Anyhow I have been very pleased with the vast majority of our holdings in terms of their business updates this earnings season - they are doing very well in a very tough environment, but their stocks have been trashed just as much as companies doing poorly. So I'm happy with the stock selection while frustrated with the fact that stock picking and doing homework has meant nothing to performance. I eagerly look forward to an era where "student body left" trading is over with, and companies with superior prospects get rewarded. I continue to favor these high growth, smaller health care companies - and Luminex is yet another in the "razor and blade" model - sell the blade once, sell the razors forever; my favorite model. Here are Luminex's numbers. Analyst's estimates were $27.8M revenue and $0.03 EPS - this appears to be a substantial beat. No major long term debt on the balance sheet either.
- Consolidated total revenue of $28.9 million, representing a 49 percent increase year-over-year.
- Net income of $3.2 million for the third quarter of 2008 and $1.0 million of net income year to date. Net income for the third quarter of 2008 was $3.2 million, or $0.08 per share, compared with net loss of $1.8 million, or ($0.05) per share, for the same period last year. Net income for the third quarter of 2008 included non-cash charges of $1.8 million in stock compensation expense associated with SFAS 123R and $0.6 million associated with the amortization of intangible assets.
- Consolidated gross profit margin of 68 percent for the third quarter
- System shipments of 239, resulting in cumulative life to date shipments of 5,641, up 19 percent from a year ago; representing the eighth consecutive quarter of system shipments of 200 or more. (blade)
- Consumables revenue of $8.3 million and royalty revenue of $3.9 million, up 47 percent and 45 percent, respectively, from the third quarter of 2007 (razors)
Outlook Raised
The Company is raising its specific annual revenue guidance for 2008 to total revenue between $102 million and $107 million; up from a range of $95 million to $105 million.
Management Comments
“We are extremely pleased with our results for the third quarter, which were highlighted by 49 percent revenue growth over third quarter 2007 and 43 percent revenue growth year to date, healthy gross margins of 68 percent, excellent execution and performance in both our partnership and assay businesses, and record profits,” said Patrick J. Balthrop, president and chief executive officer of Luminex.
“Revenues in our technology segment grew by over 40 percent year-over-year and we expanded operating income in the technology segment significantly over the third quarter of 2007. Our assay segment also delivered strong results with revenue growth of 90 percent over the same period last year and, in part as a result of the successful integration of LMD, we believe this segment is on the verge of operating profitability.
We have previously stated that our goal during 2008 was to hold quarterly consolidated SG&A expenses flat versus the fourth quarter of 2007, net of one time or unusual events. For the third quarter in a row, we have delivered on this goal. Our ability to execute our plans in this area was a significant contributor to the outstanding results that we delivered for the third quarter and year to date.”
[Sep 16: Bookkeeping - New Position in Luminex]
Long Luminex in fund; no personal position
