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

Oct 31, 2016 • 04:30 pm ET

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

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Q & A
Analyst
Unidentified Participant

have had a strong multplex analyzer quarter. Can you give a little bit more on what's driving the strength? And is 225, 275 systems per quarter still the right way to think about it given the recent strength you've seen?

Executive
Harriss Currie

Yes. So, we remain steadfast on 225 to 275, acknowledging that we have been above that for several quarters. The strength is actually all across our partner business. It's strength in the US, strength in the Far East, and a steady rate of placements in Western Europe.

And then there's a component of that that is the replacement cycle, some of which we have visibility to, some of which we don't as a result of the vagaries that the partnership model creates sometimes for customers, for instance like Bio-Rad on which we do not perform the service.

So we don't have visibility to whether or not an instrument is being replaced or not. But from the data that we have, the overall market is healthy. The placements among all of our partners remain healthy and opportunities abound.

Analyst
Unidentified Participant

I understand you don't want to give exact numbers, but can you say if you placed any M-1s in the quarter? And can you talk about any of your feedback you've gotten from smaller labs regarding M-1 system performance?

Executive
Homi Shamir

Yes, we place couple of M1 systems. And we start seeing more and more that the hub-and-spoke environment. But it's really fitting the overall portfolio very nicely. And we continue to look forward to sell more system. But as Harriss mentioned earlier, we're on track to deliver our 100 number.

But it's really what is going to drive everything there is the menu. I think we are doing the main thing progress now with our menu development. I'm expecting, as I said earlier, GBS to get somewhere before the end of the year or early next year FDA clearance, clinical trial in C. diff is going well.

Bototella, I think by the end of this week, we will finish the clinical trial and then we have obviously put the data together and submit to the FDA, but probably it will happen before the end of the year. So, it's going well.

Also (inaudible) customer, we have seen one customer who give us a multiplier order (inaudible) three units and three years commitment. So, we are very thrilled about this. So, we see more and more traction in this area.

And again, we need to -- we are driving into development of 7 to 8 assay for Aries is before the end of the year, end of 2017 to be precise. But I think probably as I keep saying to the team, I think the train left the station and we started accelerating there.

Executive
Harriss Currie

Another way to think about Aries is the promise of menu is what's going to drive placements and that's what it is doing today. The delivery of that menu is going to drive profitability, significant profitability on that system as the