AUSTIN, Texas, Oct. 27, 2014 /PRNewswire/ -- Luminex
Corporation (NASDAQ:LMNX) today announced financial results for the
third quarter ended September 30,
2014. Financial and operating highlights include the
following:
- Consolidated revenue of $56.7
million, a 12 percent increase over the third quarter of
2013.
- Assay revenue of $22.1 million, a
37 percent increase over the third quarter of 2013. Infectious
disease assay sales comprised approximately 65 percent of total
assay sales, with genetic testing assays representing 35
percent.
- Royalty revenue of $9.7 million,
an 8 percent increase over the third quarter of 2013.
- Shipments of 269 multiplexing analyzers, which included 115 LX
systems, 122 MAGPIX systems, and 32 FLEXMAP 3D Systems.
- GAAP net income was $5.6 million,
or $0.13 per diluted share. This
compares to a GAAP net income of $796,000, or $0.02
per diluted share for the third quarter of 2013.
- Non-GAAP net income was $11.5
million or $0.27 per diluted
share, which compares with $2.3
million, or $0.06 per diluted
share in the third quarter of 2013. (see Non-GAAP
reconciliation)
- Received FDA Clearance to add 3 new clinical targets and
additional sample type for use with xTAG® Gastrointestinal Pathogen
Panel (GPP).
![Luminex logo. Luminex logo.](http://photos.prnewswire.com/prnvar/20100104/LUMINEXLOGO)
"We completed a strong quarter, driven primarily by growth in
assay revenues that was well-balanced across our major product
categories," said Harriss T. Currie,
Senior Vice President and Chief Financial Officer. "This resulted
in improved results at the net profit line. Cash flow also was
positive for the quarter notwithstanding substantial capital
investments in our innovative pipeline."
"With the recent appointment of Nachum 'Homi' Shamir as President and CEO, we
believe we are well positioned to continue executing our vision to
deliver innovative diagnostic solutions to simplify and speed the
delivery of health care. As we prepare for the launch of several
key pipeline products in the near future, we are very pleased to
have a talented and accomplished executive to lead the Company into
the next stage of growth," said
Wally Loewenbaum, Chairman of the
Company.
"I am excited to join Luminex at this pivotal time in the
Company's history. As I conduct my strategic and operational
review, I am gaining greater insights into the business and look
forward to contributing to the Company's record of market
leadership and strong financial performance. With its history of
innovation, its talented, dedicated workforce, and a compelling
pipeline of highly differentiated products, I believe Luminex is
uniquely positioned to successfully execute in the very competitive
healthcare marketplace and deliver maximum value to our
stakeholders," said Homi Shamir,
President and CEO of Luminex.
REVENUE
SUMMARY
(in thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
2014
|
|
2013
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
7,624
|
|
$
7,568
|
|
$
56
|
|
1%
|
Consumable
sales
|
12,124
|
|
12,837
|
|
(713)
|
|
-6%
|
Royalty
revenue
|
9,690
|
|
8,996
|
|
694
|
|
8%
|
Assay
revenue
|
22,056
|
|
16,115
|
|
5,941
|
|
37%
|
All other
revenue
|
5,190
|
|
5,264
|
|
(74)
|
|
-1%
|
|
$
56,684
|
|
$
50,780
|
|
$ 5,904
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
2014
|
|
2013
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
22,328
|
|
$
21,772
|
|
$ 556
|
|
3%
|
Consumable
sales
|
37,521
|
|
36,484
|
|
1,037
|
|
3%
|
Royalty
revenue
|
29,215
|
|
27,683
|
|
1,532
|
|
6%
|
Assay
revenue
|
63,602
|
|
56,138
|
|
7,464
|
|
13%
|
All other
revenue
|
16,211
|
|
16,190
|
|
21
|
|
0%
|
|
$ 168,877
|
|
$ 158,267
|
|
$ 10,610
|
|
7%
|
LUMINEX
CORPORATION
REPORTABLE SEGMENT
HIGHLIGHTS
(in thousands,
except percentages)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
|
2014
|
|
2013
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$
32,645
|
|
$
33,335
|
|
$ (690)
|
|
-2%
|
Assays and related
products
|
24,039
|
|
17,445
|
|
6,594
|
|
38%
|
Total
Revenue
|
56,684
|
|
50,780
|
|
5,904
|
|
12%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
8,792
|
|
9,293
|
|
(501)
|
|
-5%
|
Assays and related
products
|
(3,796)
|
|
(13,487)
|
|
9,691
|
|
72%
|
Total Operating
income
|
4,996
|
|
(4,194)
|
|
9,190
|
|
219%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
|
2014
|
|
2013
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$
98,094
|
|
$
96,352
|
|
$ 1,742
|
|
2%
|
Assays and related
products
|
70,783
|
|
61,915
|
|
8,868
|
|
14%
|
Total
Revenue
|
168,877
|
|
158,267
|
|
10,610
|
|
7%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
27,348
|
|
23,368
|
|
3,980
|
|
17%
|
Assays and related
products
|
(9,396)
|
|
(24,073)
|
|
14,677
|
|
61%
|
Total Operating
income
|
17,952
|
|
(705)
|
|
18,657
|
|
2646%
|
FINANCIAL OUTLOOK AND GUIDANCE
The Company has revised its 2014 annual revenue guidance to a
range of between $225 and $228
million from $225 and $240
million.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the third quarter ended
September 30, 2014, at 4:00 p.m. CDT/5:00 p.m.
