##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the quarterly period ended March 31, 2010
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the transition period from  to .
 Commission File Number: 000-30109
 LUMINEX CORPORATION
  DELAWARE
    
    74-2747608(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)12212 TECHNOLOGY BLVD., AUSTIN, TEXAS
    
    78727(Address of principal executive offices)
    
    (Zip Code)
 (512) 219-8020
 Yes þ
No o
 Yes o No o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if smaller reporting company)
 Yes o No þ




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TABLE OF CONTENTS
 PagePART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets as of March 31, 2010 and December 31, 2009
    
    
    1Condensed Consolidated Statements of Operations for the three months ended March 31, 2010 and 2009
    
    
    2Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009
    
    
    3Notes to Condensed Consolidated Financial Statements
    
    
    4Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4. Controls and Procedures
    
    
    23PART II. OTHER INFORMATIONItem 1A. Risk Factors
    
    
    24Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 6. Exhibits
    
    
    25SIGNATURES and EXHIBITS
    
    
    26Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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PART I. FINANCIAL INFORMATION
 
 ITEM 1.
    
    FINANCIAL STATEMENTS
 LUMINEX CORPORATION
 
 CONDENSED CONSOLIDATED BALANCE SHEETS  (in thousands)
 March 31,
    
    
    December 31,2010
    
    
    2009(unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    87,173
    
    
    $
    90,843Short-term investments
    
    
    22,392
    
    
    
    8,511Accounts receivable, net
    
    
    15,846
    
    
    
    22,108Inventories, net
    
    
    19,091
    
    
    
    17,524Deferred income taxes
    
    
    3,568
    
    
    
    1,040Prepaids and other
    
    
    2,055
    
    
    
    2,130Total current assets
    
    
    150,125
    
    
    
    142,156Property and equipment, net
    
    
    17,020
    
    
    
    17,255Intangible assets, net
    
    
    12,446
    
    
    
    12,938Deferred income taxes
    
    
    10,610
    
    
    
    14,732Long-term investments
    
    
    15,705
    
    
    
    20,228Goodwill
    
    
    39,617
    
    
    
    39,617Other
    
    
    1,057
    
    
    
    1,087Total assets
    
    $
    246,580
    
    
    $
    248,013LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    4,212
    
    
    $
    8,430Accrued liabilities
    
    
    5,144
    
    
    
    7,493Deferred revenue
    
    
    3,270
    
    
    
    2,967Current portion of long term debt
    
    
    1,094
    
    
    
    868Total current liabilities
    
    
    13,720
    
    
    
    19,758Long-term debt
    
    
    3,615
    
    
    
    3,591Deferred revenue
    
    
    5,087
    
    
    
    4,614Other
    
    
    834
    
    
    
    1,312Total liabilities
    
    
    23,256
    
    
    
    29,275Stockholders equity:Common stock
    
    
    41
    
    
    
    41Additional paid-in capital
    
    
    288,385
    
    
    
    285,648Accumulated other comprehensive gain
    
    
    2
    
    
    
    28Accumulated deficit
    
    
    (65,104
    )
    
    
    (66,979
    )Total stockholders equity
    
    
    223,324
    
    
    
    218,738Total liabilities and stockholders equity
    
    $
    246,580
    
    
    $
    248,013
 
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LUMINEX CORPORATION
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (in thousands, except per share amounts)
 Three Months EndedMarch 31,2010
    
    
    2009(unaudited)Revenue
    
    $
    33,252
    
    
    $
    25,557Cost of revenue
    
    
    10,476
    
    
    
    7,989Gross profit
    
    
    22,776
    
    
    
    17,568Operating expenses:Research and development
    
    
    4,979
    
    
    
    4,626Selling, general and administrative
    
    
    14,049
    
    
    
    11,358Total operating expenses
    
    
    19,028
    
    
    
    15,984Income from operations
    
    
    3,748
    
    
    
    1,584Interest expense from long-term debt
    
    
    (116
    )
    
    
    (118
    )Other income, net
    
    
    127
    
    
    
    271Settlement of litigation
    
    
    
    
    
