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Luminex's Q3 Sales Rise 10 Percent

NEW YORK (GenomeWeb News) – Luminex reported after the close of the market a 10 percent rise in its third-quarter revenues, though the firm fell short of the consensus Wall Street estimate on the top line.

The Austin, Texas-based molecular diagnostics developer brought in total revenues of $50 million for the three months ended Sept. 30, up from $45.6 million for the third quarter of 2011. Analysts, on average, had expected revenues of $51.3 million.

Luminex reported systems sales $8.6 million, down 1 percent year over year from $8.6 million. Its consumables sales were up 8 percent to $12.9 million from $12 million, and its royalty revenue rose 3 percent to $7.7 million from $7.5 million. The firm's assay revenue jumped 22 percent to $16.4 million from $13.4 million.

By segment, revenues for its Technology & Strategic Partnerships segment increased 6 percent to $31.6 million from $29.9 million, and sales for its Assays & Related Products segment jumped 18 percent to $18.5 million from $15.6 million.

Luminex said that it shipped 271 multiplexing analyzers during the quarter, which included 127 Magpix systems. CFO Harriss Currie said on a conference call following the release of the results that the number of shipments surpassed the firm's expectations of 200 to 250 placements for the quarter.

"Our broad and innovative portfolio of assays is a key differentiator in the market and a driver of long term growth for the company," Luminex President and CEO Patrick Balthrop said in a statement. "In addition, we are seeing strong and growing interest among labs wishing to evaluate and validate our latest innovative assays, the CE-Marked gastrointestinal pathogen panel and NeoPlex4. We believe that after FDA clearance, these two important assays will contribute meaningfully to the company's long-term growth."

He added on the call that 510(k) applications have been filed with the US Food and Drug Administration for the GPP and NeoPlex4 panels, and the firm believes both assays will launch in the first half of 2013.

During the summer Luminex acquired Hayward, Calif.-based GenturaDx, which is developing a real-time PCR system, called the IDbox System, that employs single-use cassettes for molecular diagnostic applications, for $50 million plus additional milestones.

Balthrop added in the statement today, "[T]he technology we acquired in our acquisition of GenturaDx will provide an elegant, easy to use and scalable platform which combined with our MultiCode chemistry, will expand our product offerings to current customers as well as attract new customers where low-plex testing and ease of use are top priorities."

Luminex expects to provide further details on the GenturaDx system and its initial assay menu at its investor meeting in New York on Dec. 11. Balthrop declined to provide insight into the menu other than to say it would provide "unique content and workhorse assays."

Luminex posted net income for the quarter of $1.7 million, or $.04 per share, compared to a profit of $1.9 million, or $.05 per share, for Q3 2011. On an adjusted basis, its EPS was $.09, beating analysts' consensus estimate of $.06 per share.

The firm's R&D spending for the quarter jumped 34 percent to $10.7 million from $8 million, and its SG&A expenses climbed 21 percent to $19.9 million from $16.5 million.

Luminex finished the quarter with $28.5 million in cash and cash equivalents.

The firm lower its annual revenue guidance to a range of between $200 million and $204 million from a previous range of $205 million to $215 million.

"While we anticipate continued revenue growth in the fourth quarter, we believe it prudent to adjust our annual revenue guidance to account for an increasingly unpredictable budgetary environment among our lab customers, particularly in Europe," Currie added in the statement. "This environment has primarily impacted our expectations for systems and assay revenue."

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