Luminex (LMNX) 8-K Luminex Corporation Reports Third Quarter 2009 Results

Exhibit 99.1

LUMINEX CORPORATION REPORTS THIRD QUARTER 2009 RESULTS

AUSTIN, Texas (November 4, 2009) — Luminex Corporation (NASDAQ:LMNX) today announced financial results for the third quarter ended September 30, 2009. Recent financial and operating highlights include the following:

• Record system shipments of 259, including 11 FLEXMAP 3D^® systems for the third quarter of 2009, resulting in cumulative life-to-date shipments of 6,514, up 15 percent from a year ago

• Record system revenue of $9.2 million for the third quarter of 2009, up 18 percent over the third quarter of 2008; year-to-date system revenue of $21.4 million, an increase of three percent over the same prior year period

• Consolidated third quarter revenue of $29.1 million, and loss per share of $(0.01)

• Third quarter revenue from sales of higher margin items (consumables, royalties, and assays) of $17.0 million or 58 percent of total quarterly revenue

• Total assay sales by Luminex and its partners of $80.8 million for the third quarter of 2009, an increase of 16 percent over the third quarter of 2008

• Consolidated gross profit margin of 64 percent for the third quarter of 2009

• Received FDA 510(K) clearance for the xTAG^® Cystic Fibrosis Test 39 v2 incorporating new fast chemistry

• Announced FDA clearance for an update to the xTAG Respiratory Viral Panel (RVP) package insert to include data demonstrating that xTAG RVP can be an effective aid in the detection of 2009 Influenza A/H1N1

• Launched new xTAG RVP awareness campaign including the development ofxTAGRVP.com, a respiratory virus testing and information website providing doctors and patients timely information on avoiding and detecting flu and other respiratory viruses

• Continued global expansion by establishing an office in Tokyo, Japan to provide commercial support and service to customers and partners in the region

Consolidated revenue for the third quarter of 2009 was $29.1 million, a one percent increase over the third quarter of 2008 revenue of $28.9 million. GAAP net loss for the third quarter of 2009 was $(0.6) million, or $(0.01) per share, compared with GAAP net income of $3.2 million, or $0.08 per share for the same period last year. Net loss for the third quarter of 2009 included non-cash charges of $2.2 million in stock compensation expense associated with SFAS 123R and $2.1 million of depreciation and amortization expense.

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LMNX Reports Third Quarter 2009 Results
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November 4, 2009

LUMINEX CORPORATION
REPORTABLE SEGMENT HIGHLIGHTS
(unaudited)
(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
Revenue
Technology group	$	22,031		$	22,582		$	62,595		$	61,496
Assay group		7,087			6,315			19,881			14,754
		29,118			28,897			82,476			76,250
Operating income (loss)
Technology group		549			3,228			5,453			6,588
Assay group		(1,061	)		(247	)		(3,352	)		(5,389	)
Operating income (loss)		(512	)		2,981			2,101			1,199

“We are pleased with our performance in the quarter, especially given the economic and market conditions,” said Patrick J. Balthrop, president and chief executive officer of Luminex. “We achieved record instrument shipments during the third quarter, and record instrument revenue as continuing to grow our installed base of instruments is a strategic priority for Luminex. We continued to grow our Assay Group revenue, led by our innovative Respiratory Viral Panel. Although we reported a sequential decline in our bulk consumable sales, we believe this is a temporary phenomenon. We expect our consumables to return to growth in the near term.

“We are encouraged by early indicators for the fourth quarter of 2009, as well as the longer term, given our pipeline of products, enhanced investment by our partners, and our robust royalty revenues” continued Balthrop. “Our gross margins were healthy at 64 percent for the quarter and we continue to exercise good cost and expense control.”

FINANCIAL OUTLOOK AND GUIDANCE

The Company is adjusting 2009 full year revenue guidance to $118 to $126 million from between $118 and $132 million. The adjusted full year figures represent an increase of between 13 and 18 percent over reported 2008 revenue.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the third quarter ended September 30, 2009, on Wednesday, November 4, 2009, at 5:00 p.m. Eastern time. 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.

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LMNX Reports Third Quarter 2009 Results
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November 4, 2009

ABOUT LUMINEX CORPORATION

Luminex Corporation develops, manufactures and markets proprietary biological testing technologies with applications throughout the diagnostic and life sciences industries. The Company’s xMAP^® multiplex solutions include 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 markets. The Company’s xMAP Technology is sold worldwide and is already in use in leading clinical laboratories as well as major pharmaceutical, diagnostic and biotechnology companies. Further information on Luminex Corporation or xMAP technology can be obtained atwww.luminexcorp.com.

