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 $0.06 per share.
"Our diversified business model generated excellent financial
results in the first quarter. Our partner business, which we now
call the Licensed Technologies Group, grew 10% year over year, and
our portfolio of automated molecular sample to answer solutions
grew more than 65% on a pro-forma basis. We are especially pleased
that corporate gross margins rebounded from the end of 2016
due to improving margins amongst our sample to answer molecular
revenues and overall product mix," said Homi Shamir, President and Chief Executive
Officer of Luminex. "We are raising our 2017 revenue guidance to
reflect these excellent results and the improved outlook for both
our CF and automated system product lines. In addition, we are
ahead of plan in realizing synergies from the Nanosphere
acquisition and currently believe it will be accretive earlier than
originally anticipated. We also initiated a dividend this quarter,
as part of our capital allocation strategy, reflecting the
confidence we have in our ability to execute on our growth
initiatives while continuing to generate strong future cash flows.
We are very pleased with the Company's performance year-to-date and
remain laser focused on delivering shareholder value."
REVENUE
SUMMARY
(in thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
Variance
|
|
2017
|
|
2016
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
8,501
|
|
$
8,318
|
|
$
183
|
|
2%
|
Consumable
sales
|
15,385
|
|
11,850
|
|
3,535
|
|
30%
|
Royalty
revenue
|
11,561
|
|
11,468
|
|
93
|
|
1%
|
Assay
revenue
|
37,407
|
|
27,039
|
|
10,368
|
|
38%
|
All other
revenue
|
4,925
|
|
4,306
|
|
619
|
|
14%
|
|
$
77,779
|
|
$
62,981
|
|
$
14,798
|
|
23%
|
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.
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
86,466
|
|
$
93,452
|
Accounts receivable,
net
|
37,038
|
|
32,365
|
Inventories,
net
|
43,673
|
|
40,775
|
Prepaids and
other
|
6,304
|
|
7,145
|
Total current
assets
|
173,481
|
|
173,737
|
Property and
equipment, net
|
58,259
|
|
57,375
|
Intangible assets,
net
|
82,485
|
|
84,841
|
Deferred income
taxes
|
39,669
|
|
42,497
|
Goodwill
|
85,481
|
|
85,481
|
Other
|
7,237
|
|
6,785
|
Total
assets
|
$
446,612
|
|
$
450,716
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
9,095
|
|
$
12,276
|
Accrued
liabilities
|
15,536
|
|
22,804
|
Deferred
revenue
|
5,317
|
|
5,120
|
Total current
liabilities
|
29,948
|
|
40,200
|
Deferred
revenue
|
1,882
|
|
1,875
|
Other
|
4,914
|
|
4,962
|
Total
liabilities
|
36,744
|
|
47,037
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
43
|
|
43
|
Additional paid-in
capital
|
335,786
|
|
336,430
|
Accumulated other
comprehensive loss
|
(1,429)
|
|
(1,692)
|
Retained
earnings
|
75,468
|
|
68,898
|
Total stockholders'
equity
|
409,868
|
|
403,679
|
Total liabilities and
stockholders' equity
|
$
446,612
|
|
$
450,716
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
Revenue
|
$
77,779
|
|
$
62,981
|
Cost of
revenue
|
24,993
|
|
18,175
|
Gross
profit
|
52,786
|
|
44,806
|
Operating
expenses:
|
|
|
|
Research and
development
|
12,420
|
|
11,019
|
Selling, general and
administrative
|
23,998
|
|
20,359
|
Amortization of
acquired intangible assets
|
2,356
|
|
1,627
|
Total operating
expenses
|
38,774
|
|
33,005
|
Income from
operations
|
14,012
|
|
11,801
|
Other income,
net
|
(6)
|
|
21
|
Income before income
taxes
|
14,006
|
|
11,822
|
Income tax
expense
|
(4,775)
|
|
(3,052)
|
Net income
|
$
9,231
|
|
$
8,770
|
|
|
|
|
Net income
attributable to common stock holders
|
|
|
|
Basic
|
$
9,058
|
|
$
8,770
|
Diluted
|
$
9,058
|
|
$
8,770
|
Net income per share
attributable to common stock holders
|
|
|
Basic
|
$
0.21
|
|
$
0.21
|
Diluted
|
$
0.21
|
|
$
0.21
|
Weighted-average
shares used in computing net income per share
|
|
|
Basic
|
42,898
|
|
42,346
|
Diluted
|
42,989
|
|
42,443
|
|
|
|
|
Dividends declared
per share
|
$
0.06
|
|
-
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
9,231
|
|
$
8,770
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
5,619
|
|
4,212
|
Stock-based
compensation
|
722
|
|
1,180
|
Deferred income tax
expense
|
2,935
|
|
3,326
|
Loss (gain) on sale
or disposal of assets
|
-
|
|
37
|
Other
|
444
|
|
(54)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(4,669)
|
|
(548)
|
Inventories,
net
|
(2,887)
|
|
102
|
Other
assets
|
695
|
|
164
|
Accounts
payable
|
(3,706)
|
|
(1,013)
|
Accrued
liabilities
|
(10,072)
|
|
(8,721)
|
Deferred
revenue
|
197
|
|
830
|
Net cash provided by
operating activities
|
(1,491)
|
|
8,285
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
(3,433)
|
|
(2,848)
|
Purchase of cost
method investment
|
(500)
|
|
-
|
Acquired technology
rights
|
-
|
|
(200)
|
Net cash used in
investing activities
|
(3,933)
|
|
(3,048)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
employee stock plans and issuance of common stock
|
734
|
|
356
|
Shares surrendered
for tax withholding
|
(2,056)
|
|
-
|
Net cash provided by
(used in) financing activities
|
(1,322)
|
|
356
|
Effect of foreign
currency exchange rate on cash
|
(240)
|
|
163
|
Change in cash and
cash equivalents
|
(6,986)
|
|
5,756
|
Cash and cash
equivalents, beginning of period
|
93,452
|
|
128,546
|
Cash and cash
equivalents, end of period
|
$
86,466
|
|
$
134,302
|
LUMINEX
CORPORATION
|
NON-GAAP
RECONCILIATION
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
Income from
operations
|
$
14,012
|
|
$
11,801
|
Stock-based
compensation
|
722
|
|
1,180
|
Amortization of
acquired intangible assets
|
2,356
|
|
1,627
|
Severance
costs
|
|
|
654
|
Adjusted income from
operations
|
$
17,090
|
|
$
15,262
|
Other income,
net
|
(6)
|
|
21
|
Income tax
expense
|
(4,775)
|
|
(3,052)
|
Income tax effect of
above adjusting items
|
(146)
|
|
(53)
|
Adjusted net
income
|
$
12,163
|
|
$
12,178
|
Adjusted net income
per share, basic
|
$
0.28
|
|
$
0.29
|
Shares used in
computing adjusted net income per share, basic
|
42,898
|
|
42,346
|
Adjusted net income
per share, diluted
|
$
0.28
|
|
$
0.29
|
Shares used in
computing adjusted net income per share, diluted
|
42,989
|
|
42,443
|
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.
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