NEW YORK – Luminex reported after the close of the market on Monday that its first quarter 2020 revenues grew 10 percent year over year, driven in part by molecular diagnostics revenue growth.
For the three months ended March 31, the firm reported revenues of $90.4 million, up from $82.4 million a year ago, which was almost in line with preliminary revenues reported in April and beat the analysts' average estimate of $84.1 million.
Systems revenues were $12.1 million, down 23 percent from $15.7 million a year ago. Consumables revenues were $12.8 million, up 20 percent from $10.7 million in Q1 2019. Royalties revenues were $13.3 million, down 6 percent from $14.2 million in the year-ago quarter, and assays revenues were $43.7 million, up 26 percent from $34.8 million. Service revenues were $5.5 million, up 2 percent from $5.4 million, and all other revenues were $3.1 million, up 94 percent from $1.6 million in Q1 2019.
Luminex's Q1 Molecular Diagnostics revenues were $45.2 million, up 28 percent over Q1 2019. Its Life Science and Clinical Tools revenues were $43.3 million, down 6 percent year over year.
Luminex CFO Harris Currie said on a conference call to discuss the firm's financial results that its molecular diagnostics products growth was mainly driven by increased demand for "respiratory and related products as a result of the COVID-19 pandemic."
The company said it placed a record 123 sample-to-answer systems in the quarter, most of which were Aries systems. Its sample-to-answer molecular diagnostics revenue was $26.3 million, up 38 percent over the first quarter of 2019, while its non-automated molecular diagnostics revenue was $18.9 million, up 17 percent year over year, Currie said.
Currie added that the firm's flow cytometry revenue was $6.5 million, down 42 percent. Its flow cytometry revenues for the quarter was reduced bv $2 million as result of the coronavirus pandemic, as product sales representatives had difficulty connecting with potential customers, resulting in a slowdown in orders. Additionally, Luminex was unable to gain access to customer sites to install systems for which it had orders in hand, he said.
Luminex noted that in the quarter it received US Food and Drug Administration Emergency Use Authorizations for its NxTag CoV Extended Panel and Aries SARS-CoV-2 Assay, supported by $1.2 million in funding from the US Department of Health and Human Services' Biomedical Advanced Research and Development Authority (BARDA).
The company said it has expanded its manufacturing capacity to produce more than 500,000 tests per month and has plans to expand to more than 800,000 tests per month by the end of Q2.
"As a result of the COVID-19 pandemic, we experienced a rapid acceleration of system placements, assay sales, and revenue," Nachum Shamir, president and CEO of Luminex, said in a statement. "We delivered a very strong first quarter, returning to profitability with significant revenue growth within our molecular diagnostics franchise."
Shamir added on the conference call that Luminex anticipates incorporating SARS-CoV-2 assays into the firm's Verigene I and Verigene II multiplex molecular diagnostics systems and into its NxTag respiratory syndromic panel. The firm is also developing a serology assay for COVID-19, he added.
The company reported a net income of $654,000, or $.01 per share, compared to $3.0 million, or $.07 per share a year earlier, beating the analysts' average estimate for a loss of $.03 per share.
The company’s Q1 R&D costs fell 21 percent to $11.9 million from $15.0 million in Q1 2019, and its SG&A costs rose 8 percent to $33.9 million from $31.5 million.
Luminex ended the quarter with $43.1 million in cash and cash equivalents.
The company said it expects Q2 revenue to be $105 million or more and it expects its 2020 revenue to be above the top end of its previously communicated guidance range of $352 million to $362 million.
The company said it is unable to provide an updated full-year guidance range at this time due to the uncertainties that COVID-19 pandemic is causing throughout the global economy, and it anticipates being able to provide updated full-year revenue guidance in conjunction with its second quarter earnings release.