Luminex Corporation Reports Fourth Quarter And Full Year 2012 Results

    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
          hcurrie@luminexcorp.com                       mscalo@luminexcorp.com







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
 
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