282


$         42,789


$  58,282

 

 

 

LUMINEX CORPORATION

NON-GAAP RECONCILIATION

(in thousands)










Three Months Ended


Twelve Months Ended


December 31,


December 31,


2012


2012


(unaudited)


(unaudited)





Income from operations

$                        7,255


$                      22,716





Strategic study consulting costs

-


1,096





GDx acquisition related costs

1,297


4,263





Adjusted income from operations

$                        8,552


$                      28,075

















Net income

$                        4,252


$                      12,407





Strategic study consulting costs

-


1,096





GDx acquisition related costs

1,297


4,263





Income tax effect of the above items

(404)


(1,588)





Adjusted net income

$                        5,145


$                      16,178





Adjusted net income per share, basic

$                         0.13


$                         0.40





Shares used in computing adjusted net income per share, basic

40,724


40,927





Adjusted net income per share, diluted

$                         0.12


$                         0.39





Shares used in computing adjusted net income per share, diluted

41,332


41,884

  

The Company makes reference in this release to "non-GAAP operating income" and "non-GAAP net income" which exclude the impact of acquisition and strategic study consulting expenses. The Company believes that excluding these items and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and, as such may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for income from operations, net income, net income per share or expense information prepared in accordance with GAAP."

SOURCE Luminex Corporation



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