Navigation Links
Luminex Corporation Reports Third Quarter 2007 Results
Date:10/24/2007

AUSTIN, Texas, Oct. 24 /PRNewswire-FirstCall/ -- Luminex Corporation (Nasdaq: LMNX) today announced financial results for the third quarter ended September 30, 2007. Financial and operating highlights include the following:

-- Consolidated total revenue of $19.4 million, a 55 percent increase

year-over-year

-- System shipments again surpass 200 for the quarter, for an installed

base total in excess of 4,700, up 20 percent from a year ago

-- Consumables and royalty revenue up 64 and 22 percent, respectively,

from the prior year period. On a pro forma basis, adjusting for the

acquisition of Tm Bioscience, royalties grew by 35% over the third

quarter of 2006

-- Consolidated gross profit margin of 62 percent

-- Fifth Annual Planet xMAP Europe, the Company's European end-user

symposium in Amsterdam, attracted over 400 participants

Subsequent to the acquisition of Luminex Molecular Diagnostics (formerly Tm Bioscience) or LMD on March 1, 2007, Luminex has reported the results of the following segments in addition to the consolidated results: Technology Group and Assay Group. The Technology Group, which is our core business, consists of system sales to partners, raw bead sales, royalties, service and support of the technology and other miscellaneous items. The Assay Group consists of the Luminex Bioscience Group, or LBG, and LMD. This segment is primarily involved in the development and sale of assays on xMAP technology for use on the Company's installed base of systems.

Consolidated revenue for the third quarter of 2007 was $19.4 million, a 55 percent increase over third quarter 2006 revenues of $12.5 million. Net loss for the thiory, net (503) (318) (1,223) (180)

Prepaids and other 361 (113) 242 (84)

Accounts payable (342) (27) (4,159) (1,532)

Accrued liabilities 536 457 (1,817) (378)

Deferred revenue (545) (150) (402) (374)

-------- -------- ------- --------

Net cash provided by (used in)

operating activities (874) 1,490 (7,750) 1,600

-------- -------- ------- --------

Investing activities:

Net purchases of held-to-maturity

investments 33 (1,364) 9,743 (2,409)

Purchase of property and

equipment (2,002) (442) (5,331) (1,970)

Acquisition of business, net of

cash acquired 50 - (2,686) -

Acquired technology

rights - (25) (265) (25)

Acquired intangible

assets (5) - (5) -

Proceeds from sale of

assets - 17 30 24

Net cash provided by (used in)

investing activities (1,924) (1,814) 1,486 (4,380)

-------- -------- ------- --------

Financing activities:

Payments on debt (4) - (12,349) -

Proceeds from issuance of common

stock 459 1,000 632 2,434

Other 4 - 13 -

Net cash provided by (used in)

financing activities 459 1,000 (11,704) 2,434

-------- -------- ------- --------

Effect of foreign currency exchange

rate on cash 228 4 279 26

Change in cash and cash equivalents (2,111) 680 (17,689) (320)

Cash and cash equivalents, beginning

of period 11,836 24,206 27,414 25,206

-------- -------- ------- --------

Cash and cash equivalents, end of

period $9,725 $24,886 $9,725 $24,886

======== ======== ======= ========

Supplemental disclosure of cashflow

information:

Interest and penalties paid $1 $- $1,336 $-

Supplemental disclosure of non-cash

effect of acquisitions:

Purchase price $50 $- $(47,696) $-

Common stock issued - - 41,755 -

Conversion of Tm options and

warrants - - 2,315 -

Cash acquired - - 940 -

-------- -------- ------- --------

Acquisition, net of cash acquired $50 $- $(2,686) $-

-------- -------- ------- --------

rd quarter of 2007 was $3.3 million, or ($0.09) per share, which was primarily attributable to the dilutive effect of the acquisition of LMD as compared with net income of $111,000, or $0.00 per share, for the same period last year. Beginning on March 1, 2007, Luminex's consolidated results included the results of operations of our acquired subsidiary LMD. For the third quarter of 2007, LMD contributed approximately 75% of our Assay Group net loss of $3.8 million, after the elimination of inter-segment revenue and expense.

As a reminder, Assay Group results for 2006 in the table below consisted of LBG only. LBG introduced its first two products in late 2006.

