Customer Center
Login | Register

Investor Relations

  • Banner Image

News Release

  View printer-friendly version
<< Back
Luminex Corporation Reports First Quarter 2019 Financial Results

AUSTIN, Texas, May 6, 2019 /PRNewswire/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the first quarter 2019.  Financial and operating highlights for the quarter include:

  • First quarter consolidated revenue of $82.4 million compared to the first quarter 2018 revenue of $82.7 million.
  • In the first quarter, flow cytometry contributed revenue of approximately $11.4 million, offsetting the revenue loss of LabCorp Women's Health.
  • Royalty revenue of $14.2 million grew 16% over the first quarter 2018. This reflects $149 million of royalty-bearing end user sales on Luminex technology, an increase of approximately 10% over the comparable period in 2018.
  • Sample-to-Answer revenue grew 16% over the 1st quarter of 2018 and we placed approximately 50 sample-to-answer molecular systems under contract during the first quarter of 2019. Active sample-to-answer customers approximated 625 in the quarter.
  • Gross margins of 56% in the first quarter, directly affected by the departure of LabCorp revenue coupled with the Flow Cytometry acquisition and integration.
  • First quarter GAAP net income was approximately $3.0 million, or $0.07 per diluted share, primarily driven by a discrete tax benefit of $6.6 million in the current quarter related to a tax benefit emanating from the Company's Canadian subsidiary. On a non-GAAP basis, the Company had a net loss of $3.0 million, or losses of $0.07 per diluted share (see Non-GAAP reconciliation).

"I am pleased with our first quarter results and the continued progress we are making across the company," said Nachum "Homi" Shamir, President & CEO. "I am very excited about our future. We have two more quarters to go until we emerge as a much more diversified company with increasing momentum that is past the loss of LabCorp," continued Shamir.  "During this time, we will continue to build a strong foundation through both our sample to answer portfolio and life sciences businesses.  By the end of this year, we believe Luminex will be growing at a double digit rate, have improved gross margins, and will return to consistent profitability and cash flow."

REVENUE SUMMARY

(in thousands, except percentages) 










Three Months Ended






March 31,


Variance


2019


2018


($)


(%)


(unaudited)













System sales

$15,671


$  7,931


$ 7,740


98%

Consumable sales

10,724


11,872


(1,148)


-10%

Royalty revenue

14,170


12,239


1,931


16%

Assay revenue

34,813


45,841


(11,028)


-24%

Service revenue

5,394


2,878


2,516


87%

Other revenue

1,636


1,901


(265)


-14%


$82,408


$82,662


$   (254)


0%

FINANCIAL OUTLOOK AND GUIDANCE

The Company intends to provide annual revenue guidance, to be updated, as appropriate, at each quarterly reporting period. Luminex anticipates its second quarter 2019 revenue to be between $80 million and $83 million and reaffirms its full year 2019 revenue guidance of between $337 million and $343 million.  

CONFERENCE CALL

Management will host a conference call at 3:30 p.m. CDT / 4:30 p.m. EDT, Monday, May 6, 2019 to discuss the operating highlights and financial results for the first quarter 2019. 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.

At Luminex, our mission is to empower labs to obtain reliable, timely, and actionable answers, ultimately advancing health. We offer a wide range of solutions applicable in diverse markets including clinical diagnostics, pharmaceutical drug discovery, biomedical research, genomic and proteomic research, biodefense research, and food safety. We accelerate reliable answers while simplifying complexity and deliver certainty with a seamless experience. To learn more about Luminex, please visit us at 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 and projected 2019 performance, including revenue guidance. 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, 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 internal resource planning challenges; market demand and acceptance of Luminex's products and technology, including ARIES®, MultiCode®, xMAP®, VERIGENE®, Guava®, Muse®, Amnis® and NxTAG® products; Luminex's ability to scale manufacturing operations and manage operating expenses, gross margins and inventory levels; Luminex's ability to obtain and enforce intellectual property protections on Luminex's products and technologies; the impact on Luminex's growth and future results of operations with respect to the loss of the LabCorp women's health business; Luminex's ability to successfully launch new products in a timely manner; dependence on strategic partners for development, commercialization and distribution of products; risks and uncertainties associated with implementing Luminex's acquisition strategy, Luminex's challenge to identify acquisition targets, including Luminex's ability to obtain financing on acceptable terms; Luminex's ability to integrate acquired companies or selected assets, including the Flow-Cytometry assets recently acquired from Millipore Sigma,  into Luminex's consolidated business operations, and the ability to fully realize the benefits of Luminex's acquisitions; the timing of and process for regulatory approvals; competition and competitive technologies utilized by Luminex's competitors; 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 comply with applicable laws, regulations, policies and procedures; the impact of the ongoing uncertainty in global finance markets and changes in governmental and governmental agency funding, including effects on the capital spending policies of Luminex's partners and end users and their ability to finance purchases of Luminex's products; 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; 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; 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; Luminex's ability to monitor and comply with foreign and international laws and treaties; and Luminex's ability to comply with changes in international taxation policies; 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; reliance on third party distributors for distribution of specific Luminex-developed and manufactured assay products, 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 2019 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.

