Luminex Corporation Reports Second Quarter 2011 Results

AUSTIN, Texas, Aug. 8, 2011 /PRNewswire/ -- Luminex Corporation (NASDAQ: LMNX) today announced financial results for the second quarter ended June 30, 2011.  Financial and operating highlights include the following:

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• Consolidated second quarter revenue was $47.6 million, a 43% increase over the second quarter of 2010
• Second quarter 2011 consumable sales of $18.4 million, a 90% increase over the second quarter of 2010
• Second quarter 2011 shipments of 248 multiplexing analyzers that included 62 MAGPIX® systems, resulting in cumulative life-to-date multiplexing analyzer shipments of 8,145, up 13% from a year ago
• Consolidated gross profit margin was 71% for the second quarter of 2011
• Operating income for the second quarter of 2011 was $8.8 million compared with operating income of $2.3 million for the same period last year
• Received CE marking for the 15-pathogen xTAG® Gastrointestinal Pathogen Panel (GPP)
• Signed a global sales and distribution agreement with Life Technologies™ Corporation (NASDAQ: LIFE) for our MAGPIX multiplexing instrument for the research market
• Completed the acquisition of privately-held EraGen® Biosciences, Inc., an innovator in molecular diagnostic testing technologies for infectious disease and genetic applications
• Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the xTAG Respiratory Viral Panel FAST (RVP FAST) in early July

"Luminex delivered another strong performance in the second quarter of 2011," said Patrick J. Balthrop, president and chief executive officer of Luminex.  "Our consumable, royalty revenue and assay categories each demonstrated excellent growth over the prior year period. Consumable revenue reached an all-time record in the second quarter, royalty revenue grew 52% while our assay group, led by our Cystic Fibrosis and Respiratory Viral Panel franchises, generated solid 24% growth. In addition, we continue to expand our installed base at a healthy rate and look forward to ramping up our MAGPIX placements." 

"During the quarter we achieved several significant milestones, including receipt of CE Mark for our novel xTAG Gastrointestinal Pathogen Panel, the acquisition of EraGen Biosciences, and the expansion of our distribution channel for MAGPIX," added Balthrop. "These accomplishments will help ensure that Luminex delivers high performance solutions to our customers and long term value for our shareholders," Balthrop concluded. 

Consolidated revenue for the second quarter of 2011 was $47.6 million, a 43% increase over consolidated revenue of $33.2 million for the second quarter of 2010.  GAAP net income for the second quarter of 2011 was $4.6 million, or $0.11 per diluted share, compared with GAAP net income of $0.9 million, or $0.02 per diluted share, for the prior year period. Included in SG&A expenses for the current quarter are approximately $1.3 million of acquisition costs related to the EraGen Biosciences transaction representing an approximate $0.03 per diluted share one time burden.  Exclusive of acquisition costs, the operating activities of EraGen incorporated in our consolidated financial results for the quarter were immaterial.

Net income for the second quarter of 2011 included non-cash charges of $3.0 million in stock compensation expense associated with ASC 718 and $2.6 million of depreciation and amortization expense.  Net income for the second quarter of 2010 included non-cash charges of $2.4 million in stock compensation expense associated with ASC 718 and $2.1 million of depreciation and amortization expense.  

FINANCIAL OUTLOOK AND GUIDANCE

The Company raises its 2011 annual revenue guidance to a range of $180 million to $185 million from $163 to $170 million.  The updated range of annual revenue is an increase of between 27 to 31 percent over reported 2010 annual revenue and includes an anticipated contribution of $5 to $7 million from EraGen Biosciences.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the second quarter ended June 30, 2011, on Monday, August 8, 2011, at 4:00 p.m. Central time/ 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.

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; expanded distribution for our MAGPIX system; including execution of our distribution relationship with Life Technologies; the development progress of our NeoPlex4 assay product; market acceptance of our RVP FAST and GPP assay products; integration of EraGen Biosciences, Inc.; the ability of our investment in current initiatives and new products to deliver high performance solutions, and drive long-term value for our shareholders; and, projected 2011 revenue. 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, 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's 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's 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'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 2011 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 has reclassified certain amounts previously classified as a component of selling, general and administrative expenses to research and development expenses to conform to the current period presentation. This reclassification was $0.6 million and $1.1 million for the three and six months ended June 30, 2010, and was not material to the Company's consolidated financial statements.

SOURCE Luminex Corporation

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