Luminex Corporation Reports First Quarter 2014 Results

AUSTIN, Texas, April 28, 2014 -- Luminex Corporation (LMNX) today announced financial results for the first quarter ended March 31, 2014.  Financial and operating highlights include the following:

• Consolidated first quarter revenues reached $56.6 million, a 6 percent increase over the first quarter of 2013
• Consolidated gross profit margin was 71 percent for the first quarter of 2014
• First quarter assay revenue of $21.7 million, an 18 percent increase over the first quarter of 2013. Infectious disease sales comprised approximately 65 percent of total assay revenue, with genetic testing representing 35 percent.
• First quarter consumable sales of $12.8 million, a 7 percent increase over the first quarter of 2013 

• Operating income for the first quarter of 2014 was $8.2 million, compared to an operating loss of $1.6 million in the first quarter of 2013. Excluding the $7.0 million expense related to the resolution of our molecular diagnostics distribution agreements in the first quarter of 2013, operating income would have been $5.4 million. 
• GAAP net income for the first quarter was $6.0 million, or $0.14 per diluted share.  This compares to a GAAP net loss of $2.5 million, or ($0.06) per diluted share for the first quarter of 2013.
• Non-GAAP net income for the first quarter was $9.9 million or $0.24 per diluted share. This compares to non-GAAP net income of $7.9 million, or $0.19 per diluted share in the first quarter of 2013. (see Non-GAAP reconciliation)

"We began 2014 with a quarter of solid financial performance, driven by strong growth in our assay business as highlighted above. We are optimistic about the continued prospects and future success of our assay segment, given our current portfolio and pipeline," said Patrick J. Balthrop, president and chief executive officer of Luminex. "We are also pleased with the traction we are achieving in the adoption of our new products and their performance versus competition; principally our xTAG® infectious disease panels and our new pharmacogenomics tests."

"In addition, our R&D team continues to achieve key development milestones with our pipeline products, including ARIES, our sample-to-answer real-time PCR instrument, which is on schedule and nearing initiation of clinical trials.  As we prepare for the commercial launch of ARIES and our other exciting pipeline products throughout 2014, we will be showcasing them at industry trade shows and conferences demonstrating that the Company is positioned for strategic success."

"We are pleased with the overall financial performance in the first quarter of 2014, which benefited from a concentration of our higher margin items, consumables, royalties and assays.  In addition, by managing spending levels across our operating expense classes, we were able to deliver excellent operating leverage and improved performance at the net profit line," said Harriss T. Currie, senior vice president and chief financial officer. 

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2014 annual revenue guidance of between $225 and $240 million.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the first quarter ended March 31, 2014, at 4:00 p.m. CDT/5:00 p.m. EDT, Monday, April 28, 2014. 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 six months on the website using the 'replay' link.

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'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: growth in our partner business, including systems, consumables and royalties; our efforts to sell our molecular diagnostic products directly to end users; the development progress of our pipeline products, including ARIES systems and assay menu, market acceptance of our genetic and infectious disease products, regulatory clearance of our products; the ability of our investment in current initiatives and new products to drive long-term value for our shareholders, management of expenses to create operating leverage; and, projected 2014 revenue. 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 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, our ability to sell products directly to end users, our ability to launch products on time that satisfy market needs with products that we sell, setting of medicare reimbursement codes that adequately reflect the value of our products, Luminex's 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's 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'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 2014 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.

The Company makes reference in this release to "non-GAAP operating income" and "non-GAAP net income" which excludes the impact of costs associated with the ENZO Life Sciences, Inc. and Irori Technologies, Inc. complaints discussed in the Legal Proceedings section of our previously filed 10-Ks and certain other recurring and non-recurring expenses. The Company believes that excluding these items and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and, as such may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for income from operations, net income, net income per share or expense information prepared in accordance with GAAP.