    
    (4,350
    )Income (loss) before income taxes
    
    
    3,759
    
    
    
    (2,613
    )Income taxes
    
    
    (1,884
    )
    
    
    (177
    )Net income (loss)
    
    $
    1,875
    
    
    $
    (2,790
    )Net income (loss) per share, basic
    
    $
    0.05
    
    
    $
    (0.07
    )Shares used in computing net income (loss) per share, basic
    
    
    40,783
    
    
    
    40,347Net income (loss) per share, diluted
    
    $
    0.05
    
    
    $
    (0.07
    )Shares used in computing net income (loss) per share,
diluted
    
    
    41,588
    
    
    
    40,347
 
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LUMINEX CORPORATION
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
 Three Months EndedMarch 31,2010
    
    
    2009(unaudited)Cash flows from operating activities:Net income (loss)
    
    $
    1,875
    
    
    $
    (2,790
    )Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:Depreciation and amortization
    
    
    2,163
    
    
    
    1,963Stock-based compensation
    
    
    2,167
    
    
    
    1,771Deferred income tax benefit
    
    
    1,594
    
    
    
    2Loss on disposal of assets
    
    
    
    
    
    
    10Other
    
    
    335
    
    
    
    (131
    )Changes in operating assets and liabilities:Accounts receivable, net
    
    
    6,252
    
    
    
    (3,100
    )Inventories, net
    
    
    (1,566
    )
    
    
    142Other assets
    
    
    73
    
    
    
    557Accounts payable
    
    
    (4,187
    )
    
    
    3,481Accrued liabilities
    
    
    (3,383
    )
    
    
    (3,309
    )Deferred revenue
    
    
    777
    
    
    
    116Net cash provided by (used in) operating activities
    
    
    6,100
    
    
    
    (1,288
    )Cash flows from investing activities:Purchases of available-for-sale securities
    
    
    (12,613
    )
    
    
    (31,481
    )Maturities of available-for-sale securities
    
    
    3,195
    
    
    
    Maturities of held-to-maturity securities
    
    
    
    
    
    
    22,699Purchase of property and equipment
    
    
    (1,464
    )
    
    
    (1,531
    )Acquired technology rights
    
    
    
    
    
    
    (7
    )Net cash used in investing activities
    
    
    (10,882
    )
    
    
    (10,320
    )Cash flows from financing activities:Proceeds from debt
    
    
    
    
    
    
    454Proceeds from issuance of common stock
    
    
    1,139
    
    
    
    139Net cash provided by financing activities
    
    
    1,139
    
    
    
    593Effect of foreign currency exchange rate on cash
    
    
    (27
    )
    
    
    111Change in cash and cash equivalents
    
    
    (3,670
    )
    
    
    (10,904
    )Cash and cash equivalents, beginning of period
    
    
    90,843
    
    
    
    81,619Cash and cash equivalents, end of period
    
    $
    87,173
    
    
    $
    70,715
 
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LUMINEX CORPORATION
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE 1  BASIS OF PRESENTATION
     NOTE 2  INVESTMENTS
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
  Gains in
    
    
    Losses inAccumulated
    
    
    AccumulatedOther
    
    
    OtherComprehensive
    
    
    Comprehensive
    
    
    Estimated FairCost
    
    
    Gain
    
    
    Gain
    
    
    ValueCurrent:Money Market funds
    
    $
    73,105
    
    
    $
    
    
    
    $
    
    
    
    $
    73,105Non-government sponsored debt
securities
    
    
    32,347
    
    
    
    49
    
    
    
    (5
    )
    
    
    32,391Total current securities
    
    
    105,452
    
    
    
    49
    
    
    
    (5
    )
    
    
    105,496Noncurrent:Non-government sponsored debt
securities
    
    
    13,626
    
    
    
    37
    
    
    
    (1
    )
    
    
    13,662Government sponsored debt securities
    
    
    2,028
    
    
    
    15
    
    
    
    
    
    
    
    2,043Total noncurrent securities
    
    
    15,654
    
    
    
    52
    
    
    
    (1
    )
    
    
    15,705Total available-for-sale securities
    
    $
    121,106
    
    
    $
    101
    
    
    $
    (6
    )
    
