Luminex (LMNX) 8-K Luminex Corporation Reports First Quarter 2007 Results

Contact:	Harriss T. Currie
	Vice President, Finance and Chief Financial Officer
	512-219-8020
	hcurrie@luminexcorp.com

LUMINEX CORPORATION REPORTS FIRST QUARTER 2007 RESULTS

Core Business Achieves Record Revenue and Profit
Integration of New Luminex Molecular Diagnostics Division Moving Forward

AUSTIN, Texas (May 2, 2007) — Luminex Corporation (NASDAQ:LMNX) today announced financial results for the first quarter ended March 31, 2007.

Consolidated revenue for the first quarter of 2007 was $16.6 million compared with $13.0 million in the first quarter of 2006. Consolidated net income for the first quarter of 2007 was $136,000, or $0.00 per share, as compared with $526,000, or $0.02 per share, for the comparable period of 2006.

On March 1, 2007, Luminex completed the acquisition of all of the outstanding common shares of Tm Bioscience Corporation, a leader in the commercial genetic testing market. The results for the first quarter ended March 31, 2007, include one month of Tm Bioscience operations for the combined companies. Beginning with the first quarter of 2007, Luminex will report the following segments: Technology Group and Assay Group. These segments are consistent with the Company’s organizational structure. The Technology Group consists of the base business including system sales to partners, raw bead sales, royalties, service and support of the core technology and other miscellaneous items. The Assay Group consists of the Luminex Bioscience Group, or LBG, and the newly acquired Tm Bioscience operations, now known as Luminex Molecular Diagnostics, or LMD. This segment is primarily involved in the development and sale of assays on xMAP technology for use on the Company’s installed base of systems. Revenue, gross margin and operating income are key measures used by management to evaluate performance for each segment.

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LMNX Reports First Quarter 2007 Results
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May 2, 2007

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

	Three Months Ended March 31,
	2007			2006
Revenue
Technology group	$	15,738		$	12,997
Assay group		1,200			—
Eliminations of intersegment revenue		(331	)		—
Total revenue		16,607			12,997
Gross margin percentage
Technology group		64	%		64	%
Assay group		41	%		—
Eliminations of intersegment margins		(1	%)		—
Consolidated gross margin percentage		63	%		64	%
Operating income (loss)
Technology group		1,148			555
Assay group		(1,455	)		(442	)

The Assay Group results for the first quarter of 2007 include three months of revenue from LBG and one month of revenue from LMD. Assay Group results for 2006 consist of LBG only. LBG introduced its first two products in late 2006.

“Our results for the first quarter of 2007 indicate a strong start to 2007 for Luminex,” said Patrick J. Balthrop, president and chief executive officer of Luminex. “Our core business continued to gain momentum in the life sciences marketplace and we achieved record revenues and profit in this segment. Our proprietary xMAP^® technology continues to build momentum with over 4,300 Luminex systems placed in research laboratories, clinical laboratories, bio-defense facilities and academic institutions around the world. Consumable sales and royalties, key measures of our growth, continued to show favorable trends. We achieved a 63 percent gross profit margin on a consolidated basis, confirming the strength of our core business model.”

“A key event for the first quarter of 2007 was the successful completion of our acquisition of Tm Bioscience,” added Balthrop. “LMD has been established as a separate molecular diagnostics division in Toronto with support from our operations in Austin and are included in our assay group. We are pleased with the progress we have made to date with the integration of LMD. More importantly, we have the ability to accelerate our growth strategy in 2007 with the opportunity to extend our market reach in the high growth molecular diagnostics market.”

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LMNX Reports First Quarter 2007 Results
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May 2, 2007

CONSOLIDATED FIRST QUARTER 2007 HIGHLIGHTS

• Consolidated revenue of over $16.6 million, a 28% increase over the 1st quarter of 2006 and a 17% increase over the 4th quarter of 2006

• Consolidated gross margins of 63%

• Profitability for the 5th consecutive quarter on a consolidated basis despite the operating deficits of the recently acquired Tm Bioscience for the month of March

• Aggregate shipments of xMAP systems exceeds 4,300

• Completion of the Tm Bioscience acquisition

• Secured a line of credit of up to $15 million to support potential short term liquidity needs

• Annualized end user sales on xMAP technology reported to us by our partners of over $165 million

• New product introductions by both the Technology Group and the Luminex Bioscience Group

REVENUE COMPONENTS

	Three Months Ended
	March 31,
	(in thousands)
	2007		2006
System Revenue	$	5,731	$	3,992
Consumable Revenue		4,811		5,502
Royalty Revenue		2,532		1,790
Reagent Revenue		1,144		—
Service Revenue		1,003		808
Other Miscellaneous Revenue		1,386		905
Total Revenue	$	16,607	$	12,997

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the first quarter ended March 31, 2007, on Thursday, May 3, 2007, at 8:00 a.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 our 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 one year on the website using the ‘replay’ link.

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LMNX Reports First Quarter 2007 Results
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May 2, 2007

ABOUT LUMINEX CORPORATION

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. 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, 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’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, risks and uncertainties associated with implementing our acquisition strategy and the ability to integrate acquired companies, including Tm Bioscience Corporation, 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 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.

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LMNX Reports First Quarter 2007 Results
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May 2, 2007

LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 31,			December 31,
	2007			2006
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	16,195		$	27,414
Short-term investments		3,493			10,956
Accounts receivable, net		10,789			8,237
Inventory, net		6,145			4,571
Other		1,639			1,917
Total current assets		38,261			53,095
Property and equipment, net		8,981			4,985
Intangible assets, net		2,041			—
Long-term investments		7,315			7,346
Goodwill		64,618	(1)		—
Other		1,286			1,270
Total assets	$	122,502		$	66,696
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,555		$	3,255
Accrued liabilities		6,784			2,905
Deferred revenue		3,247			2,756
Other		170			—
Total current liabilities		15,756			8,916
Long-term debt		3,369			—
Deferred revenue and other		3,820			3,621
Total liabilities		22,945			12,537
Stockholders’ equity:
Common stock		35			32
Additional paid-in capital		184,456			139,116
Accumulated other comprehensive gain		(16	)		65
Accumulated deficit		(84,918	)		(85,054	)
Total stockholders’ equity		99,557			54,159
Total liabilities and stockholders’ equity	$	122,502		$	66,696

(1) Luminex has recorded $64.6 million of goodwill related to the Tm Bioscience acquisition. This goodwill asset is subject to adjustment over the course of the next three quarters as Luminex completes certain standard activities around the transaction such as: recording of all transaction related costs; allocation of the purchase price based on an expert valuation of the acquired operation’s assets and liabilities; and evaluation of potential impairment of the remaining goodwill balance. No assurances can be given as to the size of any subsequent goodwill adjustment, if any, at this time.

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LMNX Reports First Quarter 2007 Results
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May 2, 2007

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

	Three Months Ended
	March 31,
	2007			2006
	(unaudited)
Revenue	$	16,607		$	12,997
Cost of revenue		6,178			4,737
Gross profit		10,429			8,260
Operating expenses:
Research and development		2,705			2,197
Selling, general and administrative		8,096			5,950
Total operating expenses		10,801			8,147
Income (loss) from operations		(372	)		113
Interest expense from long-term debt		(84	)		—
Other income, net		606			416
Income taxes		(14	)		(3	)
Net income	$	136		$	526
Net income per share, basic	$	0.00		$	0.02
Shares used in computing net income per share, basic		31,970			31,201
Net income per share, diluted	$	0.00		$	0.02
Shares used in computing net income per share, diluted		33,077			32,379

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