AUSTIN, Texas, Aug. 3, 2015 /PRNewswire/ -- Luminex
Corporation (NASDAQ:LMNX) today announced financial results for the
second quarter ended June 30, 2015.
Financial and operating highlights for the quarter include
the following:
- Increased second quarter 2015 revenue by 6 percent to
$58.9 million, over the second
quarter of 2014.
- Grew second quarter 2015 assay revenue by 22 percent to
$24.2 million over results from the
second quarter of 2014.
- Increased Q2 2015 royalty revenue by 17 percent to $11.1 million over the second quarter of
2014.
- Increased gross profit margin to 73 percent for the second
quarter of 2015, up 4 points from the second quarter of
2014.
- Settled the litigation with Enzo Life Sciences, Inc. ("Enzo"),
resulting in an expense of $7.1
million. The after-tax impact of the settlement decreased
second quarter net earnings by approximately $0.12 per diluted share.
- Delivered GAAP net income for the second quarter of
$2.6 million, including the effect of
the litigation settlement, or $0.06
per diluted share. Non-GAAP net income for the second quarter was
$11.6 million, or $0.27 per diluted share (see Non-GAAP
reconciliation).
- Improved in operating profit for the quarter by over 100% as a
result of expanding revenues and expense control
- Submitted 510(k) applications to the FDA for approval of the
ARIES® System and ARIES® HSV 1&2 Assay in July after the second
quarter's close.
![Luminex logo Luminex logo](http://photos.prnewswire.com/prnvar/20150201/172702LOGO)
"Our second quarter results reflect the Company's strong
performance across its business, including achieving the highest
level of quarterly revenue in the Company's history. In
particular both our molecular diagnostic assay franchise and
royalty revenues contributed significantly to that success.
Accompanying the increase in revenues were excellent
margins, significant profitability and positive cash flow,"
said Homi Shamir, President and
Chief Executive Officer of Luminex. "We are also very pleased with
the progress achieved this year in advancing our pipeline of
transformational products, highlighted by the FDA submission in
early July of our sample-to-answer platform, ARIES, and our first
assay, HSV 1&2. We currently expect FDA approval before
year-end and are accelerating our preparations for the commercial
launch of ARIES as well as preparing for additional assay
submissions to the FDA."
REVENUE
SUMMARY
|
(in thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2015
|
|
2014
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$ 6,543
|
|
$ 8,304
|
|
$(1,761)
|
|
-21%
|
Consumable
sales
|
11,878
|
|
12,629
|
|
(751)
|
|
-6%
|
Royalty
revenue
|
11,073
|
|
9,476
|
|
1,597
|
|
17%
|
Assay
revenue
|
24,238
|
|
19,886
|
|
4,352
|
|
22%
|
All other
revenue
|
5,185
|
|
5,337
|
|
(152)
|
|
-3%
|
|
$ 58,917
|
|
$ 55,632
|
|
$ 3,285
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2015
|
|
2014
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$ 12,507
|
|
$ 14,704
|
|
$(2,197)
|
|
-15%
|
Consumable
sales
|
21,774
|
|
25,397
|
|
(3,623)
|
|
-14%
|
Royalty
revenue
|
21,775
|
|
19,525
|
|
2,250
|
|
12%
|
Assay
revenue
|
49,684
|
|
41,546
|
|
8,138
|
|
20%
|
All other
revenue
|
10,918
|
|
11,021
|
|
(103)
|
|
-1%
|
|
$116,658
|
|
$112,193
|
|
$ 4,465
|
|
4%
|
Additional Financial Highlights:
- Infectious disease assay sales were approximately 66 percent of
total assay sales for the quarter and genetic testing assays were
34 percent.
- Royalty revenues reflect total royalty-bearing end-user sales
for the quarter of $122.0
million.
- 234 multiplexing analyzers were shipped during the quarter,
which included 119 MAGPIX systems, 94 LX systems, and 21 FLEXMAP 3D
systems.
- Cash and investments at quarter-end totaled $127.1 million.
- Days sales outstanding (DSO) was 34 days at quarter-end.
