Luminex Corporation (LMNX) has reported 57.03 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $2.75 million, or $0.06 a share in the quarter, compared with $6.40 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.06 million, or $0.21 a share compared with $9.26 million or $0.22 a share, a year ago. 

Revenue during the quarter grew 17.52 percent to $71.22 million from $60.60 million in the previous year period. Gross margin for the quarter contracted 488 basis points over the previous year period to 64.12 percent. Total expenses were 94.34 percent of quarterly revenues, up from 83.98 percent for the same period last year. That has resulted in a contraction of 1036 basis points in operating margin to 5.66 percent.

Operating income for the quarter was $4.03 million, compared with $9.71 million in the previous year period.

However, the adjusted operating income for the quarter stood at $10.64 million compared to $13.68 million in the prior year period. At the same time, adjusted operating margin contracted 764 basis points in the quarter to 14.94 percent from 22.58 percent in the last year period.

"We are pleased to report another quarter of record revenue, driven by our molecular business, which now includes Nanosphere. We are encouraged by Nanosphere’s momentum, especially considering that integration, training and cross-selling initiatives are in the early stages. Leveraging its leadership position in molecular testing, Luminex is expanding its product offerings and is now the only company able to provide low and high plex, targeted and syndromic molecular testing solutions to microbiology and molecular diagnostic labs," said Homi Shamir, president and chief executive officer of Luminex. "In addition, our partner business continues to perform at a high level, and should generate over 10% growth in 2016. In summary, we have made excellent progress so far this year and look forward to finishing 2016 strongly. We continue to execute on key programs and are well-positioned to achieve our goals of accelerating revenue, profitability and cash flow over the next few years."

Luminex Corporation forecasts revenue to be in the range of $267 million to $270 million for fiscal year 2016.

The company has spent $57.66 million cash to meet investing activities during the nine month period as against cash outgo of $15.26 million in the last year period. It has incurred net capital expenditure of $76.65 million on net basis during the nine month period, up 402.34 percent or $61.39 million from year ago period.

The company has spent $22.94 million cash to carry out financing activities during the nine month period as against cash outgo of $0.91 million in the last year period.

Cash and cash equivalents stood at $84.14 million as on Sep. 30, 2016, down 29.62 percent or $35.41 million from $119.55 million on Sep. 30, 2015.

Working capital declines
Luminex Corporation has witnessed a decline in the working capital over the last year. It stood at $133.26 million as at Sep. 30, 2016, down 23.94 percent or $41.93 million from $175.19 million on Sep. 30, 2015. Current ratio was at 5.22 as on Sep. 30, 2016, down from 7.57 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 76 days for the quarter from 146 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 37 days for the same period last year.

Days inventory outstanding has decreased to 75 days for the quarter compared with 152 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 42 for the same period last year.