On November 5, 2020 Luminex Corporation (Nasdaq: LMNX) reported results for its third quarter ended September 30, 2020 (Press release, Luminex, NOV 5, 2020, View Source [SID1234570224]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP").
CURRENT FINANCIAL HIGHLIGHTS
Total revenue for the third quarter of $106.1M, a 35% increase over Q3 2019, driven primarily by growth associated with the current COVID-19 global pandemic
Strong profitability in Q3 with 60% gross margins, an improvement of 7 percentage points over Q3 2019
Operating margin of $11.5M or 11% of revenue, a 300% improvement over Q3 2019
Net income of $1.8M, representing 2% of revenue, and $0.04 per share, up 134% over Q3 2019
Received two BARDA awards — $5,389,813 to support a future 510(k) filing for an updated NxTAG Respiratory Pathogen Panel that includes SARS-CoV-2, and $683,500 to support future enhancement of Luminex’s COVID-19 Multiplex Antibody Test
CEO COMMENTARY
"I’m very pleased with the performance of our diversified business during these very challenging times. Our team continues to execute on our key role in addressing the demands of this pandemic. With strong revenue growth, improved gross margins and continued control over operating expenses, we are seeing healthy profitability and cash flow," said Nachum "Homi" Shamir, Chairman, President and CEO of Luminex. "As a result of these unusual times; we thought it would be helpful to share with our investors some of our preliminary estimates of our 2021 revenue guidance. Currently, we estimate that in 2021, we will generate at least $475M of revenue with accelerated improvement in profitability and cash flow. We believe that this growth will be primarily attributable to our ARIES manufacturing expansion, as well as a number of additional new products in development, including those supporting our COVID-19-related efforts and the other pipeline products in our diverse portfolio. We plan to provide more precision regarding our expectations in early 2021. However, based on our current estimates, we anticipate surpassing our $500 million annual revenue target much sooner than we previously expected, while continuing to build an outstanding company."
ADDITIONAL HIGHLIGHTS OF THE QUARTER
Molecular Diagnostics revenue for the quarter of $59.9M, up 98% over Q3 2019
Licensed Technologies Group revenue of $34.7M, down 10% from Q3 2019
Flow Cytometry revenue of $9.9M, up 13% over Q3 2019, but with continued impact from the slowdown in academic research due to COVID-19
Operating cash flow of $14.9M and $39.0M for the three and nine months ended September 30, 2020
Ended the quarter with a total order book of more than $36M, of which $9M was COVID-19 related
Sold or contracted 87 sample-to-answer systems in the quarter, the majority of which were ARIES
Received FDA EUA for the xMAP SARS-CoV-2 Multi-Antigen IgG Assay on July 16, 2020
REVENUE GUIDANCE
As of the date hereof, Luminex is providing revenue guidance as follows:
Luminex expects revenue for the full year 2020 to be approximately $410M, with growth of 23% over 2019.
Luminex expects 2021 revenue to be at or above $475 million, reflecting more than 15% growth from Luminex’s full year 2020 guidance, with such revenue growth driven primarily by significant expansion of ARIES assay sales resulting from completion of the manufacturing line expansion and new product launches.
CONFERENCE CALL
Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EDT, Thursday, November 5, 2020 to discuss operating highlights and financial results for the third quarter 2020. The conference call will be webcast live and may be accessed at Luminex Corporation’s website at investor.luminexcorp.com. 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 4669812. The webcast will be archived for six months on our website using the ‘replay’ link.