FINANCIAL OUTLOOK AND GUIDANCE
The Company updates its revenue guidance range for the full-year
2015 to between $232 million and $236
million and anticipates third quarter 2015 revenue to be
between $56 million and $58
million.
CONFERENCE CALL
Management will host a conference call at 3:30 p.m. CDT/4:30 p.m.
EDT, Monday, August 3, 2015 to
discuss the operating highlights and financial results for the
second quarter ended June 30, 2015.
The conference call will be webcast live and 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
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' 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; the development progress of our pipeline products,
including ARIES and NxTAG products, market acceptance of our
products, including instruments, consumables and assays, regulatory
clearance of our products; the ability of our investment in current
initiatives and new products to drive long-term value for our
shareholders; and, projected 2015 performance, including revenue
guidance. 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 in development, including ARIES and NxTAG, the
uncertainty relating to increased focus on direct sales to the end
user, dependence on strategic partners for development,
commercialization and distribution of products, concentration of
Luminex' revenue in a limited number of direct customers and
strategic partners, some of which may be experiencing decreased
demand for their products utilizing or incorporating Luminex'
technology, budget or finance constraints in the current economic
environment, or periodic variability in their purchasing patterns
or practices as a result of material resource planning challenges,
the timing of and process for regulatory approvals, the impact of
the ongoing uncertainty in global finance markets and changes in
governmental funding, including its effects on the capital spending
policies of Luminex' partners and end users and their ability to
finance purchases of Luminex' products, fluctuations in quarterly
results due to a lengthy and unpredictable sales cycle,
fluctuations in bulk purchases of consumables, fluctuations in
product mix, and the seasonal nature of some of Luminex' assay
products, Luminex' ability to obtain and enforce intellectual
property protections on Luminex' products and technologies, risks
and uncertainties associated with implementing Luminex' acquisition
strategy, including Luminex' ability to obtain financing, Luminex'
ability to integrate acquired companies or selected assets into
Luminex' consolidated business operations, and the ability to
recognize the benefits of Luminex' acquisitions, reliance on third
party distributors for distribution of specific Luminex-developed
and manufactured assay products, Luminex' ability to scale
manufacturing operations and manage operating expenses, gross
margins and inventory levels, changes in principal members of
Luminex' management staff, potential shortages, or increases in
costs, of components or other disruptions to Luminex' manufacturing
operations, competition and competitive technologies utilized by
Luminex' competitors, Luminex' ability to successfully launch new
products in a timely manner, Luminex' increasing dependency on
information technology to enable Luminex to improve the
effectiveness of Luminex' operations and to monitor financial
accuracy and efficiency, the implementation, including any
modification, of Luminex' strategic operating plans, the
uncertainty regarding the outcome or expense of any litigation
brought against or initiated by Luminex, and risks relating to
Luminex' foreign operations, including fluctuations in exchange
rates, tariffs, customs and other barriers to importing/exporting
