Luminex Corporation Reports Fourth Quarter and Full Year 2009 Results

Share Name	Share Symbol	Market	Type
Luminex Corporation	NASDAQ:LMNX	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	36.99	36.94	36.98				0	01:00:00

Luminex (NASDAQ:LMNX)
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Luminex achieved revenue growth of 35 percent for the quarter, and 16 percent annual growth AUSTIN, Texas, Feb. 4 /PRNewswire-FirstCall/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the fourth quarter and year ended December 31, 2009. Recent financial and operating highlights include the following: -- Luminex achieved its highest ever quarterly consolidated revenue of $38.2 million, a 35 percent increase over the fourth quarter of 2008; full year 2009 revenue was $120.6 million, a 16 percent increase over 2008 during challenging economic conditions -- Luminex delivered record system revenue of $9.3 million for the fourth quarter of 2009, an increase of 26 percent over the same prior year period, and full year system revenue of $30.7 million, a 9 percent increase over the full year 2008; system shipments for the quarter were 253, resulting in cumulative life to date shipments of 6,767, up 15 percent from a year ago -- Luminex' Assay Group realized record assay revenue of $12.9 million for the fourth quarter 2009, up 137 percent over the same prior year period and full year assay revenue of $31.1 million, up 66 percent over 2008 -- Fourth quarter 2009 consumables revenue returned to growth, attaining the 4th highest quarter in Luminex history (Logo: http://www.newscom.com/cgi-bin/prnh/20100104/LUMINEXLOGO) GAAP net income for the fourth quarter of 2009 was $20.0 million or, $0.49 per share, basic. Adjusted net income, excluding the release of the valuation allowance described below, was $5.2 million, or $0.13 per share, basic, compared with net income of $2.0 million, or $0.05 per share, basic, for the same prior year period. Net income for the fourth quarter of 2009 included non-cash charges of $2.3 million in stock compensation expense associated with SFAS 123R and $2.3 million associated with depreciation and amortization expense. GAAP net income for 2009 was $17.7 million or $0.44 per share, basic, compared with 2008 net income of $3.1 million or $0.08 per share, basic. Adjusted net income, excluding the release of the valuation allowance and the settlement of litigation, for the year 2009 was $7.2 million or $0.18 per share, basic, compared with 2008 net income of $3.1 million or $0.08 per share, basic. During the fourth quarter of 2009, we released a portion of our total valuation allowance on deferred U.S. tax assets. Release of the valuation allowance was dependent upon an assessment of the likelihood of utilization of the specifically identified deferred tax assets. The assessment indicated that Luminex was more likely than not to benefit from the deferred tax assets based upon our historical pre-tax book income and projected taxable income, thus prompting the release. The tax benefit from the release of this deferred tax asset valuation allowance is reflected below operating income as a benefit of $14.9 million, or $0.36 per share, basic. LUMINEX CORPORATION REPORTABLE SEGMENT HIGHLIGHTS (unaudited) (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue Technology group $24,794 $22,071 $87,389 $83,567 Assay group 13,373 6,126 33,254 20,880 ------ ----- ------ ------ 38,167 28,197 120,643 104,447 Operating income (loss) Technology group 2,669 2,445 8,122 9,033 Assay group 2,629 (291) (723) (5,680) ----- ---- ---- ------ $5,298 $2,154 $7,399 $3,353 "We are extremely pleased with our results for the fourth quarter and for 2009," said Patrick J. Balthrop, president and chief executive officer of Luminex. "Given the overall economic conditions, to deliver 35% quarterly revenue growth and 16% annual revenue growth is an indication of the strength of our technology, the performance of our products and the dedication of our people. We are particularly pleased with the sequential growth of our proprietary consumables and the