    $
    121,201
  Gains in
    
    
    Losses inAccumulated
    
    
    AccumulatedOther
    
    
    OtherComprehensive
    
    
    Comprehensive
    
    
    Estimated FairCost
    
    
    Gain
    
    
    Gain
    
    
    ValueCurrent:Money Market funds
    
    $
    60,299
    
    
    $
    
    
    
    $
    
    
    
    $
    60,299Non-government sponsored debt
securities
    
    
    33,495
    
    
    
    19
    
    
    
    (5
    )
    
    
    33,509Total current securities
    
    
    93,794
    
    
    
    19
    
    
    
    (5
    )
    
    
    93,808Noncurrent:Non-government sponsored debt
securities
    
    
    18,144
    
    
    
    72
    
    
    
    (35
    )
    
    
    18,181Government sponsored debt securities
    
    
    2,035
    
    
    
    12
    
    
    
    
    
    
    
    2,047Total noncurrent securities
    
    
    20,179
    
    
    
    84
    
    
    
    (35
    )
    
    
    20,228Total available-for-sale securities
    
    $
    113,973
    
    
    $
    103
    
    
    $
    (40
    )
    
    $
    114,036
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
  Estimated Fair ValueMarch 31,
    
    
    December 31,2010
    
    
    2009Due in one year or less
    
    $
    32,391
    
    
    $
    33,509Due after one year through two years
    
    
    15,705
    
    
    
    20,228$
    48,096
    
    
    $
    53,737
       Fair Value Measurements at Reporting Date UsingLevel 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalMoney Market funds
    
    $
    73,105
    
    
    
    
    
    
    
    
    
    
    $
    73,105Non-government sponsored debt
securities
    
    
    46,053
    
    
    
    
    
    
    
    
    
    
    
    46,053Government sponsored debt securities
    
    
    2,043
    
    
    
    
    
    
    
    
    
    
    
    2,043Total
    
    $
    121,201
    
    
    
    
    
    
    
    
    
    
    $
    121,201Amounts included in:Cash and cash equivalents
    
    $
    83,104
    
    
    
    
    
    
    
    
    
    
    $
    83,104Short-term investments
    
    
    22,392
    
    
    
    
    
    
    
    
    
    
    
    22,392Long-term investments
    
    
    15,705
    
    
    
    
    
    
    
    
    
    
    
    15,705Total
    
    $
    121,201
    
    
    
    
    
    
    
    
    
    
    $
    121,201
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE 3  INVENTORY, NET
  March 31,
    
    
    December 31,2010
    
    
    2009Parts and supplies
    
    $
    10,009
    
    
    $
    9,499Work-in-progress
    
    
    4,585
    
    
    
    4,064Finished goods
    
    
    4,497
    
    
    
    3,961$
    19,091
    
    
    $
    17,524
 NOTE 4  EARNINGS PER SHARE
  Three Months EndedMarch 31,2010
    
    
    2009Numerator:Net income (loss)
    
    $
    1,875
    
    
    $
    (2,790
    )Denominator:Denominator for basic net income (loss) per share -
weighted average common stock outstanding
    
    
    40,783
    
    
    
    40,347Effect of dilutive securities: Stock options and awards
    
    
    805
    
    
    
    Denominator for diluted net income (loss) per share -
weighted average shares outstanding  diluted
    
    
    41,588
    
    
    
    40,347Basic net income (loss) per share
    
    $
    0.05
    
    
    $
    (0.07
    )Diluted net income (loss) per share
    
    $
    0.05
    
    
    $
    (0.07
    )
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE 5  STOCK-BASED COMPENSATION
  WeightedAverageShares
    
    
    ExerciseStock Options
    
    (in thousands)
    
    
    PriceOutstanding at December 31, 2009
    
    
    2,796
    
    
    $
    12.18Granted
    
    
    128
    
    
    
    16.55Exercised
    
    
    (123
    )
    
    
    12.37Cancelled or expired
    
    
    (51
    )
    
