AUSTIN, Texas, Nov. 4, 2013 /PRNewswire/ -- Luminex
Corporation (NASDAQ: LMNX) today announced financial and operating
results for the third quarter ended September 30, 2013. Highlights include the
following:
(Logo:
http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)
- Consolidated third quarter revenue of $50.8 million
- Third quarter assay revenue of $16.1
million. Infectious disease sales comprised
approximately 64 percent of total assay sales, with genetic testing
representing 36 percent.
- Third quarter royalty revenue of $9.0 million
- Shipments of 280 multiplexing analyzers, which included 135
MAGPIX systems, 128 LX systems, and 17 FLEXMAP 3D systems
- Cumulative life-to-date multiplexing analyzer shipments of
10,410
- Realized a gain of $5.4 million
from the sale of our minority interest investment in a private
company that was acquired by a third party in July 2013
- Received FDA and European Clearance for an updated version of
Comprehensive Genotyping Assay, xTAG® CYP2D6 Kit in July
- Received FDA and European Clearance for a new personalized
Medicine Genotyping Assay, xTAG® CYP2C19 Kit in September
- Proceeded with the restructuring plan announced during the
quarter, focused on the Newborn Screening Group and our
Brisbane, Australia office to
allow for increased focus on the molecular diagnostics market
"We are disappointed that the reimbursement issues concerning
certain tests included in the new molecular diagnostic code system
in the U.S., which we commented on during our second quarter call,
have not been resolved and continue to affect the entire industry
including Luminex, as we experienced a significant order delay from
our largest customer at the end of the quarter. As we
evaluate the recently published reimbursement rates for 2014, we
agree with our customers' public comments that this is a transient
issue and we expect to see resolution in the near future," said
Patrick J. Balthrop, president and
chief executive officer of Luminex.
"We strongly believe in our strategic initiatives and that the
Company is well-positioned for substantial growth across our entire
portfolio when the transient reimbursement problem is
resolved. Among these initiatives is the development of our
unique 'sample-to-answer' system, Project ARIES, which will be
demonstrated at the upcoming Association for Molecular Pathology
Annual Meeting in Phoenix on
November 14-16th. In
addition, we are pleased with the progress our direct sales force
made during the quarter selling our family of diagnostic tests
including GPP, RVP and our recently approved genotyping assay,"
added Mr. Balthrop.
REVENUE
SUMMARY
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
7,568
|
|
$
8,550
|
|
$
(982)
|
|
-11%
|
Consumable
sales
|
12,837
|
|
12,898
|
|
(61)
|
|
0%
|
Royalty
revenue
|
8,996
|
|
7,690
|
|
1,306
|
|
17%
|
Assay
revenue
|
16,115
|
|
16,439
|
|
(324)
|
|
-2%
|
All other
revenue
|
5,264
|
|
4,470
|
|
794
|
|
18%
|
|
$
50,780
|
|
$
50,047
|
|
$
733
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
21,772
|
|
$
23,934
|
|
$ (2,162)
|
|
-9%
|
Consumable
sales
|
36,484
|
|
35,600
|
|
884
|
|
2%
|
Royalty
revenue
|
27,683
|
|
23,647
|
|
4,036
|
|
17%
|
Assay
revenue
|
56,138
|
|
51,246
|
|
4,892
|
|
10%
|
All other
revenue
|
16,190
|
|
12,620
|
|
3,570
|
|
28%
|
|
$158,267
|
|
$147,047
|
|
$11,220
|
|
8%
|
LUMINEX
CORPORATION
REPORTABLE SEGMENT
HIGHLIGHTS
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$33,335
|
|
$31,584
|
|
$ 1,751
|
|
6%
|
Assays and related
products
|
17,445
|
|
18,463
|
|
(1,018)
|
|
-6%
|
Total
Revenue
|
50,780
|
|
50,047
|
|
733
|
|
1%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
9,293
|
|
7,205
|
|
2,088
|
|
29%
|
Assays and related
products
|
(13,487)
|
|
(3,838)
|
|
(9,649)
|
|
-251%
|
Total
Operating income (loss)
|
(4,194)
|
|
3,367
|
|
(7,561)
|
|
-225%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
|
2013
|
|
2012
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
$96,352
|
|
$91,358
|
|
$ 4,994
|
|
5%
|
Assays and related
products
|
61,915
|
|
55,689
|
|
6,226
|
|
11%
|
Total
Revenue
|
158,267
|
|
147,047
|
|
11,220
|
|
8%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Technology and
strategic partnerships
|
23,368
|
|
21,725
|
|
1,643
|
|
8%
|
Assays and related
products
|
(24,073)
|
|
(6,264)
|
|
(17,809)
|
|
-284%
|
Total
Operating income (loss)
|
(705)
|
|
15,461
|
|
(16,166)
|
|
-105%
|
FINANCIAL OUTLOOK AND GUIDANCE
The Company has revised its 2013 annual revenue guidance to a
range of between $212 and $217
million from $220 and $230
million.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the third quarter ended
September 30, 2013, at 4:00 p.m. CST/5:00 p.m.