Statements made in this release that express Luminex’ or management’s intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements. 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, which may include statements regarding the Company’s revenues and outlook for 2009, expectations regarding future bulk consumables sales and the effects of market conditions on bulk consumables sales, improvement of market conditions for the Company’s partners and end users for the fourth quarter of 2009, the ability of our pipeline of products and enhanced investment by our partners to continue to drive improved financial performance, the ability of new product launches and geographic expansion to open new markets and continue the Company’s growth, royalty revenue, its continued robustness and its reliability as an indicator of end user assay demand, and the ability of the Company to continue to invest in its long-term growth strategies, including research and development projects, geographic and commercial expansion, dedication to regulatory compliance. Factors that could cause Luminex’ actual results or performance to differ materially include risks and uncertainties relating to, among others, market demand and acceptance of Luminex’ products (including systems, consumables and assay kits) 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, Luminex’ 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’ 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’ Annual Report on Forms 10-K for the year ended December 31, 2008 and subsequent Forms 10-Q, as filed with the Securities and Exchange Commission. The forward-looking statements, including the financial guidance, 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’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

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LMNX Reports Third Quarter 2009 Results
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November 4, 2009

LUMINEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

	September 30,			December 31,
	2009			2008
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	78,740		$	81,619
Short-term investments		16,516			40,784
Accounts receivable, net		19,116			11,024
Inventory, net		12,697			11,589
Other		1,641			1,377
Total current assets		128,710			146,393
Property and equipment, net		17,168			12,567
Intangible assets, net		13,428			14,901
Long-term investments		19,722			2,000
Goodwill		39,617			39,617
Other		1,370			1,813
Total assets	$	220,015		$	217,291
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,116		$	4,580
Accrued liabilities		6,496			7,181
Deferred revenue		3,180			2,671
Current portion of long term debt		516			445
Total current liabilities		15,308			14,877
Long-term debt		3,672			2,914
Deferred revenue and other		4,768			4,960
Total liabilities		23,748			22,751
Stockholders’ equity:
Common stock		41			40
Additional paid-in capital		283,102			279,255
Accumulated other comprehensive gain (loss)		119			(47	)
Accumulated deficit		(86,995	)		(84,708	)
Total stockholders’ equity		196,267			194,540
Total liabilities and stockholders’ equity	$	220,015		$	217,291

LMNX Reports Third Quarter 2009 Results
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November 4, 2009

LUMINEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
	(unaudited)						(unaudited)
Revenue	$	29,118		$	28,897		$	82,476		$	76,250
Cost of revenue		10,347			9,343			26,837			24,876
Gross profit		18,771			19,554			55,639			51,374
Operating expenses:
Research and development		5,643			4,443			15,246			13,899
Selling, general and administrative		13,640			12,130			38,292			36,276
Total operating expenses		19,283			16,573			53,538			50,175
Income (loss) from operations		(512	)		2,981			2,101			1,199
Interest expense from long-term debt		(116	)		(137	)		(358	)		(406	)
Settlement of litigation		—			—			(4,350	)		—
Other income (loss), net		144			490			593			629
Income (loss) before income taxes		(484	)		3,334			(2,014	)		1,422
Income taxes		(125	)		(161	)		(273	)		(374	)
Net income (loss)	$	(609	)	$	3,173		$	(2,287	)	$	1,048
Net income (loss) per share, basic	$	(0.01	)	$	0.08		$	(0.06	)	$	0.03
Shares used in computing net income (loss) per share, basic		40,661			40,002			40,515			37,056
Net income (loss) per share, diluted	$	(0.01	)	$	0.08		$	(0.06	)	$	0.03
Shares used in computing net income (loss) per share, diluted		40,661			42,173			40,515			38,957

LMNX Reports Third Quarter 2009 Results
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November 4, 2009

LUMINEX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

	Three Months Ended						Nine Months ended
	September 30,						September 30,
	2009			2008			2009			2008
	(unaudited)						(unaudited)
Cash flows from operating activities:
Net income (loss)	$	(609	)	$	3,173		$	(2,287	)	$	1,048
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization		2,116			1,821			5,995			5,125
Stock-based compensation and other		2,231			1,781			5,817			5,202
Loss on disposal of assets		—			—			25			7
Other		676			(131	)		1,257			467
Changes in operating assets and liabilities:
Accounts receivable, net		(898	)		(2,771	)		(7,988	)		(985	)
Inventory, net		(286	)		(1,034	)		(1,108	)		(3,039	)
Prepaids and other		405			139			(26	)		(793	)
Accounts payable		1,437			465			376			1,103
Accrued liabilities		1,295			(290	)		(3,023	)		(1,346	)
Deferred revenue		(28	)		530			313			1,122
Net cash provided by (used in) operating activities		6,339			3,683			(649	)		7,911
Cash flows from investing activities:
Net purchases of available-for-sale investments		(12,003	)		—			(56,649	)		—
Maturities/sales of available-for-sale investments		17,986			—			22,980			—
Net purchases of held-to-maturity investments		—			(28,651	)		—			(36,541	)
Maturities of held-to-maturity investments		3,938			1,477			40,078			6,435
Purchase of property and equipment		(3,502	)		(852	)		(8,618	)		(2,747	)
Acquisition activity		—			(93	)		—			(505	)
Proceeds from sale of assets		—			20			—			20
Acquired technology rights		—			(234	)		(21	)		(1,216	)
Net cash provided by (used in) investing activities		6,419			(28,333	)		(2,230	)		(34,554	)
Cash flows from financing activities:
Proceeds from debt		—			—			454			—
Payments on debt		—			—			(440	)		(134	)
Proceeds from secondary offering, net of offering costs		—			(104	)		—			74,675
Proceeds from issuance of common stock		77			3,668			362			6,438
Net cash provided by financing activities		77			3,564			376			80,979
Effect of foreign currency exchange rate on cash		(246	)		25			(376	)		49
Change in cash and cash equivalents		12,589			(21,061	)		(2,879	)		54,385
Cash and cash equivalents, beginning of period		66,151			102,679			81,619			27,233
Cash and cash equivalents, end of period	$	78,740		$	81,618		$	78,740		$	81,618