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Luminex Corporation Announces Corporate Restructuring Actions to Drive Operational Excellence and Improve Focus on MDx Market

    Luminex Corporation Announces Corporate Restructuring Actions to Drive
            Operational Excellence and Improve Focus on MDx Market

PR Newswire

AUSTIN, Texas, Aug. 7, 2013

AUSTIN, Texas, Aug. 7, 2013 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX)
today announced a restructuring plan focused on its Assay and Related Products
("ARP") Segment's Newborn Screening Group and its Brisbane, Australia office.
The Company anticipates it will reduce its workforce by approximately 5% and
close its Brisbane, Australia office. This plan has been put in place to
reduce expenses and better align the Company's resources with its focused
growth initiatives. As part of the restructuring, the Company will make
additional investments in R&D and commercial operations to support the
development of its next generation molecular diagnostics products and the
sales and marketing of these products.

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

The Company expects the changes, when completed, to result in annualized
operating cost savings of approximately $5.0 to $6.0 million as follows:

                                                                Annualized
                                                                Cost

                                                                Savings
                                                                (in thousands)
Selling, general and                                            $3,500 to
administrative            $4,000
Research and development                                        $1,500 to
                                                                $2,000
                                                                $5,000 to
                                                                $6,000



"On an ongoing basis, we review our strategic priorities, market position and
allocation of resources. These changes reflect an increased focus on our
growth initiatives and our ongoing strong commitment to a leadership position
in molecular diagnostics and our partnership franchises" said Patrick J.
Balthrop, president and chief executive officer of Luminex. "While we never
take decisions that affect the composition of our workforce lightly, we
strongly believe that this reallocation of resources and related adjustments
will make our company stronger and deliver value to our shareholders in the
short term and the long term."

As a result of this plan, the Company expects to record restructuring charges
as follows:

                                                      Estimated Costs
                                                      (in thousands)
Closure of Brisbane, Australia office                 $4,500 to $5,000
Write-down of Newborn Screening Assets and Inventory $1,500 to $2,000
Severance and Employee Separation Costs               $1,000
                                                      $7,000 to $8,000



Approximately half of the restructuring charge is expected to be expensed in
the quarter ending September 30, 2013, with the remainder expected to be
expensed in the quarters ending December 31, 2013 and March 31, 2014. The
Company expects approximately $1.1 million of the total charge to be in the
form of cash expenditures, the majority of which is expected to be paid out in
the quarters ending September 30, 2013 and December 31, 2013.

The Company reaffirms its 2013 annual revenue guidance of between $220 and
$230 million. As previously stated in our second quarter earnings call, we
expect a challenging reimbursement environment near-term for select molecular
diagnostic tests that could weigh on overall corporate performance and have
cautioned investors toward the lower end of this revenue range.

Management will hold a conference call webcast to discuss the restructuring on
August 8, 2013, at 8:30 a.m. Eastern Time.

About Luminex Corporation

Luminex is committed to applying its passion for innovation toward advancing
healthcare and research worldwide. The Company is transforming global
healthcare and life-science research through the development, manufacturing
and marketing of proprietary instruments and assays utilizing xMAP
open-architecture, multi-analyte platform and MultiCodeĀ® real-time polymerase
chain reaction (PCR) and multiplex PCR-based technologies, that deliver
cost-effective and rapid results to clinicians and researchers. Luminex's
technology is commercially available worldwide and in use in leading clinical
laboratories as well as major pharmaceutical, diagnostic, biotechnology and
life-science companies. The Company is meeting the needs of customers in
markets as diverse as clinical diagnostics, pharmaceutical drug discovery,
biomedical research including genomic and proteomic research, personalized
medicine, bio-defense research and food safety. For further information on
Luminex Corporation and the latest advances in multiplexing using award
winning technology, please visit 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: expense reductions, growth initiatives, cost savings,
strategic priorities, market position, reallocation of resources,
restructuring charges, cash expenditures, the timing of certain events 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, actual costs
associated with the restructuring, 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:

Luminex Investor Contact:
Harriss Currie, 512.219.8020
Sr. Vice President and CFO
hcurrie@luminexcorp.com

Luminex Media Contact:
Mimi Torrington, 512.219.8020
Director of Marketing Communications
mtorrington@luminexcorp.com

SOURCE Luminex Corporation

Website: http://www.luminexcorp.com
 
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