AUSTIN, Texas, Feb. 4, 2019 /PRNewswire/ -- Luminex
Corporation (NASDAQ:LMNX) today announced financial results for the
fourth quarter and full-year 2018. Financial and operating
highlights for the quarter and full-year include:
- On December 31, 2018, the Company
closed the acquisition of EMD Millipore Corporation's flow
cytometry portfolio for $69.9 million
in cash, plus approximately $5.1
million in committed inventory purchases.
- Fourth quarter and full-year 2018 consolidated revenue were
$81.1 million and $315.8 million, increases of 4% and 3%,
respectively, compared to the fourth quarter and full-year 2017.
Excluding sales to LabCorp, total revenue increased 22% and 9% for
the fourth quarter and full-year, respectively.
- Assay revenues were $37.0 million
and $156.7 million for the quarter
and full-year ended December 31,
2018, a 12% decrease and 1% increase over assay revenue for
the fourth quarter and full-year of 2018, respectively. Similarly,
excluding sales to LabCorp, assay revenue increased 22% and 14% for
the fourth quarter and full year 2018, respectively.
- Royalty revenue of approximately $49.3
million reflects approximately $532
million of royalty-bearing end user sales on our technology
for 2018, a 6% increase over 2017.
- Placed 60 sample-to-answer molecular systems under contract
during the fourth quarter of 2018. Active sample-to-answer
customers are nearing 600.
- Sample-to-answer utilization per VERIGENE® customer
grew approximately 10%, to over $109,000 from $100,000 in the prior year quarter; and
utilization per ARIES® customer grew approximately 14%,
to approximately $53,000 from
$47,000 in the prior-year
quarter.
- 268 multiplexing analyzers were shipped during the quarter; a
combination of MAGPIX® systems, LX systems, and FLEXMAP
3D® systems.
- Fourth quarter GAAP net loss was $2.3
million, or a loss of $0.05
per diluted share, primarily driven by the departure of LabCorp
Women's Health and the closing of the transaction with
Millipore/Sigma. Non-GAAP net income was $1.7 million, or earnings of $0.04 per diluted share (see Non-GAAP
reconciliation).
"2018 was an extremely good year for Luminex, and we are
encouraged by the Company's execution across all aspects of our
business", said Nachum "Homi" Shamir, President & CEO. "We
expect 2019 to be a transitional year while we further adjust to
the departure of LabCorp and the inclusion of Millipore's flow
cytometry business" continued Shamir. "We will continue to build
Luminex, both organically and through targeted acquisitions, to be
a meaningful presence in the Life Science marketplace; we are
primed to return Luminex to a double-digit growth rate by
2020."
REVENUE
SUMMARY
(in thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2018
|
|
2017
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
10,209
|
|
$
10,342
|
|
$
(133)
|
|
-1%
|
Consumable
sales
|
15,678
|
|
10,005
|
|
5,673
|
|
57%
|
Royalty
revenue
|
13,507
|
|
11,329
|
|
2,178
|
|
19%
|
Assay
revenue
|
36,952
|
|
41,830
|
|
(4,878)
|
|
-12%
|
Service
revenue
|
3,225
|
|
2,876
|
|
349
|
|
12%
|
Other
revenue
|
1,562
|
|
1,817
|
|
(255)
|
|
-14%
|
|
$
81,133
|
|
$
78,199
|
|
$2,934
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2018
|
|
2017
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
39,986
|
|
$
38,651
|
|
$1,335
|
|
3%
|
Consumable
sales
|
50,144
|
|
49,319
|
|
825
|
|
2%
|
Royalty
revenue
|
49,394
|
|
44,704
|
|
4,690
|
|
10%
|
Assay
revenue
|
156,714
|
|
154,907
|
|
1,807
|
|
1%
|
Service
revenue
|
12,159
|
|
11,470
|
|
689
|
|
6%
|
Other
revenue
|
7,421
|
|
7,520
|
|
(99)
|
|
-1%
|
|
$315,818
|
|
$306,571
|
|
$9,247
|
|
3%
|
FINANCIAL OUTLOOK AND GUIDANCE
The Company intends to provide annual revenue guidance, to be
updated, as appropriate, at each quarterly reporting period.
