Luminex Corporation Reports Third Quarter 2009 Results
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AUSTIN, Texas--(BUSINESS WIRE)-- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the third quarter ended September 30, 2009. Recent financial and operating highlights include the following:
-- Record system shipments of 259, including 11 FLEXMAP 3D(R) systems for
the third quarter of 2009, resulting in cumulative life-to-date
shipments of 6,514, up 15 percent from a year ago
-- Record system revenue of $9.2 million for the third quarter of 2009, up
18 percent over the third quarter of 2008; year-to-date system revenue
of $21.4 million, an increase of three percent over the same prior year
period
-- Consolidated third quarter revenue of $29.1 million, and loss per share
of $(0.01)
-- Third quarter revenue from sales of higher margin items (consumables,
royalties, and assays) of $17.0 million or 58 percent of total quarterly
revenue
-- Total assay sales by Luminex and its partners of $80.8 million for the
third quarter of 2009, an increase of 16 percent over the third quarter
of 2008
-- Consolidated gross profit margin of 64 percent for the third quarter of
2009
-- Received FDA 510(K) clearance for the xTAG(R) Cystic Fibrosis Test 39 v2
incorporating new fast chemistry
-- Announced FDA clearance for an update to the xTAG Respiratory Viral
Panel (RVP) package insert to include data demonstrating that xTAG RVP
can be an effective aid in the detection of 2009 Influenza A/H1N1
-- Launched new xTAG RVP awareness campaign including the development of
xTAGRVP.com, a respiratory virus testing and information website
providing doctors and patients timely information on avoiding and
detecting flu and other respiratory viruses
-- Continued global expansion by establishing an office in Tokyo, Japan to
provide commercial support and service to customers and partners in the
region
Consolidated revenue for the third quarter of 2009 was $29.1 million, a one percent increase over the third quarter of 2008 revenue of $28.9 million. GAAP net loss for the third quarter of 2009 was $(0.6) million, or $(0.01) per share, compared with GAAP net income of $3.2 million, or $0.08 per share for the same period last year. Net loss for the third quarter of 2009 included non-cash charges of $2.2 million in stock compensation expense associated with SFAS 123R and $2.1 million of depreciation and amortization expense.
LUMINEX CORPORATION
REPORTABLE SEGMENT HIGHLIGHTS
(unaudited)
(in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
Revenue
Technology $ 22,031 $ 22,582 $ 62,595 $ 61,496
group
Assay group 7,087 6,315 19,881 14,754
29,118 28,897 82,476 76,250
Operating
income (loss)
Technology 549 3,228 5,453 6,588
group
Assay group (1,061 ) (247 ) (3,352 ) (5,389 )
Operating (512 ) 2,981 2,101 1,199
income (loss)
"We are pleased with our performance in the quarter, especially given the economic and market conditions," said Patrick J. Balthrop, president and chief executive officer of Luminex. "We achieved record instrument shipments during the third quarter, and record instrument revenue as continuing to grow our installed base of instruments is a strategic priority for Luminex. We continued to grow our Assay Group revenue, led by our innovative Respiratory Viral Panel. Although we reported a sequential decline in our bulk consumable sales, we believe this is a temporary phenomenon. We expect our consumables to return to growth in the near term.
"We are encouraged by early indicators for the fourth quarter of 2009, as well as the longer term, given our pipeline of products, enhanced investment by our partners, and our robust royalty revenues," continued Balthrop. "Our gross margins were healthy at 64 percent for the quarter and we continue to exercise good cost and expense control."
FINANCIAL OUTLOOK AND GUIDANCE
The Company is adjusting 2009 full year revenue guidance to $118 to $126 million from between $118 and $132 million. The adjusted full year figures represent an increase of between 13 and 18 percent over reported 2008 revenue.
CONFERENCE CALL
Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2009, on Wednesday, November 4, 2009, at 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.
