AUSTIN,
Texas, Nov. 5, 2020
/PRNewswire/ -- Luminex Corporation (Nasdaq: LMNX) today announced
results for its third quarter ended September 30, 2020.
All amounts in this release are in conformity with U.S.
generally accepted accounting principles ("GAAP").
CURRENT FINANCIAL HIGHLIGHTS
- Total revenue for the third quarter of $106.1M, a 35% increase over Q3 2019, driven
primarily by growth associated with the current COVID-19 global
pandemic
- Strong profitability in Q3 with 60% gross margins, an
improvement of 7 percentage points over Q3 2019
- Operating margin of $11.5M
or 11% of revenue, a 300% improvement over Q3 2019
- Net income of $1.8M,
representing 2% of revenue, and $0.04
per share, up 134% over Q3 2019
- Received two BARDA awards -- $5,389,813 to support a future 510(k) filing for
an updated NxTAG® Respiratory Pathogen Panel that
includes SARS-CoV-2, and $683,500 to
support future enhancement of Luminex's COVID-19 Multiplex Antibody
Test
CEO COMMENTARY
"I'm very pleased with the performance of our diversified
business during these very challenging times. Our team continues to
execute on our key role in addressing the demands of this pandemic.
With strong revenue growth, improved gross margins and continued
control over operating expenses, we are seeing healthy
profitability and cash flow," said Nachum "Homi" Shamir, Chairman,
President and CEO of Luminex. "As a result of these unusual times;
we thought it would be helpful to share with our investors some of
our preliminary estimates of our 2021 revenue guidance. Currently,
we estimate that in 2021, we will generate at least $475M of revenue with accelerated improvement in
profitability and cash flow. We believe that this growth will be
primarily attributable to our ARIES® manufacturing
expansion, as well as a number of additional new products in
development, including those supporting our COVID-19-related
efforts and the other pipeline products in our diverse portfolio.
We plan to provide more precision regarding our expectations in
early 2021. However, based on our current estimates, we anticipate
surpassing our $500 million annual
revenue target much sooner than we previously expected, while
continuing to build an outstanding company."
ADDITIONAL HIGHLIGHTS OF THE QUARTER
- Molecular Diagnostics revenue for the quarter of
$59.9M, up 98% over Q3
2019
- Licensed Technologies Group revenue of $34.7M, down 10% from Q3 2019
- Flow Cytometry revenue of $9.9M, up 13% over Q3 2019, but with continued
impact from the slowdown in academic research due to
COVID-19
- Operating cash flow of $14.9M and $39.0M
for the three and nine months ended September 30, 2020
- Ended the quarter with a total order book of more than
$36M, of which $9M was COVID-19 related
- Sold or contracted 87 sample-to-answer systems in the
quarter, the majority of which were
ARIES®
- Received FDA EUA for the xMAP® SARS-CoV-2
Multi-Antigen IgG Assay on July 16,
2020
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
September
30,
|
|
Variance
|
|
2020
|
|
2019
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
19,482
|
|
$
15,239
|
|
$
4,243
|
|
28%
|
Consumable
sales
|
11,812
|
|
13,359
|
|
(1,547)
|
|
-12%
|
Royalty
revenue
|
9,627
|
|
12,993
|
|
(3,366)
|
|
-26%
|
Assay
revenue
|
55,647
|
|
29,468
|
|
26,179
|
|
89%
|
Service
revenue
|
5,951
|
|
5,349
|
|
602
|
|
11%
|
Other
revenue
|
3,541
|
|
2,265
|
|
1,276
|
|
56%
|
|
$
106,060
|
|
$
78,673
|
|
$
27,387
|
|
35%
|
REVENUE GUIDANCE
As of the date hereof, Luminex is providing revenue
guidance as follows:
- Luminex expects revenue for the full year 2020 to be
approximately $410M, with growth of
23% over 2019.
- Luminex expects 2021 revenue to be at or above
$475 million, reflecting more than
15% growth from Luminex's full year 2020 guidance, with such
revenue growth driven primarily by significant expansion of
ARIES® assay sales resulting from completion of the
manufacturing line expansion and new product launches.
