AUSTIN, Texas, May 4, 2020 /PRNewswire/ -- Luminex Corporation
(Nasdaq: LMNX) today announced results for its first quarter ended
March 31, 2020.
All amounts in this release are in conformity with U.S.
generally accepted accounting principles ("GAAP").
CURRENT HIGHLIGHTS
- Total revenue for the first quarter of $90.4M, a 10% increase over Q1 2019
- Molecular Diagnostic revenue for the quarter of $45.2M, up 28% over Q1 2019
-
- Sample-to-answer MDx revenue of $26.3M, up 38% over Q1 2019
- Non-Automated MDx revenue of $18.9M, up 17% over Q1 2019
- Life Science and Clinical Tools revenue for the quarter of
$43.3M, down 6% vs. Q1 2019
-
- Licensed Technologies Group revenue of $36.8M, up 5% over Q1 2019
- Flow Cytometry revenue of $6.5M,
down 42% vs. Q1 2019, but significantly impacted by the
inability to install purchased systems and visit customers
due to the COVID-19 pandemic
- Placed a record 123 sample-to-answer systems in the quarter,
dominated by ARIES® Systems
- Returned to profitability in the quarter with 56% gross
margins, 2% operating margin and 1% net income
- Emergency Use Authorizations (EUA) obtained for
NxTAG® CoV Extended Panel and ARIES®
SARS-CoV-2 Assay, supported by $1.2M
in BARDA funding
- Expanded current manufacturing capacity to produce more than
500,000 tests per month, with plans to expand to more than 800,000
tests per month by the end of Q2
- Q2 revenue forecasted to be at or above $105M, with growth in excess of 26%
- Expect 2020 revenue to be above the top end of previously
communicated guidance range of $352 -
$362 million
CEO COMMENTARY
"We are proud to be able to play an important role in addressing
the current global COVID-19 pandemic. Our organization has been
able to respond rapidly with beneficial product offerings to assist
with diagnosing and treating this dangerous virus," said
Nachum "Homi" Shamir, President & CEO. "As a result of the
COVID-19 pandemic, we experienced a rapid acceleration of system
placements, assay sales and revenue. We delivered a very strong
first quarter, returning to profitability with significant revenue
growth within our molecular diagnostics franchise. With our
expanded manufacturing capacity for both automated and
non-automated products and a robust product pipeline, we are well
equipped to meet the evolving needs of our customers. Our ability
to manage multiple projects as a team while responding to this
global crisis has been nothing short of exceptional. Given the
increased demand we are seeing into the foreseeable future, we are
confident that we will exceed the top end of our previously
communicated guidance range, but are unable to be specific at this
time as a result of the uncertainty associated with the end of the
pandemic."
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
Variance
|
|
2020
|
|
2019
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
12,050
|
|
$
15,671
|
|
$ (3,621)
|
|
-23%
|
Consumable
sales
|
12,798
|
|
10,724
|
|
2,074
|
|
19%
|
Royalty
revenue
|
13,259
|
|
14,170
|
|
(911)
|
|
-6%
|
Assay
revenue
|
43,723
|
|
34,813
|
|
8,910
|
|
26%
|
Service
revenue
|
5,521
|
|
5,394
|
|
127
|
|
2%
|
Other
revenue
|
3,073
|
|
1,636
|
|
1,437
|
|
88%
|
|
$
90,424
|
|
$
82,408
|
|
$
8,016
|
|
10%
|
2020 REVENUE GUIDANCE
The Company expects revenue for the 2nd Quarter will
be at or above $105M. With respect to
the full year, we are confident that we will beat the top end of
our current revenue guidance of $362M, but are not able to provide an updated
guidance range at this time due to the uncertainties that the
COVID-19 pandemic is causing throughout the global economy. We
anticipate being able to provide updated full-year revenue guidance
in conjunction with our second quarter earnings release.
CONFERENCE CALL
Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EDT, Monday, May
4, 2020 to discuss operating highlights and financial
results for the first quarter 2020. The conference call will be
webcast live and may be accessed at Luminex Corporation's website
at investor.luminexcorp.com. Analysts may participate on the
conference call by dialing (877) 930-7053 (U.S.) or (253) 336-7290
(outside the U.S.). The access code is 6418909. The webcast will be
archived for six months on our website using the 'replay' link.
ABOUT LUMINEX CORPORATION
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
luminexcorp.com.
