Luminex achieved revenue growth of 35 percent for the quarter, and
16 percent annual growth AUSTIN, Texas, Feb. 4
/PRNewswire-FirstCall/ -- Luminex Corporation (NASDAQ:LMNX) today
announced financial results for the fourth quarter and year ended
December 31, 2009. Recent financial and operating highlights
include the following: -- Luminex achieved its highest ever
quarterly consolidated revenue of $38.2 million, a 35 percent
increase over the fourth quarter of 2008; full year 2009 revenue
was $120.6 million, a 16 percent increase over 2008 during
challenging economic conditions -- Luminex delivered record system
revenue of $9.3 million for the fourth quarter of 2009, an increase
of 26 percent over the same prior year period, and full year system
revenue of $30.7 million, a 9 percent increase over the full year
2008; system shipments for the quarter were 253, resulting in
cumulative life to date shipments of 6,767, up 15 percent from a
year ago -- Luminex' Assay Group realized record assay revenue of
$12.9 million for the fourth quarter 2009, up 137 percent over the
same prior year period and full year assay revenue of $31.1
million, up 66 percent over 2008 -- Fourth quarter 2009 consumables
revenue returned to growth, attaining the 4th highest quarter in
Luminex history (Logo:
http://www.newscom.com/cgi-bin/prnh/20100104/LUMINEXLOGO) GAAP net
income for the fourth quarter of 2009 was $20.0 million or, $0.49
per share, basic. Adjusted net income, excluding the release of the
valuation allowance described below, was $5.2 million, or $0.13 per
share, basic, compared with net income of $2.0 million, or $0.05
per share, basic, for the same prior year period. Net income for
the fourth quarter of 2009 included non-cash charges of $2.3
million in stock compensation expense associated with SFAS 123R and
$2.3 million associated with depreciation and amortization expense.
GAAP net income for 2009 was $17.7 million or $0.44 per share,
basic, compared with 2008 net income of $3.1 million or $0.08 per
share, basic. Adjusted net income, excluding the release of the
valuation allowance and the settlement of litigation, for the year
2009 was $7.2 million or $0.18 per share, basic, compared with 2008
net income of $3.1 million or $0.08 per share, basic. During the
fourth quarter of 2009, we released a portion of our total
valuation allowance on deferred U.S. tax assets. Release of the
valuation allowance was dependent upon an assessment of the
likelihood of utilization of the specifically identified deferred
tax assets. The assessment indicated that Luminex was more likely
than not to benefit from the deferred tax assets based upon our
historical pre-tax book income and projected taxable income, thus
prompting the release. The tax benefit from the release of this
deferred tax asset valuation allowance is reflected below operating
income as a benefit of $14.9 million, or $0.36 per share, basic.
