AUSTIN, Texas, May 2 /PRNewswire-FirstCall/ -- Luminex Corporation
(NASDAQ:LMNX) today announced financial results for the first
quarter ended March 31, 2007. Consolidated revenue for the first
quarter of 2007 was $16.6 million compared with $13.0 million in
the first quarter of 2006. Consolidated net income for the first
quarter of 2007 was $136,000, or $0.00 per share, as compared with
$526,000, or $0.02 per share, for the comparable period of 2006. On
March 1, 2007, Luminex completed the acquisition of all of the
outstanding common shares of Tm Bioscience Corporation, a leader in
the commercial genetic testing market. The results for the first
quarter ended March 31, 2007, include one month of Tm Bioscience
operations for the combined companies. Beginning with the first
quarter of 2007, Luminex will report the following segments:
Technology Group and Assay Group. These segments are consistent
with the Company's organizational structure. The Technology Group
consists of the base business including system sales to partners,
raw bead sales, royalties, service and support of the core
technology and other miscellaneous items. The Assay Group consists
of the Luminex Bioscience Group, or LBG, and the newly acquired Tm
Bioscience operations, now known as Luminex Molecular Diagnostics,
or LMD. This segment is primarily involved in the development and
sale of assays on xMAP technology for use on the Company's
installed base of systems. Revenue, gross margin and operating
income are key measures used by management to evaluate performance
for each segment. LUMINEX CORPORATION REPORTABLE SEGMENT HIGHLIGHTS
(unaudited) (in thousands) Three Months Ended March 31, 2007 2006
-------------- -------------- Revenue Technology group $ 15,738 $
12,997 Assay group 1,200 - Eliminations of intersegment revenue
(331) - --------- --------- Total revenue 16,607 12,997 Gross
margin percentage Technology group 64% 64% Assay group 41% -
Eliminations of intersegment margins (1%) - Consolidated gross
margin percentage 63% 64% Operating income (loss) Technology group
1,148 555 Assay group (1,455) (442) Eliminations of intersegment
revenue and expense (65) - --------- --------- Operating income
(loss) (372) 113 The Assay Group results for the first quarter of
2007 include three months of revenue from LBG and one month of
revenue from LMD. Assay Group results for 2006 consist of LBG only.
LBG introduced its first two products in late 2006. "Our results
for the first quarter of 2007 indicate a strong start to 2007 for
Luminex," said Patrick J. Balthrop, president and chief executive
officer of Luminex. "Our core business continued to gain momentum
in the life sciences marketplace and we achieved record revenues
and profit in this segment. Our proprietary xMAP(R) technology
continues to build momentum with over 4,300 Luminex systems placed
in research laboratories, clinical laboratories, bio- defense
facilities and academic institutions around the world. Consumable
sales and royalties, key measures of our growth, continued to show
favorable trends. We achieved a 63 percent gross profit margin on a
consolidated basis, confirming the strength of our core business
model." "A key event for the first quarter of 2007 was the
successful completion of our acquisition of Tm Bioscience," added
Balthrop. "LMD has been established as a separate molecular
diagnostics division in Toronto with support from our operations in
Austin and are included in our assay group. We are pleased with the
progress we have made to date with the integration of LMD. More
importantly, we have the ability to accelerate our growth strategy
in 2007 with the opportunity to extend our market reach in the high
growth molecular diagnostics market." CONSOLIDATED FIRST QUARTER
2007 HIGHLIGHTS - Consolidated revenue of over $16.6 million, a 28%
increase over the 1st quarter of 2006 and a 17% increase over the
4th quarter of 2006 - Consolidated gross margins of 63% -
Profitability for the 5th consecutive quarter on a consolidated
basis despite the operating deficits of the recently acquired Tm
Bioscience for the month of March - Aggregate shipments of xMAP
systems exceeds 4,300 - Completion of the Tm Bioscience acquisition
- Secured a line of credit of up to $15 million to support
potential short term liquidity needs - Annualized end user sales on
xMAP technology reported to us by our partners of over $165 million
- New product introductions by both the Technology Group and the
Luminex Bioscience Group REVENUE COMPONENTS Three Months Ended
