) third quarter 2012 adjusted earnings of $0.04 per share missed
the Zacks Consensus Estimate of $0.07 per share and the year-ago
earnings of $0.05 per share.
Revenues increased 10% in the reported quarter to $50 million,
missing the Zacks Consensus Estimate of $52 million. Top line
growth was led by strong assay sales.
Assay sales jumped 22% to $16.4 million, led by stronger
demand for its advanced CE Marked gastrointestinal pathogen panel
(GPP) and NeoPlex4 assays. Revenues from the System segment
dropped 1% year over year to $8.6 million. The company shipped
271 multiplexing analyzers (including 127 MAGPIX systems) in the
quarter, resulting in total life-to-date dispatches of 9,433
analyzers, up 12.7% year over year. Consumable sales increased 8%
to $12.9 million. Royalty and all other revenues grew 3% and 10%
to $7.7 million and $4.5 million, respectively.
Luminex revealed that the Defense Threat Reduction Agency
("DTRA") has awarded the company with $11.6 million to develop a
portable diagnostic device enabled with quick detection of
bio-threat agents. The contract has a term period of more than
three and a half years.
Luminex accomplished the takeover of U.S.-based diagnostic
testing company, GenturaDx on July 11, 2012. The GenturaDx deal
is in line with Luminex's strategy of pursuing acquisitions to
drive growth. Its technology when combined with Luminex's
MultiCode chemistry will enable the company to develop
user-friendly advanced products for its customers.
Luminex possesses an extensive product portfolio and a strong
pipeline of novel assays, which are expected to support growth
going ahead. The company is awaiting Food and Drug Administration
(FDA) approval for its GPP and NeoPlex4 assays to drive future
growth. The company may benefit from its latest acquisitions if
it maintains integration synergies.
However, Luminex operates in a highly competitive life
sciences industry. The company competes with
Life Technologies Corporation
), among others. Moreover, sluggish growth in its core markets as
well as the ongoing European austerity measures are challenges
faced by Luminex. We are currently Neutral on the stock, which
carries a short-term Zacks #3 Rank (Hold).
AFFYMETRIX INC (AFFX): Free Stock Analysis
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
LUMINEX CORP (LMNX): Free Stock Analysis
SEQUENOM INC (SQNM): Free Stock Analysis
To read this article on Zacks.com click here.