Luminex Corporation Reports Fourth Quarter And Full Year 2012 Results PR Newswire AUSTIN, Texas, Feb. 4, 2013 AUSTIN, Texas, Feb. 4, 2013 /PRNewswire/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the fourth quarter and year ended December 31, 2012. Financial and operating highlights include the following: oConsolidated fourth quarter revenue of $55.5 million, a 16 percent increase over the fourth quarter of 2011; full-year 2012 revenue was $202.6 million, a 10 percent increase over 2011 oFourth quarter assay revenue of $23.8 million, a 45 percent increase over the fourth quarter of 2011; full-year 2012 assay revenue was $75.0 million, a 54 percent increase over 2011 oFourth quarter shipments of 226 multiplexing analyzers; cumulative life-to-date multiplexing analyzer shipments are 9,659 oAchieved a consolidated gross profit margin in the fourth quarter of 71 percent oOperating income for the fourth quarter of 2012 was $7.3 million. Non-GAAP operating income for the fourth quarter of 2012 was $8.6 million, excluding approximately $1.3 million of expenses related to integration costs associated with the purchase of GenturaDx (see Non-GAAP reconciliation) oGAAP net income for the fourth quarter and full-year of 2012 was $4.3 million and $12.4 million, or $0.10 and $0.30 per diluted share, respectively. Excluding the certain one-time costs associated with a strategic study and costs associated with the acquisition of GenturaDx, non-GAAP net income for the fourth quarter and 2012 was $5.1 million and $16.2 million or $0.12 and $0.39 per diluted share, respectively (see Non-GAAP reconciliation) (Logo: http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO) "We are pleased with our fourth quarter execution, driven by another excellent performance in our proprietary assay segment. This performance reflects our unwavering focus on providing our customers with innovative, first-to-market assays that make a difference to patient outcomes. 2013 will be similar, as we received FDA clearance for our xTAG Gastrointestinal Pathogen Panel (GPP) in early January. This molecular diagnostic assay tests for greater than 90% of bacterial, viral, and parasitic causes of infectious gastroenteritis, a worldwide market we estimate at over $150 million. We believe this important assay will contribute meaningfully to the company's long-term growth," said Patrick J. Balthrop, president and chief executive officer of Luminex. "We are also excited about the company taking its next evolutionary step forward in serving our molecular diagnostic customers directly. We have planned this transition for some time and I am confident in our ability to execute on this plan. So with this powerful combination of unique platforms, differentiated test menu, a strong direct sales force and our focus on the customer, we are excited about the prospects in 2013 and beyond," Balthrop concluded. REVENUE SUMMARY (in thousands, except percentages) Three Months Ended December 31, Variance 2012 2011 ($) (%) (unaudited) System sales $ 7,149 $ 10,449 $ (3,300) -32% Consumable sales 12,412 10,093 2,319 23% Royalty revenue 7,513 7,087 426 6% Assay revenue 23,774 16,401 7,373 45% All other revenue 4,687 3,839 848 22% $ 55,535 $ 47,869 $ 7,666 16% Twelve Months Ended December 31, Variance 2012 2011 ($) (%) (unaudited) System sales $ 31,083 $ 35,901 $ (4,818) -13% Consumable sales 48,012 55,457 (7,445) -13% Royalty revenue 31,160 29,205 1,955 7% Assay revenue 75,020 48,670 26,350 54% All other revenue 17,307 15,106 2,201 15% $202,582 $184,339 $18,243 10% LUMINEX CORPORATION REPORTABLE SEGMENT HIGHLIGHTS (in thousands, except percentages) Three Months Ended December 31, Variance 2012 2011 ($) (%) (unaudited) Revenue Technology and strategic partnerships $ 29,674 $ 29,715 $ (41) 0% Assays and related products 25,861 18,154 7,707 42% Total Revenue 55,535 47,869 7,666 16% Operating income (loss) Technology and strategic partnerships 2,325 4,239 (1,914) -45% Assays and related