Luminex Corporation (NASDAQ:LMNX) Q4 2016 Earnings Conference Call - Final Transcript

Feb 06, 2017 • 04:30 pm ET


Luminex Corporation (NASDAQ:LMNX) Q4 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to Luminex Corporation's fourth-quarter and full-year 2016 earnings conference call. My name is Lutif, and I will be your coordinator for today. Today's call is being recorded.(Operator Instructions)I would now like to turn the call over to Matthew Scalo, Senior Director of Investor Relations, for opening remarks. Please proceed.

Matthew Scalo

Good afternoon and welcome to Luminex Corporation's conference call for the fourth-quarter and full-year 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.

We will be following our standard agenda today: Homi will review our 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

)Also certain non-GAAP financial measures as defined by SEC Regulation G may be covered in this call. To the extent that any non-GAAP financial measures are covered, a presentation of and reconciliation to the most directly comparable GAAP financial measures is included in our earnings release, which is available on our website in accordance with Regulation G. I'll now turn the call over to our president and CEO, Homi Shamir.

Homi Shamir

Thank you, Matt. Good afternoon and welcome to our fourth-quarter 2016 earnings call. On January 9, we pre-announced a strong finish to 2016 and issued 2017 guidance. Our solid performance in 2016 was driven mainly by significant revenue growth from our partners and growth in our sample-to-answer solution. Given last month's release, I will keep my prepared comments short.

Our 2017 revenue guidance of between $295 million and $305 million reflect a healthy growth rate of between 9% to 13%. We anticipate our expanding portfolio of sample-to-answer [molecular] solution to account for approximately $45 million of our 2017 revenue. We believe these businesses will grow rapidly for the next few years for several reasons.

First, as a result of the integration of Nanosphere, Luminex entered 2017 with molecular sales and support team of over 100 people. These professionals are fully [co-trained] and can address both the microbiology and molecular diagnostic labs. We just had our global sales meeting last week and the team is energized and excited to kick off the year.

Second, we are rapidly expanding our ARIES IVD test menu. The FDA cleared our Group B [strep] assay at the end of December, and we now have three IVD clear assays on ARIES. We submitted our [bordetella] assay to the FDA at year end. We are currently in clinical study for C. diff and Group A Strep and expect [CE mark] for [norovirals] in summer 2017. We are in the last stages for validation on [MARSA] and will provide a FDA submission timeline on our next call. Given the completion of this initial set of assays that open up the potential for