AUSTIN, Texas, Feb. 7, 2011 /PRNewswire/ -- Luminex Corporation
(Nasdaq: LMNX) today announced financial results for the fourth
quarter and year ended December 31,
2010. Recent financial and operating highlights include the
following:
- Fourth quarter 2010 consolidated revenue was $41.2 million, an 8 percent increase over the
fourth quarter of 2009; full year 2010 revenue was $141.6 million, a 17 percent increase over
2009.
- Record system revenue of $10.3
million for the fourth quarter of 2010 reflects an increase
of 11 percent over the same prior year period, and full year system
revenue of $33.0 million, a 7 percent
increase over the full year 2009; total shipments of multiplexing
analyzers for the quarter were 286. Cumulative life to date
multiplexing analyzer shipments reached 7,700, up 14 percent from a
year ago.
- Fourth quarter 2010 consumable revenue of $12.0 million, an increase of 49 percent from the
year ago period due to broad based growth in bulk orders. 2010 full
year consumable revenue of $40.1
million grew 41% over 2009.
- Luminex's Assay Group realized assay revenue of $9.2 million for the fourth quarter 2010, down 28
percent over the same prior year period, while full year assay
revenue was $32.2 million, up 4
percent over 2009.
- Signed long-term renewal of our 10-year strategic partnership
with One Lambda, Inc., one of our top partners and the worldwide
leader in the HLA typing and antibody screening market.
- Signed global OEM agreement with Tecan Group, a global leader
in sample prep automation, to develop high volume automation
solutions.
GAAP net income for the fourth quarter of 2010 was $3.2 million or, $0.07 per diluted share. GAAP net income
for 2010 was $5.2 million or
$0.12 per diluted share, compared
with 2009 net income of $17.7 million
or $0.43, per diluted share.
For comparability purposes, adjusted net income for 2009,
excluding the effect of the release of the valuation allowance and
the settlement of litigation, was $2.4
million or $0.06 per diluted
share. A reconciliation of adjusted net income to GAAP net income
is provided at the end of this press release.
LUMINEX
CORPORATION
REVENUE
SUMMARY
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
|
2010
|
|
2009
|
|
($)
|
|
(%)
|
|
|
(in
thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
System sales
|
$ 10,304
|
|
$ 9,307
|
|
$
997
|
|
11%
|
|
Consumable sales
|
11,954
|
|
8,033
|
|
3,921
|
|
49%
|
|
Royalty revenue
|
6,044
|
|
4,788
|
|
1,256
|
|
26%
|
|
Assay revenue
|
9,242
|
|
12,890
|
|
(3,648)
|
|
-28%
|
|
All other revenue
|
3,646
|
|
3,149
|
|
497
|
|
16%
|
|
|
$ 41,190
|
|
$ 38,167
|
|
$ 3,023
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
|
2010
|
|
2009
|
|
($)
|
|
(%)
|
|
|
(in
thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
System sales
|
$ 32,984
|
|
$ 30,711
|
|
$ 2,273
|
|
7%
|
|
Consumable sales
|
40,104
|
|
28,380
|
|
11,724
|
|
41%
|
|
Royalty revenue
|
22,414
|
|
18,312
|
|
4,102
|
|
22%
|
|
Assay revenue
|
32,204
|
|
31,054
|
|
1,150
|
|
4%
|
|
All other revenue
|
13,851
|
|
12,186
|
|
1,665
|
|
14%
|
|
|
$ 141,557
|
|
$ 120,643
|
|
$ 20,914
|
|
17%
|
|
|
|
|
|
|
|
|
|
LUMINEX
CORPORATION
REPORTABLE
SEGMENT HIGHLIGHTS
(unaudited)
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(in
thousands)
|
|
Revenue
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
$ 30,550
|
|
$ 24,794
|
|
$ 105,586
|
|
$ 87,389
|
|
Assays and related
products
|
10,640
|
|
13,373
|
|
35,971
|
|
33,254
|
|
Total Revenue
|
41,190
|
|
38,167
|
|
141,557
|
|
120,643
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
5,872
|
|
2,669
|
|
15,977
|
|
8,122
|
|
Assays and related
products
|
(789)
|
|
2,629
|
|
(4,726)
|
|
(723)
|
|
Total Operating
income
|
5,083
|
|
5,298
|
|
11,251
|
|
7,399
|
|
|
|
|
|
|
|
|
|
"We are very pleased with the record fourth quarter performance
and what we accomplished in 2010," said Patrick J. Balthrop, president and chief
executive officer of Luminex. "Despite the tough year-over-year
comparison due to strong H1N1-related demand for xTAG RVP in 2009,
we delivered 17% consolidated annual revenue growth. Our
performance reflects increasing adoption of our proprietary
technology due to the power of multiplexing, the commitment of our
partners and the dedication of our employees. We are particularly
pleased with the performance of our proprietary consumable and
royalty revenue streams, which grew 41% and 22%, respectively, in
2010. We are pleased with the successful launch of our newest
multiplexing analyzer, MAGPIX, and anticipate it will make a strong
contribution to our overall capital equipment sales in the future.
"Our solid performance generated nearly $10 million in operating cashflow in the quarter,
adding to an already strong balance sheet, and enhancing the
Company's ability to respond to strategic opportunities," continued
Balthrop. "Looking at 2011 and beyond, we are excited about the
broad growth opportunities in which Luminex, through its solid
product pipeline and strong partnership model, can further develop
its market leadership position."
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 2011 is as follows:
- The Company expects full year 2011 revenue to be between
$163 million and $170 million.
The full year figures represent an increase of between 15
percent and 20 percent over reported 2010 revenue.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the fourth quarter ended
December 31, 2010, on Monday, February 7, 2011, 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, future MAGPIX sales,
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
2011 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.
|
|
Contacts:
|
Harriss T. Currie
|
Matthew Scalo
|
|
|
Vice President, Finance and
Chief Financial Officer
|
Sr. Director of Investor
Relations
|
|
|
512-219-8020
|
512-219-8020
|
|
|
hcurrie@luminexcorp.com
|
mscalo@luminexcorp.com
|
|
|
|
|
|
|
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
89,487
|
|
$ 90,843
|
|
Restricted cash
|
1,002
|
|
-
|
|
Short-term
investments
|
28,404
|
|
8,511
|
|
Accounts receivable,
net
|
20,936
|
|
22,108
|
|
Inventories,
net
|
24,932
|
|
17,524
|
|
Deferred income
taxes
|
4,225
|
|
1,040
|
|
Prepaids and
other
|
2,732
|
|
2,130
|
|
|
|
|
|
|
Total current
assets
|
171,718
|
|
142,156
|
|
|
|
|
|
|
Property and equipment,
net
|
22,084
|
|
17,255
|
|
Intangible assets,
net
|
12,944
|
|
12,938
|
|
Deferred income taxes
|
6,363
|
|
14,732
|
|
Long-term investments
|
6,021
|
|
20,228
|
|
Goodwill
|
42,250
|
|
39,617
|
|
Other
|
4,430
|
|
1,087
|
|
|
|
|
|
|
Total assets
|
$
265,810
|
|
$ 248,013
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
7,621
|
|
$ 8,430
|
|
Accrued
liabilities
|
7,444
|
|
7,493
|
|
Deferred
revenue
|
3,866
|
|
2,967
|
|
Current portion of long
term debt
|
849
|
|
868
|
|
|
|
|
|
|
Total current
liabilities
|
19,780
|
|
19,758
|
|
|
|
|
|
|
Long-term debt
|
3,351
|
|
3,591
|
|
Deferred revenue
|
4,303
|
|
4,614
|
|
Other
|
3,511
|
|
1,312
|
|
|
|
|
|
|
Total liabilities
|
30,945
|
|
29,275
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
41
|
|
41
|
|
Additional paid-in
capital
|
295,422
|
|
285,648
|
|
Accumulated other
comprehensive gain
|
1,150
|
|
28
|
|
Accumulated
deficit
|
(61,748)
|
|
(66,979)
|
|
|
|
|
|
|
Total stockholders'
equity
|
234,865
|
|
218,738
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
265,810
|
|
$ 248,013
|
|
|
|
|
|
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 41,190
|
|
$ 38,167
|
|
$
141,557
|
|
$ 120,643
|
|
Cost of revenue
|
12,611
|
|
12,512
|
|
45,180
|
|
39,349
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
28,579
|
|
25,655
|
|
96,377
|
|
81,294
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
6,736
|
|
5,506
|
|
23,410
|
|
20,752
|
|
Selling, general and
administrative
|
16,760
|
|
14,851
|
|
61,716
|
|
53,143
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
23,496
|
|
20,357
|
|
85,126
|
|
73,895
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
5,083
|
|
5,298
|
|
11,251
|
|
7,399
|
|
Interest expense from
long-term debt
|
(85)
|
|
(123)
|
|
(419)
|
|
(481)
|
|
Other income,
net
|
119
|
|
126
|
|
519
|
|
719
|
|
Settlement of
litigation
|
-
|
|
-
|
|
-
|
|
(4,350)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
5,117
|
|
5,301
|
|
11,351
|
|
3,287
|
|
Income taxes
|
(1,918)
|
|
14,715
|
|
(6,120)
|
|
14,442
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 3,199
|
|
$ 20,016
|
|
$
5,231
|
|
$ 17,729
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$ 0.08
|
|
$ 0.49
|
|
$
0.13
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net
income per share, basic
|
41,199
|
|
40,697
|
|
41,030
|
|
40,562
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
diluted
|
$ 0.07
|
|
$ 0.48
|
|
$
0.12
|
|