products 4,930 (307) 5,237 1706% Total Operating income 7,255 3,932 3,323 85% Twelve Months Ended December 31, Variance 2012 2011 ($) (%) (unaudited) Revenue Technology and strategic partnerships $121,032 $127,779 $(6,747) -5% Assays and related products 81,550 56,560 24,990 44% Total Revenue 202,582 184,339 18,243 10% Operating income (loss) Technology and strategic partnerships 15,047 29,895 (14,848) -50% Assays and related products 7,669 (6,052) 13,721 227% Total Operating income 22,716 23,843 (1,127) -5% "In the fourth quarter, we experienced a healthy rebound in sales growth while maintaining tight cost controls, as demonstrated by both our gross and operating margins," said Harriss T. Currie, vice president and chief financial officer. "Our 2013 revenue guidance takes into account our current progress combined with a cautiously optimistic view of the macro environment." 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 2013 is as follows: oThe Company expects fiscal 2013 revenue to be between $220 million to $230 million, or an increase of between 9 to 14 percent over reported 2012 revenue. CONFERENCE CALL Management will host a conference call to discuss the operating highlights and financial results for the fourth quarter ended December 31, 2012, on Monday, February 4, 2013, 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 15minutes 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; distribution for our instruments; purchases of our consumable products; the development progress and market acceptance of our assay products, including Gastrointestinal Pathogen Panel (GPP) and products developed and manufactured by Luminex Madison and Luminex Molecular Diagnostics; direct sales of our molecular diagnostic products to customers and transition from our distribution partners; FDA clearance of our products, including GPP, the acquisition of GenturaDx and the status of the integration; Luminex's long-term strategic plan; 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 2013 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, ability to effectively develop, manufacture, market and sell our products; ability to obtain regulatory clearance for our products; 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. Contacts: Harriss T. Currie Matthew Scalo Vice President, Finance and Chief Financial Sr. Director, Investor Officer Relations 512-219-8020 512-219-8020 email@example.com firstname.lastname@example.org LUMINEX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2012 2011 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 42,789 $ 58,282 Restricted cash - 1,006 Short-term investments 13,607 42,574 Accounts receivable, net 33,273 23,016 Inventories, net 29,937 24,579 Deferred income taxes 6,148 5,991 Prepaids and other 4,388 3,529 Total current assets 130,142 158,977 Property and equipment, net 26,229 25,192 Intangible assets, net 65,218 29,437 Deferred income taxes 12,819 12,817 Long-term investments 3,000 6,151 Goodwill 51,128 42,763 Other 8,463 7,310 Total assets $ 296,999 $ 282,647 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 9,650 $ 5,941 Accrued liabilities 12,690 11,047 Deferred revenue 4,134 4,057 Current portion of long term debt 1,138 999 Total current liabilities 27,612 22,044 Long-term debt 1,702 2,573 Deferred revenue 2,933 3,344 Other 5,085 3,831 Total liabilities 37,332 31,792 Stockholders' equity: Common stock 41 41 Additional paid-in capital 293,392 297,104 Accumulated other comprehensive gain 1,101 984 Accumulated deficit (34,867) (47,274) Total stockholders' equity 259,667 250,855 Total liabilities and stockholders' equity $ 296,999 $ 282,647 LUMINEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 (unaudited) (unaudited) Revenue $ 55,535 $ 47,869 $ 202,582 $ 184,339 Cost of revenue 16,178 15,350 60,008 58,849 Gross profit 39,357 32,519 142,574 125,490 Operating expenses: Research and development 10,990 9,882 40,775 33,394 Selling, general and 20,083 17,610 74,840 64,878 