performance of our assay strategy, led by xTAG® Respiratory Viral Panel. Our successful execution in system shipments and record capital equipment sales for the year also delivered healthy revenue growth over 2008 in the most challenging capital equipment sales market in decades, bringing our cumulative instrument shipment base to 6,767. We maintained our high margins through the quarter, and we expect to continue to do so. "Given the company's performance in the quarter and in 2009, and our expectations regarding future profitability, as previously announced, we released in the fourth quarter $14.9 million of our deferred tax asset valuation allowance," continued Balthrop. "Our solid operating performance added cash to our strong balance sheet, enhancing the company's ability to respond to strategic opportunities. Looking toward 2010 and beyond, we are encouraged by the stabilizing markets and are confident in the company's growth strategy, partner and product pipeline and our prospects for continued growth." FINANCIAL OUTLOOK AND GUIDANCE The Company intends to provide specific annual revenue guidance, updated at each quarterly reporting period. Guidance for Fiscal 2010 -- The Company expects full year 2010 revenue to be between $138 million and $148 million. The full year figures represent an increase of between 14 percent and 23 percent over reported 2009 revenue. CONFERENCE CALL Management will host a conference call to discuss the operating highlights and financial results for the fourth quarter ended December 31, 2009, on Thursday, February 4, 2010, 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' 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 our projected revenue, sales growth, the adequacy of our balance sheet, our ability to respond to strategic opportunities and our product and partner pipeline. 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 and 2010 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' 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, 2009 December 31, 2008 ----------------- ----------------- ASSETS Current assets: Cash and cash equivalents $90,843 $81,619 Short-term investments 8,511 40,501 Accounts receivable, net 22,108 11,024 Inventory, net 17,524 11,589 Deferred income taxes 1,040 2 Prepaids and other 2,130 1,658 ----- ----- Total current assets 142,156 146,393 Property and equipment, net 17,255 12,567 Intangible assets, net 12,938 14,901 Deferred income taxes 14,732 274 Long-term investments 20,228 2,000 Goodwill 39,617 39,617 Other 1,087 1,539 ----- ----- Total assets $248,013 $217,291 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $8,430 $4,580 Accrued liabilities 7,493 6,930 Deferred revenue 2,967 2,671 Current portion of long term debt 868 445 --- --- Total current liabilities 19,758 14,626 Long-term debt 3,591 2,914 Deferred revenue and other 5,926 5,211 ----- ----- Total liabilities 29,275 22,751 ------ ------ Stockholders' equity: Common stock 41 40 Additional paid- in capital 285,649 279,255 Accumulated other comprehensive gain (loss) 27 (47) Accumulated deficit (66,979) (84,708) ------- ------- Total stockholders' equity 218,738 194,540 ------- ------- Total liabilities and stockholders' equity $248,013 $217,291 ======== ======== LUMINEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $38,167 $28,197 $120,643 $104,447 Cost of revenue 12,512 8,625 39,349 33,501 ------ ----- ------ ------ Gross profit 25,655 19,572 81,294 70,946 Operating expenses: Research and development 5,506 4,729 20,752 18,628 Selling, general and administrative 14,851 12,689 53,143 48,965 ------ ------ ------ ------ Total operating expenses 20,357 17,418 73,895 67,593 ------ ------ ------ ------ Income from operations 5,298 2,154 7,399 3,353 Interest expense from long-term debt (123) (186) (481) (592) Other income, net 126 515 719 1,144 Settlement of litigation - - (4,350) - --- --- ------ --- Income before income taxes 5,301 2,483 3,287 3,905 Income taxes 14,715 (474) 14,442 (848) ------ ---- ------ ---- Net income $20,016 $2,009 $17,729 $3,057 ======= ====== ======= ====== Net