Luminex Corporation Reports Third Quarter 2005 Results

AUSTIN, Texas, Oct. 26  /PRNewswire-FirstCall/ -- Luminex Corporation (NASDAQ:LMNX) today announced its financial results for the third quarter ended September 30, 2005.

Revenue for the third quarter of 2005 was $10.8 million, an increase of 29.0% from $8.4 million in the third quarter of 2004. Net loss for the third quarter of 2005 was $0.7 million or ($0.02) per share, compared with a net loss of $1.2 million or ($0.04) per share in the third quarter of 2004.  Year to date through September 30, 2005, revenue was $30.7 million and net loss was $1.3 million or ($0.04) per share, as compared with revenue of $26.8 million and a net loss of $2.4 million or ($0.08) per share for the corresponding period in 2004.

Revenue for the third quarter of 2005 consisted of $4.6 million from the sale of 172 Luminex Systems, $3.4 million from the sale of consumables, $1.4 million of royalties, and $1.3 million of other revenue. Revenue for the third quarter of 2004 consisted of $4.3 million from the sale of 177 Luminex Systems, $2.1 million from the sale of consumables, $870,000 of royalties, and $1.1 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 revenue.

At September 30, 2005, the Company had $38.6 million in cash, cash equivalents, short-term and long-term investments as compared with $36.1 million at December 31, 2004.  The Company maintains its investments in highly liquid securities.  Working capital totaled $39.0 million at September 30, 2005 as compared with $40.8 million at December 31, 2004.

"We continue to be pleased with our performance, including our results in the third quarter," said Patrick J. Balthrop, Chief Executive Officer of Luminex.  "Our revenue achieved another milestone in the quarter at $10.8 million, a 29% increase over the same period in 2004.  Our gross profit, although slightly less than the previous quarter due to revenue mix, continued to demonstrate overall progress with a 54% increase over the same period in 2004.  This improvement in gross profit enabled increased investment in the Company's strategic initiatives, including R&D.  Our R&D output included the launch of our newest instrument platform, the LX200, during the quarter.  We look forward to continuing the execution of our strategic plan in the fourth quarter and beyond."

Luminex will host a conference call to discuss the results for the third quarter of 2005 and other matters at 5:00 p.m. Eastern Daylight Time on Wednesday, October 26, 2005. The call will be available via live webcast at http://www.luminexcorp.com/ . Simply log on to the web at the address above and access the Investor Relations link. A replay will be available on the Company's website.

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.

   Contact: Harriss T. Currie
            Vice President, Finance
            Chief Financial Officer
            512.219.8020
            


                          -see attached tables-



                           LUMINEX CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                         September 30,     December 31,
                                              2005             2004
                                         -------------     ------------
                                          (unaudited)

                                  ASSETS
  Current assets:
     Cash and cash equivalents              $21,511          $19,238
     Short-term investments                  10,942           12,891
     Accounts receivable, net                 5,842            5,864
     Inventory, net                           5,342            7,650
     Other                                      823              841
                                            -------          -------
     Total current assets                    44,460           46,484

  Property and equipment, net                 2,471            1,383
  Long-term investments                       6,181            3,991
  Other                                       1,192            1,317
                                            -------          -------
  Total assets                              $54,304          $53,175
                                            =======          =======

                   LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Accounts payable                         $1,228           $1,642
    Accrued liabilities                       2,199            2,702
    Deferred revenue                          2,071            1,317
                                            -------          -------
    Total current liabilities                 5,498            5,661
  Deferred revenue                            3,469            2,968
                                            -------          -------
  Total liabilities                           8,967            8,629
                                            -------          -------
  Stockholders' equity:
    Common stock                                 32               31
    Additional paid-in capital              135,099          131,833
    Deferred stock compensation              (4,581)          (3,335)
    Accumulated other comprehensive
     gain (loss)                                  1              (88)
    Accumulated deficit                     (85,214)         (83,895)
                                            -------          -------
    Total stockholders' equity               45,337           44,546
                                            -------          -------
  Total liabilities and stockholders'
   equity                                   $54,304          $53,175
                                            =======          =======


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

                                       Three Months Ended  Nine Months Ended
                                           September 30,     September 30,
                                          ---------------  -----------------
                                           2005     2004     2005     2004
                                          ------   ------  -------  -------
                                            (unaudited)       (unaudited)

  Revenue                                $10,764   $8,359  $30,736  $26,825
  Cost of revenue                          5,294    4,818   14,066   15,895
                                          ------   ------  -------  -------
     Gross profit                          5,470    3,541   16,670   10,930

  Operating expenses:
     Research and development              1,469      949    3,974    2,894
     Selling, general and administrative   4,992    3,905   14,481   10,813
                                          ------   ------  -------  -------
     Total operating expenses              6,461    4,854   18,455   13,707
                                          ------   ------  -------  -------
  Loss from operations                      (991)  (1,313)  (1,785)  (2,777)
     Other income, net                       337      162      799      365
     Settlement of litigation                ---      ---     (322)     ---
     Income taxes                             (3)      (5)     (10)     (13)
                                          ------   ------  -------  -------
  Net loss                                 $(657) $(1,156) $(1,318) $(2,425)
                                          ======   ======  =======  =======
  Net loss per share, basic and diluted   $(0.02)  $(0.04)  $(0.04)  $(0.08)
                                          ======   ======  =======  =======
  Shares used in computing net loss
   per share, basic and diluted           31,039   30,813   30,954   30,649


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/ 

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