Luminex Corporation Reports Fourth Quarter and Full Year 2011 Results

AUSTIN, Texas, Feb. 6, 2012 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the fourth quarter and year ended December 31, 2011.  Financial and operating highlights include the following:

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• Consolidated fourth quarter 2011 revenue was $47.9 million, a 16 percent increase over the fourth quarter of 2010; full-year 2011 revenue was $184.3 million, a 30 percent increase over 2010
• Fourth quarter 2011 assay sales of $16.4 million grew 77 percent over the fourth quarter of 2010; full-year 2011 assay revenue was $48.7 million, a 51 percent increase over 2010 and included a contribution from EraGen Biosciences, Inc. that exceeded the high end of our expectations for 2011 revenue
• Fourth quarter 2011 shipments of 307 multiplexing analyzers that included 114 MAGPIX® systems, resulted in cumulative life-to-date multiplexing analyzer shipments of 8,678
• Consolidated gross profit margin of 67.9 percent for the fourth quarter of 2011, which included the negative impact on gross profit margin resulting from the recording of EraGen inventory acquired at fair value on the date of acquisition  
• Operating income for the fourth quarter of 2011 was $3.9 million. Included in this amount is approximately $1.1 million in incremental expense resulting from recording the EraGen inventory acquired at fair value on the date of acquisition and approximately $0.5 million in acquisition/integration costs associated with EraGen. Excluding the revaluing of EraGen inventory and acquisition costs, non-GAAP operating income for the fourth quarter of 2011 was $5.5 million, a $0.4 million increase over the fourth quarter of 2010
• GAAP net income for the fourth quarter of 2011 was $3.4 million, or $0.08 per diluted share. GAAP net income for the full-year 2011 was $14.5 million or $0.34 per diluted share, compared to full-year 2010 net income of $5.2 million or $0.12 per diluted share. Excluding the aforementioned fair value adjustment to EraGen inventory and integration expenses, non-GAAP net income for the fourth quarter and 2011 was $4.8 million and $19.3 million or $0.11 and $0.45 per diluted share, respectively

"Luminex's strong fourth quarter performance completed a year that was full of achievements," said Patrick J. Balthrop, president and chief executive officer of Luminex.  "In 2011, Luminex delivered 30 percent total revenue growth, driven by our higher margin revenue categories; assays, consumables, and royalties. The assay group, led by our Cystic Fibrosis and Respiratory Viral Panel franchises, and a healthy contribution from our acquisition of EraGen Biosciences, generated 51 percent growth over 2010. As forecasted, consumable revenue in the second half of the year decelerated from an exceptionally strong first half, yet for the full year, consumable revenue grew 38 percent over 2010. Finally, we recognized 30 percent growth in royalty revenue in 2011, which reflects the continuing strong commitment to and investment in our proprietary technology by our key partners." 

"During 2011 we achieved several significant milestones, including the launch of our novel xTAG® Gastrointestinal Pathogen Panel in Europe, FDA clearance of our xTAG RVP FAST assay, and the acquisition of EraGen Biosciences. We believe these new products will begin to make a meaningful contribution in 2012," added Balthrop. "We are excited about the prospects for growth and remain focused on delivering innovative, high performance solutions to our customers. We believe our focus on the customer will continue to drive long-term value for our shareholders," Balthrop concluded. 

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 2012 is as follows:

• The Company expects fiscal 2012 revenue to be between $205 million to $215 million, or an increase of between 11 to 17 percent over reported 2011 revenue.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the fourth quarter ended December 31, 2011, on Monday, February 6, 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; expanded distribution for our MAGPIX system; the development progress of our NeoPlex4 assay product; market acceptance of our RVP FAST and GPP assay products; integration of EraGen Biosciences, Inc.; 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.

SOURCE Luminex Corporation