Luminex (LMNX) 8-K Luminex Corporation Reports Second Quarter 2012 Results

Exhibit 99.1

LUMINEX CORPORATION REPORTS SECOND QUARTER 2012 RESULTS

ACHIEVES RECORD NUMBER OF MAGPIX SYSTEM SALES

ACQUIRES GENTURADX AFTER QUARTER-END

AUSTIN, Texas (July 30, 2012) – Luminex Corporation (NASDAQ:LMNX) today announced financial results for the second quarter ended June 30, 2012.  Financial and operating highlights include the following:

·   Consolidated second quarter revenue of $48.3 million, a one percent increase over the second quarter of 2011

·   Second quarter assay revenue of $17.5 million, an 89 percent increase over the second quarter of 2011. Growth was largely driven by the inclusion of Luminex Madison, formerly EraGen Biosciences, Inc., which was acquired on June 27, 2011

·   Second quarter shipments of 278 multiplexing analyzers that included 167 MAGPIX® systems, resulting in cumulative life-to-date multiplexing analyzer shipments of 9,162, up 12 percent from a year ago

·   Consolidated gross profit margin of 71 percent for the second quarter of 2012

·   Operating expenses for the second quarter of 2012 increased $2.9 million over the second quarter of 2011. $0.9 million of this increase can be attributed to Luminex Madison, and $0.4 million is related to acquisition costs associated with the recent purchase of GenturaDx. Operating income for the second quarter of 2012 was $6.5 million compared with operating income of $8.8 million for the same period last year

·   Luminex Corporation was added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Life Sciences Tools & Services Sub-Industry Index

·   In July, Luminex Corporation acquired GenturaDx, a private, California-based molecular diagnostic company, for $50 million in cash and potential additional contingent consideration based on achievement of future milestones and/or product revenue performance

“We are pleased with our second quarter results and long-term trajectory.  Luminex’s strategic plan is focused on providing customers with the tools they need to positively impact human health through reduced complexity and increased speed of the testing process. We continue to invest heavily in our proprietary xMAP® technology, and we have always recognized that one platform may not suit all lab customer needs. In order to access these new opportunities, Luminex has sought to acquire external technologies, such as EraGen Biosciences in 2011 and our recent acquisition of GenturaDx,” said Patrick J. Balthrop, president and chief executive officer of Luminex.  “We are excited about GenturaDx technology and believe its simple to use, sample-to-answer platform combined with our proprietary MultiCode RTx chemistry will provide hospital-based molecular diagnostic labs with another powerful tool in their search for answers. When this system is commercialized (anticipated for 2014) Luminex will be able to offer our customers with a broad line of product solutions to fit their specific needs.” 

-MORE-

“Regarding new product updates, I am pleased to report that Luminex has submitted a de-novo 510(k) application to the FDA for our gastrointestinal pathogen panel (xTAG® GPP) assay. This product offering addresses a sizeable new market opportunity for Luminex and is another example of how Luminex is providing advanced solutions and real value to our customers. With new assays like GPP, NeoPlex4 and the exciting portfolio from Luminex Madison, we are positioned for strong growth in the future,” Balthrop concluded. 

REVENUE SUMMARY

(in thousands, except percentages)

	Three Months Ended
	June 30,				Variance
	2012		2011		($)			(%)
	(unaudited)
System sales	$	8,386	$	9,135	$	(749	)		-8	%
Consumable sales		10,802		18,397		(7,595	)		-41	%
Royalty revenue		7,715		7,412		303			4	%
Assay revenue		17,510		9,261		8,249			89	%
All other revenue		3,860		3,433		427			12	%
	$	48,273	$	47,638	$	635			1	%
	Six Months Ended
	June 30,				Variance
		2012		2011	($)			(%)
	(unaudited)
System sales	$	15,384	$	16,814	$	(1,430	)		-9	%
Consumable sales		22,702		33,399		(10,697	)		-32	%
Royalty revenue		15,957		14,668		1,289			9	%
Assay revenue		34,807		18,845		15,962			85	%
All other revenue		8,150		7,187		963			13	%
	$	97,000	$	90,913	$	6,087			7	%

“We are pleased with our revenue progress, notwithstanding the significant decline in current quarter consumable revenue which was primarily the result of volatility in a single customer’s purchases,” said Harriss T. Currie, vice president and chief financial officer. “We anticipate improved revenue growth in the second half of 2012, as a result of both traction within our LMA and LMD product portfolios and easing consumable revenue comparisons.”  

