Luminex Corporation Reports Fourth Quarter and Year-end 2005 Results

AUSTIN, Texas, Feb. 1  /PRNewswire-FirstCall/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the fourth quarter and year ended December 31, 2005.

Revenue for the fourth quarter of 2005 was $11.6 million, a 28 percent increase compared with $9.1 million in the fourth quarter of 2004. Revenue for the fourth quarter of 2005 consisted of $6.1 million from the sales of 208 Luminex Systems, $2.3 million from the sale of consumables, $1.5 million in royalties, and $1.7 million of other revenue. Net loss for the fourth quarter of 2005 was $1.3 million, or $0.04 per share, compared with a net loss of $1.2 million, or $0.04 per share, for the same period last year.

Revenue for the year ended December 31, 2005, was $42.3 million, an increase of 18 percent compared with $35.9 million for the year ended December 31, 2004. Revenue for 2005 consisted of $18.8 million from the sales of 693 Luminex Systems, $13.1 million from the sale of consumables, $5.3 million in royalties and $5.2 million of other revenue. Other revenue includes training revenue, shipping revenue, extended service contract sales, miscellaneous part sales, amortized license fees, and other special project fees. Net loss for 2005 was $2.7 million, or $0.09 per share, compared with a net loss of $3.6 million, or $0.12 per share, in 2004.

"The results for the fourth quarter reflect continued measurable progress throughout 2005 for Luminex," said Patrick J. Balthrop, chief executive officer of Luminex. "We reported our strongest quarterly sales for the year reflecting a 28 percent increase over the fourth quarter last year. Additionally, our absolute dollars of gross profit for the quarter improved by 49 percent over the fourth quarter of 2004, and was up over 52 percent for the year when compared with 2004.  This annual improvement in gross profit is primarily the result of a favorable shift in revenue mix in favor of our higher margin items, consumables and royalties, as well as higher average selling prices of our Luminex Systems.

"Our results for the year reflect solid execution of our strategy and we are very pleased with the momentum in our business and our prospects for 2006," added Balthrop. "We now have over 3,400 Luminex Systems in the marketplace providing us with the opportunity to leverage this asset and we anticipate realizing higher consumables per placed system. We will continue to work closely with our strategic partners to enhance end-user acceptance of our xMAP(R) technology and we remain committed to making the appropriate R&D investments to keep pace with market demand. We are pleased with the progress that we are making with our strategic initiatives in Research and Development and in the Luminex Bioscience Group. Our financial foundation, including over $41 million in cash and investments remains a key advantage for Luminex. We believe we are well positioned to execute our strategy in 2006 and we continue to make the right investments to support our strategy."

Management will hold a conference call to discuss the operating highlights and financial results for the fourth quarter and year ended December 31, 2005, on February 1, 2006, 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.

Luminex Corporation 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 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 Corporation 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, fluctuations in quarterly results due to a lengthy and unpredictable sales cycle, Luminex's ability to scale manufacturing operations, potential shortages of components, competition, the timing of regulatory approvals and any modification of the Company's operating plan in response to its ongoing evaluation of its business, as well as the risks discussed under the heading "Risk Factors" in Luminex's Annual Report on Form 10-K for the year ended December 31, 2004, 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)

                                            December 31,  December 31,
                                                2005          2004
                                            ------------  ------------
  ASSETS
  Current assets:
    Cash and cash equivalents                 $  25,206     $  19,238
    Short-term investments                       10,947        12,891
    Accounts receivable, net                      6,580         5,864
    Inventory, net                                4,281         7,650
    Others                                        1,170           841
                                               ---------     ---------
    Total current assets                         48,184        46,484

  Property and equipment, net                     3,222         1,383
  Long-term investments                           5,466         3,991
  Other                                           1,163         1,317
                                                ---------     ---------
  Total assets                                $  58,035     $  53,175
                                                =========     =========

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                          $   3,412     $   1,642
    Accrued liabilities                           2,970         2,702
    Deferred revenue                              2,438         1,317
                                                ---------     ---------
    Total current liabilities                     8,820         5,661
  Deferred revenue                                4,505         2,968
                                                ---------     ---------
  Total liabilities                              13,325         8,629
                                                ---------     ---------

  Stockholders' equity:
    Common stock                                     32            31
    Additional paid-in capital                  135,440       131,833
    Deferred stock compensation                  (4,219)       (3,335)
    Accumulated other comprehensive gain
     (loss)                                          18           (88)
    Accumulated deficit                         (86,561)      (83,895)
                                                ---------     ---------
    Total stockholders' equity                   44,710        44,546
                                                ---------     ---------
  Total liabilities and stockholders'
   equity                                     $  58,035     $  53,175
                                                =========     =========



                        LUMINEX CORPORATION
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (in thousands, except per share amounts)

                        Three Months Ended      Fiscal Year Ended
                           December 31,            December 31,
                       --------------------    ------------------
                         2005        2004        2005        2004
                       --------    --------    --------  --------
                            (unaudited)

  Revenue               $ 11,577  $  9,055    $ 42,313    $ 35,880
  Cost of revenue          5,926     5,263      19,992      21,158
                         --------  --------    --------    --------
    Gross profit           5,651     3,792      22,321      14,722

  Operating expenses:
    Research and
     development           1,626       908       5,600       3,802
    Selling, general and
     administrative        5,736     4,271      20,217      15,084
                         --------  --------    --------    --------
     Total operating
      expenses             7,362     5,179      25,817      18,886
                         --------  --------    --------    --------

  Loss from operations    (1,711)   (1,387)     (3,496)     (4,164)
    Other income, net        375       206       1,174         572
    Settlement of litigation  --        --        (322)         --
    Income taxes             (12)       --         (22)        (13)
                         --------  --------    --------    --------
  Net loss              $ (1,348) $ (1,181)   $ (2,666)   $ (3,605)
                         ========  ========    ========    ========

  Net loss per share,
   basic and diluted    $  (0.04) $  (0.04)   $  (0.09)   $  (0.12)
                         ========  ========    ========    ========
  Shares used in computing
   net loss per share,
   basic and diluted      31,100    30,844      30,990      30,698
                         ========  ========    ========    ========

   Contact:  Harriss T. Currie
             Vice President, Finance and Chief Financial Officer
             512-219-8020
             

First Call Analyst: 

FCMN Contact: 

DATASOURCE: Luminex Corporation



CONTACT:  Harriss T. Currie, Vice President, Finance and Chief Financial

Officer of Luminex Corporation, [phone], or 



Web site: http://www.luminexcorp.com/ 

Copyright