March 31, (in thousands) 2007 2006 -------- -------- System Revenue
$ 5,731 $ 3,992 Consumable Revenue 4,811 5,502 Royalty Revenue
2,532 1,790 Reagent Revenue 1,144 - Service Revenue 1,003 808 Other
Miscellaneous Revenue 1,386 905 -------- -------- Total Revenue
$16,607 $12,997 ======== ======== CONFERENCE CALL Management will
host a conference call to discuss the operating highlights and
financial results for the first quarter ended March 31, 2007, on
Thursday, May 3, 2007, at 8:00 a.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 our 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 and slides will be archived for one year on
the website using the 'replay' link. ABOUT LUMINEX CORPORATION
Luminex develops, manufactures and markets proprietary biological
testing technologies with applications throughout the life sciences
industry. The Company's xMAP(R) 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(R) 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(R) 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. 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, 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, 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, risks and uncertainties associated with
implementing our acquisition strategy and the ability to integrate
acquired companies, including Tm Bioscience Corporation, 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 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) March 31, December 31, 2007 2006
------------------------ (unaudited) ASSETS Current assets: Cash
and cash equivalents $16,195 $27,414 Short-term investments 3,493
10,956 Accounts receivable, net 10,789 8,237 Inventory, net 6,145
4,571 Other 1,639 1,917 --------- --------- Total current assets
38,261 53,095 Property and equipment, net 8,981 4,985 Intangible
assets, net 2,041 - Long-term investments 7,315 7,346 Goodwill
64,618(1) - Other 1,286 1,270 --------- --------- Total assets $
122,502 $66,696 ========= ========= LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable $5,555 $3,255 Accrued
liabilities 6,784 2,905 Deferred revenue 3,247 2,756 Other 170 -
--------- --------- Total current liabilities 15,756 8,916
Long-term debt 3,369 - Deferred revenue and other 3,820 3,621
--------- --------- Total liabilities 22,945 12,537 ---------
--------- Stockholders' equity: Common stock 35 32 Additional
paid-in capital 184,456 139,116 Accumulated other comprehensive
gain (16) 65 Accumulated deficit (84,918) (85,054) ---------
--------- Total stockholders' equity 99,557 54,159 ---------
--------- Total liabilities and stockholders' equity $ 122,502 $
66,696 ========= ========= (1) Luminex has recorded $64.6 million
of goodwill related to the Tm Bioscience acquisition. This goodwill
asset is subject to adjustment over the course of the next three
quarters as Luminex completes certain standard activities around
the transaction such as: recording of all transaction related
costs; allocation of the purchase price based on an expert
valuation of the acquired operation's assets and liabilities; and
evaluation of potential impairment of the remaining goodwill
balance. No assurances can be given as to the size of any
subsequent goodwill adjustment, if any, at this time. LUMINEX
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share amounts) Three Months Ended March 31,
------------------- 2007 2006 -------- -------- (unaudited) Revenue
$ 16,607 $ 12,997 Cost of revenue 6,178 4,737 -------- --------
Gross profit 10,429 8,260 Operating expenses: Research and
development 2,705 2,197 Selling, general and administrative 8,096
5,950 -------- -------- Total operating expenses 10,801 8,147
-------- -------- Income (loss) from operations (372) 113 Interest
expense from long-term debt (84) - Other income, net 606 416 Income
taxes (14) (3) -------- -------- Net income $136 $526 ========
======== Net income per share, basic $0.00 $0.02 ======== ========
Shares used in computing net income per share, basic 31,970 31,201
Net income per share, diluted $0.00 $0.02 ======== ======== Shares
used in computing net income per share, diluted 33,077 32,379
Contact: Harriss T. Currie Vice President, Finance and Chief
Financial Officer 512-219-8020 DATASOURCE: Luminex Corporation
CONTACT: Harriss T. Currie, Vice President, Finance and Chief
Financial Officer of Luminex Corporation, +1-512-219-8020, or Web
site: http://www.luminexcorp.com/
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