LUMINEX CORPORATION REPORTABLE SEGMENT HIGHLIGHTS (unaudited) (in
thousands) Three Months Ended Twelve Months Ended December 31,
December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue
Technology group $24,794 $22,071 $87,389 $83,567 Assay group 13,373
6,126 33,254 20,880 ------ ----- ------ ------ 38,167 28,197
120,643 104,447 Operating income (loss) Technology group 2,669
2,445 8,122 9,033 Assay group 2,629 (291) (723) (5,680) ----- ----
---- ------ $5,298 $2,154 $7,399 $3,353 "We are extremely pleased
with our results for the fourth quarter and for 2009," said Patrick
J. Balthrop, president and chief executive officer of Luminex.
"Given the overall economic conditions, to deliver 35% quarterly
revenue growth and 16% annual revenue growth is an indication of
the strength of our technology, the performance of our products and
the dedication of our people. We are particularly pleased with the
sequential growth of our proprietary consumables and the
performance of our assay strategy, led by xTAG® Respiratory Viral
Panel. Our successful execution in system shipments and record
capital equipment sales for the year also delivered healthy revenue
growth over 2008 in the most challenging capital equipment sales
market in decades, bringing our cumulative instrument shipment base
to 6,767. We maintained our high margins through the quarter, and
we expect to continue to do so. "Given the company's performance in
the quarter and in 2009, and our expectations regarding future
profitability, as previously announced, we released in the fourth
quarter $14.9 million of our deferred tax asset valuation
allowance," continued Balthrop. "Our solid operating performance
added cash to our strong balance sheet, enhancing the company's
ability to respond to strategic opportunities. Looking toward 2010
and beyond, we are encouraged by the stabilizing markets and are
confident in the company's growth strategy, partner and product
pipeline and our prospects for continued growth." FINANCIAL OUTLOOK
AND GUIDANCE The Company intends to provide specific annual revenue
guidance, updated at each quarterly reporting period. Guidance for
Fiscal 2010 -- The Company expects full year 2010 revenue to be
between $138 million and $148 million. The full year figures
represent an increase of between 14 percent and 23 percent over
reported 2009 revenue. CONFERENCE CALL Management will host a
conference call to discuss the operating highlights and financial
results for the fourth quarter ended December 31, 2009, on
Thursday, February 4, 2010, at 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 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® 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' 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 our projected revenue, sales
growth, the adequacy of our balance sheet, our ability to respond
to strategic opportunities and our product and partner pipeline.
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'
actual results or performance to differ materially include risks
and uncertainties relating to, among others, market demand and
acceptance of Luminex' 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, Luminex' 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' 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' 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 2010 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' 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) December 31,
2009 December 31, 2008 ----------------- ----------------- ASSETS
Current assets: Cash and cash equivalents $90,843 $81,619
Short-term investments 8,511 40,501 Accounts receivable, net 22,108
11,024 Inventory, net 17,524 11,589 Deferred income taxes 1,040 2
Prepaids and other 2,130 1,658 ----- ----- Total current assets
142,156 146,393 Property and equipment, net 17,255 12,567
Intangible assets, net 12,938 14,901 Deferred income taxes 14,732
274 Long-term investments 20,228 2,000 Goodwill 39,617 39,617 Other
1,087 1,539 ----- ----- Total assets $248,013 $217,291 ========
======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $8,430 $4,580 Accrued liabilities 7,493 6,930
Deferred revenue 2,967 2,671 Current portion of long term debt 868
445 --- --- Total current liabilities 19,758 14,626 Long-term debt
3,591 2,914 Deferred revenue and other 5,926 5,211 ----- -----
Total liabilities 29,275 22,751 ------ ------ Stockholders' equity:
Common stock 41 40 Additional paid- in capital 285,649 279,255
Accumulated other comprehensive gain (loss) 27 (47) Accumulated
deficit (66,979) (84,708) ------- ------- Total stockholders'
equity 218,738 194,540 ------- ------- Total liabilities and
stockholders' equity $248,013 $217,291 ======== ======== LUMINEX
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share amounts) Three Months Ended Twelve
Months Ended December 31, December 31, ------------ ------------
2009 2008 2009 2008 ---- ---- ---- ---- Revenue $38,167 $28,197
$120,643 $104,447 Cost of revenue 12,512 8,625 39,349 33,501 ------