ABOUT LUMINEX CORPORATION
Luminex Corporation develops, manufactures and markets proprietary biological testing technologies with applications throughout the diagnostic and life sciences industries. The Company's xMAP(R) multiplex solutions include 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 markets. The Company's xMAP Technology is sold worldwide and is already in use in leading clinical laboratories as well as major pharmaceutical, diagnostic and biotechnology companies. Further information on Luminex Corporation or xMAP technology can be obtained at 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. 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, which may include statements regarding the Company's revenues and outlook for 2009, expectations regarding future bulk consumables sales and the effects of market conditions on bulk consumables sales, improvement of market conditions for the Company's partners and end users for the fourth quarter of 2009, the ability of our pipeline of products and enhanced investment by our partners to continue to drive improved financial performance, the ability of new product launches and geographic expansion to open new markets and continue the Company's growth, royalty revenue, its continued robustness and its reliability as an indicator of end user assay demand, and the ability of the Company to continue to invest in its long-term growth strategies, including research and development projects, geographic and commercial expansion, dedication to regulatory compliance. 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 (including systems, consumables and assay kits) 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, Luminex' 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' 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' Annual Report on Forms 10-K for the year ended December 31, 2008 and subsequent Forms 10-Q, as filed with the Securities and Exchange Commission. The forward-looking statements, including the financial guidance, 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
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
September 30, December 31,
2009 2008
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 78,740 $ 81,619
Short-term investments 16,516 40,784
Accounts receivable, net 19,116 11,024
Inventory, net 12,697 11,589
Other 1,641 1,377
Total current assets 128,710 146,393
Property and equipment, net 17,168 12,567
Intangible assets, net 13,428 14,901
Long-term investments 19,722 2,000
Goodwill 39,617 39,617
Other 1,370 1,813
Total assets $ 220,015 $ 217,291
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,116 $ 4,580
Accrued liabilities 6,496 7,181
Deferred revenue 3,180 2,671
Current portion of long term debt 516 445
Total current liabilities 15,308 14,877
Long-term debt 3,672 2,914
Deferred revenue and other 4,768 4,960
Total liabilities 23,748 22,751
Stockholders' equity:
Common stock 41 40
Additional paid-in capital 283,102 279,255
Accumulated other comprehensive gain (loss) 119 (47 )
Accumulated deficit (86,995 ) (84,708 )
Total stockholders' equity 196,267 194,540
Total liabilities and stockholders' equity $ 220,015 $ 217,291
LUMINEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited)
Revenue $ 29,118 $ 28,897 $ 82,476 $ 76,250
Cost of revenue 10,347 9,343 26,837 24,876
Gross profit 18,771 19,554 55,639 51,374
Operating expenses:
Research and development 5,643 4,443 15,246 13,899
Selling, general and 13,640 12,130 38,292 36,276
administrative
Total operating expenses 19,283 16,573 53,538 50,175
Income (loss) from operations (512 ) 2,981 2,101 1,199
Interest expense from long-term (116 ) (137 ) (358 ) (406 )
debt
Settlement of litigation - - (4,350 ) -
Other income (loss), net 144 490 593 629
Income (loss) before income (484 ) 3,334 (2,014 ) 1,422
taxes
Income taxes (125 ) (161 ) (273 ) (374 )
Net income (loss) $ (609 ) $ 3,173 $ (2,287 ) $ 1,048
Net income (loss) per share, $ (0.01 ) $ 0.08 $ (0.06 ) $ 0.03
basic
Shares used in computing net 40,661 40,002 40,515 37,056
income (loss) per share, basic
Net income (loss) per share, $ (0.01 ) $ 0.08 $ (0.06 ) $ 0.03
diluted
Shares used in computing net 40,661 42,173 40,515 38,957
income (loss) per share, diluted
LUMINEX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended Nine Months ended
September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited)
Cash flows from operating
activities:
Net income (loss) $ (609 ) $ 3,173 $ (2,287 ) $ 1,048
Adjustments to reconcile net
income (loss) to net cash
(used in) provided by
operating activities:
Depreciation and 2,116 1,821 5,995 5,125
amortization
Stock-based compensation and 2,231 1,781 5,817 5,202
other
Loss on disposal of assets - - 25 7
Other 676 (131 ) 1,257 467
Changes in operating assets
and liabilities:
Accounts receivable, net (898 ) (2,771 ) (7,988 ) (985 )
Inventory, net (286 ) (1,034 ) (1,108 ) (3,039 )
Prepaids and other 405 139 (26 ) (793 )
Accounts payable 1,437 465 376 1,103
Accrued liabilities 1,295 (290 ) (3,023 ) (1,346 )
Deferred revenue (28 ) 530 313 1,122
Net cash provided by (used 6,339 3,683 (649 ) 7,911
in) operating activities
Cash flows from investing
activities:
Net purchases of
available-for-sale (12,003 ) - (56,649 ) -
investments
Maturities/sales of
available-for-sale 17,986 - 22,980 -
investments
Net purchases of - (28,651 ) - (36,541 )
held-to-maturity investments
Maturities of 3,938 1,477 40,078 6,435
held-to-maturity investments
Purchase of property and (3,502 ) (852 ) (8,618 ) (2,747 )
equipment
Acquisition activity - (93 ) - (505 )
Proceeds from sale of assets - 20 - 20
Acquired technology rights - (234 ) (21 ) (1,216 )
Net cash provided by (used 6,419 (28,333 ) (2,230 ) (34,554 )
in) investing activities
Cash flows from financing
activities:
Proceeds from debt - - 454 -
Payments on debt - - (440 ) (134 )
Proceeds from secondary
offering, net of offering - (104 ) - 74,675
costs
Proceeds from issuance of 77 3,668 362 6,438
common stock
Net cash provided by 77 3,564 376 80,979
financing activities
Effect of foreign currency (246 ) 25 (376 ) 49
exchange rate on cash
Change in cash and cash 12,589 (21,061 ) (2,879 ) 54,385
equivalents
Cash and cash equivalents, 66,151 102,679 81,619 27,233
beginning of period
Cash and cash equivalents, $ 78,740 $ 81,618 $ 78,740 $ 81,618
end of period
Source: Luminex Corporation
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