Contacts:

Harriss T. Currie

David Carey


Sr. Vice President, Finance and Chief Financial Officer

Investor Relations, Lazar Partners


512-219-8020

212-867-1768


[email protected] 

[email protected] 

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)






March 31,


December 31,


2019


2018


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$     61,689


$         76,441

Accounts receivable, net

62,652


53,396

Inventories, net

64,027


63,250

Prepaids and other

8,917


9,657

Total current assets

197,285


202,744

Property and equipment, net

65,630


66,288

Intangible assets, net

98,891


105,148

Deferred income taxes

28,334


21,470

Goodwill

118,293


118,127

Right of use assets

23,824


-

Other

11,244


11,398

Total assets

$   543,501


$       525,175





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$     18,138


$         14,504

Accrued liabilities

22,728


26,772

Deferred revenue - current portion

8,521


10,099

Total current liabilities

49,387


51,375

Deferred revenue

3,038


1,079

Lease liabilities

20,792


-

Other

1,827


5,065

Total liabilities

75,044


57,519

Stockholders' equity:




Common stock

44


44

Additional paid-in capital

366,049


365,349

Accumulated other comprehensive loss

(1,260)


(1,127)

Retained earnings

103,624


103,390

Total stockholders' equity

468,457


467,656

Total liabilities and stockholders' equity

$   543,501


$       525,175

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)






Three Months Ended


March 31,


2019


2018


(unaudited)





Revenue

$82,408


$82,662

Cost of revenue

36,601


29,074

Gross profit

45,807


53,588

Operating expenses:




Research and development

15,048


10,326

Selling, general and administrative

31,491


25,830

Amortization of acquired intangible assets

2,852


2,166

Total operating expenses

49,391


38,322

Income (loss) from operations

(3,584)


15,266

Other income, net

60


449

Income (loss) before income taxes

(3,524)


15,715

Income tax benefit (expense)

6,484


(2,318)

Net income

$  2,960


$13,397





Net income attributable to common stock holders




Basic

$  2,904


$13,192

Diluted

$  2,904


$13,192

Net income per share attributable to common stock holders



Basic

$    0.07


$    0.30

Diluted

$    0.07


$    0.30

Weighted-average shares used in computing net income per share



Basic

43,949


43,462

Diluted

44,546


43,633





Dividends declared per share

$    0.06


$    0.06

 

LUMINEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






Three Months Ended


March 31,


2019


2018


(unaudited)

Cash flows from operating activities:




Net income

$  2,960


$  13,397

Adjustments to reconcile net income to net cash
provided by operating activities:




Depreciation and amortization

6,889


5,893

Stock-based compensation

2,449


1,261

Deferred income tax (benefit) expense

(8,087)


1,453

Loss on sale or disposal of assets

94


-

Other

(242)


31

Changes in operating assets and liabilities:




Accounts receivable, net

(7,342)


5,556

Inventories, net

(486)


(2,735)

Other assets

2,272


(203)

Accounts payable

4,117


320

Accrued liabilities

(10,400)


(11,439)

Deferred revenue

680


422

Net cash provided by operating activities

(7,096)


13,956

Cash flows from investing activities:




Purchase of property and equipment

(3,823)


(4,068)

Issuance of note receivable

-


(500)

Acquired technology rights

-


(4,000)

Net cash used in investing activities

(3,823)


(8,568)

Cash flows from financing activities:




Proceeds from issuance of common stock

802


1,126

Shares surrendered for tax withholding

(2,072)


(2,003)

Dividends paid

(2,696)


(2,624)

Net cash used in financing activities

(3,966)


(3,501)

Effect of foreign currency exchange rate on cash

133


(344)

Change in cash and cash equivalents

(14,752)


1,543

Cash and cash equivalents, beginning of period

76,441


127,112

Cash and cash equivalents, end of period

$61,689


$128,655


 

LUMINEX CORPORATION

NON-GAAP RECONCILIATION

(in thousands)






Three Months Ended


March 31,


2019


2018


(unaudited)





Reported Net Income

$ 2,960


$13,397

Severance & costs associated with legal proceedings

148


20

Income tax effect of above adjusting items

(17)


(3)

Income tax effect from discrete tax items

(6,087)


(2,532)

Adjusted Net Income (loss)

$(2,996)


$10,882





Adjusted net income (loss) per share, basic

$  (0.07)


$    0.25

Shares used in computing adjusted net income per share, basic

43,949


43,462

Adjusted net income (loss) per share, diluted

$  (0.07)


$    0.25

Shares used in computing adjusted net income per share, diluted

44,546


43,633

The Company makes reference in this release to "non-GAAP net loss" which excludes costs associated with legal proceedings, severance costs, and discrete tax impacts; some of 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.

Luminex logo. (PRNewsFoto/Luminex Corporation)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/luminex-corporation-reports-first-quarter-2019-financial-results-300844487.html

SOURCE Luminex Corporation