AUSTIN, Texas, Aug. 9 /PRNewswire-FirstCall/ -- Luminex Corporation
(NASDAQ:LMNX) today announced in connection with its filing of
quarterly report 10-Q, an allocation of a portion of its goodwill
balance to intangible assets associated with the purchase price
analysis related to the acquisition of Tm Bioscience completed on
March 1, 2007. As previously disclosed, Luminex recorded $65.4
million of goodwill related to the Tm Bioscience acquisition. The
initial goodwill asset was subject to adjustment upon recording of
final transaction related costs and allocation of the purchase
price based on the Company's final determination of the fair market
value of the acquired operation's assets and liabilities. Luminex
has completed a portion of its valuation analysis, and, as a
result, a portion of the goodwill balance has been allocated to the
identified intangible assets and in-process research and
development. Accordingly, financial statements for the second
quarter and six months ended June 30, 2007, previously released on
July 25, 2007, have been revised to reflect the purchase price
adjustment and write off of in-process research and development.
This modification consists of a $23.3 million allocation from
goodwill to intangible assets, with $859,000 of amortization
associated with those assets taken in the period ended June 30,
2007, and an $8.0 million allocation from goodwill to in-process
research and development, with the $8.0 million expensed in the
period ended June 30, 2007. The identified intangible assets which
constitute this modification have estimated useful lives of between
one and 15 years and will result in approximately $850,000 per
quarter of amortization expense on a go forward basis. The Company
anticipates that the remaining purchase price analysis and
allocation will be completed during the current third quarter
period. ABOUT LUMINEX CORPORATION Luminex develops, manufactures
and markets proprietary biological testing technologies with
applications throughout the life sciences industry. The Company's
xMAP(R) 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(R)
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(R)
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. 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, 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, risks
and uncertainties associated with implementing our acquisition
strategy and the ability to integrate acquired companies, including
Tm Bioscience Corporation, 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 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. Contact: Harriss T. Currie
Vice President, Finance and Chief Financial Officer 512-219-8020
LUMINEX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands) June 30, December 31, 2007 2006 -----------
-------------- (unaudited) ASSETS Current assets: Cash and cash
equivalents $11,836 $27,414 Short-term investments 3,314 10,956
Accounts receivable, net 11,614 8,237 Inventory, net 7,100 4,571
Other 1,874 1,917 ------ ------ Total current assets 35,738 53,095
Property and equipment, net 10,189 4,985 Intangible assets, net
24,583 - Long-term investments 5,311 7,346 Goodwill 34,132 - Other
1,705 1,270 ------ ------ Total assets $111,658 $66,696 ========
======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $3,687 $3,255 Accrued liabilities 8,219 2,905
Deferred revenue and other 3,073 2,756 ------ ------ Total current
liabilities 14,979 8,916 Long-term debt 3,825 - Deferred revenue
and other 3,814 3,621 ------ ------ Total liabilities 22,618 12,537
------ ------ Stockholders' equity: Common stock 35 32 Additional
paid-in capital 186,059 139,116 Accumulated other comprehensive
gain (80) 65 Accumulated deficit (96,974) (85,054) ------- -------
Total stockholders' equity 89,040 54,159 ------ ------ Total
liabilities and stockholders' equity $111,658 $66,696 ========
======= LUMINEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except per share amounts) Three Months
Ended Six Months Ended June 30, June 30, ------------------
---------------- 2007 2006 2007 2006 -------- -------- -------
------- (unaudited) (unaudited) Revenue $17,548 $13,268 $34,155
$26,265 Cost of revenue 7,211 5,608 13,388 10,346 ------ ------
------- ------- Gross profit 10,337 7,660 20,767 15,919 Operating
expenses: Research and development 3,865 1,790 6,571 3,987 Selling,
general and administrative 10,716 6,137 18,812 12,086 In-process
research and development expense 8,000 - 8,000 - ------ ------
------- ------- Total operating expenses 22,581 7,927 33,383 16,073
------ ------ ------- ------- Loss from operations (12,244) (267)
(12,616) (154) Interest expense from long-term debt (334) - (419) -
Other income, net 421 551 1,028 967 Income taxes 101 (13) 87 (16)
------ ------- ------- -------- Net income (loss) $(12,056) $271
$(11,920) $797 ========= ======= ========= ====== Net income (loss)
per share, basic $(0.34) $0.01 $(0.36) $0.03 ========= =======
======== ====== Shares used in computing net income (loss) per
share, basic 35,006 31,386 33,504 31,288 Net income (loss) per
share, diluted $(0.34) $0.01 $(0.36) $0.02 ========= =======
======== ====== Shares used in computing net income (loss) per
share, diluted 35,006 32,876 33,504 32,606 LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three Months Ended Six Months Ended June 30, June 30,
------------------ ---------------- 2007 2006 2007 2006 --------
-------- ------- ------- (unaudited) (unaudited) Operating
activities: Net income (loss) $(12,056) $271 $(11,920) $797
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: Depreciation and amortization 1,837 384 2,377
748 In-process research and development expense 8,000 - 8,000 -
Stock-based compensation and other 1,593 1,259 3,100 2,424 (Gain)
loss on disposal of assets 34 (2) 88 25 Other 4 (7) 4 (9) Changes
in operating assets and liabilities: Accounts receivable, net (580)
(3,136) (1,657) (1,476) Inventory, net (689) 460 (721) 138 Prepaids
and other (460) (399) (120) 29 Accounts payable (2,263) (254)
(3,817) (1,506) Accrued liabilities 772 335 (2,353) (835) Deferred
revenue (217) 5 143 (225) ------- ------- ------- ------- Net cash
provided by (used in) operating activities (4,025) (1,084) (6,876)
110 ------- ------- ------- ------- Investing activities: Net
purchases of held-to-maturity investments 2,185 955 9,710 (1,045)
Purchase of property and equipment (1,724) (643) (3,329) (1,528)
Acquisition of business, net of cash acquired (744) - (2,735) -
Acquired technology rights (265) - (265) - Proceeds from sale of
assets 30 2 30 7 ------ ------ ------ ------ Net cash provided by
(used in) investing activities (518) 314 3,411 (2,566) -------
------ ------- ------- Financing activities: Payments on debt (117)
- (12,345) - Proceeds from issuance of common stock 159 358 174
1,434 Other 7 - 7 - ------ ------ ------ ------ Net cash provided
by (used in) financing activities 49 358 (12,164) 1,434 ------
------ ------- ------ Effect of foreign currency exchange rate on
cash 135 16 51 22 Change in cash and cash equivalents (4,359) (396)
(15,578) (1,000) Cash and cash equivalents, beginning of period
16,195 24,602 27,414 25,206 ------ ------- ------- ------- Cash and
cash equivalents, end of period $11,836 $24,206 $11,836 $24,206
======= ======= ======== ======= Supplemental disclosure of
cashflow information: Interest and penalties paid $254 $- $1,335 $-
Supplemental disclosure of non-cash effect of acquisitions:
Purchase price $(744) $- $(47,745) $- Common stock issued - -
41,755 - Conversion of Tm options and warrants - - 2,315 - Cash
acquired - - 940 - ------- ------- ------- ------- Acquisition, net
of cash acquired $(744) $- $(2,735) $- ======= ======= ========
======= DATASOURCE: Luminex Corporation CONTACT: Harriss T. Currie,
Vice President, Finance and Chief Financial Officer, of Luminex
Corporation, +1-512-219-8020, Web site: http://www.luminexcorp.com/
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