AUSTIN, Texas, July 29, 2013 /PRNewswire/ -- Luminex Corporation
(NASDAQ:LMNX) today announced financial results for the second
quarter ended June 30, 2013.
Financial and operating highlights include the following:
- Consolidated second quarter revenue was $54.3 million, a 12 percent increase over the
second quarter of 2012
- Second quarter assay revenue of $21.7
million, a 24 percent increase over the second quarter of
2012
- Cumulative life-to-date multiplexing analyzer shipments of
10,130, up 11 percent from a year ago
- Consolidated gross margin of 70 percent for the second quarter
of 2013
- Non-GAAP net income for the second quarter was $7.2 million, or $0.17 per diluted share, which compares with
$6.3 million and $0.15 per diluted share for the same quarter of
the previous year. GAAP net income for the quarter was $3.7 million, or $0.09 per diluted share, which compares with
$3.0 million and $0.07 per diluted share in the same quarter of
2012 (see the reconciliation of GAAP to non-GAAP net income set
forth on page 8)
- In June, Natural Molecular Testing Corporation began the
commercialization of a 42-target test, called The Personalized
Medicine Panel, based on Luminex's proprietary technology
(Logo:
http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)
"We generated another quarter of strong financial performance,
driven by continued execution in our assay segment. Growth in assay
revenue was well balanced across our genetic and infectious disease
franchises and included a notable contribution from our recent US
IVD cleared xTAG® gastrointestinal pathogen panel. This performance
also reflects a positive impact from the Company's transition to a
direct molecular diagnostic sales force which began in early 2013,"
said Patrick J. Balthrop, president
and chief executive officer of Luminex. "In addition, we surpassed
a major milestone for the Company in the second quarter, delivering
our 10,000th multiplexing analyzer to date. The entire
company is proud of this achievement," added Balthrop.
"Notwithstanding our success during the second quarter, the
overall molecular diagnostic market began to experience a
deceleration in the utilization of certain molecular assays. This
is a result of administrative issues related to the reimbursement
of certain tests included in the new molecular diagnostic code
system established January 1, 2013 by
the Centers for Medicare and Medicaid Services. A number of our lab
customers have expended significant efforts in striving for a rapid
resolution, nonetheless progress has been slow. While the situation
remains fluid, we believe it is prudent to adjust our expectations
for the second half of 2013 to account for this headwind," Balthrop
concluded.
REVENUE
SUMMARY
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
7,647
|
|
$
8,386
|
|
$
(739)
|
|
-9%
|
Consumable
sales
|
11,750
|
|
10,802
|
|
948
|
|
9%
|
Royalty
revenue
|
8,578
|
|
7,715
|
|
863
|
|
11%
|
Assay
revenue
|
21,699
|
|
17,510
|
|
4,189
|
|
24%
|
All other
revenue
|
4,613
|
|
3,860
|
|
753
|
|
20%
|
|
$
54,287
|
|
$ 48,273
|
|
$
6,014
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
14,204
|
|
$ 15,384
|
|
$
(1,180)
|
|
-8%
|
Consumable
sales
|
23,647
|
|
22,702
|
|
945
|
|
4%
|
Royalty
revenue
|
18,687
|
|
15,957
|
|
2,730
|
|
17%
|
Assay
revenue
|
40,023
|
|
34,807
|
|
5,216
|
|
15%
|
All other
revenue
|
10,926
|
|
8,150
|
|
2,776
|
|
34%
|
|
$ 107,487
|
|
$ 97,000
|
|
$ 10,487
|
|
11%
|
"We are pleased with the overall financial performance in the
second quarter of 2013, especially as we continue to invest in our
strategic priorities," said Harriss T.
Currie, senior vice president and chief financial officer.
"The 18% increase in operating expenses for the second quarter
reflects aggressive investments in our Project ARIES system and our
sales and marketing footprint in support of the direct sales model
for our molecular diagnostic market segment."
