Luminex Corporation Reports Second Quarter 2010 Results

AUSTIN, Texas, Aug. 5 /PRNewswire-FirstCall/ -- Luminex Corporation (Nasdaq: LMNX) today announced financial results for the second quarter and six months ended June 30, 2010.  Financial and operating highlights include the following:

• Consolidated second quarter revenue was $33.2 million, a 20 percent increase over the second quarter of 2009
• System shipments for the second quarter of 2010 totaled 219, resulting in cumulative life to-date shipments of 7,183, up 15 percent from the same period a year ago
• Consolidated gross profit margin was 70 percent for the second quarter of 2010
• Operating income for the second quarter of 2010 was $2.3 million, or seven percent of revenue, compared with operating income of $1.0 million, or four percent of revenue, for the same period last year
• Announced the launch of a new research gene expression product, the qBead Gene Expression Assay, together with High Throughput Genomics, Inc.  
• Completed our acquisition of BSD Robotics, an Australian-based private company with advanced robotics technology for newborn screening and forensics
• Concluded the 7th Annual Planet xMAP® USA Symposium in Baltimore, with hundreds of scientists in the diagnostics and research fields coming together to discuss their work utilizing xMAP technology

Consolidated revenue for the second quarter of 2010 was $33.2 million, a 20 percent increase over consolidated revenue of $27.8 million for the second quarter of 2009.  GAAP net income for the second quarter of 2010 was $884,000, or $0.02 per share, compared with GAAP net income of $1.1 million, or $0.03 per share, for the prior year period.  Net income for the second quarter of 2010 included non-cash charges of $2.4 million in stock compensation expense associated with ASC 718 and $2.1 million of depreciation and amortization expense.  Net income for the second quarter of 2009 included the effects of a payment of $0.8 million related to the termination of a supply contract and non-cash charges of $1.8 million in stock compensation expense associated with ASC 718 and $1.9 million of depreciation and amortization expense.  The valuation allowance on U.S. deferred tax assets was released at December 31, 2009 and, as a result, the 2010 second quarter and year to date results are shown fully taxed in the U.S., whereas the 2009 second quarter and year to date results are not.  On a comparable basis, net income for the second quarter of 2009, removing the effects of the release of the valuation allowance and $4.4 million litigation settlement in 2009, would have been $281,000 or $0.01 per share, and the net loss for the first six months of 2009 would have been $469,000, or a loss of $0.01 per share.

"Luminex continued to deliver good growth with a solid financial and operating performance for the second quarter of 2010, in spite of a challenging economic environment," said Patrick J. Balthrop, president and chief executive officer of Luminex.  "Our system, consumable, and royalty revenue categories each showed favorable growth trends over the prior year period, and our assay sales were comparable to a year ago, even though the second quarter of 2009 included effects of the H1N1 pandemic. In addition, we continued to expand our installed base, and we posted solid gross margins." 

"During the quarter we executed several important strategic initiatives that we expect to drive future growth," added Balthrop. "These include the acquisition of BSD Robotics, a key element of our newborn screening and automation programs, as well as a distribution agreement with High Throughput Genomics, Inc. (HTG), to launch a new custom gene expression product, the qBead Gene Expression Assay," added Balthrop. "These initiatives and our investment in exciting new products, such as our innovative MAGPIX® instrument, will help ensure that Luminex will maintain our innovation edge in the marketplace, deliver high performance solutions to our customers, and drive long term value for our shareholders."

"We are excited about our prospects for the remainder of 2010.  We believe our commitment to our successful partnership model and our ongoing R&D investments will continue to drive growth across all of our markets, and allow us to further extend our global market presence," Balthrop concluded. 

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2010 annual revenue guidance of between $138 and $148 million.  This represents an increase of 14 to 23 percent over reported 2009 annual revenue.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the second quarter ended June 30, 2010, on Thursday, August 5, 2010, at 4:00 p.m. Central time/ 5:00 p.m. Eastern 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' 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 ability of our strategic initiatives and new product investments to drive future growth, maintain our market position, deliver high performance solutions and drive long term shareholder value, our prospects for 2010, the ability of our partnership model and R&D investment to drive growth and extend our global market presence, and our projected 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' actual results or performance to differ materially include risks and uncertainties relating to, among others, market demand and acceptance of Luminex' 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' 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' 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' 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 2010 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' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

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The Company believes that the non-GAAP measure used in this presentation, when presented in conjunction with the comparable GAAP measure, is useful to both management and investors in analyzing financial and business trends regarding the Company's ongoing business and operating performance. This non-GAAP measure should be considered in addition to, but not as a substitute for, items prepared in accordance with GAAP.

SOURCE Luminex Corporation