Luminex announces its 2019 annual revenue guidance range to be
between $337 million and $343 million. The Company anticipates first
quarter 2019 revenue to be between $82
million and $84
million.
CONFERENCE CALL
Management will host a conference call at 3:30 p.m. CST / 4:30 p.m.
EST, Monday, February 4, 2019
to discuss the operating highlights and financial results for the
fourth quarter 2018 ended December 31,
2018. 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.
At Luminex, our mission is to empower labs to obtain reliable,
timely, and actionable answers, ultimately advancing health. We
offer a wide range of solutions applicable in diverse markets
including clinical diagnostics, pharmaceutical drug discovery,
biomedical research, genomic and proteomic research, biodefense
research, and food safety. We accelerate reliable answers while
simplifying complexity and deliver certainty with a seamless
experience. To learn more about Luminex, please visit us at
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 expected revenue and cost savings and projected 2019
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's actual results or performance to differ materially
include risks and uncertainties relating to, among others,
concentration of Luminex's 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's technology, budget or finance constraints in the current
economic environment, or periodic variability in their purchasing
patterns or practices as a result of internal resource
planning challenges; market demand and acceptance of Luminex's
products and technology, including ARIES®,
MultiCode®, xMAP®,
VERIGENE®, Guava®,
Muse®, Amnis® and
NxTAG® products; Luminex's ability to scale
manufacturing operations and manage operating expenses, gross
margins and inventory levels; Luminex's ability to obtain and
enforce intellectual property protections on Luminex's products and
technologies; the impact on Luminex's growth and future results of
operations with respect to the loss of the LabCorp women's health
business; Luminex's ability to successfully launch new products in
a timely manner; dependence on strategic partners for development,
commercialization and distribution of products; risks and
uncertainties associated with implementing Luminex's acquisition
strategy, Luminex's challenge to identify acquisition targets,
including Luminex's ability to obtain financing on acceptable
terms; Luminex's ability to integrate acquired companies or
selected assets, including the Flow-Cytometry assets recently
acquired from Millipore Sigma, into Luminex's consolidated
business operations, and the ability to fully realize the benefits
of Luminex's acquisitions; the timing of and process for regulatory
approvals; competition and competitive technologies utilized by
Luminex's competitors; 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's assay products; Luminex's
ability to comply with applicable laws, regulations, policies and
procedures; the impact of the ongoing uncertainty in global finance
markets and changes in governmental and governmental agency
funding, including effects on the capital spending policies of
Luminex's partners and end users and their ability to finance
purchases of Luminex's products; changes in principal members of
Luminex's management staff; potential shortages, or increases in
costs, of components or other disruptions to Luminex's
manufacturing operations; Luminex's increasing dependency on
information technology to improve the effectiveness of Luminex's
