Luminex Corporation (NASDAQ:LMNX) Q3 2016 Earnings Conference Call Transcript

Oct 31, 2016 • 04:30 pm ET

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Luminex Corporation (NASDAQ:LMNX) Q3 2016 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to the Luminex Corporation's Third Quarter 2016 Earnings Conference Call. My name is Caley, and I will be your coordinator for today. Today's call is being recorded. (Operator Instructions).

I will now like to turn the call over to Matthew Scalo, Senior Director of Investor Relations, for opening remarks. Please proceed.

Executive
Mattthew Scalo

Good afternoon, and welcome to Luminex Corporation's conference call for the third quarter 2016 financial and operational results. On the call today are Homi Shamir, President and Chief Executive Officer; Harriss Currie, Senior Vice President and Chief Financial Officer; and Dr. Tadd Lazarus, our newly appointed Senior Vice President and Chief Medical Officer.

We'll be following our standard agenda today. Homi will review the third quarter corporate highlights. Harriss will review the financial performance. And after that, we will open the call for your questions. As a reminder, today's conference call is being recorded and a replay will be available for six months on the Investor Relations section of our website.

(Forward-Looking Cautionary Statements).

I will now turn the call over to our President and CEO, Homi Shamir.

Executive
Homi Shamir

Thank you, Matt. Good afternoon, and welcome to our third quarter 2016 earnings call. We are pleased to report another strong quarterly performance, generating revenue of over $71 million, up 18% from a year ago. We are very pleased with Nanosphere momentum, quite impressive considering we are in the early stages of our core selling activity.

Of note, Nanosphere growth this quarter was fueled by all of its tests, which include triple digit growth from its newest test. Our integration activity as a whole are moving forward according to plan, which Harriss will provide additional details.

First, Luminex is fully committed in support of our strategic partner, an area we expect to grow just over 10% in 2016. And it's nice to see that during this quarter and year-to-date, all three components of this growth, system, consumables and royalties, are growing at a healthy pace.

And second, Luminex is focused on broadening its market leadership in infectious disease with Sample-to-Answer platform, arrays and Verigene leading the way. We believe Luminex is the only Company that provides solution for both targeted and syndromic testing in the lab.

As you know, when I joined the Company, we faced two major headwinds, which we have successfully managed, excess inventory at One Lambda and the loss of the CF business from LabCorp. We have worked our way through the inventory situation and we are now projecting growth moving forward at One Lambda.

In fact, in the current year, our expectation of the decline in this customer has not occurred. We have also managed the transition of CF with LabCorp, so it should occur next year rather than in the first half of 2015 as originally anticipated. And I am happy to say we have won additional CF businesses from other customers in the meantime.

LabCorp also provides an LDT-based solution called NuSwab, which incorporates our MultiCode reagent. We have