CONFERENCE CALL
Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EDT, Thursday,
November 5, 2020 to discuss operating highlights and
financial results for the third quarter 2020. The conference call
will be webcast live and may be accessed at Luminex Corporation's
website at investor.luminexcorp.com. Analysts may participate on
the conference call by dialing (877) 930-7053 (U.S.) or (253)
336-7290 (outside the U.S.). The access code is 4669812. The
webcast will be archived for six months on our website using the
'replay' link.
ABOUT LUMINEX CORPORATION
At Luminex, our mission is to empower labs to obtain
reliable, timely, and actionable answers, ultimately advancing
health. We offer a wide range of solutions applicable in diverse
markets including clinical diagnostics, pharmaceutical drug
discovery, biomedical research, genomic and proteomic research,
biodefense research, and food safety. We accelerate reliable
answers while simplifying complexity and deliver certainty with a
seamless experience. To learn more about Luminex, please visit us
at luminexcorp.com.
USE OF FORWARD-LOOKING STATEMENTS
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.
Forward-looking statements in this release include statements
regarding expected revenue and cost savings, projected 2020 and
2021 performance, including revenue guidance, and expectations
regarding Luminex's product development, manufacturing line
expansion and product growth and the continued impact of the
COVID-19 pandemic on Luminex's operations and financial results.
The words "expect," "will," "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, negative
effects from the worldwide COVID-19 pandemic (including but not
limited to the general economic downturn related to such pandemic,
travel restrictions related thereto, business closures that may
affect our supply chain or our ability to install instruments, and
delays in U.S. Food and Drug Administration (the "FDA")
clearances related to adjustments in the agency's approval
priorities in response to the pandemic), the warning letter (the
"Warning Letter") Luminex received from the FDA on June 26, 2020 relating to the operations of
Luminex's Austin, TX and
Northbrook, IL facilities and
Luminex's VERIGENE Processor SP System, as previously disclosed in
Luminex's Current Report on Form 8-K filed with the U.S. Securities
and Exchange Commission on June 29,
2020, including the outcome of Luminex's efforts to
remediate the FDA's observations, the possible resolution of the
issues identified in the Warning Letter and any further regulatory
and enforcement actions that may initiated by
the FDA with respect thereto, concentration of Luminex's revenue in
a limited number of direct customers and strategic partners, some
of which may be experiencing decreased demand for their products
utilizing or incorporating Luminex's technology, budget or finance
constraints in the current economic environment, or periodic
variability in their purchasing patterns or practices as a
result of internal resource planning challenges; market demand and
acceptance of Luminex's products and technology, including ARIES®,
MultiCode®, xMAP®, xMAP® INTELLIFLEX, VERIGENE®, VERIGENE® II,
Guava®, Muse®, Amnis® and NxTAG® products; Luminex's ability to
scale manufacturing operations and manage operating expenses, gross
margins and inventory levels; Luminex's ability to obtain and
enforce intellectual property protections on Luminex's products and
technologies; the impact on Luminex's growth and future results of
operations with respect to the loss of the LabCorp women's health
business; Luminex's ability to successfully launch new products and
complete new manufacturing lines in a timely manner; dependence on
strategic partners for development, commercialization and
distribution of products; risks and uncertainties associated with
implementing Luminex's acquisition strategy, Luminex's challenge to
identify acquisition targets, including Luminex's ability to obtain
financing on acceptable terms; Luminex's ability to integrate
acquired companies or selected assets into Luminex's consolidated
business operations, and the ability to fully realize the benefits
of Luminex's acquisitions; the timing of and process for regulatory
approvals; competition and competitive technologies utilized by
Luminex's competitors; fluctuations in quarterly results due to a
lengthy and unpredictable sales cycle; fluctuations in bulk
purchases of consumables; fluctuations in product mix, and the
seasonal nature of some of Luminex's assay products; Luminex's
ability to comply with applicable laws, regulations, policies and
procedures; the impact of the ongoing uncertainty in global finance
markets and changes in governmental and governmental agency
funding, including effects on the capital spending policies of
Luminex's partners and end users and their ability to finance
purchases of Luminex's products; changes in principal members of
Luminex's management staff; potential shortages, or increases in
costs, of components or other disruptions to Luminex's
manufacturing operations; Luminex's increasing dependency on
information technology to improve the effectiveness of Luminex's
operations and to monitor financial accuracy and efficiency; the
implementation, including any modification, of Luminex's strategic
operating plans; the uncertainty regarding the outcome or
expense of any litigation brought against or initiated by Luminex;
risks relating to Luminex's foreign operations, including
fluctuations in exchange rates, tariffs, customs and other barriers
to importing/exporting materials and products in a cost effective
and timely manner; difficulties in accounts receivable collections;
Luminex's ability to monitor and comply with foreign and
international laws and treaties; and Luminex's ability to comply
with changes in international taxation policies; budget or finance
constraints in the current economic environment, or periodic
variability in their purchasing patterns or practices as a result
of material resource planning challenges; reliance on third party
distributors for distribution of specific Luminex-developed and
manufactured assay products, 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, including the financial
guidance and 2020 and 2021 outlooks, 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.