operations and to monitor financial accuracy and efficiency; the
implementation, including any modification, of Luminex's strategic
operating plans; the uncertainty regarding the outcome or
expense of any litigation brought against or initiated by Luminex;
risks relating to Luminex's 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;
Luminex's ability to monitor and comply with foreign and
international laws and treaties; and Luminex's ability to comply
with changes in international taxation policies; 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; reliance on third party
distributors for distribution of specific Luminex-developed and
manufactured assay products, 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 2019 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
|
David
Carey
|
|
Sr. Vice President,
Finance and Chief Financial Officer
|
Investor Relations,
Lazar Partners
|
|
512-219-8020
|
212-867-1768
|
|
hcurrie@luminexcorp.com
|
dcarey@lazarpartners.com
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
76,441
|
|
$
127,112
|
Accounts receivable,
net
|
53,396
|
|
40,648
|
Inventories,
net
|
63,250
|
|
49,478
|
Prepaids and
other
|
9,657
|
|
7,403
|
Total current
assets
|
202,744
|
|
224,641
|
Property and
equipment, net
|
66,288
|
|
58,258
|
Intangible assets,
net
|
105,148
|
|
75,985
|
Deferred income
taxes
|
21,470
|
|
37,552
|
Goodwill
|
118,127
|
|
85,481
|
Other
|
11,398
|
|
8,599
|
Total
assets
|
$
525,175
|
|
$
490,516
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
14,504
|
|
$
14,537
|
Accrued
liabilities
|
26,772
|
|
25,990
|
Deferred
revenue
|
10,099
|
|
4,721
|
Total current
liabilities
|
51,375
|
|
45,248
|
Deferred
revenue
|
1,079
|
|
1,498
|
Other
|
5,065
|
|
5,863
|
Total
liabilities
|
57,519
|
|
52,609
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
44
|
|
43
|
Additional paid-in
capital
|
365,349
|
|
350,834
|
Accumulated other
comprehensive loss
|
(1,127)
|
|
(625)
|
Retained
earnings
|
103,390
|
|
87,655
|
Total stockholders'
equity
|
467,656
|
|
437,907
|
Total liabilities and
stockholders' equity
|
$
525,175
|
|
$
490,516
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$81,133
|
|
$78,199
|
|
$315,818
|
|
$306,571
|
Cost of
revenue
|
32,792
|
|
27,819
|
|
120,327
|
|
107,525
|
Gross
profit
|
48,341
|
|
50,380
|
|
195,491
|
|
199,046
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
13,170
|
|
10,367
|
|
47,164
|
|
45,717
|
Selling, general and
administrative
|
32,036
|
|
28,717
|
|
111,816
|
|
107,322
|
Amortization of
acquired intangible assets
|
2,167
|
|
2,166
|
|
8,665
|
|
8,854
|
Total operating
expenses
|
47,373
|
|
41,250
|
|
167,645
|
|
161,893
|
Income from
operations
|
968
|
|
9,130
|
|
27,846
|
|
37,153
|
Other income,
net
|
-
|
|
2
|
|
465
|
|
(4)
|
Income before income
taxes
|
968
|
|
9,132
|
|
28,311
|
|
37,149
|
Income tax benefit
(expense)
|
(3,263)
|
|
(12,097)
|
|
(9,803)
|
|
(7,726)
|
Net income
|
$ (2,295)
|
|
$ (2,965)
|
|
$
18,508
|
|
$
29,423
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock holders
|
|
|
|
|
|
|
|
Basic
|
$ (2,257)
|
|
$ (2,915)
|
|
$
18,196
|
|
$
28,894
|
Diluted
|
$ (2,258)
|
|
$ (2,915)
|
|
$
18,197
|
|
$
28,894
|
Net income per share
attributable to common stock holders
|
|
|
|
|
|
|
Basic
|
$
(0.05)
|
|
$
(0.07)
|
|
$
0.42
|
|
$
0.67
|
Diluted
|
$
(0.05)
|
|
$
(0.07)
|
|
$
0.41
|
|
$
0.67
|
Weighted-average
shares used in computing net income per share
|
|
|
|
|
|
|
Basic
|
43,867
|
|
43,357
|
|
43,727
|
|
43,173
|
Diluted
|
44,563
|
|
43,524
|
|
44,291
|
|
43,300
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
