AUSTIN, Texas (November 6, 2008) – Luminex Corporation (NASDAQ:LMNX) today announced financial results for the third quarter and nine months ended September 30, 2008.
Financial and operating highlights include the following:
• Net income of $3.2 million for the third quarter of 2008 and $1.0 million of net income year to date
• Consolidated total revenue of $28.9 million, representing a 49 percent increase year-over-year
• System shipments of 239, resulting in cumulative life to date shipments of 5,641, up 19 percent from a year ago; representing the eighth consecutive quarter of system shipments of 200 or more
• Consumables revenue of $8.3 million and royalty revenue of $3.9 million, up 47 percent and 45 percent, respectively, from the third quarter of 2007
• Consolidated gross profit margin of 68 percent for the third quarter
• New and extended partnerships with leading companies:
- New partnership with BD Diagnostics TriPath to create diagnostic tests for cancer
- Extended agreement with Genzyme Genetics for Luminex’s xTAG® Cystic Fibrosis Test Kit, CF97
Net income for the third quarter of 2008 was $3.2 million, or $0.08 per share, compared with net loss of $1.8 million, or ($0.05) per share, for the same period last year. Net income for the third quarter of 2008 included non-cash charges of $1.8 million in stock compensation expense associated with SFAS 123R and $0.6 million associated with the amortization of intangible assets.
“We are extremely pleased with our results for the third quarter, which were highlighted by 49 percent revenue growth over third quarter 2007 and 43 percent revenue growth year to date, healthy gross margins of 68 percent, excellent execution and performance in both our partnership and assay businesses, and record profits,” said Patrick J. Balthrop, president and chief executive officer of Luminex. “Revenues in our technology segment grew by over 40 percent year-over-year and we expanded operating income in the technology segment significantly over the third quarter of 2007. Our assay segment also delivered strong results with revenue growth of 90 percent over the same period last year and, in part as a result of the successful integration of LMD, we believe this segment is on the verge of operating profitability. We have previously stated that our goal during 2008 was to hold quarterly consolidated SG&A expenses flat versus the fourth quarter of 2007, net of one time or unusual events. For the third quarter in a row, we have delivered on this goal. Our ability to execute our plans in this area was a significant contributor to the outstanding results that we delivered for the third quarter and year to date.”
FINANCIAL OUTLOOK AND GUIDANCE
The Company is raising its specific annual revenue guidance for 2008 to total revenue between $102 million and $107 million; up from a range of $95 million to $105 million.
MORE CONFERENCE CALL
Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2008, on Thursday, November 6, 2008, at 5:00 p.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® system is an openarchitecture, 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’ 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’ actual results or performance to differ materially include risks and uncertainties relating to, among others, market demand and acceptance of Luminex’ products and technology, 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’ 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, the uncertainty regarding the outcome or expense of any litigation brought against Luminex, risks relating to Luminex’ foreign operations, risks and uncertainties associated with implementing our acquisition strategy and the ability to integrate acquired companies, 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’ Reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange Commission. The forward-looking statements, including the financial guidance, 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 forwardlooking statements to reflect any change in Luminex’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