materials and products in a cost effective and timely manner;
difficulties in accounts receivable collections; the burden of
monitoring and complying with foreign and international laws and
treaties; and the burden of complying with and change in
international taxation policies, 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 2015 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)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 111,064
|
|
$
91,694
|
Short-term
investments
|
10,003
|
|
-
|
Accounts receivable,
net
|
22,177
|
|
28,272
|
Inventories,
net
|
32,598
|
|
36,616
|
Deferred income
taxes
|
6,217
|
|
12,203
|
Prepaids and
other
|
10,672
|
|
8,235
|
Total current
assets
|
192,731
|
|
177,020
|
Property and
equipment, net
|
47,903
|
|
39,945
|
Intangible assets,
net
|
54,704
|
|
56,382
|
Deferred income
taxes
|
15,121
|
|
15,400
|
Long-term
investments
|
6,005
|
|
15,975
|
Goodwill
|
49,619
|
|
49,619
|
Other
|
2,949
|
|
3,185
|
Total
assets
|
$ 369,032
|
|
$ 357,526
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 8,045
|
|
$
11,841
|
Accrued
liabilities
|
17,305
|
|
14,118
|
Deferred
revenue
|
4,410
|
|
4,407
|
Total current
liabilities
|
29,760
|
|
30,366
|
Deferred
revenue
|
2,117
|
|
2,297
|
Other
|
4,763
|
|
4,869
|
Total
liabilities
|
36,640
|
|
37,532
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
42
|
|
42
|
Additional paid-in
capital
|
312,073
|
|
309,424
|
Accumulated other
comprehensive loss
|
(1,077)
|
|
(744)
|
Retained
earnings
|
21,354
|
|
11,272
|
Total stockholders'
equity
|
332,392
|
|
319,994
|
Total liabilities and
stockholders' equity
|
$ 369,032
|
|
$ 357,526
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$ 58,917
|
|
$ 55,632
|
|
$ 116,658
|
|
$ 112,193
|
Cost of
revenue
|
15,647
|
|
17,485
|
|
33,169
|
|
34,092
|
Gross
profit
|
43,270
|
|
38,147
|
|
83,489
|
|
78,101
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
11,510
|
|
11,308
|
|
21,655
|
|
22,392
|
Selling, general and
administrative
|
21,025
|
|
20,970
|
|
40,504
|
|
40,415
|
Amortization of
acquired intangible assets
|
776
|
|
965
|
|
1,678
|
|
1,985
|
Restructuring
costs
|
-
|
|
133
|
|
-
|
|
353
|
Total operating
expenses
|
33,311
|
|
33,376
|
|
63,837
|
|
65,145
|
Income from
operations
|
9,959
|
|
4,771
|
|
19,652
|
|
12,956
|
Interest expense from
long-term debt
|
-
|
|
-
|
|
-
|
|
(6)
|
Other income,
net
|
57
|
|
(1)
|
|
951
|
|
(20)
|
Settlement of
litigation
|
(7,100)
|
|
-
|
|
(7,300)
|
|
-
|
Income before income
taxes
|
2,916
|
|
4,770
|
|
13,303
|
|
12,930
|
Income tax
expense
|
(287)
|
|
(45)
|
|
(3,221)
|
|
(2,239)
|
Net income
|
$ 2,629
|
|
$ 4,725
|
|
$ 10,082
|
|
$ 10,691
|
Net income per share,
basic
|
$ 0.06
|
|
$ 0.11
|
|
$ 0.24
|
|
$ 0.26
|
Shares used in
computing net income per share, basic
|
42,093
|
|
41,560
|
|
41,984
|
|
41,384
|
Net income per share,
diluted
|
$ 0.06
|
|
$ 0.11
|
|
$ 0.24
|
|
$ 0.26
|
Shares used in
computing net income per share, diluted
|
42,290
|
|
42,125
|
|
42,146
|
|
41,863
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$ 2,629
|
|
$ 4,725
|
|
$ 10,082
|
|
$ 10,691
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,124
|
|
3,607
|
|
6,322
|
|
7,535
|
Stock-based
compensation
|
3,090
|
|
2,801
|
|
4,669
|
|
4,430
|
Deferred income tax
expense
|
5,154
|
|
1,842
|
|
6,031
|
|
2,520
|
Excess income tax
expense from employee stock-based awards
|
991
|
|
-
|
|
991
|
|
-
|
Loss (gain) on sale
or disposal of assets
|
212
|
|
178
|
|
(681)
|
|
183
|
Non-cash
restructuring charges
|
-
|
|
424
|
|
-
|
|
1,196
|
Other
|
50
|
|
(140)
|
|
(103)
|
|
(332)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
2,140
|
|
(478)
|
|
6,086
|
|
3,539
|
Inventories,
net
|
1,122
|
|
(623)
|
|
4,050
|
|
(1,522)
|
Other
assets
|
(2,717)
|
|
(295)
|
|
(2,393)
