Luminex Corporation Reports Second Quarter 2012 Results

Achieves Record Number of MAGPIX® System Sales

Acquires GenturaDx After Quarter-End

30 Jul, 2012, 16:05 ET from Luminex Corporation

AUSTIN, Texas, July 30, 2012 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the second quarter ended June 30, 2012.  Financial and operating highlights include the following:

  • Consolidated second quarter revenue of $48.3 million, a one percent increase over the second quarter of 2011
  • Second quarter assay revenue of $17.5 million, an 89 percent increase over the second quarter of 2011. Growth was largely driven by the inclusion of Luminex Madison, formerly EraGen Biosciences, Inc., which was acquired on June 27, 2011
  • Second quarter shipments of 278 multiplexing analyzers that included 167 MAGPIX® systems, resulting in cumulative life-to-date multiplexing analyzer shipments of 9,162, up 12 percent from a year ago
  • Consolidated gross profit margin of 71 percent for the second quarter of 2012
  • Operating expenses for the second quarter of 2012 increased $2.9 million over the second quarter of 2011. $0.9 million of this increase can be attributed to Luminex Madison, and $0.4 million is related to acquisition costs associated with the recent purchase of GenturaDx. Operating income for the second quarter of 2012 was $6.5 million compared with operating income of $8.8 million for the same period last year
  • Luminex Corporation was added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Life Sciences Tools & Services Sub-Industry Index
  • In July, Luminex Corporation acquired GenturaDx, a private, California-based molecular diagnostic company, for $50 million in cash and potential additional contingent consideration based on achievement of future milestones and/or product revenue performance  

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

"We are pleased with our second quarter results and long-term trajectory. Luminex's strategic plan is focused on providing customers with the tools they need to positively impact human health through reduced complexity and increased speed of the testing process. We continue to invest heavily in our proprietary xMAP® technology, and we have always recognized that one platform may not suit all lab customer needs. In order to access these new opportunities, Luminex has sought to acquire external technologies, such as EraGen Biosciences in 2011 and our recent acquisition of GenturaDx," said Patrick J. Balthrop, president and chief executive officer of Luminex.  "We are excited about GenturaDx technology and believe its simple to use, sample-to-answer platform combined with our proprietary MultiCode RTx chemistry will provide hospital-based molecular diagnostic labs with another powerful tool in their search for answers. When this system is commercialized (anticipated for 2014) Luminex will be able to offer our customers with a broad line of product solutions to fit their specific needs." 

"Regarding new product updates, I am pleased to report that Luminex has submitted a de-novo 510(k) application to the FDA for our gastrointestinal pathogen panel (xTAG® GPP) assay. This product offering addresses a sizeable new market opportunity for Luminex and is another example of how Luminex is providing advanced solutions and real value to our customers. With new assays like GPP, NeoPlex4 and the exciting portfolio from Luminex Madison, we are positioned for strong growth in the future," Balthrop concluded. 

 

REVENUE SUMMARY

(in thousands, except percentages)

Three Months Ended

June 30,

Variance

2012

2011

($)

(%)

(unaudited)

System sales

$   8,386

$   9,135

$    (749)

-8%

Consumable sales

10,802

18,397

(7,595)

-41%

Royalty revenue

7,715

7,412

303

4%

Assay revenue

17,510

9,261

8,249

89%

All other revenue

3,860

3,433

427

12%

$ 48,273

$ 47,638

$     635

1%

Six Months Ended

June 30,

Variance

2012

2011

($)

(%)

(unaudited)

System sales

$ 15,384

$ 16,814

$ (1,430)

-9%

Consumable sales

22,702

33,399

(10,697)

-32%

Royalty revenue

15,957

14,668

1,289

9%

Assay revenue

34,807

18,845

15,962

85%

All other revenue

8,150

7,187

963

13%

$ 97,000

$ 90,913

$  6,087

7%

"We are pleased with our revenue progress, notwithstanding the significant decline in current quarter consumable revenue which was primarily the result of volatility in a single customer's purchases," said Harriss T. Currie, vice president and chief financial officer. "We anticipate improved revenue growth in the second half of 2012, as a result of both traction within our LMA and LMD product portfolios and easing consumable revenue comparisons."  

 

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

(in thousands, except percentages)

Three Months Ended

June 30,

Variance

2012

2011

($)

(%)

(unaudited)

Revenue

Technology and strategic partnerships

$  29,565

$ 36,211

$  (6,646)

-18%

Assays and related products

18,708

11,427

7,281

64%

Total Revenue

48,273

47,638

635

1%

Operating income (loss)

Technology and strategic partnerships

4,342

11,572

(7,230)

-62%

Assays and related products

2,144

(2,775)

4,919

177%

Total Operating income

6,486

8,797

(2,311)

-26%

Six Months Ended

June 30,

Variance

2012

2011

($)

(%)

(unaudited)

Revenue

Technology and strategic partnerships

$  59,774

$ 68,146

$  (8,372)

-12%

Assays and related products

37,226

22,767

14,459

64%

Total Revenue

97,000

90,913

6,087

7%

Operating income (loss)

Technology and strategic partnerships

8,541

20,228

(11,687)

-58%

Assays and related products

3,553

(3,137)

6,690

213%

Total Operating income

12,094

17,091

(4,997)

-29%

 

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2012 annual revenue guidance of between $205 and $215 million.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the second quarter ended June 30, 2012, on Monday, July 30, 2012, 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 NeoPlex4 and NeoPlex System and products developed and manufactured by Luminex Madison and Luminex Molecular Diagnostics; anticipated FDA clearance of our products, including Gastrointestinal Pathogen Panel, NeoPlex4 and NeoPlex System;status of integration of Luminex Madison; the acquisition of GenturaDx; the addition of Luminex to the S&P Small Cap 600 GICS; Luminex's long-term strategic plan and acquisition strategy; 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 2012 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, 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.