LUMINEX
CORPORATION
REPORTABLE SEGMENT
HIGHLIGHTS
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$31,148
|
|
$29,565
|
|
$1,583
|
|
5%
|
Assays and related
products
|
23,139
|
|
18,708
|
|
4,431
|
|
24%
|
Total
Revenue
|
54,287
|
|
48,273
|
|
6,014
|
|
12%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
6,394
|
|
7,290
|
|
(896)
|
|
-12%
|
Assays and related
products
|
(1,353)
|
|
(804)
|
|
(549)
|
|
-68%
|
Total Operating income
(loss)
|
5,041
|
|
6,486
|
|
(1,445)
|
|
-22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$63,017
|
|
$59,774
|
|
$3,243
|
|
5%
|
Assays and related
products
|
44,470
|
|
37,226
|
|
7,244
|
|
19%
|
Total
Revenue
|
107,487
|
|
97,000
|
|
10,487
|
|
11%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
14,075
|
|
14,520
|
|
(445)
|
|
-3%
|
Assays and related
products
|
(10,586)
|
|
(2,426)
|
|
(8,160)
|
|
-336%
|
Total Operating income
(loss)
|
3,489
|
|
12,094
|
|
(8,605)
|
|
-71%
|
FINANCIAL OUTLOOK AND GUIDANCE
The Company reaffirms its 2013 annual revenue guidance of
between $220 and $230 million
although we expect a challenging reimbursement environment
near-term for select molecular diagnostic tests that could weigh on
overall corporate performance, as considered in the lower end of
this revenue range.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the second quarter ended
June 30, 2013, on Monday, July 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 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 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, market acceptance of our genetic and infectious disease
products, including Gastrointestinal Pathogen Panel; the ability of
our investment in current initiatives and new products to deliver
high performance solutions, and drive long-term value for our
shareholders, the impact of delays in Medicare reimbursement for
customers' use of our tests and the potential impact on our
business; 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 Financial Officer
|
Sr. Director,
Investor Relations
|
|
512-219-8020
|
512-219-8020
|
|
hcurrie@luminexcorp.com
|
mscalo@luminexcorp.com
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
37,478
|
|
$
42,789
|
Short-term
investments
|
5,496
|
|
13,607
|
Accounts receivable,
net
|
31,564
|
|
33,273
|
Inventories,
net
|
33,515
|
|
29,937
|
Deferred income
taxes
|
3,574
|
|
4,783
|
Prepaids and
other
|
5,193
|
|
4,388
|
|
|
|
|
Total current
assets
|
116,820
|
|
128,777
|
|
|
|
|
Property and
equipment, net
|
29,452
|
|
26,229
|
Intangible assets,
net
|
63,049
|
|
65,218
|
Deferred income
taxes
|
14,360
|
|
14,360
|
Long-term
investments
|
-
|
|
3,000
|
Goodwill
|
50,829
|
|
51,128
|
Other
|
9,129
|
|
8,463
|
|
|
|
|
Total
assets
|
$
283,639
|
|
$
297,175
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
6,899
|
|
$
9,650
|
Accrued
liabilities
|
11,442
|
|
12,866
|
Deferred
revenue
|
4,354
|
|
4,134
|
Current portion of
long term debt
|
604
|
|
1,138
|
|
|
|
|
Total current
liabilities
|
23,299
|
|
27,788
|
|
|
|
|
Long-term
debt
|
1,063
|
|
1,702
|
Deferred
revenue
|
2,663
|
|
2,933
|
Other
|
6,068
|
|
5,085
|
|
|
|
|
Total
liabilities
|
33,093
|
|
37,508
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
40
|
|
41
|
Additional paid-in
capital
|
283,711
|
|
293,392
|
Accumulated other
comprehensive gain
|
478
|
|
1,101
|
Accumulated
deficit
|
(33,683)
|
|
(34,867)
|
|
|
|
|
Total stockholders'
equity
|
250,546
|
|
259,667
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
283,639
|
|
$
297,175
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$54,287
|
|
$48,273
|
|
$107,487
|
|
$97,000
|
Cost of
revenue
|
16,230
|
|
13,861
|
|
31,473
|
|
28,828
|
|
|
|
|
|
|
|
|
Gross
profit
|
38,057
|
|
34,412
|
|
76,014
|
|
68,172
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
11,792
|
|
10,144
|
|
24,506
|
|
20,281
|
Selling, general and
administrative
|
20,197
|
|
16,698
|
|
45,963
|
|
33,613
|
Amortization of
acquired intangible assets
|
1,027
|
|
1,084
|
|
2,056
|
|
2,184
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
33,016
|
|
27,926
|
|
72,525
|
|
56,078
|
|
|
|
|
|
|
|
|
Income from
operations
|
5,041
|
|
6,486
|
|
3,489
|
|
12,094
|
Interest expense from
long-term debt
|
(23)
|
|
(63)
|
|
(51)
|
|
(122)
|
Other income,
net
|
99
|
|
42
|
|
92
|
|
99
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