-MORE-

LUMINEX CORPORATION

REPORTABLE SEGMENT HIGHLIGHTS

 (in thousands, except percentages)

	Three Months Ended
	June 30,					Variance
	2012		2011			($)			(%)
	(unaudited)
Revenue
Technology and strategic partnerships	$	29,565	$	36,211		$	(6,646	)		-18	%
Assays and related products		18,708		11,427			7,281			64	%
Total Revenue		48,273		47,638			635			1	%
Operating income (loss)
Technology and strategic partnerships		4,342		11,572			(7,230	)		-62	%
Assays and related products		2,144		(2,775	)		4,919			177	%
Total Operating income		6,486		8,797			(2,311	)		-26	%
	Six Months Ended
	June 30,					Variance
		2012		2011		($)			(%)
	(unaudited)
Revenue
Technology and strategic partnerships	$	59,774	$	68,146		$	(8,372	)		-12	%
Assays and related products		37,226		22,767			14,459			64	%
Total Revenue		97,000		90,913			6,087			7	%
Operating income (loss)
Technology and strategic partnerships		8,541		20,228			(11,687	)		-58	%
Assays and related products		3,553		(3,137	)		6,690			213	%
Total Operating income		12,094		17,091			(4,997	)		-29	%

FINANCIAL OUTLOOK AND GUIDANCE

The Company reaffirms its 2012 annual revenue guidance of between $205 and $215 million.

CONFERENCE CALL

Management will host a conference call to discuss the operating highlights and financial results for the second quarter ended June 30, 2012, on Monday, July 30, 2012, at 5:00 p.m. Eastern time / 4:00 p.m. Central 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.

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 xMAPtechnology 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.

-MORE-

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: the expansion of our installed base; distribution for our instruments; purchases of our consumable products; the development progress and market acceptance of our assay products, including NeoPlex4 and NeoPlex System and products developed and manufactured by Luminex Madison and Luminex Molecular Diagnostics; anticipated FDA clearance of our products, including Gastrointestinal Pathogen Panel, NeoPlex4 and NeoPlex System; status of integration of Luminex Madison; the acquisition of GenturaDx; the addition of Luminex to the S&P Small Cap 600 GICS; Luminex’s long-term strategic plan and acquisition strategy; the ability of our investment in current initiatives and new products to deliver high performance solutions, and drive long-term value for our shareholders; and, projected 2012 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, 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 2012 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.

-MORE-

LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	June 30,			December 31,
	2012			2011
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	75,898		$	58,282
Restricted cash		-			1,006
Short-term investments		23,150			42,574
Accounts receivable, net		26,176			23,016
Inventories, net		26,304			24,579
Deferred income taxes		4,416			5,991
Prepaids and other		4,924			3,529
Total current assets		160,868			158,977
Property and equipment, net		26,243			25,192
Intangible assets, net		27,256			29,437
Deferred income taxes		13,461			12,817
Long-term investments		5,997			6,151
Goodwill		42,758			42,763
Other		6,899			7,310
Total assets	$	283,482		$	282,647
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,937		$	5,941
Accrued liabilities		9,714			11,047
Deferred revenue		4,230			4,057
Current portion of long term debt		490			999
Total current liabilities		20,371			22,044
Long-term debt		2,191			2,573
Deferred revenue		3,259			3,344
Other		2,584			3,831
Total liabilities		28,405			31,792
Stockholders' equity:
Common stock		41			41
Additional paid-in capital		294,936			297,104
Accumulated other comprehensive gain		895			984
Accumulated deficit		(40,795	)		(47,274	)
Total stockholders' equity		255,077			250,855
Total liabilities and stockholders' equity	$	283,482		$	282,647