USE OF FORWARD-LOOKING STATEMENTS
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 2020
performance, including revenue guidance. The words "expect,"
"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, negative
effects from the worldwide COVID-19 pandemic (including but not
limited to the general economic downturn related to such pandemic,
travel restrictions related thereto, business closures that may
affect our supply chain or our ability to install instruments, and
delays in FDA clearances related to adjustments in the agency's
approval priorities in response to the pandemic), 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®,
xMAP® INTELLIFLEX,
VERIGENE®, VERIGENE® II,
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 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 2020 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
Currie
Senior Vice
President,
Chief Financial
Officer
hcurrie@luminexcorp.com
512-219-8020
|
Carla
Stanaford
Investor
Relations
cstanaford@luminexcorp.com
937-469-2120
|
Media
Contact:
Michele
Parisi
Bioscribe
mparisi@bioscribe.com
925-864-5028
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
43,077
|
|
$
59,173
|
Accounts receivable,
net
|
63,889
|
|
55,815
|
Inventories,
net
|
78,596
|
|
77,084
|
Prepaids and
other
|
10,944
|
|
10,398
|
Total current
assets
|
196,506
|
|
202,470
|
Property and
equipment, net
|
64,407
|
|
65,515
|
Intangible assets,
net
|
87,485
|
|
90,336
|
Deferred income
taxes
|
26,657
|
|
27,702
|
Goodwill
|
118,145
|
|
118,145
|
Right of use
assets
|
20,487
|
|
20,439
|
Other
|
18,236
|
|
19,122
|
Total
assets
|
$
531,923
|
|
$
543,729
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
13,236
|
|
$
17,983
|
Accrued
liabilities
|
26,751
|
|
31,872
|
Deferred revenue -
current portion
|
9,084
|
|
8,214
|
Total current
liabilities
|
49,071
|
|
58,069
|
Deferred
revenue
|
1,606
|
|
1,633
|
Lease
liabilities
|
16,748
|
|
17,182
|
Other long-term
liabilities
|
1,992
|
|
1,985
|
Total
liabilities
|
69,417
|
|
78,869
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
45
|
|
44
|
Additional paid-in
capital
|
381,501
|
|
380,304
|
Accumulated other
comprehensive loss
|
(1,443)
|
|
(1,380)
|
Retained
earnings
|
82,403
|
|
85,892
|
Total stockholders'
equity
|
462,506
|
|
464,860
|
Total liabilities and
stockholders' equity
|
$
531,923
|
|
$
543,729
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
|
|
Revenue
|
$
90,424
|
|
$
82,408
|
Cost of
revenue
|
40,078
|
|
36,601
|
Gross
profit
|
50,346
|
|
45,807
|
Operating
expenses:
|
|
|
|
Research and
development
|
11,918
|
|
15,048
|
Selling, general and
administrative
|
33,935
|
|
31,491
|
Amortization of
acquired intangible assets
|
2,852
|
|
2,852
|
Total operating
expenses
|
48,705
|
|
49,391
|
Income (loss) from
operations
|
1,641
|
|
(3,584)
|
Other income,
net
|
1
|
|
60
|
Loss from equity
method investment
|
(614)
|
|
-
|
Income (loss) before
income taxes
|
1,028
|
|
(3,524)
|
Income tax benefit
(expense)
|
(374)
|
|
6,484
|
Net income
|
$
654
|
|
$
2,960
|
|
|
|
|
Net income
attributable to common stockholders
|
|
|
|
Basic
|
$
634
|
|
$
2,904
|
Diluted
|
$
633
|
|
$
2,904
|
Net income per share
attributable to common stockholders
|
|
|
Basic
|
$
0.01
|
|
$
0.07
|
Diluted
|
$
0.01
|
|
$
0.07
|
Weighted-average
shares used in computing net income per share
|
|
|
Basic
|
44,404
|
|
43,949
|
Diluted
|
45,038
|
|
44,546
|
|
|
|
|
Dividends declared
per share
|
$
0.09
|
|
$
0.06
|
|
|
|
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
654
|
|
$
2,960
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
7,434
|
|
6,889
|
Stock-based
compensation
|
2,683
|
|
2,449
|
Deferred income tax
(benefit) expense
|
1,053
|
|
(8,087)
|
Loss on sale or
disposal of assets
|
47
|
|
94
|
Loss on equity method
investment
|
614
|
|
-
|
Other
|
(138)
|
|
(242)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(8,075)
|
|
(7,342)
|
Inventories,
net
|
(1,510)
|
|
(486)
|
Other
assets
|
(501)
|
|
2,272
|
Accounts
payable
|
(4,186)
|
|
4,117
|
Accrued
liabilities
|
(6,134)
|
|
(10,400)
|
Deferred
revenue
|
843
|
|
680
|
Net cash used in
operating activities
|
(7,216)
|
|
(7,096)
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
(3,923)
|
|
(3,823)
|
Proceeds from cost
method investment
|
22
|
|
-
|
Net cash used in
investing activities
|
(3,901)
|
|
(3,823)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
issuance of common stock
|
1,349
|
|
802
|
Shares surrendered
for tax withholding
|
(2,310)
|
|
(2,072)
|
Dividends
paid
|
(4,063)
|
|
(2,696)
|
Net cash used in
financing activities
|
(5,024)
|
|
(3,966)
|
Effect of foreign
currency exchange rate on cash
|
45
|
|
133
|
Change in cash and
cash equivalents
|
(16,096)
|
|
(14,752)
|
Cash and cash
equivalents, beginning of period
|
59,173
|
|
76,441
|
Cash and cash
equivalents, end of period
|
$43,077
|
|
$61,689
|
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