    
    18.46Outstanding at March 31, 2010
    
    
    2,750
    
    
    $
    12.25
   WeightedAverageShares
    
    
    Grant-DateRestricted Stock Awards
    
    (in thousands)
    
    
    Fair ValueNon-vested at December 31, 2009
    
    
    1,101
    
    
    $
    15.90Granted
    
    
    381
    
    
    
    16.53Vested
    
    
    (116
    )
    
    
    14.21Cancelled or expired
    
    
    (10
    )
    
    
    16.68Non-vested at March 31, 2010
    
    
    1,356
    
    
    $
    16.22
 SharesRestricted Stock Units
    
    (in thousands)Non-vested at December 31, 2009
    
    
    545Granted
    
    
    283Vested
    
    
    (4
    )Cancelled or expired
    
    
    (2
    )Non-vested at March 31, 2010
    
    
    822
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
  Three Months EndedMarch 31,2010
    
    
    2009Cost of revenue
    
    $
    178
    
    
    $
    127Research and development
    
    
    276
    
    
    
    302Selling, general and administrative
    
    
    1,713
    
    
    
    1,342Stock-based
compensation costs reflected in net income (loss)
    
    $
    2,167
    
    
    $
    1,771
 NOTE 6  SEGMENT INFORMATION
  2010
    
    
    2009Technology
    
    
    Assay
    
    
    
    
    
    
    Technology
    
    
    AssaySegment
    
    
    Segment
    
    
    Consolidated
    
    
    Segment
    
    
    Segment
    
    
    ConsolidatedRevenues from external customers
    
    $
    25,216
    
    
    $
    8,036
    
    
    $
    33,252
    
    
    $
    21,098
    
    
    $
    4,459
    
    
    $
    25,557Depreciation and amortization
    
    
    1,302
    
    
    
    861
    
    
    $
    2,163
    
    
    
    972
    
    
    
    991
    
    
    $
    1,963Segment profit (loss)
    
    
    2,524
    
    
    
    (649
    )
    
    $
    1,875
    
    
    
    1,909
    
    
    
    (4,699
    )
    
    $
    (2,790
    )Segment assets
    
    
    173,372
    
    
    
    73,208
    
    
    $
    246,580
    
    
    
    145,978
    
    
    
    71,080
    
    
    $
    217,058
 NOTE 7  INCOME TAXES
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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE 8  RECENT ACCOUNTING PRONOUNCEMENTS
     10




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LUMINEX CORPORATION
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 .
  11




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ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  SAFE HARBOR CAUTIONARY STATEMENT
  
    
    risks and uncertainties relating to market demand and acceptance of our products and
technology;
    
    dependence on strategic partners for development, commercialization and distribution of
products;
    
    the impact of the ongoing uncertainty in U.S. and global finance markets and changes in
government funding (including pursuant to the recent health reform legislation), including
its effects on the capital spending policies of our partners and end users and their
ability to finance purchases of our products;
    
    concentration of our revenue in a limited number of strategic partners some of which may
be experiencing decreased demand for their products utilizing or incorporating our
technology and budget or finance constraints in the current economic environment or
periodic variability in their purchasing patterns or practices;
    
    fluctuations in quarterly results due to a lengthy and unpredictable sales cycle, bulk
purchases of consumables, fluctuations in product mix, and the seasonal nature of some of
our assay products;
    
    our ability to obtain and enforce intellectual property protections on our products and
technologies;
    
    reliance on third party distributors for distribution of specific assay products;
    
    our ability to scale manufacturing operations and manage operating expenses, gross
margins and inventory levels;
    
    potential shortages, or increases in costs, of components or other disruptions to our
manufacturing operations;
    
    competition;
    
    our ability to successfully launch new products;
    
    the timing of regulatory approvals;
    
    the implementation, including any modification, of our strategic operating plans;
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
    
    the uncertainty regarding the outcome or expense of any litigation brought against or
initiated by us;
    
    risks relating to our foreign operations; and
    
    risks and uncertainties associated with implementing our acquisition strategy including
our ability to obtain financing, our ability to integrate acquired companies or selected
assets into our consolidated business operations, and the ability to recognize the benefits
of our acquisitions.
    OVERVIEW
 ®
   13




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
    
    System revenue is generated from the sale of our xMAP systems and peripherals.
Currently, system revenue is derived from the sale of the Luminex 100 and 200 analyzers,
our FLEXMAP 3D system, optional XY Platform and Sheath Delivery Systems.
    