----- ------ ------ Gross profit 25,655 19,572 81,294 70,946
Operating expenses: Research and development 5,506 4,729 20,752
18,628 Selling, general and administrative 14,851 12,689 53,143
48,965 ------ ------ ------ ------ Total operating expenses 20,357
17,418 73,895 67,593 ------ ------ ------ ------ Income from
operations 5,298 2,154 7,399 3,353 Interest expense from long-term
debt (123) (186) (481) (592) Other income, net 126 515 719 1,144
Settlement of litigation - - (4,350) - --- --- ------ --- Income
before income taxes 5,301 2,483 3,287 3,905 Income taxes 14,715
(474) 14,442 (848) ------ ---- ------ ---- Net income $20,016
$2,009 $17,729 $3,057 ======= ====== ======= ====== Net income per
share, basic $0.49 $0.05 $0.44 $0.08 ===== ===== ===== ===== Shares
used in computing net income per share, basic 40,697 40,277 40,562
37,868 Net income per share, diluted $0.48 $0.05 $0.43 $0.08 =====
===== ===== ===== Shares used in computing net income per share,
diluted 41,604 41,963 41,633 39,700 LUMINEX CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months
Ended Twelve Months Ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- Cash flows
from operating activities: Net income $20,016 $2,009 $17,729 $3,057
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 2,334 1,874
8,329 7,001 Stock-based compensation and other 2,343 2,049 8,160
7,251 Deferred income tax benefit (15,498) (152) (15,496) (105)
Loss on disposal of assets - 1 25 8 Other 408 (820) 1,665 (415)
Changes in operating assets and liabilities: Accounts receivable,
net (2,839) 1,679 (10,827) 694 Inventory, net (4,827) (2,041)
(5,935) (5,081) Prepaids and other (671) 3 (699) (837) Accounts
payable 3,296 662 3,672 1,760 Accrued liabilities 2,258 1,035 (765)
(312) Deferred revenue (368) (292) (55) 830 ---- ---- --- --- Net
cash provided by operating activities 6,452 6,007 5,803 13,851
----- ----- ----- ------ Cash flows from investing activities: Net
purchases of available- for-sale investments (6,115) - (62,764) -
Maturities/sales of available- for-sale investments 10,988 - 33,968
- Net purchases of held-to- maturity investments - (19,327) -
(55,868) Maturities of held-to-maturity investments 2,423 13,875
42,501 20,310 Purchase of property and equipment (1,751) (1,702)
(10,369) (4,449) Acquisition activity - 24 - (481) Proceeds from
sale of assets - - - 19 Acquired technology rights (8) - (29)
(1,216) --- --- --- ------ Net cash provided by (used in) investing
activities 5,537 (7,130) 3,307 (41,685) ----- ------ ----- -------
Cash flows from financing activities: Proceeds from debt - - 454 -
Payments on debt - - (440) (134) Proceeds from secondary offering,
net of offering costs - 47 - 74,722 Proceeds from issuance of
common stock 204 637 566 7,075 --- --- --- ----- Net cash provided
by financing activities 204 684 580 81,663 --- --- --- ------
Effect of foreign currency exchange rate on cash (90) 440 (466) 557
Change in cash and cash equivalents 12,103 1 9,224 54,386 Cash and
cash equivalents, beginning of period 78,740 81,618 81,619 27,233
------ ------ ------ ------ Cash and cash equivalents, end of
period $90,843 $81,619 $90,843 $81,619 ======= ======= =======
======= LUMINEX CORPORATION RECONCILIATION OF ADJUSTED NET INCOME
TO GAAP NET INCOME (in thousands, except per share amounts) Three
Months Ended Twelve Months Ended December 31, December 31,
------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ----
Net income $20,016 $2,009 $17,729 $3,057 Adjusted items: Settlement
of litigation - - 4,350 - Release of valuation allowance (14,866) -
(14,866) - Net income excluding adjusted items $5,150 $2,009 $7,213
$3,057 ====== ====== ====== ====== Adjusted net income per share,
basic $0.13 $0.05 $0.18 $0.08 ===== ===== ===== ===== Shares used
in computing net income per share, basic 40,697 40,277 40,562
37,868 Adjusted net income per share, diluted $0.12 $0.05 $0.17
$0.08 ===== ===== ===== ===== Shares used in computing net income
per share, diluted 41,604 41,963 41,633 39,700 The Company believes
that the non-GAAP measure used in this presentation, when presented
in conjunction with the comparable GAAP measure, is useful to both
management and investors in analyzing financial and business trends
regarding the Company's ongoing business and operating performance.
This non-GAAP measure should be considered in addition to, but not
as a substitute for, items prepared in accordance with GAAP.
Contacts: Harriss T. Currie Mimi L. Torrington Vice President,
Finance and Chief Director of Investor Financial Officer Relations
512-219-8020 512-219-8020
http://www.newscom.com/cgi-bin/prnh/20100104/LUMINEXLOGO
http://photoarchive.ap.org/ DATASOURCE: Luminex Corporation
CONTACT: Harriss T. Currie, Vice President, Finance and Chief
Financial Officer, +1-512-219-8020, , or Mimi L. Torrington,
Director of Investor Relations, +1-512-219-8020, , both of Luminex
Corporation Web Site: http://www.luminexcorp.com/
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