Luminex Corporation Reports First Quarter 2020 Results

AUSTIN, Texas, May 4, 2020 /PRNewswire/ -- Luminex Corporation (Nasdaq: LMNX) today announced results for its first quarter ended March 31, 2020.

All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP").


    --  Total revenue for the first quarter of $90.4M, a 10% increase over Q1
    --  Molecular Diagnostic revenue for the quarter of $45.2M, up 28% over Q1
        --  Sample-to-answer MDx revenue of $26.3M, up 38% over Q1 2019
        --  Non-Automated MDx revenue of $18.9M, up 17% over Q1 2019
    --  Life Science and Clinical Tools revenue for the quarter of $43.3M, down
        6% vs. Q1 2019
        --  Licensed Technologies Group revenue of $36.8M, up 5% over Q1 2019
        --  Flow Cytometry revenue of $6.5M, down 42% vs. Q1 2019, but
            significantly impacted by the  inability to install purchased
            systems and visit customers due to the COVID-19 pandemic
    --  Placed a record 123 sample-to-answer systems in the quarter, dominated
        by ARIES(®) Systems
    --  Returned to profitability in the quarter with 56% gross margins, 2%
        operating margin and 1% net income
    --  Emergency Use Authorizations (EUA) obtained for NxTAG(®) CoV Extended
        Panel and ARIES(®) SARS-CoV-2 Assay, supported by $1.2M in BARDA
    --  Expanded current manufacturing capacity to produce more than 500,000
        tests per month, with plans to expand to more than 800,000 tests per
        month by the end of Q2
    --  Q2 revenue forecasted to be at or above $105M, with growth in excess of
    --  Expect 2020 revenue to be above the top end of previously communicated
        guidance range of $352 - $362 million


"We are proud to be able to play an important role in addressing the current global COVID-19 pandemic. Our organization has been able to respond rapidly with beneficial product offerings to assist with diagnosing and treating this dangerous virus," said Nachum "Homi" Shamir, President & CEO. "As a result of the COVID-19 pandemic, we experienced a rapid acceleration of system placements, assay sales and revenue. We delivered a very strong first quarter, returning to profitability with significant revenue growth within our molecular diagnostics franchise. With our expanded manufacturing capacity for both automated and non-automated products and a robust product pipeline, we are well equipped to meet the evolving needs of our customers. Our ability to manage multiple projects as a team while responding to this global crisis has been nothing short of exceptional. Given the increased demand we are seeing into the foreseeable future, we are confident that we will exceed the top end of our previously communicated guidance range, but are unable to be specific at this time as a result of the uncertainty associated with the end of the pandemic."

                               Three Months Ended

                               March 31,          Variance

                          2020               2019         
          ($)  (%)


     System sales     $12,050            $15,671             $(3,621) -23%

     Consumable sales  12,798             10,724                2,074   19%

     Royalty revenue   13,259             14,170                (911)  -6%

     Assay revenue     43,723             34,813                8,910   26%

     Service revenue    5,521              5,394                  127    2%

     Other revenue      3,073              1,636                1,437   88%

                       $90,424            $82,408               $8,016   10%


The Company expects revenue for the 2(nd) Quarter will be at or above $105M. With respect to the full year, we are confident that we will beat the top end of our current revenue guidance of $362M, but are not able to provide an updated guidance range at this time due to the uncertainties that the COVID-19 pandemic is causing throughout the global economy. We anticipate being able to provide updated full-year revenue guidance in conjunction with our second quarter earnings release.


Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EDT, Monday, May 4, 2020 to discuss operating highlights and financial results for the first quarter 2020. The conference call will be webcast live and may be accessed at Luminex Corporation's website at 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 6418909. The webcast will be archived for six months on our website using the 'replay' link.