Contacts
|
|
|
Harriss
Currie
|
Carla
Stanaford
|
Media
Contact:
|
Senior Vice
President,
|
Investor
Relations
|
Michele
Parisi
|
Chief Financial
Officer
|
cstanaford@luminexcorp.com
|
Bioscribe
|
hcurrie@luminexcorp.com
|
937-469-2120
|
mparisi@bioscribe.com
|
512-219-8020
|
|
925-864-5028
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
308,454
|
|
$
59,173
|
Accounts receivable,
net
|
60,454
|
|
55,815
|
Inventories,
net
|
109,795
|
|
77,084
|
Prepaids and
other
|
12,743
|
|
10,398
|
Total current
assets
|
491,446
|
|
202,470
|
Property and
equipment, net
|
62,667
|
|
65,515
|
Intangible assets,
net
|
81,714
|
|
90,336
|
Deferred income
taxes
|
21,175
|
|
27,702
|
Goodwill
|
118,145
|
|
118,145
|
Right of use
assets
|
18,799
|
|
20,439
|
Other
|
16,999
|
|
19,122
|
Total
assets
|
$
810,945
|
|
$
543,729
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
17,201
|
|
$
17,983
|
Accrued
liabilities
|
48,849
|
|
31,872
|
Deferred revenue -
current portion
|
10,192
|
|
8,214
|
Total current
liabilities
|
76,242
|
|
58,069
|
Deferred
revenue
|
1,515
|
|
1,633
|
Lease
liabilities
|
14,485
|
|
17,182
|
Long-term
debt
|
200,512
|
|
-
|
Other long-term
liabilities
|
2,094
|
|
1,985
|
Total
liabilities
|
294,848
|
|
78,869
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
46
|
|
44
|
Additional paid-in
capital
|
428,628
|
|
380,304
|
Accumulated other
comprehensive loss
|
(837)
|
|
(1,380)
|
Retained
earnings
|
88,260
|
|
85,892
|
Total stockholders'
equity
|
516,097
|
|
464,860
|
Total liabilities and
stockholders' equity
|
$
810,945
|
|
$
543,729
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
106,060
|
|
$
78,673
|
|
$
306,003
|
|
$
244,137
|
Cost of
revenue
|
42,679
|
|
36,833
|
|
122,595
|
|
111,263
|
Gross
profit
|
63,381
|
|
41,840
|
|
183,408
|
|
132,874
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
14,074
|
|
13,262
|
|
39,855
|
|
43,295
|
Selling, general and
administrative
|
34,862
|
|
31,448
|
|
102,987
|
|
96,085
|
Amortization of
acquired intangible assets
|
2,919
|
|
2,852
|
|
8,623
|
|
8,556
|
Total operating
expenses
|
51,855
|
|
47,562
|
|
151,465
|
|
147,936
|
Income (loss) from
operations
|
11,526
|
|
(5,722)
|
|
31,943
|
|
(15,062)
|
Interest and other
expense, net
|
(4,506)
|
|
2
|
|
(6,889)
|
|
(96)
|
Loss from equity
method investment
|
(457)
|
|
-
|
|
(1,350)
|
|
-
|
Income (loss) before
income taxes
|
6,563
|
|
(5,720)
|
|
23,704
|
|
(15,158)
|
Income tax (expense)
benefit
|
(4,796)
|
|
470
|
|
(8,773)
|
|
7,937
|
Net income
(loss)
|
$
1,767
|
|
$
(5,250)
|
|
$
14,931
|
|
$
(7,221)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
1,734
|
|
$
(5,224)
|
|
$
14,637
|
|
$
(7,187)
|
Diluted
|
$
1,733
|
|
$
(5,224)
|
|
$
14,638
|
|
$
(7,189)
|
Net income (loss) per
share attributable to common stockholders
|
|
|
|
|
|
|
Basic
|
$
0.04
|
|
$
(0.12)
|
|
$
0.33
|
|
$
(0.16)
|
Diluted
|
$
0.04
|
|
$
(0.12)
|