    Consumable revenue is generated from the sale of our dyed polystyrene and magnetic
microspheres and sheath fluid. Our larger commercial and development partners often
purchase these consumables in bulk to minimize the number of incoming qualification events
and to allow for longer development and production runs.
    
    Royalty revenue is generated when a partner sells our proprietary microspheres to an end
user, a partner sells a kit incorporating our proprietary microspheres to an end user or
when a partner utilizes a kit to provide a testing result to a user. End users can be
facilities such as testing labs, development facilities and research facilities that buy
prepared kits and have specific testing needs or testing service companies that provide
assay results to pharmaceutical research companies or physicians.
    
    Assay revenue is generated from the sale of our kits which are a combination of chemical
and biological reagents and our proprietary xMAP bead technology used to perform diagnostic
and research assays on samples.
    
    Service revenue is generated when a partner or other owner of a system purchases a
service contract from us after the standard warranty has expired. Service contract revenue
is amortized over the life of the contract and the costs associated with those contracts
are recognized as incurred.
    
    Other revenue consists of items such as training, shipping, parts sales, license
revenue, grant revenue, contract research and development fees, milestone revenue and other
items that individually amount to less than 5% of total revenue.
 First Quarter 2010 Highlights
 
    
    Consolidated revenue of $33.3 million for the quarter ended March 31, 2010,
representing a 30% increase over revenue for the first quarter of 2009
    
    System shipments of 197, resulting in cumulative life-to-date shipments of 6,964, up 14%
from a year ago
    
    Our partners reported over $85 million of royalty bearing end user sales on xMAP
technology for the quarter, a 32% increase over the first quarter of 2009
    
    Signed a teaming agreement with Northrop Grumman Corporation to collaborate in the
creation of next generation bio-detectors
    
    Announced our acquisition of BSD Robotics, an Australian-based private company with
advanced robotics technology for newborn screening
    
    Finalized an exclusive, strategic, collaboration and licensing agreement with Advanced
Liquid Logic, with proprietary technology in digital microfluidics and automation
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Segment Information
  Future Operations
    15




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CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   RESULTS OF OPERATIONS
 THREE MONTHS ENDED MARCH 31, 2010 COMPARED TO THREE MONTHS ENDED MARCH 31, 2009
  Three Months EndedMarch 31,2010
    
    
    2009Revenue
    
    $
    33,252
    
    
    $
    25,557Gross profit
    
    $
    22,776
    
    
    $
    17,568Gross profit margin percentage
    
    
    68
    %
    
    
    69
    %Operating expenses
    
    $
    19,028
    
    
    $
    15,984Income from operations
    
    $
    3,748
    
    
    $
    1,584
   Three Months EndedMarch 31,2010
    
    
    2009System sales
    
    $
    6,699
    
    
    $
    6,127Consumable sales
    
    
    9,819
    
    
    
    7,603Royalty revenue
    
    
    5,849
    
    
    
    4,527Assay revenue
    
    
    7,660
    
    
    
    4,195Service revenue
    
    
    1,587
    
    
    
    1,372Other revenue
    
    
    1,638
    
    
    
    1,733$
    33,252
    
    
    $
    25,557
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Technology Segment
  Three Months EndedMarch 31,2010
    
    
    2009Revenue
    
    $
    25,216
    
    
    $
    21,098Gross profit
    
    $
    17,499
    
    
    $
    14,583Gross profit margin percentage
    
    
    69
    %
    
    
    69
    %Operating expenses
    
    $
    13,203
    
    
    $
    11,065Income from operations
    
    $
    4,296
    
    
    $
    3,518
 Revenue.
  Three Months EndedMarch 31,2010
    
    
    2009System sales
    
    $
    6,558
    
    
    $
    6,011Consumable sales
    
    
    9,798
    
    
    
    7,590Royalty revenue
    
    
    5,849
    
    
    
