Luminex Corporation Reports First Quarter 2013 Results
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Luminex Corporation has announced financial results for the first quarter ended March 31, 2013. Financial and operating highlights include the following:
• Consolidated first quarter revenue was $53.2 million, a 9 percent increase over the first quarter of 2012
• Consolidated gross profit margin was 71 percent for the first quarter of 2013, compared to 69 percent for the first quarter of 2012
• Non-GAAP net income for the first quarter was $7.9 million or $0.19 per diluted share. This compares to non-GAAP net income of $6.6 million, or $0.15 per diluted share for the first quarter of 2012. GAAP net loss for the first quarter was $2.5 million, or ($0.06) per diluted share.
After a charge of $7.0 million associated with finalizing the termination of our molecular distribution agreements. This compares to GAAP net income of $3.5 million, or $0.08 per diluted share in the first quarter of 2012 (see the reconciliation of GAAP to non-GAAP set forth on page 7)
• Received FDA clearance for the xTAG Gastrointestinal Pathogen Panel (xMAP® GPP™) on the LX200 system in January and on the MAGPIX system in April
• Signed a collaboration and license agreement with Merck (NYSE: MRK) to develop a companion diagnostic that will help screen patients into Merck's lead investigational candidate drug study for Alzheimer's disease (AD)
"Our royalty revenue grew 23% while our total cumulative shipments of multiplexing analyzers expanded to almost 10,000 units, or 11% over the year ago period, both of which indicate the strong ongoing demand for our proprietary technology," said Patrick J. Balthrop, president and chief executive officer of Luminex.
"Furthermore, the company's successful transition to a direct molecular diagnostic sales force, effective January 1, 2013, was an important step in our ability to directly control the growth of our assay revenues going forward. We now have direct coverage of our molecular diagnostic products in the U.S. and major markets internationally. The customer response has been very positive," added Balthrop.
"In other strategic initiatives, we continue to make good progress with our unique sample to answer system, called Project ARIES, which we will be demonstrating to key opinion leaders at the upcoming Clinical Virology Symposium in Florida.
"We continue to be pleased with the expansion of our product offerings in infectious disease and genetic testing, particularly with the recent FDA clearance of GPP running on MAGPIX, our lower cost multiplexing analyzer. With new assays like GPP and the exciting portfolio from Luminex Madison, we are positioned for continued growth," Balthrop concluded.
"We are pleased with the overall financial performance in the first quarter of 2013, as Luminex transitions to a direct molecular diagnostic sales force and invests in exciting strategic programs, like Project ARIES," said Harriss T. Currie, senior vice president and chief financial officer.
Currie continued, "As reviewed previously, operating expenses for the current quarter included a $7.0 million charge attributable to finalizing the termination of our molecular diagnostic distribution arrangements. If you exclude this charge, operating margin for the first quarter would be 10%. Investment in our new Project Aries system was robust during the quarter and added just over $3 million to R&D expenses for our ARP segment during the period."
