AUSTIN, Texas, Feb. 1, 2016 /PRNewswire/ -- Luminex
Corporation (NASDAQ:LMNX) today announced financial results for the
fourth quarter and year ended December 31,
2015. Financial and operating highlights for the
fourth quarter and full year 2015 include the following:
- Consolidated fourth quarter revenue of $60.4 million, a 4 percent increase compared to
the fourth quarter of 2014; full-year 2015 revenue was $237.7 million, a 5 percent increase over
2014.
- Fourth quarter assay revenue of $26.9
million, a 12 percent increase over the fourth quarter of
2014; full-year 2015 assay revenue of $101.2
million, a 15 percent increase over 2014.
- Fourth quarter system revenue of $8.5
million, a 24 percent increase over the fourth quarter of
2014; full-year 2015 system revenue of $30.7
million, a 5 percent increase over 2014.
- GAAP net income for the fourth quarter and full-year of 2015
was $20.4 million and $36.9 million, or $0.47 and $0.86 per
diluted share, respectively. Non-GAAP net income for the fourth
quarter and full-year 2015 was $24.1
million and $54.5 million, or
$0.56 and $1.28 per diluted share, respectively (see
Non-GAAP reconciliation).
- Expanded full-year 2015 operating margins to 16% from 12% in
2014 as a result of both increased revenues and significant expense
control.
- Cash and short and long-term investments at quarter's end
totaled approximately $148 million,
an increase of approximately $40
million compared with year-end 2014.
- In December, Luminex announced the Company had received FDA
Clearance for NxTAG® Respiratory Pathogen Panel.
"In 2015, Luminex achieved all of its major product development
and regulatory milestones, including FDA clearances of the NxTAG
RPP assay, the ARIES sample to answer molecular system, and the
ARIES HSV1&2 assay, as well as our initial goal of placing 30
ARIES systems. We generated solid financial results for the year,
achieving record revenue of $238
million, gross margins of 71% and generated over
$40 million of cash flow," said
Homi Shamir, President and Chief
Executive Officer of Luminex. "Moving forward, we will continue to
leverage our balanced business model and strong financial position
to accelerate future revenue and earnings growth. In
addition, we are focused on executing a successful market
introduction of ARIES, which we anticipate will accelerate over
time with the expansion of available ASR products and FDA clearance
for additional assays. In addition, we continue to make good
progress with our next-generation ARIES chemistry and expect to
have a first assay enter clinical trials in the second half of
2017. With exciting new products on the market and strong cash
flow, we are excited to build on our solid performance in 2015. We
look forward to another successful year ahead."
REVENUE
SUMMARY
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2015
|
|
2014
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$ 8,547
|
|
$ 6,872
|
|
$ 1,675
|
|
24%
|
Consumable
sales
|
10,568
|
|
10,779
|
|
(211)
|
|
-2%
|
Royalty
revenue
|
9,489
|
|
10,194
|
|
(705)
|
|
-7%
|
Assay
revenue
|
26,893
|
|
24,051
|
|
2,842
|
|
12%
|
All other
revenue
|
4,952
|
|
6,210
|
|
(1,258)
|
|
-20%
|
|
$ 60,449
|
|
$ 58,106
|
|
$ 2,343
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2015
|
|
2014
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$ 30,676
|
|
$ 29,200
|
|
$ 1,476
|
|
5%
|
Consumable
sales
|
43,282
|
|
48,300
|
|
(5,018)
|
|
-10%
|
Royalty
revenue
|
41,513
|
|
39,409
|
|
2,104
|
|
5%
|
Assay
revenue
|
101,216
|
|
87,653
|
|
13,563
|
|
15%
|
All other
revenue
|
21,021
|
|
22,421
|
|
(1,400)
|
|
-6%
|
|
$237,708
|
|
$226,983
|
|
$10,725
|
|
5%
|
Additional Financial Highlights:
- Infectious disease assay sales were approximately 69 percent of
total assay sales for the fourth quarter and genetic testing assays
were 31 percent.
- Royalty revenues reflect total royalty-bearing end-user sales
for the quarter of $9.5 million.
- Consolidated gross profit margin was 72 percent for the fourth
quarter, and 71 percent for the full year 2015.