administrative Amortization of acquired 1,029 1,095 4,243 3,375 intangible assets Total operating expenses 32,102 28,587 119,858 101,647 Income from operations 7,255 3,932 22,716 23,843 Interest expense from (36) (73) (198) (308) long-term debt Other income, net 138 107 262 394 Income before income taxes 7,357 3,966 22,780 23,929 Income taxes (3,105) (524) (10,373) (9,455) Net income $ 4,252 $ 3,442 $ 12,407 $ 14,474 Net income per share, $ 0.10 $ 0.08 $ 0.30 $ 0.35 basic Shares used in computing net income per share, 40,724 41,153 40,927 41,262 basic Net income per share, $ 0.10 $ 0.08 $ 0.30 $ 0.34 diluted Shares used in computing net income per share, 41,332 42,376 41,884 42,537 diluted LUMINEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 (unaudited) (unaudited) Cash flows from operating activities: Net income $ 4,252 $ 3,442 $ $ 14,474 12,407 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,696 3,462 14,364 11,887 Stock-based compensation 2,363 3,116 9,915 11,417 Deferred income tax expense (217) (2,058) 2,699 (592) (benefit) Excess income tax expense (benefit) from employee (4,274) (1,269) (6,457) (7,614) stock-based awards Other 502 354 1,157 232 Changes in operating assets and liabilities: Accounts receivable, net (2,041) (2,303) (10,267) (899) Inventories, net (2,742) 1,410 (5,346) 4,783 Other assets 1,677 (575) (617) (1,279) Accounts payable 1,580 (786) 3,286 (2,680) Accrued liabilities 5,470 5,131 3,463 9,324 Deferred revenue (84) (283) (321) (763) Net cash provided by operating 10,182 9,641 24,283 38,290 activities Cash flows from investing activities: Purchases of available-for-sale (1,498) (13,474) (14,987) (47,743) securities Sales and maturities of 4,042 8,037 47,117 33,753 available-for-sale securities Purchase of property and (2,258) (2,434) (9,767) (9,554) equipment Business acquisition consideration, net of cash 78 - (48,199) (33,914) acquired Purchase of cost method - - (1,000) (2,000) investment Acquired technology rights (1,250) (1,331) (1,592) (1,857) Net cash used in investing (886) (9,202) (28,428) (61,315) activities Cash flows from financing activities: Payments on debt - - (1,025) (885) Proceeds from employee stock plans and issuance of common 798 109 4,022 3,543 stock Payments for stock repurchases - (8,600) (20,916) (18,340) Excess income tax (expense) benefit from employee 4,274 1,269 6,457 7,614 stock-based awards Net cash provided by (used in) 5,072 (7,222) (11,462) (8,068) financing activities Effect of foreign currency (65) (16) 114 (112) exchange rate on cash Change in cash and cash 14,303 (6,799) (15,493) (31,205) equivalents Cash and cash equivalents, 28,486 65,081 58,282 89,487 beginning of period Cash and cash equivalents, end $ 42,789 $ 58,282 $ $ 58,282 of period 42,789 LUMINEX CORPORATION NON-GAAP RECONCILIATION (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2012 (unaudited) (unaudited) Income from operations $ $ 7,255 22,716 Strategic study consulting costs - 1,096 GDx acquisition related costs 1,297 4,263 Adjusted income from operations $ $ 8,552 28,075 Net income $ $ 4,252 12,407 Strategic study consulting costs - 1,096 GDx acquisition related costs 1,297 4,263 Income tax effect of the above (404) (1,588) items Adjusted net income $ $ 5,145 16,178 Adjusted net income per share, $ $ basic 0.13 0.40 Shares used in computing adjusted 40,724 40,927 net income per share, basic Adjusted net income per share, $ $ diluted 0.12 0.39 Shares used in computing adjusted 41,332 41,884 net income per share, diluted The Company makes reference in this release to "non-GAAP operating income" and "non-GAAP net income" which exclude the impact of acquisition and strategic study consulting 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. 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." SOURCE Luminex Corporation Website: http://www.luminexcorp.com
Luminex Corporation Reports Fourth Quarter And Full Year 2012 Results
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