EX-99.1 2 g08930exv99w1.htm EX-99.1 PRESS RELEASE DATED AUGUST 9, 2007 Ex-99.1
 

Exhibit 99.1
(LOGO)
     
Contact:  
Harriss T. Currie
   
Vice President, Finance and Chief Financial Officer
   
512-219-8020
   
hcurrie@luminexcorp.com
LUMINEX CORPORATION COMPLETES A PORTION OF ITS PURCHASE PRICE ALLOCATION
AUSTIN, Texas (August 9, 2007) — Luminex Corporation (NASDAQ:LMNX) today announced in connection with its filing of quarterly report 10-Q, an allocation of a portion of its goodwill balance to intangible assets associated with the purchase price analysis related to the acquisition of Tm Bioscience completed on March 1, 2007.
As previously disclosed, Luminex recorded $65.4 million of goodwill related to the Tm Bioscience acquisition. The initial goodwill asset was subject to adjustment upon recording of final transaction related costs and allocation of the purchase price based on the Company’s final determination of the fair market value of the acquired operation’s assets and liabilities. Luminex has completed a portion of its valuation analysis, and, as a result, a portion of the goodwill balance has been allocated to the identified intangible assets and in-process research and development. Accordingly, financial statements for the second quarter and six months ended June 30, 2007, previously released on July 25, 2007, have been revised to reflect the purchase price adjustment and write off of in-process research and development.
This modification consists of a $23.3 million allocation from goodwill to intangible assets, with $859,000 of amortization associated with those assets taken in the period ended June 30, 2007, and an $8.0 million allocation from goodwill to in-process research and development, with the $8.0 million expensed in the period ended June 30, 2007. The identified intangible assets which constitute this modification have estimated useful lives of between one and 15 years and will result in approximately $850,000 per quarter of amortization expense on a go forward basis. The Company anticipates that the remaining purchase price analysis and allocation will be completed during the current third quarter period.
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LMNX Completes A Portion of Its Purchase Price Allocation
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August 9, 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 Completes A Portion of Its Purchase Price Allocation
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August 9, 2007
LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    June 30,     December 31,  
    2007     2006  
    (unaudited)          
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 11,836     $ 27,414  
Short-term investments
     3,314       10,956  
Accounts receivable, net
     11,614       8,237  
Inventory, net
     7,100       4,571  
Other
     1,874       1,917  
 
            
Total current assets
     35,738       53,095  
Property and equipment, net
     10,189       4,985  
Intangible assets, net
     24,583       —  
Long-term investments
     5,311       7,346  
Goodwill
     34,132       —  
Other
     1,705       1,270  
 
            
Total assets
   $ 111,658     $ 66,696  
 
            
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 3,687     $ 3,255  
Accrued liabilities
     8,219       2,905  
Deferred revenue and other
     3,073       2,756  
 
            
Total current liabilities
     14,979       8,916  
Long-term debt
     3,825       —  
Deferred revenue and other
     3,814       3,621  
 
            
Total liabilities
     22,618       12,537  
 
            
Stockholders’ equity:
                
Common stock
     35       32  
Additional paid-in capital
     186,059       139,116  
Accumulated other comprehensive gain
     (80 )     65  
Accumulated deficit
     (96,974 )     (85,054 )
 
            
Total stockholders’ equity
     89,040       54,159  
 
            
Total liabilities and stockholders’ equity
   $ 111,658     $ 66,696  
 
            
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LMNX Completes A Portion of Its Purchase Price Allocation
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August 9, 2007
LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
    (unaudited)     (unaudited)  
Revenue
   $ 17,548     $ 13,268     $ 34,155     $ 26,265  
Cost of revenue
     7,211       5,608       13,388       10,346  
 
                        
Gross profit
     10,337       7,660       20,767       15,919  
Operating expenses:
                                
Research and development
     3,865       1,790       6,571       3,987  
Selling, general and administrative
     10,716       6,137       18,812       12,086  
In-process research and development expense
     8,000       —       8,000       —  
 
