On February 10, 2020 Luminex Corporation (Nasdaq: LMNX) reported results for its fourth quarter and full-year ended December 31, 2019 (Press release, Luminex, FEB 10, 2020, View Source [SID1234554116]).

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All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP").

CURRENT HIGHLIGHTS

Total revenue for the fourth quarter of $90.5M, a 12% increase over Q4 2018.
Total revenue for the year of $334.6M, up 6% over 2018; and up 19% without consideration of LabCorp revenue and including the effect of the Flow Cytometry acquisition.
Income and cash flow from operations in the fourth quarter increased to $3.0M and $5.3M, respectively.
Submitted VERIGENE II Gastrointestinal Flex Assay to the FDA in the fourth quarter of 2019.
Expect to submit VERIGENE II Respiratory Flex Assay to the FDA in the first quarter of 2020.
CEO COMMENTARY

"Our successful transformation continues. We delivered a strong fourth quarter by growing revenues both sequentially and year-over-year, with a return to profitability," said Nachum "Homi" Shamir, President & CEO. "I am very pleased with the significant progress we are making. Looking forward, exciting new products with unique features and the effective execution we have shown with our current portfolio support a return to accelerated organic growth. We are well positioned to achieve our target of $500M of annual organic revenue, profitability, and strong positive cash flow in the next few years."

RESULTS AND REVENUE SUMMARY FOR FOURTH QUARTER AND FULL-YEAR 2019

Tools (Flow Cytometry + Licensed Technologies Group) revenue 5% lower in Q4 2019, but up 2% in full-year 2019 vs. 2018.
Flow Cytometry revenue up 2% to $12.0M in Q4 and up 11% to $45.2M in full-year 2019 vs. 2018, respectively.
Licensed Technologies Group revenue 7% lower to $38.6M in Q4 and unchanged at $149.0M in full-year 2019 vs. 2018, respectively. Consumable revenue was impacted by the timing of purchases. End user sales of our technology and royalty revenue increased 12% and 8% in full-year 2019 vs. 2018, respectively.
Total Molecular Diagnostic (MDx) revenue unchanged at $38.8M in Q4 2019, and 16% lower to $136.7M in full-year 2019 vs. 2018, primarily driven by the departure of certain sales to LabCorp, which impacted full-year 2019 by $32M.
MDx revenue up 1% and up 4% in Q4 and full-year 2019 vs. 2018, respectively, without consideration of LabCorp revenue. The growth, absent the LabCorp effect, was primarily attributable to increases in sample to answer portfolio revenue.
Molecular sample-to-answer portfolio revenue up 15% to $21.0M in Q4 2019 and up 21% to $75.7M in full-year 2019 vs. 2018.
Consolidated gross margins of 55% in the fourth quarter and full-year 2019 were affected primarily by the departure of higher margin LabCorp revenue, as well as growth across all of the company’s lower margin items.
REVENUE SUMMARY

2020 REVENUE GUIDANCE

The company anticipates its first quarter 2020 revenue to be between $82M and $84M and reaffirms its full-year 2020 revenue guidance of between $352M to $362M. The mid-point of full-year 2020 revenue guidance is 7% higher relative to the prior year; the full-year revenue guidance includes approximately 2 to 3 percent headwind attributable to the departure of certain remaining sales to LabCorp.

CONFERENCE CALL

Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EST, Monday, February 10, 2020 to discuss operating highlights and financial results for the fourth quarter and full-year 2019. The conference call will be webcast live and may be accessed at Luminex Corporation’s website at investor.luminexcorp.com. The presentation slides will be posted to our Investor Relations website after the market close on February 10, 2020. Analysts may participate on the conference call by dialing (877) 930-7053 (U.S.) or (253) 336-7290 (outside the U.S.). The access code is 1593082. The webcast will be archived for six months on our website using the ‘replay’ link.