- 263 multiplexing analyzers were shipped during the quarter,
which included 78 MAGPIX® systems, 137 LX systems, and
48 FLEXMAP 3D® systems.
- Days sales outstanding (DSO) was 44 days at quarter-end.
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 2016 is as follows:
- The Company expects fiscal 2016 revenue to be between
$245 million and $255 million.
- The Company anticipates first quarter 2016 revenue to be
between $60 million and $62
million.
CONFERENCE CALL
Management will host a conference call at 3:30 p.m. CST/4:30 p.m.
EST, Monday, February 1, 2016
to discuss the operating highlights and financial results for the
fourth quarter and year ended December 31,
2015. The conference call will be webcast live and 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 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 of multiplexing
systems; the development progress of our pipeline products,
including ARIES and NxTAG products, market acceptance of our
products, including instruments, consumables and assays, regulatory
clearance of our products; the ability of our investment in current
initiatives and new products to drive long-term value for our
shareholders; and, projected 2016 performance, including revenue
guidance. 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' products and
technology in development, including ARIES and NxTAG products, the
uncertainty relating to increased focus on direct sales to the end
user, dependence on strategic partners for development,
commercialization and distribution of products, concentration of
Luminex' revenue in a limited number of direct customers and
strategic partners, some of which may be experiencing decreased
demand for their products utilizing or incorporating Luminex'
technology, budget or finance constraints in the current economic
environment, or periodic variability in their purchasing patterns
or practices as a result of material resource planning challenges,
the timing of and process for regulatory approvals, the impact of
the ongoing uncertainty in global finance markets and changes in
governmental funding, including its effects on the capital spending
policies of Luminex' partners and end users and their ability to
finance purchases of Luminex' products, fluctuations in quarterly
results due to a lengthy and unpredictable sales cycle,
fluctuations in bulk purchases of consumables, fluctuations in
product mix, and the seasonal nature of some of Luminex' assay
products, Luminex' ability to obtain and enforce intellectual
property protections on Luminex' products and technologies, risks
and uncertainties associated with implementing Luminex' acquisition
strategy, including Luminex' ability to obtain financing, Luminex'
ability to integrate acquired companies or selected assets into
Luminex' consolidated business operations, and the ability to
recognize the benefits of Luminex' acquisitions, reliance on third
party distributors for distribution of specific Luminex-developed
and manufactured assay products, Luminex' ability to scale
manufacturing operations and manage operating expenses, gross
margins and inventory levels, changes in principal members of
Luminex' management staff, potential shortages, or increases in
costs, of components or other disruptions to Luminex' manufacturing
operations, competition and competitive technologies utilized by
Luminex' competitors, Luminex' ability to successfully launch new
products in a timely manner, Luminex' increasing dependency on
information technology to enable Luminex to improve the
effectiveness of Luminex' operations and to monitor financial
accuracy and efficiency, the implementation, including any
modification, of Luminex' strategic operating plans, the
