NEW YORK (GenomeWeb News) – Luminex's third-quarter revenues rose 35 percent year over year with assay sales climbing 70 percent, the company reported after the close of the market on Tuesday.
The company said that total revenues in the quarter came in at $45.6 million for the three months ended Sept. 30, compared to $33.9 million a year ago, outpacing Wall Street estimates of $43.3 million.
Assay sales paced revenue growth with $13.4 million in the quarter, up from $7.9 million a year ago; system sales climbed 6 percent to $8.6 million from $8.1 million; consumable sales increased 40 percent to $12 million from $8.6 million; royalty revenue increased 32 percent to $7.5 million from $5.7 million; and all other revenue rose 14 percent to $4.1 million from $3.6 million.
Organically, revenues grew 26 percent during the quarter year over year, CFO Harriss Currie said on a conference call following the release of Luminex's results.
On the call, President and CEO Patrick Balthrop said that growth in the assay group was evenly split between its cystic fibrosis and respiratory viral panel franchises and contributions from the purchase of Eragen Biosciences, completed in late June.
Despite the sharp rise in assay sales, however, company-wide revenues were down sequentially from $47.6 million in the second quarter due to a sequential drop in consumables-related revenues, Currie said, adding the drop-off was expected. During the second quarter, consumables brought in revenues of $18.4 million.
By segment, revenues stemming from technology and strategic partnerships totaled $29.9 million, a 22 percent increase from $24.6 million during the third quarter of 2010, while assays and related product revenues bounced 68 percent to $15.6 million from $9.3 million a year ago.
During the quarter, the firm shipped 226 multiplexing analyzers, including 61 Magpix systems and 13 FlexMap systems, resulting in a total of 8,371 shipments of multiplexing analyzers in the company's history.
Highlights in the quarter included clearance from the US Food and Drug Administration for the xTag Respiratory Viral Panel Fast in July and the launch of the xTag Gastrointestinal Pathogen Panel in Europe. Luminex plans to submit the GPP panel to FDA before the year's end, it said.
Luminex spent $8 million on R&D in the third quarter, a 13 percent increase from $7.1 million a year ago. Its SG&A expenses rose 21 percent to $17.6 million from $14.6 million.
The firm's profit in the quarter rose to $1.9 million, or $.05 per share, compared to a loss of $727,000, or $.02 per share, a year ago. Adjusting for the Eragen deal, non-GAAP EPS was $.10, beating Wall Street estimates of $.06.
For full-year 2011, Luminex reaffirmed guidance of between $180 million and $185 million in revenues, which would represent an increase of 27 percent to 31 percent from full-year 2010 results.
Luminex finished the quarter with $65.1 million in cash and cash equivalents. It also reported $31.6 million in short-term investments.
Similar to officials from other firms that reported before Luminex, Balthrop noted the challenging funding environment and uncertainty as the US and Europe wrestle with austerity plans. But with life science research capital equipment purchases representing about 10 percent of Luminex's total revenues, he said that any funding cuts, while "not insignificant" to Luminex would also not be a game changer to the firm's top line.