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

(unaudited)

(in thousands)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

------- ------- ------- --------

Revenue

Technology group $ 16,769 $ 12,514 $ 47,329 $ 38,765

Assay group 3,349 - 8,549 14

Eliminations of

intersegment revenue (765) - (2,370) -

-------- ------- -------- --------

19,353 12,514 53,508 38,779

Operating income (loss)

Technology group 928 24 1,668 810

Assay group (4,470)(1) (459) (17,407)(1) (1,399)

Eliminations of

intersegment

operating income 220 - (199) -

--------- ------- -------- --------

Operating loss (3,322) (435) (15,938) (589)

(1) The operating loss for the Assay group includes the write-off of

acquired in-process research and development of $500 and $8,500 for

the three and nine months ended September 30, 2007 resepectively.

"We were very pleased with our strong revenue growth for the third quarter of 2007," said Patrick J. Balthrop, president and chief executive officer of Luminex. "Our proprietary xMAP(R) technology continues to gain momentum in the marketplace, driven by test menu expansion. Total systems placements through the first nine months of 2007 are up 20 percent from a year ago with over 4,700 Luminex systems placed. Consumables and royalty revenues were up 64 and 22 percent, respectively, over the same period a year ago and contributed to our solid gross profit margin. Royalties are one of the best indicators of acceptance and usage of our technology in the marketplace and pro forma royalty growth, which excludes Tm Bioscience submissions for all periods presented, has grown by 35% over the third quarter of 2006. We continued to demonstrate strong revenues in our assay group, reflecting solid organic growth in our partnership business as well as incremental growth in our new LMD franchise. Our investments in infrastructure and R&D are bearing fruit, and are important for our future. Although we recorded a $3.3 million net loss for the quarter, there were $3.7 million of non cash charges including acquisition related charges of $1.3 million. We are pleased with our financial performance overall, with our overall trends, and we look forward to the opportunities ahead for Luminex."

The financial condition and results of operations of the Company set forth herein reflect the Company's purchase price allocation of the acquired assets and liabilities associated with the Tm Bioscience acquisition. Previously, the Company stated these would be finalized in the third quarter; however, certain matters continue to be reviewed including, the write-off of in-process research and development and the asset allocation between identified intangible assets and goodwill, and these allocations are anticipated to be finalized during the fourth quarter.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2007, on Thursday, October 25, 2007, at 8:00 a.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 one year on the website using the 'replay' link.

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.

LUMINEX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30, December 31,

2007 2006

------------- ------------

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $9,725 $27,414

Short-term investments 3,281 10,956

Accounts receivable, net 12,355 8,237

Inventory, net 7,602 4,571

Other 1,693 1,917

------------- ------------

Total current assets 34,656 53,095

Property and equipment, net 12,335 4,985

Intangible assets, net 25,916 -

Long-term investments 5,311 7,346

Goodwill 30,755 -

Other 1,433 1,270

------------- ------------

Total assets $110,406 $66,696

============= ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $3,286 $3,255

Accrued liabilities 8,635 2,905

Deferred revenue and other 2,590 2,756

------------- ------------

Total current liabilities 14,511 8,916

Long-term debt 3,996 -

Deferred revenue and other 3,754 3,621

------------- ------------

Total liabilities 22,261 12,537

------------- ------------

Stockholders' equity:

Common stock 35 32

Additional paid-in capital 188,235 139,116

Accumulated other comprehensive

gain 165 65

Accumulated deficit (100,290) (85,054)

------------- ------------

Total stockholders' equity 88,145 54,159

------------- ------------

Total liabilities and stockholders'

equity $110,406 $66,696

------------- ------------

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

----------------- -----------------

(unaudited) (unaudited)

-------- ------- ------- --------

Revenue $19,353 $12,514 $53,508 $38,779

Cost of revenue 7,336 4,732 20,724 15,077

-------- ------- ------- --------

Gross profit 12,017 7,782 32,784 23,702

Operating expenses:

Research and development 4,464 2,348 11,035 6,335

Selling, general and

administrative 10,375 5,869 29,187 17,956

In-process research and

development expense 500 - 8,500 -

-------- ------- ------- --------

Total operating expenses 15,339 8,217 48,722 24,291

-------- ------- ------- --------

Loss from operations (3,322) (435) (15,938) (589)