5,117
|
|
6,465
|
|
3,530
|
|
12,071
|
Income
taxes
|
(1,422)
|
|
(3,513)
|
|
(2,346)
|
|
(5,592)
|
|
|
|
|
|
|
|
|
Net income
|
$ 3,695
|
|
$ 2,952
|
|
$ 1,184
|
|
$ 6,479
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$ 0.09
|
|
$ 0.07
|
|
$ 0.03
|
|
$ 0.16
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share, basic
|
40,497
|
|
41,064
|
|
40,693
|
|
40,992
|
|
|
|
|
|
|
|
|
Net income per share,
diluted
|
$ 0.09
|
|
$ 0.07
|
|
$ 0.03
|
|
$ 0.15
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share, diluted
|
41,444
|
|
42,399
|
|
41,541
|
|
42,246
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
3,695
|
|
$
2,952
|
|
$
1,184
|
|
$
6,479
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,949
|
|
3,533
|
|
7,753
|
|
7,055
|
Stock-based
compensation
|
2,412
|
|
2,571
|
|
4,844
|
|
5,214
|
Deferred income tax
expense
|
726
|
|
376
|
|
1,426
|
|
929
|
Excess income tax
expense (benefit) from employee stock-based awards
|
15
|
|
(2,476)
|
|
289
|
|
(2,773)
|
Loss on disposal of
assets
|
65
|
|
-
|
|
83
|
|
-
|
Other
|
(1,279)
|
|
(49)
|
|
(1,081)
|
|
183
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(6,403)
|
|
830
|
|
1,692
|
|
(3,183)
|
Inventories,
net
|
(1,279)
|
|
(1,860)
|
|
(3,683)
|
|
(1,727)
|
Other assets
|
(747)
|
|
(1,671)
|
|
(1,643)
|
|
(1,631)
|
Accounts
payable
|
(1,202)
|
|
555
|
|
(2,933)
|
|
69
|
Accrued
liabilities
|
(3,320)
|
|
4,811
|
|
(1,543)
|
|
(1,215)
|
Deferred
revenue
|
(293)
|
|
(50)
|
|
(30)
|
|
93
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
(3,661)
|
|
9,522
|
|
6,358
|
|
9,493
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(2,497)
|
|
(1,496)
|
|
(5,492)
|
|
(10,495)
|
Sales and maturities
of available-for-sale securities
|
3,603
|
|
21,490
|
|
16,636
|
|
30,005
|
Purchase of property
and equipment
|
(5,431)
|
|
(3,761)
|
|
(8,222)
|
|
(5,357)
|
Proceeds from sale of
assets
|
-
|
|
-
|
|
31
|
|
-
|
Acquired technology
rights
|
-
|
|
(291)
|
|
(930)
|
|
(291)
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by investing activities
|
(4,325)
|
|
15,942
|
|
2,023
|
|
13,862
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments on
debt
|
(1,105)
|
|
(1,025)
|
|
(1,105)
|
|
(1,025)
|
Proceeds from
employee stock plans and issuance of common stock
|
517
|
|
1,706
|
|
1,918
|
|
2,363
|
Payments for stock
repurchases
|
(8,568)
|
|
(4,432)
|
|
(14,343)
|
|
(9,880)
|
Excess income tax
(expense) benefit from employee stock-based awards
|
(15)
|
|
2,476
|
|
(289)
|
|
2,773
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
(9,171)
|
|
(1,275)
|
|
(13,819)
|
|
(5,769)
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate on cash
|
346
|
|
(121)
|
|
127
|
|
30
|
Change in cash and
cash equivalents
|
(16,811)
|
|
24,068
|
|
(5,311)
|
|
17,616
|
Cash and cash
equivalents, beginning of period
|
54,289
|
|
51,830
|
|
42,789
|
|
58,282
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$37,478
|
|
$75,898
|
|
$37,478
|
|
$75,898
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net income
|
$3,695
|
|
$2,952
|
|
$
1,184
|
|
$
6,479
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
2,412
|
|
2,571
|
|
4,844
|
|
5,214
|
Amortization of
acquired intangible assets
|
1,027
|
|
1,084
|
|
2,056
|
|
2,184
|
Costs associated with
legal proceedings
|
140
|
|
-
|
|
253
|
|
-
|
Resolution of
molecular diagnostic distribution agreements
|
-
|
|
-
|
|
7,000
|
|
-
|
Acquisition and
severance costs
|
485
|
|
453
|
|
815
|
|
524
|
Income tax effect of
above adjusting items
|
(520)
|
|
(740)
|
|
(1,055)
|
|
(1,475)
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$7,239
|
|
$6,320
|
|
$15,097
|
|
$12,926
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, basic
|
$
0.18
|
|
$
0.15
|
|
$
0.37
|
|
$
0.32
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, basic
|
40,497
|
|
41,064
|
|
40,693
|
|
40,992
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, diluted
|
$
0.17
|
|
$
0.15
|
|
$
0.36
|
|
$
0.31
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, diluted
|
41,444
|
|
42,399
|
|
41,541
|
|
42,246
|
The Company makes reference in this release to "non-GAAP net
income" which excludes the impact of costs associated with the ENZO
Life Sciences, Inc. complaint discussed in the Legal Proceedings
section of our 10-Q and certain other 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