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Luminex Q2 Revenues Up 19 Percent; Firm to Delay Verigene 2 FDA Submission

NEW YORK (GenomeWeb) – Luminex reported after the close of the market on Monday that its second quarter revenues rose 19 percent, driven in part by automated sample-to-answer molecular products sales, which rose 44 percent over the prior-year quarter to $10.7 million from $7.4 million.

For the three months ended June 30, the firm reported total revenues of $76.5 million, up from $64.2 million a year ago, and beating the consensus Wall Street estimate of $75.5 million.

Systems revenue rose 10 percent to $9.9 million from $9.0 million a year ago. Revenue from consumables were flat at $13.3 million in Q2 2016. Royalties revenue fell 5 percent to $10.8 million from $11.4 million in the year-ago quarter, and assays revenue rose 46 percent to $37.8 million from $25.9 million. Service revenue rose 10 percent to $2.8 million from $2.5 million, and all other revenue fell 8 percent to $1.9 million from $2.1 million in Q2 2016.

Luminex said it shipped 270 multiplexing analyzers during the quarter.

Homi Shamir, president and CEO of Luminex, said in a statement that only a year after its acquisition, Nanosphere was accretive to the company's operating results in the second quarter. "The combination of the Aries and Verigene sample-to-answer systems coupled with our non-automated solutions has provided our customers with a technology portfolio that addresses their needs," he said. "Further, the full integration of our sales force helped drive our execution in the second quarter."

Shamir said on a conference call with analysts to discuss the firm's financial results that Luminex will delay clinical trials in advance of the submission of its Verigene 2 assay for US Food and Drug Administration clearance. He cited several reasons for the delay, including the acceptance and success of its Verigene 1 assay; an objective to reduce cartridge failure rates for Verigene 2 below 5 percent prior to starting clinical trials; and uncertainty related to pricing and reimbursement for molecular panels caused by a recent non-coverage draft decision on large syndromic respiratory and gastrointestinal test panels by Palmetto GBA, a Medicare contractor.

Among highlights for the second quarter, Luminex received FDA clearance for the Aries Bordetella assay and CE-IVD mark for the Aries Norovirus assay. In July, the firm received FDA clearance of it Aries C. Difficile assay and CE marking for the same assay.

Also in Q2, the firm received reimbursement approval in Japan for its Verigene gram positive and gram negative blood culture assays.

The company reported net income dropped to $5.4 million from $5.7 million a year earlier. Earnings per share were flat year over year at $.13. On an adjusted non-GAAP basis, the firm reported net income of $.26 per share, beating analysts' average estimate for EPS of $.10.

The firm’s R&D costs rose 7 percent to $12.3 million from $11.5 million in Q2 2016, and its SG&A costs rose 17 percent to $28.2 million from $24.2 million.

Luminex ended the quarter with $103.7 million in cash and cash equivalents.

The firm reiterated its 2017 annual revenue guidance of between $300 million and $310 million.  Analysts, on average, expect revenues of $306.6 million for the year.

The company expects third quarter 2017 revenues to be between $73 million and $75 million. Analysts, on average, had expected Q3 revenues of $76.2 million before the second quarter results were released.

 

 

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