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Luminex Q2 Revenues Grow 9 Percent

This article has been updated to include comments made by Luminex's management during a conference call.

NEW YORK (GenomeWeb) – Luminex reported after the close of the market on Thursday that its second quarter revenues rose 9 percent year over year, thanks in large part to a 37 percent increase in sales of its systems.

"Another record quarterly revenue result, driven by a strong performance in our partner business, along with healthy gross margins and overall profitability, reflects the strength of our business and our ability to execute well," said President and CEO Homi Shamir in a statement.

For the three months ended June 30, Luminex reported revenues of $64.2 million compared to $58.9 million in the year-ago quarter, and beating analysts' consensus estimate of $61.0 million. On a conference call with analysts on Friday, Shamir said the growth in Q2 is equivalent to that of Q1.

The firm's systems sales grew to $9.0 million from $6.5 million a year ago. Consumables sales rose 12 percent to $13.3 million from $11.9 million, assay revenues grew 7 percent to $25.9 million from $24.2 million, and royalty revenues grew 3 percent to $11.4 million from $11.1 million. The company's other revenue streams dipped 11 percent to $4.6 million from $5.2 million in Q2 2015. Infectious disease assay sales made up 66 percent of total assay sales with genetic testing assays making up the other 34 percent, the company said. Currie added that he expects systems revenue in the back half of the year to exceed that in the front half.

Luminex shipped 277 multiplexing analyzers during the quarter, including a combination of Magpix clinical diagnostics systems, LX multiplexed clinical diagnostics systems, and Flexmap 3D advanced diagnostics platforms. More than 60 of the systems placed were Aries platforms, Shamir told analysts, and the company expects to place more than 1,000 total systems by the end of the year. Further, the firm received clearance from the US Food and Drug Administration as well as CE-IVD marking for its in vitro diagnostic system, the Aries M1, during the quarter.

Luminex also completed its $92 million acquisition of Nanosphere at the end of June. Shamir said during the call that he believes the acquisition will enhance Luminex's leadership in the market, improve its growth trajectory, and widen its customer base. The company has also now gained access to Nanosphere's product pipeline, including its iPLEX system, which will serve as the basis for an expansion of Aries. He added that the integration of the Luminex and Nanosphere sales forces is proceeding, and that he doesn't anticipate laying off any former Nanosphere sales people. Luminex had been planning to beef up its own sales force, Shamir said, and will now do that with the addition of Nanosphere's sales people.

Luminex reported net income of $5.7 million, or $.13 per share, up from $2.6 million, or $.06 per share, in the year-ago period. On an adjusted basis, the company reported EPS for Q2 of $.33, beating the consensus Wall Street estimate for EPS of $.15.

The company's R&D expenses stayed flat at $11.5 million, while its SG&A expenses rose 15 percent to $24.2 million from $21.0 million.

The company finished the quarter with $81.7 million in cash and cash equivalents.

For 2016, Luminex raised its revenue guidance to a range of $261.0 million to $269.0 million. This factors in a contribution from Nanosphere of $13.0 million to $16.0 million in the second half of the year. The revenue growth rate should moderate in the second half of the year, Shamir told analysts, and 2016 growth is expected to be a little more than 10 percent. For Q3, the company is anticipating revenues of $67.0 million to $70.0 million. Analysts are expecting an average of $254.8 million for 2016 revenues, and $62.5 million for Q3 revenues.

The company's shares rose nearly 5 percent to $23.68 minutes after the opening of the Nasdaq on Friday morning.