EDT, Monday, October 27, 2014.
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: growth in our partner business, including systems,
consumables and royalties; the development progress of our pipeline
products, including ARIES systems and assay menu and NxTAG
technology, market acceptance of our genetic and infectious disease
products, regulatory clearance of our products; the ability of our
executives to execute our vision to launch our pipeline products
and drive Company growth, market leadership and financial
performance; the ability to execute in the marketplace and of our
investment in current initiatives and new products to drive
long-term value for our shareholders; and projected 2014 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, our
ability to sell products directly to end users, our ability to
launch products on time that satisfy market needs with products
that we sell, Luminex's ability to scale manufacturing operations
and manage operating expenses, gross margins and inventory levels,
potential shortages of components, competition, the timing and
process 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
2014 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,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
89,123
|
|
$
67,924
|
Short-term
investments
|
-
|
|
4,517
|
Accounts receivable,
net
|
27,354
|
|
30,948
|
Inventories,
net
|
33,129
|
|
30,487
|
Deferred income
taxes
|
8,169
|
|
7,265
|
Prepaids and
other
|
5,293
|
|
5,229
|
Total current
assets
|
163,068
|
|
146,370
|
Property and
equipment, net
|
37,096
|
|
32,793
|
Intangible assets,
net
|
57,346
|
|
60,295
|
Deferred income
taxes
|
11,913
|
|
11,913
|
Long-term
investments
|
7,975
|
|
-
|
Goodwill
|
49,619
|
|
50,738
|
Other
|
3,495
|
|
3,937
|
Total
assets
|
$
330,512
|
|
$ 306,046
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
10,138
|
|
$
10,698
|
Accrued
liabilities
|
13,066
|
|
11,624
|
Deferred
revenue
|
5,079
|
|
4,980
|
Current portion of
long term debt
|
-
|
|
1,194
|
Total current
liabilities
|
28,283
|
|
28,496
|
Long-term
debt
|
-
|
|
463
|
Deferred
revenue
|
2,436
|
|
2,482
|
Other
|
4,924
|
|
4,985
|
Total
liabilities
|
35,643
|
|
36,426
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
42
|
|
41
|
Additional paid-in
capital
|
306,766
|
|
296,931
|
Accumulated other
comprehensive (loss) income
|
(409)
|
|
419
|
Accumulated
deficit
|
(11,530)
|
|
(27,771)
|
Total stockholders'
equity
|
294,869
|
|
269,620
|
Total liabilities and
stockholders' equity
|
$
330,512
|
|
$ 306,046
|
|
|
|
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$ 56,684
|
|
$ 50,780
|
|
$ 168,877
|
|
$ 158,267
|
Cost of
revenue
|
17,674
|
|
19,999
|
|
51,766
|
|
51,472
|
Gross
profit
|
39,010
|
|
30,781
|
|
117,111
|
|
106,795
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
10,327
|
|
10,346
|
|
32,719
|
|
34,852
|
Selling, general and
administrative
|
21,423
|
|
21,466
|
|
61,838
|
|
67,429
|
Amortization of
acquired intangible assets
|
964
|
|
1,021
|
|
2,949
|
|
3,077
|
Restructuring
costs
|
1,300
|
|
2,142
|
|
1,653
|
|
2,142
|
Total operating
expenses
|
34,014
|
|
34,975
|
|
99,159
|
|
107,500
|
Income (loss) from
operations
|
4,996
|
|
(4,194)
|
|
17,952
|
|
(705)
|
Interest expense from
