Luminex Corporation Reports Fourth Quarter And Full Year 2015 Results

AUSTIN, Texas, Feb. 1, 2016 /PRNewswire/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the fourth quarter and year ended December 31, 2015.  Financial and operating highlights for the fourth quarter and full year 2015 include the following:

• Consolidated fourth quarter revenue of $60.4 million, a 4 percent increase compared to the fourth quarter of 2014; full-year 2015 revenue was $237.7 million, a 5 percent increase over 2014.
• Fourth quarter assay revenue of $26.9 million, a 12 percent increase over the fourth quarter of 2014; full-year 2015 assay revenue of $101.2 million, a 15 percent increase over 2014.
• Fourth quarter system revenue of $8.5 million, a 24 percent increase over the fourth quarter of 2014; full-year 2015 system revenue of $30.7 million, a 5 percent increase over 2014.
• GAAP net income for the fourth quarter and full-year of 2015 was $20.4 million and $36.9 million, or $0.47 and $0.86 per diluted share, respectively. Non-GAAP net income for the fourth quarter and full-year 2015 was $24.1 million and $54.5 million, or $0.56 and $1.28 per diluted share, respectively (see Non-GAAP reconciliation).
• Expanded full-year 2015 operating margins to 16% from 12% in 2014 as a result of both increased revenues and significant expense control.
• Cash and short and long-term investments at quarter's end totaled approximately $148 million, an increase of approximately $40 million compared with year-end 2014.
• In December, Luminex announced the Company had received FDA Clearance for NxTAG® Respiratory Pathogen Panel.

"In 2015, Luminex achieved all of its major product development and regulatory milestones, including FDA clearances of the NxTAG RPP assay, the ARIES sample to answer molecular system, and the ARIES HSV1&2 assay, as well as our initial goal of placing 30 ARIES systems. We generated solid financial results for the year, achieving record revenue of $238 million, gross margins of 71% and generated over $40 million of cash flow," said Homi Shamir, President and Chief Executive Officer of Luminex. "Moving forward, we will continue to leverage our balanced business model and strong financial position to accelerate future revenue and earnings growth.  In addition, we are focused on executing a successful market introduction of ARIES, which we anticipate will accelerate over time with the expansion of available ASR products and FDA clearance for additional assays. In addition, we continue to make good progress with our next-generation ARIES chemistry and expect to have a first assay enter clinical trials in the second half of 2017. With exciting new products on the market and strong cash flow, we are excited to build on our solid performance in 2015. We look forward to another successful year ahead."

 Additional Financial Highlights:

• Infectious disease assay sales were approximately 69 percent of total assay sales for the fourth quarter and genetic testing assays were 31 percent.
• Royalty revenues reflect total royalty-bearing end-user sales for the quarter of $9.5 million.
• Consolidated gross profit margin was 72 percent for the fourth quarter, and 71 percent for the full year 2015.
• 263 multiplexing analyzers were shipped during the quarter, which included 78 MAGPIX^® systems, 137 LX systems, and 48 FLEXMAP 3D^® systems.
• Days sales outstanding (DSO) was 44 days at quarter-end.

FINANCIAL OUTLOOK AND GUIDANCE

The Company intends to provide annual revenue guidance, to be updated, as appropriate, at each quarterly reporting period. Guidance for fiscal 2016 is as follows:

• The Company expects fiscal 2016 revenue to be between $245 million and $255 million.
• The Company anticipates first quarter 2016 revenue to be between $60 million and $62 million.

CONFERENCE CALL

Management will host a conference call at 3:30 p.m. CST/4:30 p.m. EST, Monday, February 1, 2016 to discuss the operating highlights and financial results for the fourth quarter and year ended December 31, 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'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; 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 2016 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, market demand and acceptance of Luminex' products and technology in development, including ARIES and NxTAG products, 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'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 2016 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.

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 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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