Luminex Corp. (LMNX) reported fourth-quarter fiscal 2009 earnings (excluding the release of the valuation allowance) of $5.2 million or 12 cents per share, up from $2 million or 5 cents per share in the year-ago quarter. The Zacks Consensus Estimate for the reported quarter was a gain of 7 cents.
Quarter in Detail
Total revenues for the reported quarter came in at $38.2 million as against $28.2 million in the year-ago period, up approximately 35%. As per segments, revenues from the Technology segment came in at $24.8 million as against $22 million in the year-ago quarter. Assay group sales for the quarter came in at approximately $13.4 million, as against approximately $6.1 million in the comparable quarter of 2008. The company shipped 253 systems in the quarter. Cumulative systems shipments stood at 6,767 at the end of the quarter, up 15% from the year ago period.
Income from operations in the quarter climbed to $5.3 million from approximately $2.2 million in the year-ago quarter. Operating income for the Technology Group increased to $2.67 million from $2.45 million in the same period last year. Assay Group operating income came in at $2.63 million compared with an operating loss of $291 thousand a year ago.
Operating expenses for the quarter came in at $20.4 million as against $17.4 million in the year-ago quarter. Research and development spend was $5.5 million, up 17%. Selling, general and administrative expenses came in at $ 14.8 million, up 16.5%. The increase was attributable to the enhancement of the company’ sales and marketing functions coupled with the enhancement of the facility to support Luminex’s growth plan.
The company ended the quarter with cash and cash equivalents of approximately $90.8 million as against approximately $81.6 million at the end of 2008.
Yearly Results
For full year 2009, Luminex reported earnings (excluding the release of the valuation allowance and the settlement of litigation) of $7.2 million or 17 cents per share as against approximately $3.1 million or 8 cents per share in fiscal 2008.
Revenue increased to $120.6 million from $104.4 million last year, up approximately 16%. As per segments, revenues from the Technology segment came in at $87.4 million as against $83.6 million in the previous year. Assay group sales for the quarter came in at approximately $33.2 million, as against approximately $20.9 million in the comparable quarter of 2008.
Income from operations in fiscal 2009 climbed to $7.4 million from $3.3 million in fiscal 2008. Operating income for the Technology Group decreased to $8.1 million from $9 million in fiscal 2008. Assay Group suffered an operating loss came of $723 thousand in 2009 compared with an operating loss of approximately $5.7 million a year ago. Luminex expects revenue between $138 million and $148 million for fiscal 2010.
Estimate Revisions Trend
Only 1 of 9 analysts covering the stock revised earnings estimates upwards for the next quarter while none moved in the opposite direction. This implies that most of the analysts have not revised their earnings estimates. Furthermore the magnitude of the revision is negligible.
For fiscal 2010, 3 of 15 analysts following Luminex raised their earnings estimates over the last 30 days while 4 of them moved downwards. Even though this implies a slight downward bias the magnitude of the revision is negligible. As a result of the lack of strength and magnitude in estimate revisions, our short-term as well as long-term recommendations on the stock remain Hold (Zacks Rank #3) and Neutral, respectively. The Zacks Consensus Estimate for the next quarter and fiscal 2010 point to earnings of 6 cents and 33 cents respectively.
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