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


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 and projected 2020 performance, including revenue guidance. The words "expect," "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, 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 FDA clearances related to adjustments in the agency's approval priorities in response to the pandemic), 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 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 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's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

     Carla Stanaford                         
     Media Contact:

     Harriss Currie                       
     Investor Relations                      
     Michele Parisi

     Senior Vice President,               

     Chief Financial Officer              





                (in thousands)

                                                                     March 31,             December 31,

                                                                           2020                     2019



     Current assets:

      Cash and cash equivalents                                         $43,077                  $59,173

      Accounts receivable, net                                           63,889                   55,815

     Inventories, net                                                   78,596                   77,084

     Prepaids and other                                                 10,944                   10,398

      Total current assets                                              196,506                  202,470

      Property and equipment, net                                        64,407                   65,515

      Intangible assets, net                                             87,485                   90,336

      Deferred income taxes                                              26,657                   27,702

     Goodwill                                                          118,145                  118,145

     Right of use assets                                                20,487                   20,439

     Other                                                              18,236                   19,122

     Total assets                                                     $531,923                 $543,729



     Current liabilities:

     Accounts payable                                                  $13,236                  $17,983

     Accrued liabilities                                                26,751                   31,872

      Deferred revenue -current
       portion                                                            9,084                    8,214

      Total current liabilities                                          49,071                   58,069

     Deferred revenue                                                    1,606                    1,633

     Lease liabilities                                                  16,748                   17,182

      Other long-term liabilities                                         1,992                    1,985

     Total liabilities                                                  69,417                   78,869

     Stockholders' equity:

     Common stock                                                           45                       44

      Additional paid-in capital                                        381,501                  380,304

      Accumulated other
       comprehensive loss                                               (1,443)                 (1,380)

     Retained earnings                                                  82,403                   85,892

      Total stockholders' equity                                        462,506                  464,860

      Total liabilities and
       stockholders' equity                                            $531,923                 $543,729




                (in thousands, except per share amounts)

                                                                   Three Months Ended

                                                                   March 31,

                                               2020                                  2019



     Revenue                               $90,424                               $82,408

      Cost of revenue                        40,078                                36,601

      Gross profit                           50,346                                45,807

     Operating expenses:

      Research and
       development                           11,918                                15,048

      Selling, general
       administrative                        33,935                                31,491

      Amortization of
       intangible assets                      2,852                                 2,852

      Total operating
       expenses                              48,705                                49,391


      Income (loss) from
       operations                             1,641                               (3,584)

      Other income, net                           1                                    60

      Loss from equity
       method investment                      (614)

      Income (loss)
       before income
       taxes                                  1,028                               (3,524)

      Income tax benefit
       (expense)                              (374)                                6,484


      Net income                               $654                                $2,960

      Net income attributable to common

     Basic                                    $634                                $2,904

     Diluted                                  $633                                $2,904

      Net income per share attributable to common

     Basic                                   $0.01                                 $0.07

     Diluted                                 $0.01                                 $0.07

      Weighted-average shares used in computing net
       income per share

     Basic                                  44,404                                43,949

     Diluted                                45,038                                44,546

      Dividends declared
       per share                              $0.09                                 $0.06



                (in thousands)

                                                                       Three Months Ended

                                                                       March 31,

                                                             2020            2019



        Cash flows from operating activities:

       Net income                                           $654          $2,960

        Adjustments to reconcile net income to net
         cash used in operating activities:

        Depreciation and
         amortization                                       7,434           6,889

         compensation                                       2,683           2,449

        Deferred income tax
         (benefit) expense                                  1,053         (8,087)

        Loss on sale or
         disposal of assets                                    47              94

        Loss on equity method
         investment                                           614

       Other                                               (138)          (242)

        Changes in operating assets and liabilities:

        Accounts receivable,
         net                                              (8,075)        (7,342)

        Inventories, net                                  (1,510)          (486)

        Other assets                                        (501)          2,272

        Accounts payable                                  (4,186)          4,117

        Accrued liabilities                               (6,134)       (10,400)

        Deferred revenue                                      843             680


        Net cash used in
         operating activities                             (7,216)        (7,096)


        Cash flows from investing activities:

        Purchase of property
         and equipment                                    (3,923)        (3,823)

        Proceeds from cost
         method investment                                     22

        Net cash used in
         investing activities                             (3,901)        (3,823)


        Cash flows from financing activities:

        Proceeds from
         issuance of common
         stock                                              1,349             802

        Shares surrendered
         for tax withholding                              (2,310)        (2,072)

        Dividends paid                                    (4,063)        (2,696)

        Net cash used in
         financing activities                             (5,024)        (3,966)


        Effect of foreign
         currency exchange
         rate on cash                                          45             133

        Change in cash and
         cash equivalents                                (16,096)       (14,752)

        Cash and cash
         beginning of period                               59,173          76,441


        Cash and cash
         equivalents, end of
         period                                           $43,077         $61,689


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