    4,527Service revenue
    
    
    1,492
    
    
    
    1,372Other revenue
    
    
    1,519
    
    
    
    1,598$
    25,216
    
    
    $
    21,098
   17




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##### Table of Contents



Gross profit
 Research and development expense
 Selling, general and administrative expense
  18




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##### Table of Contents



Other income, net
 Assay Segment
  Three Months EndedMarch 31,2010
    
    
    2009Revenue
    
    $
    8,036
    
    
    $
    4,459Gross profit
    
    $
    5,277
    
    
    $
    2,985Gross profit margin percentage
    
    
    66
    %
    
    
    67
    %Operating expenses
    
    $
    5,825
    
    
    $
    4,919Loss from operations
    
    $
    (548
    )
    
    $
    (1,934
    )
  Three Months EndedMarch 31,2010
    
    
    2009System sales
    
    $
    141
    
    
    $
    116Consumable sales
    
    
    21
    
    
    
    13Assay revenue
    
    
    7,660
    
    
    
    4,195Service revenue
    
    
    95
    
    
    
    Other revenue
    
    
    119
    
    
    
    135$
    8,036
    
    
    $
    4,459
 Revenue.
 Gross profit
 Research and development expense.
  19




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##### Table of Contents



Selling, general and administrative expense
 LIQUIDITY AND CAPITAL RESOURCES
 March 31,
    
    
    December 31,2010
    
    
    2009(in thousands)
    
    
    (in thousands)Cash and cash equivalents
    
    $
    87,173
    
    
    $
    90,843Short-term investments
    
    
    22,392
    
    
    
    8,511Long-term investments
    
    
    15,705
    
    
    
    20,228$
    125,270
    
    
    $
    119,582
       20




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##### Table of Contents



21




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##### Table of Contents



Contractual Obligations
  Payment Due By PeriodLess Than
    
    
    
    
    
    
    
    
    
    
    More ThanContractual Obligations
    
    Total
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 YearsNon-cancelable rental obligations
    
    $
    10,805
    
    
    $
    2,424
    
    
    $
    4,584
    
    
    $
    3,668
    
    
    $
    129Non-cancelable purchase obligations
(1)
    
    $
    10,398
    
    
    
    6,122
    
    
    
    1,496
    
    
    
    1,082
    
    
    
    1,698Long-term debt obligations (2)
    
    $
    5,592
    
    
    
    894
    
    
    
    2,153
    
    
    
    2,545
    
    
    
    Capital lease obligations
    
    $
    11
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    Total (3)
    
    $
    26,806
    
    
    $
    9,451
    
    
    $
    8,233
    
    
    $
    7,295
    
    
    $
    1,827
 (1)
    
    Purchase obligations include contractual arrangements in the form of purchase orders
primarily as a result of normal inventory purchases or minimum payments due resulting when
minimum purchase commitments are not met.(2)
    
    On December 12, 2003, LMD entered into an agreement with the Ministry of Industry of
the Government of Canada under which the Government agreed to invest up to Canadian (Cdn)
$7.3 million relating to the development of several genetic tests. This agreement was
amended in March 2009. Funds were advanced from Technology Partnerships Canada (TPC), a
special operating program. The actual payments we received were predicated on eligible
expenditures made during the project period which ended July 31, 2008. LMD has received
Cdn $4.9 million from TPC which is expected to be repaid along with approximately Cdn $1.6
million of imputed interest for a total of approximately Cdn $6.5 million.LMD has agreed to repay the TPC funding through a royalty on revenues. Royalty payments
commenced in 2007 at a rate of 1% of total revenue and at a rate of 2.5% for 2008 and
thereafter. Aggregate royalty repayment will continue until total advances plus imputed
interest has been repaid or until December 31, 2016, whichever is earlier. The repayment
obligation expires on December 31, 2016 and any unpaid balance will be cancelled and forgiven
on that date. Should the term of repayment be shorter than expected due to higher than
expected assay revenue, the effective interest rate would increase as repayment is
accelerated. Repayments denominated in U.S. Dollars are currently projected to be as shown in
the table above, but actual future sales generating a repayment obligation will vary from this
projection and are subject to the risks and uncertainties described elsewhere in this report,
including under Risk Factors and Safe Harbor Cautionary Statement, and the Risk Factors in
our 2009 10-K. Furthermore, payment reflected in U.S. Dollars is subject to adjustment based
upon applicable exchange rates as of the reporting date. The amount due within one year, as
shown in the table above, is our estimated repayment amount based on sales for the full year
2009.(3)
    