$
0.43
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net
income per share, diluted
|
42,671
|
|
41,604
|
|
42,438
|
|
41,633
|
|
|
|
|
|
|
|
|
|
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Net income
|
$ 3,199
|
|
$ 20,016
|
|
$
5,231
|
|
$ 17,729
|
|
Adjustments to reconcile
net income to net
|
|
|
|
|
|
|
|
|
cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,404
|
|
2,334
|
|
8,898
|
|
8,329
|
|
Stock-based
compensation
|
2,511
|
|
2,343
|
|
9,436
|
|
8,160
|
|
Deferred income tax
benefit
|
1,515
|
|
(15,498)
|
|
5,005
|
|
(15,496)
|
|
Excess income tax benefit
from employee
|
|
|
|
|
|
|
|
|
stock-based
awards
|
1,290
|
|
-
|
|
-
|
|
-
|
|
Loss on disposal of
assets
|
-
|
|
-
|
|
-
|
|
25
|
|
Other
|
(140)
|
|
408
|
|
709
|
|
1,665
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(1,867)
|
|
(2,839)
|
|
2,199
|
|
(10,827)
|
|
Inventories,
net
|
(746)
|
|
(4,827)
|
|
(5,811)
|
|
(5,935)
|
|
Other assets
|
(178)
|
|
(671)
|
|
(332)
|
|
(699)
|
|
Accounts
payable
|
646
|
|
3,296
|
|
(1,776)
|
|
3,672
|
|
Accrued
liabilities
|
1,117
|
|
2,258
|
|
80
|
|
(765)
|
|
Deferred
revenue
|
(654)
|
|
(368)
|
|
536
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
9,097
|
|
6,452
|
|
24,175
|
|
5,803
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(3,008)
|
|
(6,115)
|
|
(29,673)
|
|
(62,764)
|
|
Maturities of
available-for-sale securities
|
7,500
|
|
10,988
|
|
23,693
|
|
33,968
|
|
Maturities of
held-to-maturity securities
|
-
|
|
2,423
|
|
-
|
|
42,501
|
|
Purchase of property and
equipment
|
(2,540)
|
|
(1,751)
|
|
(11,102)
|
|
(10,369)
|
|
Business acquisition
consideration, net of cash acquired
|
24
|
|
-
|
|
(5,012)
|
|
-
|
|
Increase in restricted
cash
|
-
|
|
-
|
|
(1,000)
|
|
-
|
|
Purchase of cost method
investment
|
(5)
|
|
-
|
|
(2,081)
|
|
-
|
|
Acquired technology
rights
|
(625)
|
|
(8)
|
|
(1,825)
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
investing activities
|
1,346
|
|
5,537
|
|
(27,000)
|
|
3,307
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
Payments on
debt
|
-
|
|
-
|
|
(895)
|
|
(440)
|
|
Proceeds from
debt
|
-
|
|
-
|
|
-
|
|
453
|
|
Proceeds from issuance of
common stock
|
726
|
|
204
|
|
2,173
|
|
567
|
|
Excess income tax benefit
from employee
|
|
|
|
|
|
|
|
|
stock-based
awards
|
(1,290)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by
financing activities
|
(564)
|
|
204
|
|
1,278
|
|
580
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency
exchange rate on cash
|
379
|
|
(90)
|
|
191
|
|
(466)
|
|
Change in cash and cash
equivalents
|
10,258
|
|
12,103
|
|
(1,356)
|
|
9,224
|
|
Cash and cash equivalents,
beginning of period
|
79,229
|
|
78,740
|
|
90,843
|
|
81,619
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$ 89,487
|
|
$ 90,843
|
|
$
89,487
|
|
$ 90,843
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
Net income
|
$ 3,199
|
|
$ 20,016
|
|
$ 5,231
|
|
$ 17,729
|
|
|
|
|
|
|
|
|
|
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of
litigation
|
-
|
|
-
|
|
-
|
|
4,350
|
|
|
|
|
|
|
|
|
|
|
Income tax
adjustment*
|
-
|
|
(15,707)
|
|
-
|
|
(19,665)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
$ 3,199
|
|
$ 4,309
|
|
$ 5,231
|
|
$ 2,414
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share,
basic
|
$ 0.08
|
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.06
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing
adjusted net income
|
|
|
|
|
|
|
|
|
per share,
basic
|
41,199
|
|
40,697
|
|
41,030
|
|
40,562
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share,
diluted
|
$ 0.07
|
|
$ 0.10
|
|
$ 0.12
|
|
$ 0.06
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing
adjusted net
|
|
|
|
|
|
|
|
|
income per share,
diluted
|
42,671
|
|
41,604
|
|
42,438
|
|
41,633
|
|
|
|
|
|
|
|
|
|
|
* Income tax adjustment
illustrates 2009 financial results without the effect of the
release of the valuation
|
|
allowance on the U.S. deferred
tax assets for comparison to 2010 financial results
|
|
|
|
|
|
|
|
|
|
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.
(Logo:
http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)
SOURCE Luminex Corporation