DELAWARE | 000-30109 | 74-2747608 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
12212 TECHNOLOGY BLVD., AUSTIN, TEXAS | 78727 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release issued by Luminex Corporation dated October 31, 2016. |
Date: October 31, 2016 | LUMINEX CORPORATION | ||
By: | /s/ Harriss T. Currie | ||
Name: | Harriss T. Currie | ||
Title: | Chief Financial Officer, Senior Vice President of Finance |
Exhibit No. | Description | |
99.1 | Press Release issued by Luminex Corporation dated October 31, 2016. |
• | Consolidated third quarter revenue of $71.2 million, an 18% increase compared to the third quarter of 2015. |
• | In the third quarter, Nanosphere contributed revenue of $7.4 million, growth of more than 50% over year-ago period. |
• | GAAP net income for the third quarter was $2.8 million, or $0.06 per diluted share. Non-GAAP net income for the third quarter was $9.1 million, or $0.21 per diluted share (see Non-GAAP reconciliation). |
• | In August, we received FDA clearance for the ARIES® Flu A/B & RSV assay as well as Emergency Use Authorization for the xMAP® MultiFLEX™ Zika RNA Assay. |
• | Appointed Tadd S. Lazarus, MD to the position of senior vice president and chief medical officer effective October 31, 2016. Previously, Dr. Lazarus served as chief medical officer at Qiagen, Inc. and chief medical officer and vice president of clinical affairs at Gen-Probe Inc. (now Hologic). |
Three Months Ended | ||||||||||||||
September 30, | Variance | |||||||||||||
2016 | 2015 | ($) | (%) | |||||||||||
(unaudited) | ||||||||||||||
System sales | $ | 10,494 | $ | 9,622 | $ | 872 | 9 | % | ||||||
Consumable sales | 12,305 | 10,940 | 1,365 | 12 | % | |||||||||
Royalty revenue | 11,068 | 10,249 | 819 | 8 | % | |||||||||
Assay revenue | 32,443 | 24,639 | 7,804 | 32 | % | |||||||||
All other revenue | 4,911 | 5,151 | (240 | ) | (5 | )% | ||||||||
$ | 71,221 | $ | 60,601 | $ | 10,620 | 18 | % | |||||||
Nine Months Ended | ||||||||||||||
September 30, | Variance | |||||||||||||
2016 | 2015 | ($) | (%) | |||||||||||
(unaudited) | ||||||||||||||
System sales | $ | 27,805 | $ | 22,129 | $ | 5,676 | 26 | % | ||||||
Consumable sales | 37,489 | 32,714 | 4,775 | 15 | % | |||||||||
Royalty revenue | 33,888 | 32,024 | 1,864 | 6 | % | |||||||||
Assay revenue | 85,367 | 74,323 | 11,044 | 15 | % | |||||||||
All other revenue | 13,819 | 16,069 | (2,250 | ) | (14 | )% | ||||||||
$ | 198,368 | $ | 177,259 | $ | 21,109 | 12 | % |
• | Infectious disease assay sales were approximately 78% of total assay sales for the second quarter and genetic testing assays were 22%. |
• | 294 multiplexing analyzers were shipped during the quarter; included in this figure is a combination of MAGPIX® systems, LX systems, FLEXMAP 3D® systems. |
LUMINEX CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
September 30, | December 31, | ||||||
2016 | 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 84,145 | $ | 128,546 | |||
Short-term investments | — | 11,988 | |||||
Accounts receivable, net | 29,962 | 28,853 | |||||
Inventories, net | 41,455 | 31,252 | |||||
Prepaids and other | 9,294 | 8,887 | |||||
Total current assets | 164,856 | 209,526 | |||||
Property and equipment, net | 55,461 | 47,796 | |||||
Intangible assets, net | 88,370 | 52,482 | |||||
Deferred income taxes | 42,208 | 31,821 | |||||
Long-term investments | — | 7,459 | |||||
Goodwill | 83,898 | 49,619 | |||||
Other | 6,335 | 3,853 | |||||
Total assets | $ | 441,128 | $ | 402,556 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 9,881 | $ | 7,868 | |||
Accrued liabilities | 16,115 | 15,152 | |||||
Deferred revenue | 5,601 | 4,212 | |||||
Total current liabilities | 31,597 | 27,232 | |||||
Deferred revenue | 1,864 | 2,064 | |||||
Other | 4,902 | 4,724 | |||||
Total liabilities | 38,363 | 34,020 | |||||
Stockholders' equity: | |||||||
Common stock | 43 | 42 | |||||
Additional paid-in capital | 331,474 | 321,657 | |||||
Accumulated other comprehensive loss | (966 | ) | (1,296 | ) | |||
Retained earnings | 72,214 | 48,133 | |||||
Total stockholders' equity | 402,765 | 368,536 | |||||
Total liabilities and stockholders' equity | $ | 441,128 | $ | 402,556 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 71,221 | $ | 60,601 | $ | 198,368 | $ | 177,259 | |||||||
Cost of revenue | 25,556 | 18,789 | 62,976 | 51,958 | |||||||||||
Gross profit | 45,665 | 41,812 | 135,392 | 125,301 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 12,762 | 10,093 | 35,324 | 31,748 | |||||||||||
Selling, general and administrative | 26,393 | 21,236 | 70,942 | 61,740 | |||||||||||
Amortization of acquired intangible assets | 2,482 | 777 | 5,797 | 2,455 | |||||||||||
Total operating expenses | 41,637 | 32,106 | 112,063 | 95,943 | |||||||||||
Income from operations | 4,028 | 9,706 | 23,329 | 29,358 | |||||||||||