uncertainty regarding the outcome or expense of any litigation
brought against or initiated by Luminex, and risks relating to
Luminex' foreign operations, including fluctuations in exchange
rates, tariffs, customs and other barriers to importing/exporting
materials and products in a cost effective and timely manner;
difficulties in accounts receivable collections; the burden of
monitoring and complying with foreign and international laws and
treaties; and the burden of complying with and change in
international taxation policies, 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 2016 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)
|
|
|
|
|
|
December
31,
2015
|
|
December
31,
2014
|
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 128,546
|
|
$
91,694
|
Short-term
investments
|
11,988
|
|
-
|
Accounts receivable,
net
|
28,853
|
|
28,272
|
Inventories,
net
|
31,252
|
|
36,616
|
Deferred income
taxes
|
-
|
|
12,203
|
Prepaids and
other
|
8,887
|
|
8,235
|
Total current
assets
|
209,526
|
|
177,020
|
Property and
equipment, net
|
47,796
|
|
39,945
|
Intangible assets,
net
|
52,482
|
|
56,382
|
Deferred income
taxes
|
31,821
|
|
15,400
|
Long-term
investments
|
7,459
|
|
15,975
|
Goodwill
|
49,619
|
|
49,619
|
Other
|
3,853
|
|
3,185
|
Total
assets
|
$ 402,556
|
|
$ 357,526
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
7,868
|
|
$
11,841
|
Accrued
liabilities
|
15,152
|
|
14,118
|
Deferred
revenue
|
4,212
|
|
4,407
|
Total current
liabilities
|
27,232
|
|
30,366
|
Deferred
revenue
|
2,064
|
|
2,297
|
Other
|
4,724
|
|
4,869
|
Total
liabilities
|
34,020
|
|
37,532
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
42
|
|
42
|
Additional paid-in
capital
|
321,657
|
|
309,424
|
Accumulated other
comprehensive loss
|
(1,296)
|
|
(744)
|
Retained
earnings
|
48,133
|
|
11,272
|
Total stockholders'
equity
|
368,536
|
|
319,994
|
Total liabilities and
stockholders' equity
|
$ 402,556
|
|
$ 357,526
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$60,449
|
|
$58,106
|
|
$ 237,708
|
|
$226,983
|
Cost of
revenue
|
17,043
|
|
15,365
|
|
69,001
|
|
67,131
|
Gross
profit
|
43,406
|
|
42,741
|
|
168,707
|
|
159,852
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
10,942
|
|
10,416
|
|
42,690
|
|
43,135
|
Selling, general and
administrative
|
23,020
|
|
20,947
|
|
84,760
|
|
82,785
|
Amortization of
acquired intangible assets
|
1,445
|
|
964
|
|
3,900
|
|
3,913
|
Restructuring
costs
|
-
|
|
229
|
|
-
|
|
1,882
|
Total operating
expenses
|
35,407
|
|
32,556
|
|
131,350
|
|
131,715
|
Income from
operations
|
7,999
|
|
10,185
|
|
37,357
|
|
28,137
|
Interest expense from
long-term debt
|
-
|
|
-
|
|
-
|
|
(6)
|
Other income,
net
|
23
|
|
(11)
|
|
987
|
|
(46)
|
Settlement of
litigation
|
2,000
|
|
-
|
|
(5,300)
|
|
-
|
Income before income
taxes
|
10,022
|
|
10,174
|
|
33,044
|
|
28,085
|
Income tax
expense
|
10,355
|
|
12,628
|
|
3,817
|
|
10,958
|
Net income
|
$20,377
|
|
$22,802
|
|
$ 36,861
|
|
$ 39,043
|
Net income per share,
basic
|
$ 0.48
|
|
$ 0.55
|
|
$ 0.88
|
|
$ 0.94
|
Shares used in
computing net income per share, basic
|
42,241
|
|
41,744
|
|
42,091
|
|
41,558
|
Net income per share,
diluted
|
$ 0.47
|
|
$ 0.54
|
|
$ 0.86
|
|
$ 0.93
|
Shares used in
computing net income per share, diluted
|
42,923
|
|
42,401
|
|
42,637
|
|
42,156
|
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$ 20,377
|
|
$22,802
|
|
$ 36,861
|
|
$39,043
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
4,011
|
|
3,270
|
|
13,744
|
|
14,205
|
|
Stock-based
compensation
|
3,087
|
|
2,496
|
|
10,855
|
|
9,548
|
|
Deferred income tax
benefit
|
(11,831)
|
|
(7,501)
|
|
(5,624)
|
|
(8,549)
|
|
Excess income tax
(benefit) expense from employee stock-based awards
|
(1,015)
|
|