EST, Monday, November 4, 2013.
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, regulatory clearance of our products; 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 financial impact of recent corporate
restructuring, status of molecular codes, the impact of delays of
Medicare reimbursement on our customers and current and future
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
|
|
|
Sr. Vice President,
Finance and Chief Financial Officer
|
|
|
512-219-8020
|
|
|
hcurrie@luminexcorp.com
|
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
57,169
|
|
$
42,789
|
Short-term
investments
|
5,497
|
|
13,607
|
Accounts receivable,
net
|
30,210
|
|
33,273
|
Inventories,
net
|
29,742
|
|
29,937
|
Deferred income
taxes
|
1,603
|
|
4,783
|
Prepaids and
other
|
5,749
|
|
4,388
|
|
|
|
|
Total current
assets
|
129,970
|
|
128,777
|
|
|
|
|
Property and
equipment, net
|
32,788
|
|
26,229
|
Intangible assets,
net
|
61,320
|
|
65,218
|
Deferred income
taxes
|
14,462
|
|
14,360
|
Long-term
investments
|
-
|
|
3,000
|
Goodwill
|
50,853
|
|
51,128
|
Other
|
4,503
|
|
8,463
|
|
|
|
|
Total
assets
|
$
293,896
|
|
$
297,175
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
9,038
|
|
$
9,650
|
Accrued
liabilities
|
11,756
|
|
12,866
|
Deferred
revenue
|
4,949
|
|
4,134
|
Current portion of
long term debt
|
924
|
|
1,138
|
|
|
|
|
Total current
liabilities
|
26,667
|
|
27,788
|
|
|
|
|
Long-term
debt
|
788
|
|
1,702
|
Deferred
revenue
|
2,508
|
|
2,933
|
Other
|
5,038
|
|
5,085
|
|
|
|
|
Total
liabilities
|
35,001
|
|
37,508
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
41
|
|
41
|
Additional paid-in
capital
|
291,156
|
|
293,392
|
Accumulated other
comprehensive gain
|
585
|
|
1,101
|
Accumulated
deficit
|
(32,887)
|
|
(34,867)
|
|
|
|
|
Total stockholders'
equity
|
258,895
|
|
259,667
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
293,896
|
|
$
297,175
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$50,780
|
|
$50,047
|
|
$158,267
|
|
$147,047
|
Cost of
revenue
|
19,999
|
|
15,002
|
|
51,472
|
|
43,830
|
|
|
|
|
|
|
|
|
Gross
profit
|
30,781
|
|
35,045
|
|
106,795
|
|
103,217
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
10,346
|
|
11,186
|
|
34,852
|
|
31,467
|
Selling, general and
administrative
|
21,466
|
|
19,462
|
|
67,429
|
|
53,075
|
Amortization of
acquired intangible assets
|
1,021
|
|
1,030
|
|
3,077
|
|
3,214
|
Restructuring
costs
|
2,142
|
|
-
|
|
2,142
|
|
-
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
34,975
|
|
31,678
|
|
107,500
|
|
87,756
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
(4,194)
|
|
3,367
|
|
(705)
|
|
15,461
|
Interest expense from
long-term debt
|
(16)
|
|
(40)
|
|
(67)
|
|
(162)
|
Other income,
net
|
6,638
|
|
25
|
|
6,730
|
|
124
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
2,428
|
|
3,352
|
|
5,958
|
|
15,423
|
Income
taxes
|
(1,632)
|
|
(1,676)
|
|
(3,978)
|
|
(7,268)
|
|
|
|
|
|
|
|
|
Net income
|
$
796
|
|
$
1,676
|
|
$
1,980
|
|
$
8,155
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$
0.02
|
|
$
0.04
|
|
$
0.05
|
|
$
0.20
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share, basic
|
40,752
|
|
41,000
|
|
40,712
|
|
40,995
|
|
|
|
|
|
|
|
|
Net income per share,
diluted
|
$
0.02
|
|
$
0.04
|
|
$
0.05
|
|
$
0.19
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share, diluted
|
41,919
|
|
41,887
|
|
41,771
|
|
42,117
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
796
|
|
$
1,676
|
|
$
1,980
|
|
$
8,155
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
3,994
|
|
3,613
|
|
11,747
|
|
10,668
|
Stock-based compensation
|
1,889
|
|
2,338
|
|
6,733
|
|
7,552
|
Deferred
income tax expense
|
1,989
|
|
