Luminex Corporation Reports Third Quarter 2011 Results

AUSTIN, Texas, Nov. 1, 2011 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the third quarter ended September 30, 2011.  Financial and operating highlights include the following:

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• Consolidated third quarter revenue was $45.6 million, a 34% increase over the third quarter of 2010
• Third quarter 2011 assay sales of $13.4 million grew 71% over the third quarter of 2010 and included a first full quarter contribution from EraGen Biosciences, Inc.
• Third quarter 2011 shipments of 226 multiplexing analyzers that included 61 MAGPIX® systems, resulting in cumulative life-to-date multiplexing analyzer shipments of 8,371
• Consolidated gross profit margin of 62.4% for the third quarter of 2011, which reflects the impact of $2.0 million in incremental expense resulting from the recording of EraGen inventory acquired at fair value on the date of acquisition. Excluding this impact, non-GAAP consolidated gross profit margin was 66.9% for the third quarter of 2011
• Operating income for the third quarter of 2011 was $2.8 million. Included in this amount is $2.0 million in incremental expense resulting from recording the EraGen inventory acquired at fair value on the date of acquisition. Excluding this amount and current quarter integration expenses, non-GAAP operating income for the third quarter of 2011 was $5.1million, a $5.0 million increase over the third quarter of 2010
• Successful launch of the 15-pathogen xTAG® Gastrointestinal Pathogen Panel (GPP) in Europe
• Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the xTAG Respiratory Viral Panel FAST (RVP FAST) in early July
• Hosted the ninth annual Planet xMAP Europe September 28-29 in Vienna, Austria

"Luminex continued to execute on its strategic plan and delivered another strong quarter," said Patrick J. Balthrop, president and chief executive officer of Luminex.  "Our assay, consumable, and royalty revenue categories each demonstrated excellent growth over the prior year period. The assay group, led by our Cystic Fibrosis and Respiratory Viral Panel franchises, and now also includes contribution from EraGen Biosciences, generated 71% growth. Consistent with prior commentary, third quarter consumable revenue of $12 million grew 39% over the same period last year, while actual results were less than second quarter. Finally, we recognized $7.5 million in royalty revenue, or 32% growth over the same period in 2010, which reflects the strong commitment to and investment in our proprietary technology by our key partners." 

"During the quarter we achieved several significant milestones, including the launch of our novel xTAG Gastrointestinal Pathogen Panel in Europe, receipt of FDA clearance of our xTAG RVP FAST assay, and significant progress with early integration activities at EraGen Biosciences," added Balthrop. "We believe these accomplishments deliver high performance solutions to our customers and long-term value for our shareholders," Balthrop concluded. 

Consolidated revenue for the third quarter of 2011 was $45.6 million, a 34% increase over consolidated revenue of $33.9 million for the third quarter of 2010.  GAAP net income for the third quarter of 2011 was $1.9 million, or $0.05 per diluted share, compared with a GAAP net loss of $0.7 million, or $0.02 per diluted share, for the prior year period. Included in cost of sales for the current quarter are $2.0 million of costs associated with the fair valuation of EraGen inventory at acquisition, representing an approximate $0.05 per diluted share impact.  

Net income for the third quarter of 2011 included non-cash charges of $2.8 million in stock compensation expense associated with ASC 718 and $3.3 million of depreciation and amortization expense.  Net income for the third quarter of 2010 included non-cash charges of $2.3 million in stock compensation expense associated with ASC 718 and $2.2 million of depreciation and amortization expense.  

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2011 annual revenue guidance of $180 million to $185 million, or an increase of between 27 to 31 percent over reported 2010 annual revenue.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2011, on Tuesday, November 1, 2011, 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'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 2011 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 2011 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.

The Company has reclassified certain amounts previously classified as a component of selling, general and administrative expenses to research and development expenses to conform to the current period presentation. This reclassification was $1.3 million and $2.3 million for the three and nine months ended September 30, 2010, and was not material to the Company's consolidated financial statements.

SOURCE Luminex Corporation