Other income, net | 30 | 13 | (1,395 | ) | 964 | ||||||||||
Settlement of litigation | — | — | — | (7,300 | ) | ||||||||||
Income before income taxes | 4,058 | 9,719 | 21,934 | 23,022 | |||||||||||
Income tax expense | (1,307 | ) | (3,317 | ) | (4,760 | ) | (6,538 | ) | |||||||
Net income | $ | 2,751 | $ | 6,402 | $ | 17,174 | $ | 16,484 | |||||||
Net income per share, basic | $ | 0.06 | $ | 0.15 | $ | 0.4 | $ | 0.39 | |||||||
Shares used in computing net income per share, basic | 42,683 | 42,152 | 42,522 | 42,041 | |||||||||||
Net income per share, diluted | $ | 0.06 | $ | 0.15 | $ | 0.4 | $ | 0.39 | |||||||
Shares used in computing net income per share, diluted | 43,136 | 42,556 | 42,929 | 42,354 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 2,751 | $ | 6,402 | $ | 17,174 | $ | 16,484 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 5,913 | 3,411 | 14,401 | 9,733 | |||||||||||
Stock-based compensation | 3,526 | 3,099 | 8,181 | 7,768 | |||||||||||
Deferred income tax expense | 1,540 | 176 | 4,471 | 6,207 | |||||||||||
Excess income tax expense from employee stock-based awards | — | 14 | — | 1,005 | |||||||||||
Loss (gain) on sale or disposal of assets | 87 | (62 | ) | 128 | (743 | ) | |||||||||
Other | (799 | ) | (25 | ) | (870 | ) | (128 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | (3,118 | ) | (3,985 | ) | 3,555 | 2,101 | |||||||||
Inventories, net | (2,125 | ) | 3,364 | (6,165 | ) | 7,414 | |||||||||
Other assets | (902 | ) | 764 | (230 | ) | (1,629 | ) | ||||||||
Accounts payable | (1,674 | ) | 1,238 | 1,050 | (2,536 | ) | |||||||||
Accrued liabilities | (428 | ) | (3,452 | ) | (6,602 | ) | (1,485 | ) | |||||||
Deferred revenue | 112 | (36 | ) | 733 | (212 | ) | |||||||||
Net cash provided by operating activities | 4,883 | 10,908 | 35,826 | 43,979 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Sales and maturities of available-for-sale securities | — | — | 19,491 | — | |||||||||||
Purchase of property and equipment | (2,675 | ) | (2,731 | ) | (8,394 | ) | (15,299 | ) | |||||||
Proceeds from sale of assets | 42 | — | 45 | 893 | |||||||||||
Business acquisition consideration, net of cash acquired | (1,196 | ) | — | (68,098 | ) | — | |||||||||
Purchase of cost method investment | (500 | ) | — | (500 | ) | — | |||||||||
Acquired technology rights | — | (650 | ) | (200 | ) | (852 | ) | ||||||||
Net cash used in investing activities | (4,329 | ) | (3,381 | ) | (57,656 | ) | (15,258 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on debt | — | — | (25,000 | ) | — | ||||||||||
Proceeds from employee stock plans and issuance of common stock | 1,799 | 977 | 3,561 | 1,690 | |||||||||||
Shares surrendered for tax withholding | (13 | ) | (14 | ) | (1,497 | ) | (1,593 | ) | |||||||
Excess income tax (benefit) expense from employee stock-based awards | — | (14 | ) | — | (1,005 | ) | |||||||||
Net cash provided by (used in) financing activities | 1,786 | 949 | (22,936 | ) | (908 | ) | |||||||||
Effect of foreign currency exchange rate on cash | 87 | 13 | 365 | 46 | |||||||||||
Change in cash and cash equivalents | 2,427 | 8,489 | (44,401 | ) | 27,859 | ||||||||||
Cash and cash equivalents, beginning of period | 81,718 | 111,064 | 128,546 | 91,694 | |||||||||||
Cash and cash equivalents, end of period | $ | 84,145 | $ | 119,553 | $ | 84,145 | $ | 119,553 |
LUMINEX CORPORATION | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Income from operations | $ | 4,028 | $ | 9,706 | $ | 23,329 | $ | 29,358 | |||||||
Stock-based compensation | 3,526 | 3,099 | 8,181 | 7,768 | |||||||||||
Amortization of acquired intangible assets | 2,482 | 777 | 5,797 | 2,455 | |||||||||||
Costs associated with legal proceedings | — | 10 | — | 630 | |||||||||||
Acquisition costs | 479 | — | 2,487 | — | |||||||||||
Severance costs | 126 | 90 | 940 | 284 | |||||||||||
Adjusted income from operations | $ | 10,641 | $ | 13,682 | $ | 40,734 | $ | 40,495 | |||||||
Other income, net | 30 | 13 | (1,395 | ) | 964 | ||||||||||
Gain on sale of cost method equity investment | — | — | — | (892 | ) | ||||||||||
Acquisition costs | — | — | 1,500 | — | |||||||||||
Income tax expense | (1,307 | ) | (3,317 | ) | (4,760 | ) | (6,538 | ) | |||||||
Income tax effect of above adjusting items | (305 | ) | (1,115 | ) | (721 | ) | (3,588 | ) | |||||||
Adjusted net income | $ | 9,059 | $ | 9,263 | $ | 35,358 | $ | 30,441 | |||||||
Adjusted net income per share, basic | $ | 0.21 | $ | 0.22 | $ | 0.83 | $ | 0.72 | |||||||
Shares used in computing adjusted net income per share, basic | 42,683 | 42,152 | 42,522 | 42,041 | |||||||||||
Adjusted net income per share, diluted | $ | 0.21 | $ | 0.22 | $ | 0.82 | $ | 0.72 | |||||||
Shares used in computing adjusted net income per share, diluted | 43,136 | 42,556 | 42,929 | 42,354 |