1,987
|
|
3,415
|
|
2,916
|
Excess
income tax (benefit) expense from employee stock-based
awards
|
(15)
|
|
590
|
|
274
|
|
(2,183)
|
Gain on
sale of assets
|
(5,388)
|
|
-
|
|
(5,305)
|
|
-
|
Non-cash
restructuring charges
|
3,695
|
|
-
|
|
3,695
|
|
-
|
Other
|
(34)
|
|
472
|
|
(1,115)
|
|
655
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable, net
|
1,384
|
|
(5,043)
|
|
3,076
|
|
(8,226)
|
Inventories, net
|
1,769
|
|
(877)
|
|
(1,914)
|
|
(2,604)
|
Other
assets
|
(415)
|
|
(663)
|
|
(2,058)
|
|
(2,294)
|
Accounts
payable
|
2,215
|
|
1,637
|
|
(718)
|
|
1,706
|
Accrued
liabilities
|
(1,184)
|
|
(792)
|
|
(2,727)
|
|
(2,007)
|
Deferred
revenue
|
439
|
|
(330)
|
|
409
|
|
(237)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
11,134
|
|
4,608
|
|
17,492
|
|
14,101
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(2,997)
|
|
(2,994)
|
|
(8,489)
|
|
(13,489)
|
Sales and maturities
of available-for-sale securities
|
2,996
|
|
13,070
|
|
19,632
|
|
43,075
|
Purchase of property
and equipment
|
(6,914)
|
|
(2,152)
|
|
(15,136)
|
|
(7,509)
|
Business acquisition
consideration, net of cash acquired
|
-
|
|
(48,277)
|
|
-
|
|
(48,277)
|
Purchase of cost
method investment
|
-
|
|
(1,000)
|
|
-
|
|
(1,000)
|
Proceeds from sale of
assets
|
9,533
|
|
-
|
|
9,564
|
|
-
|
Acquired technology
rights
|
-
|
|
(51)
|
|
(930)
|
|
(342)
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
2,618
|
|
(41,404)
|
|
4,641
|
|
(27,542)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments on
debt
|
-
|
|
-
|
|
(1,105)
|
|
(1,025)
|
Proceeds from
employee stock plans and issuance of common stock
|
5,973
|
|
861
|
|
7,891
|
|
3,224
|
Payments for stock
repurchases
|
-
|
|
(11,036)
|
|
(14,343)
|
|
(20,916)
|
Excess income tax
(expense) benefit from employee stock-based awards
|
15
|
|
(590)
|
|
(274)
|
|
2,183
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
5,988
|
|
(10,765)
|
|
(7,831)
|
|
(16,534)
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate on cash
|
(49)
|
|
149
|
|
78
|
|
179
|
Change in cash and
cash equivalents
|
19,691
|
|
(47,412)
|
|
14,380
|
|
(29,796)
|
Cash and cash
equivalents, beginning of period
|
37,478
|
|
75,898
|
|
42,789
|
|
58,282
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$57,169
|
|
$28,486
|
|
$57,169
|
|
$28,486
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net income
|
$
796
|
|
$1,676
|
|
$
1,980
|
|
$
8,155
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
1,889
|
|
2,338
|
|
6,733
|
|
7,552
|
Amortization of
acquired intangible assets
|
1,021
|
|
1,030
|
|
3,077
|
|
3,214
|
Costs associated with
legal proceedings
|
105
|
|
-
|
|
358
|
|
-
|
Resolution of
molecular diagnostic distribution agreements
|
-
|
|
-
|
|
7,000
|
|
-
|
Acquisition and
severance costs
|
216
|
|
2,895
|
|
1,031
|
|
3,419
|
Restructuring
costs
|
4,343
|
|
-
|
|
4,343
|
|
-
|
Gain on sale of cost
method equity investment
|
(5,452)
|
|
-
|
|
(5,452)
|
|
-
|
Contingent
consideration adjustments
|
(1,220)
|
|
-
|
|
(1,370)
|
|
-
|
Income tax effect of
above adjusting items
|
637
|
|
(1,518)
|
|
(376)
|
|
(2,993)
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$2,335
|
|
$6,421
|
|
$17,324
|
|
$19,347
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, basic
|
$
0.06
|
|
$
0.16
|
|
$
0.43
|
|
$
0.47
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, basic
|
40,752
|
|
41,000
|
|
40,712
|
|
40,995
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, diluted
|
$
0.06
|
|
$
0.15
|
|
$
0.41
|
|
$
0.46
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income per share, diluted
|
41,919
|
|
41,887
|
|
41,771
|
|
42,117
|
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