2014

Luminex Corporation Reports Third Quarter 2012 Results

AUSTIN, Texas, Oct. 29, 2012 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the third quarter ended September 30, 2012.  Financial and operating highlights include the following:

  • Completed the acquisition of GenturaDx, Inc., effective July 11, 2012. Integration activities are  on-track
  • Consolidated third quarter revenue of $50.0 million, a 10 percent increase over the third quarter of 2011
  • Third quarter assay revenue of $16.4 million, a 22 percent increase over the third quarter of 2011
  • Third quarter shipments of 271 multiplexing analyzers that included 127 MAGPIX® systems; cumulative life-to-date multiplexing analyzer shipments are 9,433  
  • Achieved a consolidated gross profit margin of 70 percent
  • Operating income for the third quarter of 2012 was $3.4 million compared with operating income of $2.8 million for the same period last year, including recognizing $2.7 million of expenses related to acquisition costs associated with the purchase of GenturaDx
  • Luminex was awarded Defense Threat Reduction Agency (DTRA) contract worth up to $11.6 million over three and one half years
  • Announced that Public Health Wales used Luminex's CE marked xTAG® Gastrointestinal Pathogen Panel for activities during Olympic and Paralympic events that took place in Wales    

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

"We are pleased with the revenue growth in the third quarter, driven by another solid performance by our proprietary assay segment.  Our broad and innovative portfolio of assays is a key differentiator in the market and a driver of long term growth for the company.  In addition, we are seeing strong and growing interest among labs wishing to evaluate and validate our latest innovative assays, the CE-Marked gastrointestinal pathogen panel and NeoPlex4.  We believe that after FDA clearance, these two important assays will contribute meaningfully to the company's long-term growth," said Patrick J. Balthrop, president and chief executive officer of Luminex.        

"With a long standing goal to reduce complexity and increase speed of the testing process, Luminex is constantly evaluating internal and external projects that address every component of the process - chemistry, hardware and software. To this end, the technology we acquired in our acquisition of GenturaDx will provide an elegant, easy to use and scalable platform which combined with our MultiCode® chemistry, will expand our product offerings to current customers as well as attract new customers where low-plex testing and ease of use are top priorities," Balthrop concluded. 

REVENUE SUMMARY

(in thousands, except percentages)



Three Months Ended




September 30,


Variance


2012


2011


($)


(%)


(unaudited)













System sales

$    8,550


$    8,638


$     (88)


-1%

Consumable sales

12,898


11,965


933


8%

Royalty revenue

7,690


7,450


240


3%

Assay revenue

16,439


13,424


3,015


22%

All other revenue

4,470


4,080


390


10%


$  50,047


$  45,557


$  4,490


10%


























Nine Months Ended




September 30,


Variance


2012


2011


($)


(%)


(unaudited)













System sales

$  23,934


$  25,452


$ (1,518)


-6%

Consumable sales

35,600


45,364


(9,764)


-22%

Royalty revenue

23,647


22,118


1,529


7%

Assay revenue

51,246


32,269


18,977


59%

All other revenue

12,620


11,267


1,353


12%


$147,047


$136,470


$10,577


8%

"In the third 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.  "While we anticipate continued revenue growth in the fourth quarter, we believe it prudent to adjust our annual revenue guidance to account for an increasingly unpredictable budgetary environment among our lab customers, particularly in Europe. This environment has primarily impacted our expectations for systems and assay revenue."

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

(in thousands, except percentages)










Three Months Ended







September 30,


Variance



2012


2011


($)


(%)



(unaudited)





Revenue








Technology and strategic partnerships

$31,584


$29,918


$ 1,666


6%

Assays and related products

18,463


15,639


2,824


18%

Total Revenue

50,047


45,557


4,490


10%










Operating income (loss)








Technology and strategic partnerships

4,181


5,428


(1,247)


-23%

Assays and related products

(814)


(2,608)


1,794


69%

Total Operating income

3,367


2,820


547


19%






























Nine Months Ended







September 30,


Variance



2012


2011


($)


(%)



(unaudited)





Revenue








Technology and strategic partnerships

$91,358


$98,064


$(6,706)


-7%

Assays and related products

55,689


38,406


17,283


45%

Total Revenue

147,047


136,470


10,577


8%










Operating income (loss)








Technology and strategic partnerships

12,722


25,656


(12,934)


-50%

Assays and related products

2,739


(5,745)


8,484


148%

Total Operating income

15,461


19,911


(4,450)


-22%

FINANCIAL OUTLOOK AND GUIDANCE

The Company has revised its 2012 annual revenue guidance to a range of $200 and $204 million from $205 and $215 million.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2012, on Monday, October 29, 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, Gastrointestinal Pathogen Panel (GPP) and products developed and manufactured by Luminex Madison and Luminex Molecular Diagnostics; the use of GPP at the Olympics and Paralympic events in Wales; anticipated FDA clearance of our products, including GPP, NeoPlex4 and NeoPlex System; the award of a DTRA contract to Luminex; the acquisition of GenturaDx and the status of the integration; 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)



