Skip to main content
Premium Trial:

Request an Annual Quote

Luminex's Q4 Revenues Climb 16 Percent on Strong Assay Sales

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Luminex said after the close of the market Monday that its fourth-quarter revenues jumped 16 percent year over year, driven in part by a spike in assay sales and royalty revenue, while its full-year 2011 revenues rose 30 percent.

The Austin, Texas-based molecular diagnostics and multiplex test technologies firm said that revenues rose to $47.9 million for the three months ended Dec. 31, compared to $41.2 million in the fourth quarter of 2010, outperforming Wall Street expectations of $46.8 million.

Luminex's fourth quarter assay revenues jumped 77 percent to $16.4 million from $9.2 million a year ago. The company's consumables sales shrank 16 percent, dipping to $10.1 million from $12 million a year ago. Royalty revenues rose 17 percent to $7.1 million from $6 million, while all other revenues ticked up 5 percent to $3.8 million from $3.6 million.

By segment, technology and strategic partnerships revenues totaled $29.7 million, a 3 percent slip from $30.6 million a year ago, while assays and related product revenues were up 71 percent to $18.2 million from $10.6 million a year ago.

During the quarter, Luminex shipped 307 multiplexing analyzers, including 114 MagPix systems, it said. The MagPix sales were nearly double those in the third quarter. Luminex also placed 172 LX systems and 21 FlexMap systems in Q4, company officials noted on a conference call following the release of the financial results.

The firm's R&D costs rose to $9.9 million, up 26 percent from $7.8 million a year ago, while SG&A spending increased 17 percent to $17.6 million from $15.1 million.

Luminex's net income was up to $3.4 million, or $.08 cents per share, from $3.2 million, or $.07 per share, in the fourth quarter of 2010, beating analysts' consensus estimate of $.07 per share.

For full-year 2011, Luminex had revenues of $184.3 million, with the Technology Group bringing in $127.8 million and the Assay Group generating $56.6 million, compared to revenues of $141.6 million in 2010, when the Technology Group contributed $105.6 million and the Assay Group provided $36 million.

Its assay revenue rose 51 percent from $32.2 million to $48.7 million; system sales increased 9 percent from $33 million to $35.9 million; consumable sales were up 38 percent from $40.1 million to $55.5 million; royalty revenue was up 30 percent from $22.4 million to $29.2 million; and all other revenue increased by 9 percent from $13.9 million to $15.1 million.

Luminex CEO Patrick Balthrop said in a statement that the firm achieved "several significant milestones" in 2011, including the launch of its xTAG Gastrointestinal Pathogen Panel in Europe and US Food and Drug Administration clearance of its xTAG RVP Fast assay, as well as the $34 million acquisition of EraGen Biosciences.

"We believe these new products will begin to make a meaningful contribution in 2012," Balthrop said.

For 2011, two-thirds of Luminex's revenue came from the diagnostics market, while around 10 percent came from capital equipment sales to life science customers, Balthrop said on the call. As a result of this mix, the firm remains "cautiously optimistic" for 2012, he said.

Luminex's full-year R&D spending increased 25 percent from $26.8 million in 2010 to $33.4 million in 2011, while S&GA spending rose 16 percent to $64.8 million from $56.1 million year over year.

The firm's net income for the full year was $14.5 million, or $.34 per share, up from $5.2 million, or $.12 per share.

Luminex ended the quarter with $100.8 million in cash, cash equivalents, and short-term investments.

For 2012, the firm expects to report revenues of between $205 million and $215 million.

Luminex had expected EraGen to contribute $5 million to $7 million for the second half of 2011, but it exceeded the upper end of that range, Balthrop said. Company officials declined to be more specific, and they didn't break out their expectations for EraGen sales in 2012.

He also said that the firm expects consumables growth in 2012 to be flat, due in part to the forecast it received from its partners, but the firm "is confident about the longer term." Balthrop noted that the company's consumables sales jumped 38 percent in 2011.

"For 2012, the areas of priority for the company include continuing to execute our platform product line strategy, which is focused on providing each customer with the system that best suits their need," said Blathrop. "Therefore, we'll drive adoption of our latest platform, the MagPix system. This system allows sizeable new segments access to our XMap technology."

In addition, he said the firm will look to expand its market opportunities with RVP Fast in the US as well as Eragen's real-time PCR-based assay portfolio, drive market penetration of its xTag Gastrointestinal Pathogen Panel in Europe along with the submission of its US filing, and launch NeoPlex4, a newborn screening assay outside the US in the first part of 2012.