1,028
|
|
(10)
|
|
(287)
|
|
Loss (gain) on sale
or disposal of assets
|
1,128
|
|
(50)
|
|
385
|
|
181
|
|
Non-cash
restructuring charges
|
-
|
|
448
|
|
-
|
|
2,836
|
|
Other
|
(124)
|
|
13
|
|
(252)
|
|
(347)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(2,695)
|
|
(1,778)
|
|
(594)
|
|
1,964
|
|
Inventories,
net
|
(1,938)
|
|
(3,581)
|
|
5,476
|
|
(7,046)
|
|
Other
assets
|
661
|
|
(2,096)
|
|
(968)
|
|
(2,888)
|
|
Accounts
payable
|
(1,407)
|
|
1,719
|
|
(3,943)
|
|
841
|
|
Accrued
liabilities
|
3,354
|
|
157
|
|
276
|
|
564
|
|
Deferred
revenue
|
(215)
|
|
(867)
|
|
(427)
|
|
(814)
|
|
Net cash provided by
operating activities
|
13,393
|
|
16,060
|
|
55,779
|
|
49,251
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(7,488)
|
|
(8,003)
|
|
(7,488)
|
|
(18,999)
|
|
Sales and maturities
of available-for-sale securities
|
4,000
|
|
-
|
|
4,000
|
|
7,509
|
|
Purchase of property
and equipment
|
(3,407)
|
|
(5,283)
|
|
(18,706)
|
|
(17,078)
|
|
Proceeds from sale of
assets
|
-
|
|
54
|
|
893
|
|
98
|
|
Acquired technology
rights
|
-
|
|
-
|
|
(852)
|
|
(64)
|
|
Net cash used in
investing activities
|
(6,895)
|
|
(13,232)
|
|
(22,153)
|
|
(28,534)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payments on
debt
|
-
|
|
-
|
|
-
|
|
(1,621)
|
|
Proceeds from
employee stock plans and issuance of common stock
|
1,428
|
|
939
|
|
3,118
|
|
4,746
|
|
Excess income tax
(benefit) expense from employee stock-based awards
|
1,015
|
|
(1,028)
|
|
10
|
|
287
|
|
Net cash provided by
(used in) financing activities
|
2,443
|
|
(89)
|
|
3,128
|
|
3,412
|
|
Effect of foreign
currency exchange rate on cash
|
52
|
|
(168)
|
|
98
|
|
(359)
|
|
Change in cash and
cash equivalents
|
8,993
|
|
2,571
|
|
36,852
|
|
23,770
|
|
Cash and cash
equivalents, beginning of period
|
119,553
|
|
89,123
|
|
91,694
|
|
67,924
|
|
Cash and cash
equivalents, end of period
|
$128,546
|
|
$91,694
|
|
$128,546
|
|
$91,694
|
|
|
|
|
|
|
|
|
|
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Income from
operations
|
$ 7,999
|
|
$10,185
|
|
$37,357
|
|
$28,137
|
Stock-based
compensation
|
3,087
|
|
2,496
|
|
10,855
|
|
9,548
|
Amortization of
acquired intangible assets
|
1,445
|
|
964
|
|
3,900
|
|
3,913
|
Costs associated with
legal proceedings
|
(14)
|
|
578
|
|
616
|
|
3,206
|
Severance
costs
|
107
|
|
243
|
|
391
|
|
1,230
|
Restructuring
costs
|
-
|
|
448
|
|
-
|
|
3,100
|
Adjusted income from
operations
|
$12,624
|
|
$14,914
|
|
$53,119
|
|
$49,134
|
Interest expense from
long-term debt
|
-
|
|
-
|
|
-
|
|
(6)
|
Other income,
net
|
23
|
|
(11)
|
|
987
|
|
(46)
|
Gain on sale of cost
method equity investment
|
-
|
|
-
|
|
(892)
|
|
-
|
Income tax
expense
|
10,355
|
|
12,628
|
|
3,817
|
|
10,958
|
Income tax effect of
above adjusting items
|
1,049
|
|
(1,507)
|
|
(2,539)
|
|
(3,156)
|
Income tax benefit
from intercompany debt cancellation
|
-
|
|
(18,046)
|
|
-
|
|
(19,040)
|
Adjusted net
income
|
$24,051
|
|
$ 7,978
|
|
$54,492
|
|
$37,844
|
Adjusted net income
per share, basic
|
$ 0.57
|
|
$ 0.19
|
|
$ 1.29
|
|
$ 0.91
|
Shares used in
computing adjusted net income per share, basic
|
42,241
|
|
41,744
|
|
42,091
|
|
41,558
|
Adjusted net income
per share, diluted
|
$ 0.56
|
|
$ 0.19
|
|
$ 1.28
|
|
$ 0.90
|
Shares used in
computing adjusted net income per share, diluted
|
42,923
|
|
42,401
|
|
42,637
|
|
42,156
|
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 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
|
Matthew
Scalo
|
|
Sr. Vice President,
Finance and Chief Financial Officer
|
Sr. Director,
Investor Relations
|
|
512-219-8020
|
512-219-8020
|
|
hcurrie@luminexcorp.com
|
mscalo@luminexcorp.com
|
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SOURCE Luminex Corporation