Luminex (NASDAQ:LMNX)
Historical Stock Chart
From Jul 2019 to Jul 2024
Luminex Corporation (NASDAQ:LMNX) today announced financial results for
the fourth quarter and year ended December 31, 2007. Recent financial
and operating highlights include the following:
Consolidated fourth quarter revenue of $21.5 million, a 51 percent
increase over the fourth quarter of 2006; and year to date revenue of
$75.0 million, a 42 percent increase over calendar year 2006
Record system shipments of 250 for the fourth quarter, for an
installed base total of 4,979 at the end of 2007, up 21 percent from a
year ago
Consumables and royalty revenue up 48 and 25 percent, respectively,
from the fourth quarter of 2006. After eliminating royalties received
from Tm Bioscience, royalties grew by 34 percent over the fourth
quarter of 2006 and 30 percent over the prior year
Consolidated gross profit margin of 62 percent for the fourth quarter
and 61 percent for 2007
U.S. Food and Drug Administration (FDA) approval of xTAG™
Respiratory Viral Panel (RVP)
Settlement of Rules Based Medicine, Inc. (RBM) litigation for total
proceeds to the company of $12.5 million
Subsequent to the acquisition of Luminex Molecular Diagnostics (formerly
Tm Bioscience), or LMD, on March 1, 2007, Luminex has reported the
results of the Technology and Assay Groups as segments in addition to
the consolidated results. The Technology Group 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 fourth quarter of 2007 was $21.5 million, a
51 percent increase compared with $14.2 million in the fourth quarter of
2006. Net income for the fourth quarter of 2007 was $11.1 million, or
$0.30 per fully diluted share, compared with $0.6 million, or $0.02 per
fully diluted share, for the same period last year. The results for the
fourth quarter of 2007 include (i) $11.5 million of the $12.5 million
one-time payment received for the settlement of litigation with RBM and
(ii) the effects of the settlement of a liability related to the
renegotiation of a contract acquired as part of the acquisition of Tm
Bioscience in the amount of $2.3 million.
Consolidated revenue for the year ended December 31, 2007, was $75.0
million, an increase of 42 percent compared with $53.0 million for the
year ended December 31, 2006. Net loss for 2007 was $2.7 million, or
$(0.08) per fully diluted share, compared with net income of
$1.5 million, or $0.05 per fully diluted share, in 2006.
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. LMD
results from the date of acquisition, March 1, 2007 through December 31,
2007, are included in the table below.
LUMINEX CORPORATION
REPORTABLE SEGMENT HIGHLIGHTS
(unaudited)
(in thousands)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2007
2006
2007
2006
Revenue
Technology group
$
18,582
$
14,205
$
65,912
$
52,970
Assay group
4,093
5
12,642
19
Eliminations of intersegment revenue
(1,174
)
-
(3,544
)
-
21,501
14,210
75,010
52,989
Operating income (loss)
Technology group
1,173
639
2,841
1,450
Assay group
(4,142
)
(632
)
(20,087
)
(2,031
)
Eliminations of intersegment operating income
26
-
(172
)
-
Operating income (loss)
(2,943
)
7
(17,418
)
(581
)
“Our fourth quarter performance marked a
strong finish to a year of significant progress for Luminex,”
said Patrick J. Balthrop, president and chief executive officer of
Luminex. “We are pleased with the increasing
adoption of xMAP in the marketplace as total system placements reached
4,979 at the end of 2007, an annual increase of 862 systems and 21
percent. Consumables and royalty revenues in the fourth quarter were up
48 percent and 25 percent, respectively, over the same period a year ago
and contributed to our solid gross profit margin of 62 percent. Royalty
growth, which excludes Tm Bioscience submissions for all periods
presented, increased by 34 percent over the fourth quarter of 2006. Our
growth in royalties reflects the high rate of adoption of our technology
in the marketplace, and the increasing market share being captured by
our strategic partners.
“We are very pleased with the execution of our
Assay Group as evidenced by our recent key product launches,”
added Balthrop. “During the fourth quarter, we
announced the launch of FlexmiR Select, a new microRNA (miRNA) assay
developed by LBG and designed to allow researchers to further advance
understanding and enhance the analysis of miRNAs. At the beginning of
2008, we reached an important milestone as Luminex received 510(k)
clearance from the FDA for the xTAG™ Respiratory
Viral Panel (RVP). This represents the first product launch by LMD and
further enhances our position in the molecular diagnostics market. With
these new developments by LMD and LBG and a robust pipeline, the
continued adoption of xMAP technology and our expanding partner base, we
believe Luminex is well positioned for continued success in 2008.”
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 (now
LMD) acquisition.
FINANCIAL OUTLOOK AND GUIDANCE
The Company intends to provide specific annual revenue guidance, updated
at each quarterly reporting period.
Guidance for Fiscal 2008
The Company expects full year 2008 revenue to be between $95 million
and $105 million. The full year figures represent an increase of
between 26 percent and 40 percent over reported 2007 revenue.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the fourth quarter and year ended
December 31, 2007, and certain financial guidance for 2008, on Thursday,
February 7, 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
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. 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, except as required by law.
LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
December 31,
2007
2006
ASSETS
Current assets:
Cash and cash equivalents
$
27,233
$
27,414
Short-term investments
6,944
10,956
Accounts receivable, net
11,827
8,237
Inventory, net
6,508
4,571
Other
856
1,917
Total current assets
53,368
53,095
Property and equipment, net
12,673
4,985
Intangible assets, net
16,919
-
Long-term investments
-
7,346
Goodwill
39,617
-
Other
982
1,270
Total assets
$
123,559
$
66,696
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
3,346
$
3,255
Accrued liabilities
6,811
2,905
Deferred revenue and other
2,410
2,756
Total current liabilities
12,567
8,916
Long-term debt
2,976
-
Deferred revenue and other
4,536
3,621
Total liabilities
20,079
12,537
Stockholders' equity:
Common stock
35
32
Additional paid-in capital
191,218
139,116
Accumulated other comprehensive gain
(8
)
65
Accumulated deficit
(87,765
)
(85,054
)
Total stockholders' equity
103,480
54,159
Total liabilities and stockholders' equity
$
123,559
$
66,696
LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2007
2006
2007
2006
Revenue
$
21,501
$
14,210
$
75,010
$
52,989
Cost of revenue
8,191
5,660
28,916
20,737
Gross profit
13,310
8,550
46,094
32,252
Operating expenses:
Research and development
4,348
2,338
15,383
8,673
Selling, general and administrative
11,905
6,205
40,729
24,160
In-process research and development expense
-
-
7,400
-
Total operating expenses
16,253
8,543
63,512
32,833
Loss from operations
(2,943
)
7
(17,418
)
(581
)
Interest expense from long-term debt
(116
)
-
(513
)
-
Other income, net
602
597
1,665
2,108
Settlement of litigation
11,500
-
11,500
-
Gain on settlement of liability
2,345
-
2,345
-
Income taxes
(327
)
(5
)
(290
)
(20
)
Net income (loss)
$
11,061
$
599
$
(2,711
)
$
1,507
Net income (loss) per share, basic
$
0.31
$
0.02
$
(0.08
)
$
0.05
Shares used in computing net income (loss) per share, basic
35,302
31,658
34,361
31,434
Net income (loss) per share, diluted
$
0.30
$
0.02
$
(0.08
)
$
0.05
Shares used in computing net income (loss) per share, diluted
36,708
33,022
34,361
32,988
LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2007
2006
2007
2006
Operating activities:
Net income (loss)
$
11,061
$
599
$
(2,711
)
$
1,507
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization
1,618
390
5,063
1,483
In-process research and development expense
-
-
7,400
-
Gain on settlement of liability
(2,345
)
-
(2,345
)
-
Stock-based compensation and other
1,749
1,654
6,593
5,511
Other
267
(38
)
356
(24
)
Changes in operating assets and liabilities:
Accounts receivable, net
375
59
(3,255
)
(1,657
)
Inventory, net
1,094
(110
)
(129
)
(290
)
Prepaids and other
777
(918
)
1,019
(1,009
)
Accounts payable
(32
)
930
(2,958
)
(602
)
Accrued liabilities
906
71
(715
)
(307
)
Deferred revenue
478
(191
)
75
(566
)
Net cash provided by (used in) operating activities
15,948
2,446
8,393
4,046
Investing activities:
Net purchases of held-to-maturity investments
1,649
519
11,392
(1,889
)
Purchase of property and equipment
(1,355
)
(668
)
(6,685
)
(2,638
)
Acquisition of business, net of cash acquired
-
-
(2,686
)
-
Acquired technology rights
-
-
(265
)
(25
)
Other
(5
)
21
20
45
Net cash provided by (used in) investing activities
289
(128
)
1,776
(4,507
)
Financing activities:
Payments on debt
-
-
(12,349
)
-
Proceeds from issuance of common stock
1,236
189
1,868
2,622
Other
-
-
13
-
Net cash provided by (used in) financing activities
1,236
189
(10,468
)
2,622
Effect of foreign currency exchange rate on cash
35
21
118
47
Change in cash and cash equivalents
17,508
2,528
(181
)
2,208
Cash and cash equivalents, beginning of period
9,725
24,886
27,414
25,206
Cash and cash equivalents, end of period
$
27,233
$
27,414
$
27,233
$
27,414
Supplemental disclosure of cashflow information:
Interest and penalties paid
$
6
$
-
$
1,360
$
-
Purchase of leasehold improvements under trade payable arrangement
paid in 2007
-
445
-
445
Supplemental disclosure of non-cash effect of acquisitions:
Purchase price
$
-
$
-
$
(49,401
)
$
-
Common stock issued
-
-
41,755
-
Conversion of Tm options and warrants
-
-
2,315
-
Forgiveness of receivable from acquired company
-
-
1,232
-
Write-off of acquired technology rights
-
-
473
-
Cash acquired
-
-
940
-
Acquisition, net of cash acquired
$
-
$
-
$
(2,686
)
$
-