AUSTIN, Texas, July 28, 2016 /PRNewswire/ -- Luminex
Corporation (NASDAQ:LMNX) today announced financial results for the
second quarter ended June 30, 2016.
Financial and operating highlights for the quarter include
the following:
- Consolidated second quarter revenue of $64.2 million, a 9% increase compared to the
second quarter of 2015.
- GAAP net income for the second quarter was $5.7 million, or $0.13 per diluted share. Non-GAAP net income for
the second quarter was $14.1 million,
or $0.33 per diluted share (see
Non-GAAP reconciliation).
- On June 30, we completed the
acquisition on Nanosphere, Inc., a leading player in microbiology
lab testing, in an all cash deal valued at approximately
$92 million.
- On July 6, we received FDA
clearance and CE-IVD Mark for the ARIES M1 system, a fully
integrated sample to answer molecular testing platform designed for
lower throughput clinical labs.
"Another record quarterly revenue result, driven by a strong
performance in our partner business, along with healthy gross
margins and overall profitability, reflect the strength of our
business and our ability to execute well," said Homi Shamir, President and Chief Executive
Officer of Luminex. "Clearly, we are excited about the addition of
Nanosphere. The excellent strategic fit and high growth potential
will reward customers and shareholders alike. Luminex's combined
salesforce is now positioned to expand and enhance our market
leadership by providing customers with a complete combination of
low and high plex solutions plus a sample to answer capability. In
summary, we have made excellent progress so far this year and
believe we are well positioned to achieve our goals of accelerating
revenue, profitability and cash flow over the next few years."
REVENUE
SUMMARY
|
(in thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2016
|
|
2015
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
8,993
|
|
$
6,543
|
|
$
2,450
|
|
37%
|
Consumable
sales
|
13,334
|
|
11,878
|
|
1,456
|
|
12%
|
Royalty
revenue
|
11,352
|
|
11,073
|
|
279
|
|
3%
|
Assay
revenue
|
25,885
|
|
24,238
|
|
1,647
|
|
7%
|
All other
revenue
|
4,602
|
|
5,185
|
|
(583)
|
|
-11%
|
|
$
64,166
|
|
$
58,917
|
|
$
5,249
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
2016
|
|
2015
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
17,311
|
|
$
12,507
|
|
$
4,804
|
|
38%
|
Consumable
sales
|
25,184
|
|
21,774
|
|
3,410
|
|
16%
|
Royalty
revenue
|
22,820
|
|
21,775
|
|
1,045
|
|
5%
|
Assay
revenue
|
52,924
|
|
49,684
|
|
3,240
|
|
7%
|
All other
revenue
|
8,908
|
|
10,918
|
|
(2,010)
|
|
-18%
|
|
$
127,147
|
|
$
116,658
|
|
$
10,489
|
|
9%
|
Additional Highlights:
- Infectious disease assay sales were approximately 66% of total
assay sales for the second quarter and genetic testing assays were
34%.
- 277 multiplexing analyzers were shipped during the quarter,
included in this figure is a combination of MAGPIX®
systems, LX systems, and FLEXMAP 3D® systems.
FINANCIAL OUTLOOK AND GUIDANCE
The Company raises its 2016 annual revenue guidance to a range
of between $261 million and $269
million. This revised full year revenue guidance factors in
a contribution from Nanosphere of between $13 million and $16 million in the second half of
2016. The Company currently anticipates third quarter 2016 revenue
to be between $67 million and $70
million. This third quarter guidance incorporates a
contribution of approximately 10% of revenue from Nanosphere.
CONFERENCE CALL
Management will host a conference call at 7:30 a.m. CDT / 8:30 a.m.
EDT, Friday, July 29, 2016 to
discuss the operating highlights and financial results for the
second quarter ended June 30, 2016.
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, 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' 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.