0.06
|
|
$
0.06
|
|
$
0.24
|
|
$
0.24
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$ (2,295)
|
|
$
(2,965)
|
|
$
18,508
|
|
$
29,423
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
5,937
|
|
5,762
|
|
23,674
|
|
22,641
|
Stock-based
compensation
|
3,766
|
|
3,901
|
|
12,226
|
|
12,478
|
Deferred income tax
expense
|
(491)
|
|
9,495
|
|
8,159
|
|
6,383
|
Loss (gain) on sale
or disposal of assets
|
287
|
|
545
|
|
730
|
|
964
|
Other
|
(83)
|
|
252
|
|
(1,369)
|
|
1,531
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(11,192)
|
|
(4,213)
|
|
(1,569)
|
|
(8,265)
|
Inventories,
net
|
(1,243)
|
|
(3,351)
|
|
(6,827)
|
|
(8,668)
|
Other
assets
|
1,424
|
|
2,678
|
|
(3,319)
|
|
(83)
|
Accounts
payable
|
1,712
|
|
6,332
|
|
4
|
|
1,798
|
Accrued
liabilities
|
6,543
|
|
5,151
|
|
103
|
|
14
|
Deferred
revenue
|
(74)
|
|
(516)
|
|
579
|
|
(785)
|
Net cash provided by
operating activities
|
4,291
|
|
23,071
|
|
50,899
|
|
57,431
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(7,028)
|
|
(4,252)
|
|
(21,292)
|
|
(14,635)
|
Proceeds from sale of
assets
|
2
|
|
61
|
|
2
|
|
62
|
Business acquisition
consideration, net of cash acquired
|
(65,381)
|
|
-
|
|
(65,381)
|
|
-
|
Issuance of note
receivable
|
-
|
|
(700)
|
|
(1,000)
|
|
(1,400)
|
Purchase of
investment
|
-
|
|
-
|
|
(1,782)
|
|
(1,000)
|
Acquired technology
rights
|
-
|
|
(80)
|
|
(4,000)
|
|
(140)
|
Net cash used in
investing activities
|
(72,407)
|
|
(4,971)
|
|
(93,453)
|
|
(17,113)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
588
|
|
1,072
|
|
4,570
|
|
4,305
|
Shares surrendered
for tax withholding
|
(278)
|
|
(226)
|
|
(2,312)
|
|
(2,350)
|
Dividends
|
(2,676)
|
|
(2,648)
|
|
(10,654)
|
|
(7,930)
|
Net cash used in
financing activities
|
(2,366)
|
|
(1,802)
|
|
(8,396)
|
|
(5,975)
|
Effect of foreign
currency exchange rate on cash
|
29
|
|
(97)
|
|
279
|
|
(683)
|
Change in cash and
cash equivalents
|
(70,453)
|
|
16,201
|
|
(50,671)
|
|
33,660
|
Cash and cash
equivalents, beginning of period
|
146,894
|
|
110,911
|
|
127,112
|
|
93,452
|
Cash and cash
equivalents, end of period
|
$76,441
|
|
$127,112
|
|
$
76,441
|
|
$127,112
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Reported Net
Income
|
$(2,295)
|
|
$(2,965)
|
|
$18,508
|
|
$29,423
|
Costs associated with
legal proceedings
|
59
|
|
320
|
|
99
|
|
424
|
Acquisition
costs
|
2,499
|
|
-
|
|
2,732
|
|
-
|
Severance
costs
|
162
|
|
945
|
|
423
|
|
1,846
|
Restructuring
costs
|
-
|
|
-
|
|
-
|
|
-
|
Income tax effect of
above adjusting items
|
(526)
|
|
(208)
|
|
(737)
|
|
(458)
|
Income tax effect
from discrete tax items
|
1,796
|
|
10,597
|
|
412
|
|
(1,826)
|
Adjusted Net
Income
|
$ 1,695
|
|
$ 8,689
|
|
$21,437
|
|
$29,409
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, basic
|
$
0.04
|
|
$
0.20
|
|
$
0.49
|
|
$
0.68
|
Shares used in
computing adjusted net income per share, basic
|
43,867
|
|
43,357
|
|
43,727
|
|
43,173
|
Adjusted net income
per share, diluted
|
$
0.04
|
|
$
0.20
|
|
$
0.48
|
|
$
0.68
|
Shares used in
computing adjusted net income per share, diluted
|
44,563
|
|
43,524
|
|
44,291
|
|
43,300
|
The Company makes reference in this release to "non-GAAP net
income" which excludes costs associated with legal proceedings,
acquisition costs, severance costs, and the impact of restructuring
costs; some of which are unpredictable and can vary significantly
from period to period; 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.
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SOURCE Luminex Corporation