|
$
0.32
|
|
$
(0.16)
|
Weighted-average
shares used in computing net income (loss) per share
|
|
|
|
|
|
|
Basic
|
45,459
|
|
44,216
|
|
44,920
|
|
44,109
|
Diluted
|
46,343
|
|
44,216
|
|
45,777
|
|
44,109
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
0.09
|
|
$
0.09
|
|
$
0.27
|
|
$
0.21
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,767
|
|
$
(5,250)
|
|
$
14,931
|
|
$
(7,221)
|
Adjustments to
reconcile net income (loss) to net
cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
7,690
|
|
7,177
|
|
22,771
|
|
21,170
|
Amortization of debt
issuance costs
|
2,565
|
|
-
|
|
3,910
|
|
-
|
Stock-based
compensation
|
4,072
|
|
3,565
|
|
10,781
|
|
9,644
|
Deferred income tax
(benefit) expense
|
2,310
|
|
(2,316)
|
|
4,635
|
|
(10,970)
|
(Gain) loss on sale
or disposal of assets
|
(40)
|
|
59
|
|
346
|
|
231
|
Loss on equity method
investment
|
457
|
|
-
|
|
1,351
|
|
-
|
Other
|
833
|
|
(510)
|
|
835
|
|
(532)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
228
|
|
13,459
|
|
(4,636)
|
|
7,563
|
Inventories,
net
|
(17,366)
|
|
(6,617)
|
|
(32,660)
|
|
(12,602)
|
Other
assets
|
(1,530)
|
|
567
|
|
(339)
|
|
3,971
|
Accounts
payable
|
1,170
|
|
372
|
|
(322)
|
|
4,540
|
Accrued
liabilities
|
13,223
|
|
600
|
|
15,500
|
|
(6,956)
|
Deferred
revenue
|
(435)
|
|
(1,661)
|
|
1,901
|
|
(610)
|
Net cash provided by
(used in) operating activities
|
14,944
|
|
9,445
|
|
39,004
|
|
8,228
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(3,515)
|
|
(4,993)
|
|
(11,614)
|
|
(13,115)
|
Proceeds from
business acquisition consideration,
net of cash acquired
|
-
|
|
-
|
|
-
|
|
1,915
|
Acquired technology
rights
|
-
|
|
-
|
|
22
|
|
-
|
Net cash used in
investing activities
|
(3,515)
|
|
(4,993)
|
|
(11,592)
|
|
(11,200)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of convertible note, net of
issuance costs
|
-
|
|
-
|
|
252,247
|
|
-
|
Purchase of
convertible notes bond hedge
|
-
|
|
-
|
|
(54,626)
|
|
-
|
Proceeds from
issuance of warrants
|
-
|
|
-
|
|
19,968
|
|
-
|
Proceeds from
issuance of common stock
|
9,924
|
|
695
|
|
19,366
|
|
2,481
|
Shares surrendered
for tax withholding
|
(32)
|
|
(4)
|
|
(2,365)
|
|
(2,089)
|
Dividends
paid
|
(4,137)
|
|
(2,703)
|
|
(12,297)
|
|
(8,098)
|
Net cash provided by
(used in) financing activities
|
5,755
|
|
(2,012)
|
|
222,293
|
|
(7,706)
|
Effect of foreign
currency exchange rate on cash
|
(395)
|
|
286
|
|
(424)
|
|
288
|
Change in cash and
cash equivalents
|
16,789
|
|
2,726
|
|
249,281
|
|
(10,390)
|
Cash and cash
equivalents, beginning of period
|
291,665
|
|
63,325
|
|
59,173
|
|
76,441
|
Cash and cash
equivalents, end of period
|
$
308,454
|
|
$
66,051
|
|
$
308,454
|
|
$
66,051
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multimedia:http://www.prnewswire.com/news-releases/luminex-corporation-reports-strong-third-quarter-2020-results-301167332.html
SOURCE Luminex Corporation