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
81,718
|
|
$
128,546
|
Short-term
investments
|
-
|
|
11,988
|
Accounts receivable,
net
|
26,971
|
|
28,853
|
Inventories,
net
|
41,517
|
|
31,252
|
Prepaids and
other
|
8,989
|
|
8,887
|
Total current
assets
|
159,195
|
|
209,526
|
Property and
equipment, net
|
57,695
|
|
47,796
|
Intangible assets,
net
|
83,167
|
|
52,482
|
Deferred income
taxes
|
46,606
|
|
31,821
|
Long-term
investments
|
-
|
|
7,459
|
Goodwill
|
82,729
|
|
49,619
|
Other
|
5,613
|
|
3,853
|
Total
assets
|
$
435,005
|
|
$
402,556
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
11,276
|
|
$
7,868
|
Accrued
liabilities
|
16,622
|
|
15,152
|
Deferred
revenue
|
5,355
|
|
4,212
|
Total current
liabilities
|
33,253
|
|
27,232
|
Deferred
revenue
|
1,964
|
|
2,064
|
Other
|
4,830
|
|
4,724
|
Total
liabilities
|
40,047
|
|
34,020
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
43
|
|
42
|
Additional paid-in
capital
|
326,531
|
|
321,657
|
Accumulated other
comprehensive loss
|
(1,079)
|
|
(1,296)
|
Retained
earnings
|
69,463
|
|
48,133
|
Total stockholders'
equity
|
394,958
|
|
368,536
|
Total liabilities and
stockholders' equity
|
$
435,005
|
|
$
402,556
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
64,166
|
|
$
58,917
|
|
$
127,147
|
|
$
116,658
|
Cost of
revenue
|
|
19,245
|
|
15,647
|
|
37,420
|
|
33,169
|
Gross
profit
|
|
44,921
|
|
43,270
|
|
89,727
|
|
83,489
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
11,543
|
|
11,510
|
|
22,562
|
|
21,655
|
Selling, general and
administrative
|
|
24,190
|
|
21,025
|
|
44,549
|
|
40,504
|
Amortization of
acquired intangible assets
|
|
1,688
|
|
776
|
|
3,315
|
|
1,678
|
Restructuring
costs
|
|
-
|
|
-
|
|
|
|
|
Total operating
expenses
|
|
37,421
|
|
33,311
|
|
70,426
|
|
63,837
|
Income from
operations
|
|
7,500
|
|
9,959
|
|
19,301
|
|
19,652
|
Other income,
net
|
|
(1,446)
|
|
57
|
|
(1,425)
|
|
951
|
Settlement of
litigation
|
|
-
|
|
(7,100)
|
|
-
|
|
(7,300)
|
Income before income
taxes
|
|
6,054
|
|
2,916
|
|
17,876
|
|
13,303
|
Income tax
expense
|
|
(401)
|
|
(287)
|
|
(3,453)
|
|
(3,221)
|
Net income
|
|
$
5,653
|
|
$
2,629
|
|
$
14,423
|
|
$
10,082
|
Net income per share,
basic
|
|
$
0.13
|
|
$
0.06
|
|
$
0.34
|
|
$
0.24
|
Shares used in
computing net income per share, basic
|
|
42,534
|
|
42,093
|
|
42,440
|
|
41,984
|
Net income per share,
diluted
|
|
$
0.13
|
|
$
0.06
|
|
$
0.34
|
|
$
0.24
|
Shares used in
computing net income per share, diluted
|
|
42,575
|
|
42,290
|
|
42,440
|
|
42,146
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
5,653
|
|
$
2,629
|
|
$
14,423
|
|
$
10,082
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,276
|
|
3,124
|
|
8,488
|
|
6,322
|
Stock-based
compensation
|
|
3,475
|
|
3,090
|
|
4,655
|
|
4,669
|
Deferred income tax
expense
|
|
(395)
|
|
5,154
|
|
2,931
|
|
6,031
|
Excess income tax
(benefit) expense from employee stock-based awards
|
|
-
|
|
991
|
|
-
|
|
991
|
Loss (gain) on sale
or disposal of assets
|
|
4
|
|
212
|
|
41
|
|
(681)
|
Other
|
|
(17)
|
|
50
|
|
(71)
|
|
(103)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
7,221
|
|
2,140
|
|
6,673
|
|
6,086
|
Inventories,
net
|
|
(4,142)
|
|
1,122
|
|
(4,040)
|
|
4,050
|
Other
assets
|
|
508
|
|
(2,717)
|
|
672
|
|
(2,393)
|
Accounts
payable
|