|
|
37
|
Accounts
payable
|
(2,932)
|
|
476
|
|
(3,774)
|
|
(2,105)
|
Accrued
liabilities
|
8,077
|
|
(2,081)
|
|
388
|
|
(4,515)
|
Deferred
revenue
|
(383)
|
|
(209)
|
|
(176)
|
|
7
|
Net cash provided by
operating activities
|
20,557
|
|
10,227
|
|
31,492
|
|
21,664
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
-
|
|
-
|
|
-
|
|
(2,996)
|
Sales and maturities
of available-for-sale securities
|
-
|
|
1,516
|
|
-
|
|
4,513
|
Purchase of property
and equipment
|
(3,670)
|
|
(3,150)
|
|
(12,568)
|
|
(6,255)
|
Proceeds from sale of
assets
|
-
|
|
39
|
|
893
|
|
39
|
Acquired technology
rights
|
(25)
|
|
(64)
|
|
(202)
|
|
(64)
|
Net cash used in
investing activities
|
(3,695)
|
|
(1,659)
|
|
(11,877)
|
|
(4,763)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments on
debt
|
-
|
|
(1,621)
|
|
-
|
|
(1,621)
|
Proceeds from
employee stock plans and issuance of common stock
|
308
|
|
2,378
|
|
713
|
|
3,480
|
Excess income tax
expense from employee stock-based awards
|
(991)
|
|
-
|
|
(991)
|
|
-
|
Net cash (used in)
provided by financing activities
|
(683)
|
|
757
|
|
(278)
|
|
1,859
|
Effect of foreign
currency exchange rate on cash
|
(22)
|
|
(1)
|
|
33
|
|
26
|
Change in cash and
cash equivalents
|
16,157
|
|
9,324
|
|
19,370
|
|
18,786
|
Cash and cash
equivalents, beginning of period
|
94,907
|
|
77,386
|
|
91,694
|
|
67,924
|
Cash and cash
equivalents, end of period
|
$111,064
|
|
$ 86,710
|
|
$111,064
|
|
$ 86,710
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Income from
operations
|
$ 9,959
|
|
$ 4,771
|
|
$ 19,652
|
|
$ 12,956
|
Stock-based
compensation
|
3,090
|
|
2,801
|
|
4,669
|
|
4,430
|
Amortization of
acquired intangible assets
|
776
|
|
965
|
|
1,678
|
|
1,985
|
Costs associated with
legal proceedings
|
183
|
|
810
|
|
620
|
|
1,600
|
Severance
costs
|
157
|
|
-
|
|
194
|
|
45
|
Restructuring
costs
|
-
|
|
510
|
|
-
|
|
1,320
|
Adjusted income from
operations
|
$ 14,165
|
|
$ 9,857
|
|
$ 26,813
|
|
$ 22,336
|
Interest expense from
long-term debt
|
-
|
|
-
|
|
-
|
|
(6)
|
Other income,
net
|
57
|
|
(1)
|
|
951
|
|
(20)
|
Gain on sale of cost
method equity investment
|
-
|
|
-
|
|
(892)
|
|
-
|
Income tax
expense
|
(287)
|
|
(45)
|
|
(3,221)
|
|
(2,239)
|
Income tax effect of
above adjusting items
|
(2,343)
|
|
(320)
|
|
(2,473)
|
|
(708)
|
Income tax benefit
from intercompany debt cancellation
|
-
|
|
(994)
|
|
-
|
|
(994)
|
Adjusted net
income
|
$ 11,592
|
|
$ 8,497
|
|
$ 21,178
|
|
$ 18,369
|
Adjusted net income
per share, basic
|
$ 0.28
|
|
$ 0.20
|
|
$ 0.50
|
|
$ 0.44
|
Shares used in
computing adjusted net income per share, basic
|
42,093
|
|
41,560
|
|
41,984
|
|
41,384
|
Adjusted net income
per share, diluted
|
$ 0.27
|
|
$ 0.20
|
|
$ 0.50
|
|
$ 0.44
|
Shares used in
computing adjusted net income per share, diluted
|
42,290
|
|
42,125
|
|
42,146
|
|
41,863
|
The Company makes reference in this release to "non-GAAP
operating income" and "non-GAAP net income" which excludes
stock-based compensation expense, amortization of acquired
intangible assets and the impact of costs associated with legal
proceedings, which are unpredictable and can vary significantly
from period to period, including costs associated with litigation
against ENZO Life Sciences, Inc. and Irori Technologies, Inc.
discussed in the Legal Proceedings section of our previously filed
10-K and 10-Qs 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.
In addition, the Company's management uses such non-GAAP measures
internally to evaluate and assess its core operations and to make
ongoing operating decisions. 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.
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
|
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SOURCE Luminex Corporation