LUMINEX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30,

December 31,

2012

2011

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$           75,898

$              58,282

Restricted cash

-

1,006

Short-term investments

23,150

42,574

Accounts receivable, net

26,176

23,016

Inventories, net

26,304

24,579

Deferred income taxes

4,416

5,991

Prepaids and other

4,924

3,529

Total current assets

160,868

158,977

Property and equipment, net

26,243

25,192

Intangible assets, net

27,256

29,437

Deferred income taxes

13,461

12,817

Long-term investments

5,997

6,151

Goodwill

42,758

42,763

Other

6,899

7,310

Total assets

$         283,482

$            282,647

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$             5,937

$               5,941

Accrued liabilities

9,714

11,047

Deferred revenue

4,230

4,057

Current portion of long term debt

490

999

Total current liabilities

20,371

22,044

Long-term debt

2,191

2,573

Deferred revenue

3,259

3,344

Other

2,584

3,831

Total liabilities

28,405

31,792

Stockholders' equity:

Common stock

41

41

Additional paid-in capital

294,936

297,104

Accumulated other comprehensive gain

895

984

Accumulated deficit

(40,795)

(47,274)

Total stockholders' equity

255,077

250,855

Total liabilities and stockholders' equity

$         283,482

$            282,647

    

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

Revenue

$  48,273

$  47,638

$  97,000

$ 90,913

Cost of revenue

13,861

13,812

28,828

26,359

Gross profit

34,412

33,826

68,172

64,554

Operating expenses:

Research and development

9,638

7,945

19,078

15,515

Selling, general and administrative

17,204

16,482

34,816

30,763

Amortization of acquired intangible assets

1,084

602

2,184

1,185

Total operating expenses

27,926

25,029

56,078

47,463

Income from operations

6,486

8,797

12,094

17,091

Interest expense from long-term debt

(63)

(79)

(122)

(162)

Other income, net

42

108

99

215

Income before income taxes

6,465

8,826

12,071

17,144

Income taxes

(3,513)

(4,183)

(5,592)

(8,040)

Net income

$   2,952

$   4,643

$   6,479

$   9,104

Net income per share, basic

$     0.07

$     0.11

$     0.16

$    0.22

Shares used in computing net income per share, basic

41,064

41,262

40,992

41,251

Net income per share, diluted

$     0.07

$     0.11

$     0.15

$    0.21

Shares used in computing net income per share, diluted

42,399

42,446

42,246

42,398

    

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

Cash flows from operating activities:

Net income

$    2,952

$    4,643

$    6,479

$    9,104

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

Depreciation and amortization

3,533

2,622

7,055

5,138

Stock-based compensation

2,571

2,993

5,214

5,540

Deferred income tax benefit

376

2,054

929

3,379

Excess income tax benefit from employee stock-based awards

(2,476)

(1,501)

(2,773)

(3,705)

Other

(49)

234

183

305

Changes in operating assets and liabilities:

Accounts receivable, net

830

68

(3,183)

6,656

Inventories, net

(1,860)

1,793

(1,727)

1,207

Other assets

(1,671)

(164)

(1,631)

(1,186)

Accounts payable

555

(1,510)

69

(4,254)

Accrued liabilities

4,811

1,953

(1,215)

167

Deferred revenue

(50)

(317)

93

(460)

Net cash provided by operating activities

9,522

12,868

9,493

21,891

Cash flows from investing activities:

Purchases of available-for-sale securities

(1,496)

(22,201)

(10,495)

(29,247)

Sales and maturities of available-for-sale securities

21,490

7,256

30,005

14,177

Purchase of property and equipment

(3,761)

(2,644)

(5,357)

(3,798)

Business acquisition consideration, net of cash acquired

-

(33,914)

-

(33,914)

Purchase of cost method investment

-

-

-

(2,000)

Acquired technology rights

(291)

(87)

(291)

(87)

Net cash provided by (used in) investing activities

15,942

(51,590)

13,862

(54,869)

Cash flows from financing activities:

Payments on debt

(1,025)

(885)

(1,025)

(885)

Proceeds from issuance of common stock

1,706

590

2,363

818

Payments for stock repurchases

(4,432)

(1,436)

(9,880)

(4,686)

Excess income tax benefit from employee stock-based awards

2,476

1,501

2,773

3,705

Net cash used in financing activities

(1,275)

(230)

(5,769)

(1,048)

Effect of foreign currency exchange rate on cash

(121)

1

30

149

Change in cash and cash equivalents

24,068

(38,951)

17,616

(33,877)

Cash and cash equivalents, beginning of period

51,830

94,561

58,282

89,487

Cash and cash equivalents, end of period

$  75,898

$  55,610

$  75,898

$  55,610

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

SOURCE Luminex Corporation



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