|
3,737
|
|
(2,932)
|
|
2,724
|
|
(3,774)
|
Accrued
liabilities
|
|
1,098
|
|
8,106
|
|
(6,174)
|
|
1,967
|
Deferred
revenue
|
|
(209)
|
|
(383)
|
|
621
|
|
(176)
|
Net cash provided by
operating activities
|
|
21,209
|
|
20,586
|
|
30,943
|
|
33,071
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Sales and maturities
of available-for-sale securities
|
|
19,491
|
|
-
|
|
19,491
|
|
-
|
Purchase of property
and equipment
|
|
(2,871)
|
|
(3,670)
|
|
(5,719)
|
|
(12,568)
|
Proceeds from sale of
assets
|
|
3
|
|
-
|
|
3
|
|
893
|
Business acquisition
consideration, net of cash acquired
|
|
(66,902)
|
|
-
|
|
(66,902)
|
|
-
|
Acquired technology
rights
|
|
-
|
|
(25)
|
|
(200)
|
|
(202)
|
Net cash used in
investing activities
|
|
(50,279)
|
|
(3,695)
|
|
(53,327)
|
|
(11,877)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payments on
debt
|
|
(25,000)
|
|
-
|
|
(25,000)
|
|
-
|
Proceeds from
employee stock plans and issuance of common stock
|
|
1,406
|
|
308
|
|
1,762
|
|
713
|
Shares surrendered
for tax withholding
|
|
(35)
|
|
(29)
|
|
(1,484)
|
|
(1,579)
|
Excess income tax
(benefit) expense from employee stock-based awards
|
|
-
|
|
(991)
|
|
-
|
|
(991)
|
Net cash used in
financing activities
|
|
(23,629)
|
|
(712)
|
|
(24,722)
|
|
(1,857)
|
Effect of foreign
currency exchange rate on cash
|
|
115
|
|
(22)
|
|
278
|
|
33
|
Change in cash and
cash equivalents
|
|
(52,584)
|
|
16,157
|
|
(46,828)
|
|
19,370
|
Cash and cash
equivalents, beginning of period
|
|
134,302
|
|
94,907
|
|
128,546
|
|
91,694
|
Cash and cash
equivalents, end of period
|
|
$
81,718
|
|
$
111,064
|
|
$
81,718
|
|
$
111,064
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
7,500
|
|
$
9,959
|
|
$ 19,301
|
|
$ 19,652
|
Stock-based
compensation
|
|
3,475
|
|
3,090
|
|
4,655
|
|
4,669
|
Amortization of
acquired intangible assets
|
|
1,688
|
|
776
|
|
3,315
|
|
1,678
|
Costs associated with
legal proceedings
|
|
-
|
|
183
|
|
-
|
|
620
|
Acquisition
costs
|
|
2,008
|
|
-
|
|
2,008
|
|
-
|
Severance
costs
|
|
160
|
|
157
|
|
814
|
|
194
|
Adjusted income from
operations
|
|
$ 14,831
|
|
$ 14,165
|
|
$ 30,093
|
|
$ 26,813
|
Other income,
net
|
|
(1,446)
|
|
57
|
|
(1,425)
|
|
951
|
Gain on sale of cost
method equity investment
|
|
-
|
|
-
|
|
-
|
|
(892)
|
Acquisition
costs
|
|
1,500
|
|
-
|
|
1,500
|
|
-
|
Income tax
expense
|
|
(401)
|
|
(287)
|
|
(3,453)
|
|
(3,221)
|
Income tax effect of
above adjusting items
|
|
(363)
|
|
(2,343)
|
|
(416)
|
|
(2,473)
|
Adjusted net
income
|
|
$ 14,121
|
|
$ 11,592
|
|
$ 26,299
|
|
$ 21,178
|
Adjusted net income
per share, basic
|
|
$
0.33
|
|
$
0.28
|
|
$
0.62
|
|
$
0.50
|
Shares used in
computing adjusted net income per share, basic
|
|
42,534
|
|
42,093
|
|
42,440
|
|
41,984
|
Adjusted net income
per share, diluted
|
|
$
0.33
|
|
$
0.27
|
|
$
0.62
|
|
$
0.50
|
Shares used in
computing adjusted net income per share, diluted
|
|
42,575
|
|
42,290
|
|
42,440
|
|
42,146
|
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.
Contacts:
|
Harriss T.
Currie
|
Matthew Scalo
|
|
Sr. Vice President,
Finance and Chief Financial Officer
|
Sr. Director, Investor
Relations
|
|
512-219-8020
|
512-219-8020
|
|
hcurrie@luminexcorp.com
|
mscalo@luminexcorp.com
|
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SOURCE Luminex Corporation