September 30,


December 31,


2012


2011


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$          28,486


$         58,282

Restricted cash

-


1,006

Short-term investments

13,117


42,574

Accounts receivable, net

31,229


23,016

Inventories, net

27,213


24,579

Deferred income taxes

3,394


5,991

Prepaids and other

5,759


3,529





Total current assets

109,198


158,977





Property and equipment, net

26,584


25,192

Intangible assets, net

65,757


29,437

Deferred income taxes

15,164


12,817

Long-term investments

6,000


6,151

Goodwill

52,057


42,763

Other

7,745


7,310





Total assets

$        282,505


$       282,647





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$            7,867


$          5,941

Accrued liabilities

12,425


11,047

Deferred revenue

4,071


4,057

Current portion of long term debt

748


999





Total current liabilities

25,111


22,044





Long-term debt

2,102


2,573

Deferred revenue

3,096


3,344

Other

4,242


3,831





Total liabilities

34,551


31,792





Stockholders' equity:




Common stock

41


41

Additional paid-in capital

285,871


297,104

Accumulated other comprehensive gain

1,161


984

Accumulated deficit

(39,119)


(47,274)





Total stockholders' equity

247,954


250,855





Total liabilities and stockholders' equity

$        282,505


$       282,647





 

 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011


(unaudited)


(unaudited)









Revenue

$ 50,047


$ 45,557


$  147,047


$  136,470

Cost of revenue

15,002


17,140


43,830


43,499









Gross profit

35,045


28,417


103,217


92,971









Operating expenses:








Research and development

10,707


7,997


29,785


23,512

Selling, general and administrative

19,941


16,505


54,757


47,268

Amortization of acquired intangible assets

1,030


1,095


3,214


2,280









Total operating expenses

31,678


25,597


87,756


73,060









Income from operations

3,367


2,820


15,461


19,911

Interest expense from long-term debt

(40)


(73)


(162)


(235)

Other income, net

25


72


124


287









Income before income taxes

3,352


2,819


15,423


19,963

Income taxes

(1,676)


(891)


(7,268)


(8,931)









Net income

$   1,676


$   1,928


$     8,155


$   11,032









Net income per share, basic

$     0.04


$     0.05


$       0.20


$       0.27









Shares used in computing net income per share, basic

41,000


41,391


40,995


41,298









Net income per share, diluted

$     0.04


$     0.05


$       0.19


$       0.26









Shares used in computing net income per share, diluted

41,887


42,611


42,117


42,533

 

 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011


(unaudited)


(unaudited)

Cash flows from operating activities:








Net income

$    1,676


$    1,928


$    8,155


$  11,032

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








Depreciation and amortization

3,613


3,287


10,668


8,425

Stock-based compensation

2,338


2,761


7,552


8,301

Deferred income tax expense (benefit)

1,987


(1,913)


2,916


1,466

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

590


(2,640)


(2,183)


(6,345)

Other

472


(427)


655


(122)

Changes in operating assets and liabilities:








Accounts receivable, net

(5,043)


(5,252)


(8,226)


1,404

Inventories, net

(877)


2,166


(2,604)


3,373

Other assets

(663)


482


(2,294)


(704)

Accounts payable

1,637


2,360


1,706


(1,894)

Accrued liabilities

(792)


4,026


(2,007)


4,193

Deferred revenue

(330)


(20)


(237)


(480)









Net cash provided by operating activities

4,608


6,758


14,101


28,649









Cash flows from investing activities:








Purchases of available-for-sale securities

(2,994)


(5,022)


(13,489)


(34,269)

Sales and maturities of available-for-sale securities

13,070


11,539


43,075


25,716

Purchase of property and equipment

(2,152)


(3,322)


(7,509)


(7,120)

Business acquisition consideration, net of cash acquired

(48,277)


-


(48,277)


(33,914)

Purchase of cost method investment

(1,000)


-


(1,000)


(2,000)

Acquired technology rights

(51)


(439)


(342)


(526)









Net cash (used in) provided by investing activities

(41,404)


2,756


(27,542)


(52,113)









Cash flows from financing activities:








Payments on debt

-


-


(1,025)


(885)

Proceeds from employee stock plans and issuance of common stock

861


2,616


3,224


3,434

Payments for stock repurchases

(11,036)


(5,054)


(20,916)


(9,740)

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

(590)


2,640


2,183


6,345









Net cash (used in) provided by financing activities

(10,765)


202


(16,534)


(846)









Effect of foreign currency exchange rate on cash

149


(245)


179


(96)

Change in cash and cash equivalents

(47,412)


9,471


(29,796)


(24,406)

Cash and cash equivalents, beginning of period

75,898


55,610


58,282


89,487









Cash and cash equivalents, end of period

$   28,486


$  65,081


$   28,486


$  65,081









 

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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