long-term debt
|
-
|
|
(16)
|
|
(6)
|
|
(67)
|
Other expense,
net
|
(15)
|
|
6,638
|
|
(35)
|
|
6,730
|
Income before income
taxes
|
4,981
|
|
2,428
|
|
17,911
|
|
5,958
|
Income tax benefit
(expense)
|
569
|
|
(1,632)
|
|
(1,670)
|
|
(3,978)
|
Net income
|
$ 5,550
|
|
$
796
|
|
$ 16,241
|
|
$ 1,980
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$ 0.13
|
|
$ 0.02
|
|
$ 0.39
|
|
$ 0.05
|
Shares used in
computing net income per share, basic
|
41,714
|
|
40,752
|
|
41,496
|
|
40,712
|
|
|
|
|
|
|
|
|
Net income per share,
diluted
|
$ 0.13
|
|
$ 0.02
|
|
$ 0.39
|
|
$ 0.05
|
Shares used in
computing net income per share, diluted
|
42,381
|
|
41,919
|
|
42,127
|
|
41,771
|
|
|
|
|
|
|
|
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$ 5,550
|
|
$
796
|
|
$ 16,241
|
|
$ 1,980
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,400
|
|
3,994
|
|
10,935
|
|
11,747
|
Stock-based
compensation
|
2,622
|
|
1,889
|
|
7,052
|
|
6,733
|
Deferred income tax
(benefit) expense
|
(3,568)
|
|
1,989
|
|
(1,048)
|
|
3,415
|
Excess income tax
(benefit) expense from employee stock-based awards
|
(1,315)
|
|
(15)
|
|
(1,315)
|
|
274
|
Loss (gain) on
disposal of assets
|
48
|
|
(5,388)
|
|
231
|
|
(5,305)
|
Non-cash
restructuring charges
|
1,192
|
|
3,695
|
|
2,388
|
|
3,695
|
Other
|
(28)
|
|
(34)
|
|
(360)
|
|
(1,115)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
203
|
|
1,384
|
|
3,742
|
|
3,076
|
Inventories,
net
|
(1,943)
|
|
1,769
|
|
(3,465)
|
|
(1,914)
|
Other
assets
|
(829)
|
|
(415)
|
|
(792)
|
|
(2,058)
|
Accounts
payable
|
1,227
|
|
2,215
|
|
(878)
|
|
(718)
|
Accrued
liabilities
|
4,922
|
|
(1,184)
|
|
407
|
|
(2,727)
|
Deferred
revenue
|
46
|
|
439
|
|
53
|
|
409
|
Net cash provided by
operating activities
|
11,527
|
|
11,134
|
|
33,191
|
|
17,492
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(8,000)
|
|
(2,997)
|
|
(10,996)
|
|
(8,489)
|
Sales and maturities
of available-for-sale securities
|
2,996
|
|
2,996
|
|
7,509
|
|
19,632
|
Purchase of property
and equipment
|
(5,540)
|
|
(6,914)
|
|
(11,795)
|
|
(15,136)
|
Proceeds from sale of
assets
|
5
|
|
9,533
|
|
44
|
|
9,564
|
Acquired technology
rights
|
-
|
|
-
|
|
(64)
|
|
(930)
|
Net cash (used in)
provided by investing activities
|
(10,539)
|
|
2,618
|
|
(15,302)
|
|
4,641
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments on
debt
|
-
|
|
-
|
|
(1,621)
|
|
(1,105)
|
Proceeds from
employee stock plans and issuance of common stock
|
327
|
|
5,973
|
|
3,807
|
|
7,891
|
Payments for stock
repurchases
|
-
|
|
-
|
|
-
|
|
(14,343)
|
Excess income tax
benefit (expense) from employee stock-based awards
|
1,315
|
|
15
|
|
1,315
|
|
(274)
|
Net cash provided by
(used in) financing activities
|
1,642
|
|
5,988
|
|
3,501
|
|
(7,831)
|
Effect of foreign
currency exchange rate on cash
|
(217)
|
|
(49)
|
|
(191)
|
|
78
|
Change in cash and
cash equivalents
|
2,413
|
|
19,691
|
|
21,199
|
|
14,380
|
Cash and cash
equivalents, beginning of period
|
86,710
|
|
37,478
|
|
67,924
|
|
42,789
|
Cash and cash
equivalents, end of period
|
$ 89,123
|
|
$ 57,169
|
|
$ 89,123
|
|
$ 57,169
|
|
|
|
|
|
|
|
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Income from
operations
|
$ 4,996
|
|
$ (4,194)
|
|
$ 17,952
|
|
$ (705)
