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Luminex Corporation issued the following announcement on Nov. 4.
Luminex Corporation (Nasdaq: LMNX) announced results for its third quarter ended September 30, 2019.
All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP"). Comparisons shown in this release are to the same period in the prior year unless otherwise noted.
CURRENT HIGHLIGHTS
- Total revenue growth for the quarter of 9% to $78.7 million. Revenue reflects an $8.7 million addition from Flow Cytometry and a $6.9 million reduction attributable to the departure of certain sales to LabCorp.
- Operating cash flow of $9.4 million.
- Dividend declared of $0.09 per share.
- ARIES® MRSA Assay received U.S. Food and Drug Administration (FDA) 510(k) clearance.
- Submitted VERIGENE® II Gastrointestinal Flex Assay to the FDA.
- Expect to submit VERIGENE® II Respiratory Flex Assay to the FDA by year end.
"Consistent with our previously communicated plans, 2019 has been a transition year for Luminex as we have adjusted to the departure of certain sales to LabCorp and the integration of the Flow Cytometry acquisition," said Nachum "Homi" Shamir, President & CEO. "Although total revenue was slightly lower than expected due to order timing in Flow Cytometry in the third quarter, I am very pleased with the significant progress we are making to return the company to sustained growth and profitability," continued Shamir. "We anticipate a new and transformative era for Luminex as a more diversified company, with strong organic growth, profitability, and cash flow, that will be offering exciting new platforms and opportunities across each of our major product lines. Next year will be the first time in Luminex's history where we launch three exciting new platforms across our portfolio."
RESULTS AND REVENUE SUMMARY FOR THIRD QUARTER 2019
- Licensed Technology Group revenue increased 7% to $38.7 million, driven by consumable and royalty revenue growth.
- Molecular Diagnostic revenue declined 15% to $30.3 million (up 6% without the revenue decline from the departure of LabCorp). The growth, absent the LabCorp effect, was primarily attributable to increases in sample to answer portfolio revenue.
- Molecular sample to answer portfolio revenue grew 27% to $17.4 million, with 31 new sample to answer molecular systems under contract in this third quarter. Active sample to answer customers grew to more than 650 in the quarter.
- Flow Cytometry contributed revenue of approximately $8.7 million in the quarter and $33 million year to date, a 10+% increase. While order timing of approximately $3 million in Flow Cytometry resulted in slightly lower revenue than expected in the third quarter, Flow is on track to deliver $12 million in the fourth quarter and $45 million in 2019, as expected, with an anticipated growth rate above 10% in 2019.
- Gross margins of 53% were affected primarily by the departure of higher margin LabCorp revenue, as well as growth across all of the company's lower margin items.
- Net loss of $5.3 million, or $0.12 per diluted share, was impacted primarily by the departure of LabCorp revenue and the integration of the Flow Cytometry acquisition and resulting margin compression.
| REVENUE SUMMARY | |||||||
| (in thousands, except percentages) | |||||||
| Three Months Ended | |||||||
| September 30, | Variance | ||||||
| 2019 | 2018 | ($) | (%) | ||||
| (unaudited) | |||||||
| System sales | $ 15,239 | $ 10,026 | $ 5,213 | 52% | |||
| Consumable sales | 13,359 | 11,627 | 1,732 | 15% | |||
| Royalty revenue | 12,993 | 12,081 | 912 | 8% | |||
| Assay revenue | 29,468 | 33,747 | (4,279) | -13% | |||
| Service revenue | 5,349 | 3,015 | 2,334 | 77% | |||
| Other revenue | 2,265 | 1,949 | 316 | 16% | |||
| $ 78,673 | $ 72,445 | $ 6,228 | 9% | ||||
For the full year 2019, the Company is adjusting its revenue expectations to a range of $334 million to $337 million.
CONFERENCE CALL
Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EST, Monday, November 4, 2019 to discuss the operating highlights and financial results for the third quarter 2019. The conference call will be webcast live and may be accessed at Luminex Corporation's website at http://www.luminexcorp.com. The presentation slides will be posted to our Investor Relations website after the market close on November 4, 2019. 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 1293259. 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 luminexcorp.com.
Original source can be found here.
