Luminex Corporation Reports Record First Quarter 2017 Financial Results; Raises 2017 Financial Guidance

AUSTIN, Texas, May 1, 2017 /PRNewswire/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the first quarter of 2017.  Financial and operating highlights for the quarter include the following:

• Consolidated revenue of $77.8 million, an increase of 23% compared to the first quarter 2016. 
• Total Verigene related revenue of $10.5 million; growth of 59% over its first quarter 2016.
• Corporate gross margin increased to 68% from 61% in the fourth quarter, 2016 primarily due to overall product mix and improving gross margins on our automated sample to answer molecular products.
• GAAP net income of $9.2 million, or $0.21 per diluted share.  Non-GAAP net income of $12.2 million, or $0.28 per diluted share (see Non-GAAP reconciliation).
• Extended LabCorp commitment to buy CF products through at least the end of 2017.
• Initiated a quarterly cash dividend of $0.06 per share.

"Our diversified business model generated excellent financial results in the first quarter. Our partner business, which we now call the Licensed Technologies Group, grew 10% year over year, and our portfolio of automated molecular sample to answer solutions grew more than 65% on a pro-forma basis. We are especially pleased that corporate gross margins rebounded from the end of 2016 due to improving margins amongst our sample to answer molecular revenues and overall product mix," said Homi Shamir, President and Chief Executive Officer of Luminex. "We are raising our 2017 revenue guidance to reflect these excellent results and the improved outlook for both our CF and automated system product lines. In addition, we are ahead of plan in realizing synergies from the Nanosphere acquisition and currently believe it will be accretive earlier than originally anticipated. We also initiated a dividend this quarter, as part of our capital allocation strategy, reflecting the confidence we have in our ability to execute on our growth initiatives while continuing to generate strong future cash flows. We are very pleased with the Company's performance year-to-date and remain laser focused on delivering shareholder value."

Additional Highlights:

• Infectious disease assay sales were approximately 82% of total first quarter assay revenues and genetic testing assays were 18%.
• 242 multiplexing analyzers were shipped during the quarter; included in this figure is a combination of MAGPIX^® systems, LX systems, FLEXMAP 3D^® systems.

FINANCIAL OUTLOOK AND GUIDANCE

The Company provides annual revenue guidance, updated, as appropriate, at each quarterly reporting period. Luminex raises its 2017 annual revenue guidance range to between $300 million and $310 million from between $295 million and $305 million. The company expects second quarter 2017 revenue to be between $74 million and $76 million.

CONFERENCE CALL

Management will host a conference call at 3:30 p.m. CDT / 4:30 p.m. EDT, Monday, May 1, 2017 to discuss the operating highlights and financial results for the first quarter 2017 ended March 31, 2017. 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 expected revenue and cost savings, projected 2017 performance, including revenue guidance, including the revenue contribution from our recently completed acquisition of Nanosphere, Inc. 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's products and technology in development, including ARIES^®, Verigene^® and NxTAG^® products, dependence on strategic partners for development, commercialization and distribution of products, 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 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's partners and end users and their ability to finance purchases of Luminex's 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's assay products, Luminex's ability to obtain and enforce intellectual property protections on Luminex's products and technologies, risks and uncertainties associated with implementing Luminex's acquisition strategy, including Luminex's ability to obtain financing, Luminex's ability to integrate acquired companies or selected assets into Luminex's consolidated business operations, and the ability to recognize the benefits of Luminex's acquisitions, reliance on third party distributors for distribution of specific Luminex-developed and manufactured assay products, Luminex's ability to scale manufacturing operations and manage operating expenses, gross margins and inventory levels, 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, competition and competitive technologies utilized by Luminex's competitors, Luminex's ability to successfully launch new products in a timely manner, 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, and 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; 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 2017 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 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.

SOURCE Luminex Corporation

Related Links

http://www.luminexcorp.com