-MORE-

LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(unaudited)						(unaudited)
Revenue	$	48,273		$	47,638		$	97,000		$	90,913
Cost of revenue		13,861			13,812			28,828			26,359
Gross profit		34,412			33,826			68,172			64,554
Operating expenses:
Research and development		9,638			7,945			19,078			15,515
Selling, general and administrative		17,204			16,482			34,816			30,763
Amortization of acquired intangible assets		1,084			602			2,184			1,185
Total operating expenses		27,926			25,029			56,078			47,463
Income from operations		6,486			8,797			12,094			17,091
Interest expense from long-term debt		(63	)		(79	)		(122	)		(162	)
Other income, net		42			108			99			215
Income before income taxes		6,465			8,826			12,071			17,144
Income taxes		(3,513	)		(4,183	)		(5,592	)		(8,040	)
Net income	$	2,952		$	4,643		$	6,479		$	9,104
Net income per share, basic	$	0.07		$	0.11		$	0.16		$	0.22
Shares used in computing net income per share, basic		41,064			41,262			40,992			41,251
Net income per share, diluted	$	0.07		$	0.11		$	0.15		$	0.21
Shares used in computing net income per share, diluted		42,399			42,446			42,246			42,398

-MORE-

LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(unaudited)						(unaudited)
Cash flows from operating activities:
Net income	$	2,952		$	4,643		$	6,479		$	9,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,533			2,622			7,055			5,138
Stock-based compensation		2,571			2,993			5,214			5,540
Deferred income tax benefit		376			2,054			929			3,379
Excess income tax benefit from employee stock-based awards		(2,476	)		(1,501	)		(2,773	)		(3,705	)
Other		(49	)		234			183			305
Changes in operating assets and liabilities:
Accounts receivable, net		830			68			(3,183	)		6,656
Inventories, net		(1,860	)		1,793			(1,727	)		1,207
Other assets		(1,671	)		(164	)		(1,631	)		(1,186	)
Accounts payable		555			(1,510	)		69			(4,254	)
Accrued liabilities		4,811			1,953			(1,215	)		167
Deferred revenue		(50	)		(317	)		93			(460	)
Net cash provided by operating activities		9,522			12,868			9,493			21,891
Cash flows from investing activities:
Purchases of available-for-sale securities		(1,496	)		(22,201	)		(10,495	)		(29,247	)
Sales and maturities of available-for-sale securities		21,490			7,256			30,005			14,177
Purchase of property and equipment		(3,761	)		(2,644	)		(5,357	)		(3,798	)
Business acquisition consideration, net of cash acquired		-			(33,914	)		-			(33,914	)
Purchase of cost method investment		-			-			-			(2,000	)
Acquired technology rights		(291	)		(87	)		(291	)		(87	)
Net cash provided by (used in) investing activities		15,942			(51,590	)		13,862			(54,869	)
Cash flows from financing activities:
Payments on debt		(1,025	)		(885	)		(1,025	)		(885	)
Proceeds from issuance of common stock		1,706			590			2,363			818
Payments for stock repurchases		(4,432	)		(1,436	)		(9,880	)		(4,686	)
Excess income tax benefit from employee stock-based awards		2,476			1,501			2,773			3,705
Net cash used in financing activities		(1,275	)		(230	)		(5,769	)		(1,048	)
Effect of foreign currency exchange rate on cash		(121	)		1			30			149
Change in cash and cash equivalents		24,068			(38,951	)		17,616			(33,877	)
Cash and cash equivalents, beginning of period		51,830			94,561			58,282			89,487
Cash and cash equivalents, end of period	$	75,898		$	55,610		$	75,898		$	55,610

-END-