                        
Total operating expenses
     22,581       7,927       33,383       16,073  
 
                        
Loss from operations
     (12,244 )     (267 )     (12,616 )     (154 )
Interest expense from long-term debt
     (334 )     —       (419 )     —  
Other income, net
     421       551       1,028       967  
Income taxes
     101       (13 )     87       (16 )
 
                        
Net income (loss)
   $ (12,056 )   $ 271     $ (11,920 )   $ 797  
 
                        
Net income (loss) per share, basic
   $ (0.34 )   $ 0.01     $ (0.36 )   $ 0.03  
 
                        
Shares used in computing net income (loss) per share, basic
     35,006       31,386       33,504       31,288  
Net income (loss) per share, diluted
   $ (0.34 )   $ 0.01     $ (0.36 )   $ 0.02  
 
                        
Shares used in computing net income (loss) per share, diluted
     35,006       32,876       33,504       32,606  
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LMNX Completes A Portion of Its Purchase Price Allocation
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August 9, 2007
LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
    (unaudited)     (unaudited)  
Operating activities:
                                
Net income (loss)
   $ (12,056 )   $ 271     $ (11,920 )   $ 797  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                                
Depreciation and amortization
     1,837       384       2,377       748  
In-process research and development expense
     8,000       —       8,000       —  
Stock-based compensation and other
     1,593       1,259       3,100       2,424  
(Gain) loss on disposal of assets
     34       (2 )     88       25  
Other
     4       (7 )     4       (9 )
Changes in operating assets and liabilities:
                                
Accounts receivable, net
     (580 )     (3,136 )     (1,657 )     (1,476 )
Inventory, net
     (689 )     460       (721 )     138  
Prepaids and other
     (460 )     (399 )     (120 )     29  
Accounts payable
     (2,263 )     (254 )     (3,817 )     (1,506 )
Accrued liabilities
     772       335       (2,353 )     (835 )
Deferred revenue
     (217 )     5       143       (225 )
 
                        
Net cash provided by (used in) operating activities
     (4,025 )     (1,084 )     (6,876 )     110  
 
                        
Investing activities:
                                
Net purchases of held-to-maturity investments
     2,185       955       9,710       (1,045 )
Purchase of property and equipment
     (1,724 )     (643 )     (3,329 )     (1,528 )
Acquisition of business, net of cash acquired
     (744 )     —       (2,735 )     —  
Acquired technology rights
     (265 )     —       (265 )     —  
Proceeds from sale of assets
     30       2       30       7  
 
                        
Net cash provided by (used in) investing activities
     (518 )     314       3,411       (2,566 )
 
                        
Financing activities:
                                
Payments on debt
     (117 )     —       (12,345 )     —  
Proceeds from issuance of common stock
     159       358       174       1,434  
Other
     7       —       7       —  
 
                        
Net cash provided by (used in) financing activities
     49       358       (12,164 )     1,434  
 
                        
Effect of foreign currency exchange rate on cash
     135       16       51       22  
Change in cash and cash equivalents
     (4,359 )     (396 )     (15,578 )     (1,000 )
Cash and cash equivalents, beginning of period
     16,195       24,602       27,414       25,206  
 
                        
Cash and cash equivalents, end of period
   $ 11,836     $ 24,206     $ 11,836     $ 24,206  
 
                        
Supplemental disclosure of cashflow information:
                                
Interest and penalties paid
   $ 254     $ —     $ 1,335     $ —  
Supplemental disclosure of non-cash effect of acquisitions:
                              
Purchase price
   $ (744 )   $ —     $ (47,745 )   $ —  
Common stock issued
     —       —       41,755       —  
Conversion of Tm options and warrants
     —       —       2,315       —  
Cash acquired
     —       —       940       —  
 
                        
Acquisition, net of cash acquired
   $ (744 )   $ —     $ (2,735 )   $ —  
 
                        

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