Luminex Corporation Reports First Quarter 2013 Results

            Luminex Corporation Reports First Quarter 2013 Results

GAINED FDA CLEARANCE FOR NOVEL GASTROINTESTINAL PATHOGEN PANEL

PR Newswire

AUSTIN, Texas, April 29, 2013

AUSTIN, Texas, April 29, 2013 /PRNewswire/ -- Luminex Corporation
(NASDAQ:LMNX) today announced financial results for the first quarter ended
March 31, 2013. Financial and operating highlights include the following:

  oConsolidated first quarter revenue was $53.2 million, a 9 percent increase
    over the first quarter of 2012
  oConsolidated gross profit margin was 71 percent for the first quarter of
    2013, compared to 69 percent for the first quarter of 2012
  oNon-GAAP net income for the first quarter was $7.9 million or $0.19 per
    diluted share. This compares to non-GAAP net income of $6.6 million, or
    $0.15 per diluted share for the first quarter of 2012. GAAP net loss for
    the first quarter was $2.5 million, or ($0.06) per diluted share.after a
    charge of $7.0 million associated with finalizing the termination of our
    molecular distribution agreements. This compares to GAAP net income of
    $3.5 million, or $0.08 per diluted share in the first quarter of 2012 (see
    the reconciliation of GAAP to non-GAAP set forth on page 7)
  oReceived FDA clearance for the xTAG Gastrointestinal Pathogen Panel (xMAP®
    GPP™) on the LX200 system in January and on the MAGPIX system in April
  oSigned a collaboration and license agreement with Merck (NYSE: MRK) to
    develop a companion diagnostic that will help screen patients into Merck's
    lead investigational candidate drug study for Alzheimer's disease (AD)

(Logo: http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)

"Our royalty revenue grew 23% while our total cumulative shipments of
multiplexing analyzers expanded to almost 10,000 units, or 11% over the year
ago period, both of which indicate the strong ongoing demand for our
proprietary technology," said Patrick J. Balthrop, president and chief
executive officer of Luminex. "Furthermore, the company's successful
transition to a direct molecular diagnostic sales force, effective January 1,
2013, was an important step in our ability to directly control the growth of
our assay revenues going forward. We now have direct coverage of our molecular
diagnostic products in the U.S. and major markets internationally. The
customer response has been very positive," added Balthrop. "In other strategic
initiatives, we continue to make good progress with our unique sample to
answer system, called Project ARIES, which we will be demonstrating to key
opinion leaders at the upcoming Clinical Virology Symposium in Florida.

"We continue to be pleased with the expansion of our product offerings in
infectious disease and genetic testing, particularly with the recent FDA
clearance of GPP running on MAGPIX, our lower cost multiplexing analyzer. With
new assays like GPP and the exciting portfolio from Luminex Madison, we are
positioned for continued growth," Balthrop concluded.

REVENUE SUMMARY

(in thousands, except percentages)
                  Three Months Ended
                  March 31,             Variance
                  2013       2012       ($)        (%)
                  (unaudited)
System sales      $  6,557  $  6,998  $  (441)  -6%
Consumable sales  11,897     11,900     (3)        0%
Royalty revenue   10,109     8,242      1,867      23%
Assay revenue     18,324     17,297     1,027      6%
All other revenue 6,313      4,290      2,023      47%
                  $ 53,200   $ 48,727   $ 4,473    9%

"We are pleased with the overall financial performance in the first quarter of
2013, as Luminex transitions to a direct molecular diagnostic salesforce and
invests in exciting strategic programs, like Project ARIES," said Harriss T.
Currie, senior vice president and chief financial officer. "As reviewed
previously, operating expenses for the current quarter included a $7.0 million
charge attributable to finalizing the termination of our molecular diagnostic
distribution arrangements. If you exclude this charge, operating margin for
the first quarter would be 10%. Investment in our new Project Aries system was
robust during the quarter and added just over $3 million to R&D expenses for
our ARP segment during the period."

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

(in thousands, except percentages)
                                      Three Months Ended
                                      March 31,           Variance
                                      2013      2012      ($)      (%)
                                      (unaudited)
Revenue
Technology and strategic partnerships $ 31,869  $ 30,209  $ 1,660  5%
Assays and related products           21,331    18,518    2,813    15%
Total Revenue                         53,200    48,727    4,473    9%
Operating income (loss)
Technology and strategic partnerships 7,681     7,230     451      6%
Assays and related products           (9,233)   (1,622)   (7,611)  -469%
Total Operating income (loss)         (1,552)   5,608     (7,160)  -128%

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2013 annual revenue guidance of between $220 and
$230 million.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and
financial results for the first quarter ended March 31, 2013, on Monday, April
29, 2013, 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 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 of multiplexing
systems; our efforts to sell our molecular diagnostic products directly to end
users; the development progress of our pipeline products, including Project
Aries, NeoPlex4 and the NeoPlex System; anticipated FDA clearance of our
products, including NeoPlex4 and the NeoPlex system and Project Aries; market
acceptance of our products, including Gastrointestinal Pathogen Panel, Cystic
Fibrosis, RVP FAST, 2D6 and other genetic testing products; our collaboration
with Merck regarding an Alzheimer's diagnostic assay; 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, our ability to
sell products directly to end users, our ability to 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 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 2013 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
          Sr. Vice President, Finance and Chief         Sr. Director, Investor
          Financial Officer                             Relations
          512-219-8020                                  512-219-8020
          hcurrie@luminexcorp.com                       mscalo@luminexcorp.com





LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                           March 31,      December 31,
                                           2013           2012
                                           (unaudited)
ASSETS
Current assets:
Cash and cash equivalents                  $   54,289   $     42,789
Short-term investments                     6,599          13,607
Accounts receivable, net                   25,127         33,273
Inventories, net                           32,332         29,937
Deferred income taxes                      5,818          6,148
Prepaids and other                         4,693          4,388
Total current assets                       128,858        130,142
Property and equipment, net                26,588         26,229
Intangible assets, net                     64,193         65,218
Deferred income taxes                      12,812         12,819
Long-term investments                      -              3,000
Goodwill                                   51,139         51,128
Other                                      9,286          8,463
Total assets                               $  292,876    $    296,999
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                           $    7,924  $     9,650
Accrued liabilities                        16,397         12,690
Deferred revenue                           4,524          4,134
Current portion of long term debt          1,409          1,138
Total current liabilities                  30,254         27,612
Long-term debt                             1,403          1,702
Deferred revenue                           2,791          2,933
Other                                      5,113          5,085
Total liabilities                          39,561         37,332
Stockholders' equity:
Common stock                               41             41
Additional paid-in capital                 289,662        293,392
Accumulated other comprehensive gain       990            1,101
Accumulated deficit                        (37,378)       (34,867)
Total stockholders' equity                 253,315        259,667
Total liabilities and stockholders' equity $  292,876    $    296,999





LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                                         Three Months Ended
                                                         March 31,
                                                         2013        2012
                                                         (unaudited)
Revenue                                                  $ 53,200    $ 48,727
Cost of revenue                                          15,243      14,967
Gross profit                                             37,957      33,760
Operating expenses:
Research and development                                 12,714      10,137
Selling, general and administrative                      25,766      16,915
Amortization of acquired intangible assets               1,029       1,100
Total operating expenses                                 39,509      28,152
(Loss) income from operations                            (1,552)     5,608
Interest expense from long-term debt                     (28)        (59)
Other income, net                                        (7)         57
(Loss) income before income taxes                        (1,587)     5,606
Income taxes                                             (924)       (2,079)
Net (loss) income                                        $ (2,511)  $  3,527
Net (loss) income per share, basic                       $  (0.06)  $  0.09
Shares used in computing net (loss) income per share,    40,887      40,919
basic
Net (loss) income per share, diluted                     $  (0.06)  $  0.08
Shares used in computing net (loss) income per share,    40,887      42,805
diluted





LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                         Three Months Ended
                                                         March 31,
                                                         2012        2011
                                                         (unaudited)
Cash flows from operating activities:
Net (loss) income                                        $ (2,511)  $  3,527
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization                            3,804       3,522
Stock-based compensation                                 2,432       2,643
Deferred income tax expense                              700         553
Excess income tax expense (benefit) from employee        274         (297)
stock-based awards
Loss on disposal of assets                               18          -
Other                                                    198         232
Changes in operating assets and liabilities:
Accounts receivable, net                                 8,095       (4,013)
Inventories, net                                         (2,404)     133
Other assets                                             (896)       40
Accounts payable                                         (1,731)     (486)
Accrued liabilities                                      1,777       (6,026)
Deferred revenue                                         263         143
Net cash provided by (used in) operating activities      10,019      (29)
Cash flows from investing activities:
Purchases of available-for-sale securities               (2,995)     (8,999)
Sales and maturities of available-for-sale securities    13,033      8,515
Purchase of property and equipment                       (2,791)     (1,596)
Proceeds from sale of assets                             31          -
Acquired technology rights                               (930)       -
Net cash provided by (used in) investing activities      6,348       (2,080)
Cash flows from financing activities:
Proceeds from employee stock plans and issuance of       1,401       657
common stock
Payments for stock repurchases                           (5,775)     (5,448)
Excess income tax (expense) benefit from employee        (274)       297
stock-based awards
Net cash used in financing activities                    (4,648)     (4,494)
Effect of foreign currency exchange rate on cash         (219)       151
Change in cash and cash equivalents                      11,500      (6,452)
Cash and cash equivalents, beginning of period           42,789      58,282
Cash and cash equivalents, end of period                 $ 54,289    $ 51,830





LUMINEX CORPORATION
NON-GAAP RECONCILIATION
(in thousands)
                                                           Three Months Ended
                                                           March 31,
                                                           2013       2012
                                                           (unaudited)
Net loss                                                   $ (2,511)  $ 3,527
Stock-based compensation                                   2,432      2,643
Amortization of acquired intangible assets                 1,029      1,100
Costs associated with legal proceedings                    113        -
Resolution of molecular diagnostic distribution agreements 7,000      -
Severance costs                                            330        71
Income tax effect of above adjusting items                 (535)      (735)
Adjusted net income                                        $ 7,858   $ 6,606
Adjusted net income per share, basic                       $  0.19  $  0.16
Shares used in computing adjusted net income per share,    40,887     40,919
basic
Adjusted net income per share, diluted                     $  0.19  $  0.15
Shares used in computing adjusted net income per share,    41,750     42,805
diluted

The Company makes reference in this release to "non-GAAP net income" which
excludes the impact of certain 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. 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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