Interest expense from long-term

debt (253) - (685) -

Other income, net 309 544 1,350 1,511

Income taxes (50) 2 37 (14)

-------- ------- ------- --------

Net income (loss) $(3,316) $111 $(15,236) $908

======== ======= ======= ========

Net income (loss) per share, basic $(0.09) $0.00 $(0.45) $0.03

======== ======= ======= ========

Shares used in computing net income

(loss) per share, basic 35,097 31,507 34,043 31,358

Net income (loss) per share, diluted $(0.09) $0.00 $(0.45) $0.03

======== ======= ======= ========

Shares used in computing net income

(loss) per share, diluted 35,097 33,155 34,043 32,682

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended Nine Months Ended

September 30, September 30,

------------------ -----------------

2007 2006 2007 2006

-------- -------- ------- --------

(unaudited) (unaudited)

Operating activities:

Net income (loss) $(3,316) $111 $(15,236) $908

Adjustments to reconcile net

income (loss) to net cash

provided by operating

activities:

Depreciation and amortization 1,431 339 3,809 1,086

In-process research and

development expense 500 - 8,500 -

Stock-based compensation and

other 1,744 1,433 4,843 3,857

(Gain) loss on disposal of

assets - - 88 25

Other 1 (2) 3 (12)

Changes in operating assets and

liabilities:

Accounts receivable, net (741) (240) (2,398) (1,716)

Invent
'/>"/>

SOURCE Luminex Corporation
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. Chiron Corporation Gets US Contract To Produce Bird Flu Vaccines
2. Autopsy reports could be valuable and informative
3. China reports declining number of SARS Cases
4. Russia Reports First SARS Case
5. Research reports that c-section deliveries are rising
6. Jharkhand reports 13,000 Malaria cases
7. Uganda Reports Failure To Contain Sleeping Sickness
8. WHO reports 36 million deaths world wide due to chronic diseases
9. Reports of Hantavirus infection in India raise concerns
10. Controversy Surrounding The HIV Positive Reports Of One-Year Girl In Kerala
11. China Reports Yet Another Bird Flu Case
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... , ... February 11, 2016 , ... ... for nominations seeking candidates for the Board of Commissioners. Individuals interested in volunteer ... and experience with diversity of clinical practice settings and across allied health to ...
(Date:2/11/2016)... ... February 11, 2016 , ... Greenfield Insurance Group in Orange ... assist the people of their local community. The agency pledges to select a ... Their hope is to bring awareness to important local causes with fundraising and ...
(Date:2/11/2016)... ... 11, 2016 , ... Duterte Insurance Group, serving the families ... new charity campaign to raise funds for Ronald McDonald House Charities. On behalf ... . , Ronald McDonald House (RMH) is an internationally renowned nonprofit organization which ...
(Date:2/11/2016)... ... February 11, 2016 , ... Be Well Medical Group (Be ... of Old Town at 108 South Columbus St, Suite 201, Alexandria, VA. Be Well ... medical care in the convenience of their homes, offices or at the practices’ local ...
(Date:2/11/2016)... CO. (PRWEB) , ... February 11, 2016 , ... ... people have become more actively engaged in health and wellness best practices in ... importance of riding this trend. February is American Heart Month, which acts as ...
Breaking Medicine News(10 mins):
(Date:2/11/2016)... -- AfterPill.com is reporting that this week,s Centers for Disease ... who are at risk of unintended pregnancy impacts 43 ... the risks of unprotected sex in particular.  ... the Guttmacher Institute, there are 43 million women in ... have sex without the intention of becoming pregnant.  Despite ...
(Date:2/11/2016)... 11, 2016  Proliant Biologicals is proud to announce ... (BSA) manufacturing facility.  The facility is located on the ... in Feilding. Boone , Iowa.  ... duplicate the systems in the U.S. facility, with critical ... U.S. installations.  --> Boone ...
(Date:2/11/2016)... , Feb. 11, 2016 Brain Cancer ... treatment method at West Cancer Center . ... fields to inhibit cancer cell replication causing death of ... than a decade to show a significant extension in ... (GBM) patients. Currently, West Cancer Center is the only ...
Breaking Medicine Technology: