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Luminex, Sequenom Shares Tumble in Wake of Earnings Reports

NEW YORK (GenomeWeb News) – Shares of Luminex and Sequenom both fell by double digits today following disappointing first-quarter financial reports on Thursday.

In mid-afternoon trade on Friday, shares of Luminex had fallen nearly 13 percent to $15.49 while those of Sequenom had dropped more than 16 percent to $5.08.

Luminex yesterday reported that its second-quarter revenues increased 14 percent to $27.8 million, but this did not meet analyst estimates of $29.9 million.

The company's profit for the quarter, $1.1 million, or $.03 per share, also missed analysts' consensus estimate, which was $.07.

In a research note published today, Peter Lawson, an analyst with Thomas Weisel Partners, said that the company placed 158 instruments during the quarter, which was down from both the first quarter and the prior-year quarter, and also missed the firm's guidance range of 175 to 225.

"The miss was caused primarily by the depressed environment affecting budgets, weak endowment returns for labs and delayed purchases by labs awaiting NIH clarity for their budgets," Lawson said.

Luminex also lowered its full-year revenue guidance to a range of $118 million to $132 million from previous estimates of $125 million to $135 million.

Sequenom, meantime, yesterday said that its first-quarter revenues declined 28 percent to $9.2 million, which beat analysts' estimates of $8.2 million.

The company's net loss for the quarter more than doubled to $20.2 million, or $.33 per share, which was higher than analysts' forecast of $.27 per share.

In addition, Sequenom officials did not provide an updated timeline for the development of the company's SEQureDx Down syndrome test, which was delayed after the firm disclosed in April that employees had "mishandled" R&D data.

In a research note, Leerink Swann analyst Bruce Cranna said that the company is maintaining it's "market perform" rating for the firm, but added, "Due to poor visibility regarding data quality, and uncertainty as to launch timing of the noninvasive prenatal Down Syndrome screening test, we believe the validity of SQNM's technology platform and the ability of its noninvasive prenatal Down Syndrome DNA-based diagnostic test to become a part of the current screening protocol is now uncertain."

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