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
2,622
|
|
1,889
|
|
7,052
|
|
6,733
|
Amortization of
acquired intangible assets
|
964
|
|
1,021
|
|
2,949
|
|
3,077
|
Costs associated with
legal proceedings
|
1,028
|
|
105
|
|
2,628
|
|
358
|
Resolution of
molecular diagnostic distribution agreements
|
-
|
|
-
|
|
-
|
|
7,000
|
Severance
costs
|
942
|
|
216
|
|
987
|
|
1,031
|
Restructuring
costs
|
1,332
|
|
4,343
|
|
2,652
|
|
4,343
|
|
|
|
|
|
|
|
|
Adjusted income from
operations
|
$ 11,884
|
|
$ 3,380
|
|
$ 34,220
|
|
$ 21,837
|
|
|
|
|
|
|
|
|
Interest expense from
long-term debt
|
-
|
|
(16)
|
|
(6)
|
|
(67)
|
Other income,
net
|
(15)
|
|
6,638
|
|
(35)
|
|
6,730
|
Gain on sale of cost
method equity investment
|
-
|
|
(5,452)
|
|
-
|
|
(5,452)
|
Contingent
consideration adjustments
|
-
|
|
(1,220)
|
|
-
|
|
(1,370)
|
Income tax benefit
(expense)
|
569
|
|
(1,632)
|
|
(1,670)
|
|
(3,978)
|
Income tax effect of
above adjusting items
|
(941)
|
|
637
|
|
(1,649)
|
|
(376)
|
Income tax benefit
from intercompany debt cancellation
|
-
|
|
-
|
|
(994)
|
|
-
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 11,497
|
|
$ 2,335
|
|
$ 29,866
|
|
$ 17,324
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, basic
|
$ 0.28
|
|
$ 0.06
|
|
$ 0.72
|
|
$ 0.43
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, basic
|
41,714
|
|
40,752
|
|
41,496
|
|
40,712
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, diluted
|
$ 0.27
|
|
$ 0.06
|
|
$ 0.71
|
|
$ 0.41
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, diluted
|
42,381
|
|
41,919
|
|
42,127
|
|
41,771
|
|
|
|
|
|
|
|
|
The Company makes reference in this release to "non-GAAP
operating income" and "non-GAAP net income" which excludes
stock-based compensation expense, amortization of acquired
intangible assets and the impact of costs associated with legal
proceedings, which are unpredictable and can vary significantly
from period to period, including costs associated with the ENZO
Life Sciences, Inc. and Irori Technologies, Inc. complaints,
discussed in the Legal Proceedings section of our previously filed
10-K and 10-Qs filed year-to-date and certain other recurring and
non-recurring expenses. The Company believes that excluding
these items and their related tax effects from its financial
results reflects operating results that are more indicative of the
Company's ongoing operating performance while improving
comparability to prior periods, and, as such may provide investors
with an enhanced understanding of the Company's past financial
performance and prospects for the future. In addition, the
Company's management uses such non-GAAP measures internally to
evaluate and assess its core operations and to make ongoing
operating decisions. This information is not intended to be
considered in isolation or as a substitute for income from
operations, net income, net income per share or expense information
prepared in accordance with GAAP.
Contacts:
|
Harriss T.
Currie
|
Matt
Norman
|
|
Sr. Vice President,
Finance
and Chief Financial
Officer
|
Manager,
Government
and Investor
Relations
|
|
512-219-8020
|
512-219-8020
|
|
hcurrie@luminexcorp.com
|
mnorman@luminexcorp.com
|
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SOURCE Luminex Corporation