income per share, basic $0.49 $0.05 $0.44 $0.08 ===== ===== ===== ===== Shares used in computing net income per share, basic 40,697 40,277 40,562 37,868 Net income per share, diluted $0.48 $0.05 $0.43 $0.08 ===== ===== ===== ===== Shares used in computing net income per share, diluted 41,604 41,963 41,633 39,700 LUMINEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Cash flows from operating activities: Net income $20,016 $2,009 $17,729 $3,057 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,334 1,874 8,329 7,001 Stock-based compensation and other 2,343 2,049 8,160 7,251 Deferred income tax benefit (15,498) (152) (15,496) (105) Loss on disposal of assets - 1 25 8 Other 408 (820) 1,665 (415) Changes in operating assets and liabilities: Accounts receivable, net (2,839) 1,679 (10,827) 694 Inventory, net (4,827) (2,041) (5,935) (5,081) Prepaids and other (671) 3 (699) (837) Accounts payable 3,296 662 3,672 1,760 Accrued liabilities 2,258 1,035 (765) (312) Deferred revenue (368) (292) (55) 830 ---- ---- --- --- Net cash provided by operating activities 6,452 6,007 5,803 13,851 ----- ----- ----- ------ Cash flows from investing activities: Net purchases of available- for-sale investments (6,115) - (62,764) - Maturities/sales of available- for-sale investments 10,988 - 33,968 - Net purchases of held-to- maturity investments - (19,327) - (55,868) Maturities of held-to-maturity investments 2,423 13,875 42,501 20,310 Purchase of property and equipment (1,751) (1,702) (10,369) (4,449) Acquisition activity - 24 - (481) Proceeds from sale of assets - - - 19 Acquired technology rights (8) - (29) (1,216) --- --- --- ------ Net cash provided by (used in) investing activities 5,537 (7,130) 3,307 (41,685) ----- ------ ----- ------- Cash flows from financing activities: Proceeds from debt - - 454 - Payments on debt - - (440) (134) Proceeds from secondary offering, net of offering costs - 47 - 74,722 Proceeds from issuance of common stock 204 637 566 7,075 --- --- --- ----- Net cash provided by financing activities 204 684 580 81,663 --- --- --- ------ Effect of foreign currency exchange rate on cash (90) 440 (466) 557 Change in cash and cash equivalents 12,103 1 9,224 54,386 Cash and cash equivalents, beginning of period 78,740 81,618 81,619 27,233 ------ ------ ------ ------ Cash and cash equivalents, end of period $90,843 $81,619 $90,843 $81,619 ======= ======= ======= ======= LUMINEX CORPORATION RECONCILIATION OF ADJUSTED NET INCOME TO GAAP NET INCOME (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Net income $20,016 $2,009 $17,729 $3,057 Adjusted items: Settlement of litigation - - 4,350 - Release of valuation allowance (14,866) - (14,866) - Net income excluding adjusted items $5,150 $2,009 $7,213 $3,057 ====== ====== ====== ====== Adjusted net income per share, basic $0.13 $0.05 $0.18 $0.08 ===== ===== ===== ===== Shares used in computing net income per share, basic 40,697 40,277 40,562 37,868 Adjusted net income per share, diluted $0.12 $0.05 $0.17 $0.08 ===== ===== ===== ===== Shares used in computing net income per share, diluted 41,604 41,963 41,633 39,700 The Company believes that the non-GAAP measure used in this presentation, when presented in conjunction with the comparable GAAP measure, is useful to both management and investors in analyzing financial and business trends regarding the Company's ongoing business and operating performance. This non-GAAP measure should be considered in addition to, but not as a substitute for, items prepared in accordance with GAAP. Contacts: Harriss T. Currie Mimi L. Torrington Vice President, Finance and Chief Director of Investor Financial Officer Relations 512-219-8020 512-219-8020 http://www.newscom.com/cgi-bin/prnh/20100104/LUMINEXLOGO http://photoarchive.ap.org/ DATASOURCE: Luminex Corporation CONTACT: Harriss T. Currie, Vice President, Finance and Chief Financial Officer, +1-512-219-8020, , or Mimi L. Torrington, Director of Investor Relations, +1-512-219-8020, , both of Luminex Corporation Web Site: http://www.luminexcorp.com/

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