    Due to the uncertainty with respect to the timing of future cash flows associated with
Luminexs unrecognized tax benefits at March 31, 2010, Luminex is unable to make reasonably
reliable estimates of the timing of cash settlement with the respective taxing authorities.
Therefore, $0.8 million of unrecognized tax benefits have been excluded from the
contractual obligations table above. See Note 7 to the Condensed Consolidated Financial
Statements for a discussion on income taxes.  22




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##### Table of Contents



ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Interest Rate Risk.
 Foreign Currency Risk.
  
 ITEM 4.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
   23




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##### Table of Contents



PART II. OTHER INFORMATION
 
 ITEM 1A.
    
    RISK FACTORS
  
 ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  ISSUER PURCHASES OF EQUITY SECURITIESTotal Number of Shares
    
    
    Approximate Dollar Value ofTotal Number of
    
    
    Average Price
    
    
    Purchased as Part of
    
    
    Shares that May Yet BeShares
    
    
    Paid per Share
    
    
    Publicly Announced
    
    
    Purchased Under the Plans orPeriod
    
    Purchased
    
    
    (1)($)
    
    
    Plans or Programs
    
    
    Programs01/01/10 - 01/31/10
    
    
    582
    
    
    
    15.31
    
    
    
    
    
    
    
    02/01/10 - 02/28/10
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    03/01/10 - 03/31/10
    
    
    35,248
    
    
    
    16.58
    
    
    
    
    
    
    
    Total First Quarter
    
    
    35,830
    
    
    
    16.56
    
    
    
    
    
    
    
    
 (1)
    
    Shares purchased are attributable to the withholding of shares by Luminex to satisfy the
payment of tax obligations related to the vesting of restricted shares.  24




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##### Table of Contents



ITEM 6.
    
    EXHIBITS
  Exhibit
Number
    
    Description of Documents10.1
    
    
    Management Incentive Plan (Incorporated by reference to Exhibit 10.1 to our Current Report on
Form 8-K dated March 15, 2010).10.2
    
    
    Luminex Corporation 2010 Long Term Incentive Plan (Incorporated by reference to Exhibit 10.2
to our Current Report on Form 8-K/A filed March 16, 2010).10.3
    
    
    Form of Restricted Share Unit Award Agreement for Awards under the Luminex Corporation 2010
Long Term Incentive Plan (Incorporated by reference to Exhibit 10.3 to our Current Report on
Form 8-K dated March 15, 2010).31.1
    
    
    Certification by CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    
    Certification by CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    
    Certification by CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.
  25




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##### Table of Contents



SIGNATURES
  Date: May 7, 2010
    LUMINEX CORPORATIONBy:
    /s/ Harriss T. CurrieHarriss T. CurrieChief Financial
Officer, Vice President of Finance(Principal Financial Officer)By:
    /s/ Patrick J. Balthrop, Sr.Patrick J. Balthrop, Sr.President and Chief Executive Officer
(Principal Executive Officer)  26




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description of Documents10.1
    
    
    Management Incentive Plan (Incorporated by reference to Exhibit 10.1 to our Current Report on
Form 8-K dated March 15, 2010).10.3
    
    
    Luminex Corporation 2010 Long Term Incentive Plan (Incorporated by reference to Exhibit 10.2
to our Current Report on Form 8-K/A filed March 16, 2010).10.3
    
    
    Form of Restricted Share Unit Award Agreement for Awards under the Luminex Corporation 2010
Long Term Incentive Plan (Incorporated by reference to Exhibit 10.3 to our Current Report on
Form 8-K dated March 15, 2010).31.1
    
    
    Certification by CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    
    Certification by CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    
    Certification by CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.
  27