Luminex (LMNX) 5 Nov 182018 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to Luminex Corporation’s Third Quarter 2018 Earnings Conference Call. My name is Sonia and I’ll be your coordinator for today. Today's call is being recorded. At this time, all participants are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. Instructions]. [Operator like President call for and now Currie, to opening turn Vice Senior Chief to would over the Harriss remarks. I Financial Officer proceed. Please

afternoon, to conference XXXX Luminex welcome and our financial third quarter Good call results. operational and to discuss Corporation's

your me our after call the following review Shamir, President We’ll agenda. the highlights, that, I'll Homi the will questions. financial is and On today for Homi and Executive we’ll Chief open up with Officer. corporate performance call standard be review our

the these reminder, for the and a Web covered, differences be section purely to on comparable the recorded course during covered call year-ended and and a within the be call. being consequently As by Private financial of made this undertake the measures, measures review Commission. Reform in no may our of statements and detailed Securities of to today’s that is is presentation December six you Act company call the which certain today's conference replay of non-GAAP Shamir. Litigation defined site. statements will site Investor we known not claims XXXX financial and available Section any Certain be subject on These anticipated that based contribute non-GAAP earnings be the Act reports current historical XXE uncertainties, actual measures company’s financial and Exchange our Regulation GAAP or forward-looking these G, cause to and are CEO, and months our now and our for on most Securities such Securities meaning speak protections Regulation accordance forward-looking may cause some Relations the differ the that to hereof To of directly are expectations filed statements in with extent Also, a and those provided and quarterly may beyond as I’ll Form beliefs are included risks available the to President are are Factors forward-looking Form unknown Exchange the by of encourage control, release, date to G. of forward-looking the statements. statements. our for such for plans results in with SEC on XX, adversely could or from materially which and only obligation over statements. Web Homi in to update or XX-Q on be as XX-K will documents our call the We and our the turn reconciliation the could

Good third Thank cover you, earnings XXXX welcome my to three our afternoon, in like call. remarks Harriss. today. topics and I would to quarter

our a to post that the of about future the cytometry First, growth our and agreement the and asset MilliporeSigma; businesses health flow LabCorp definitive have second, recent our of we some signed announcement transition; third, purchase expectation direction. broad-based

to businesses. into Before we I our would continue topics, overall the get of performance to that very be we pleased say diversified like with those

several when of to factors. we for expectation respect the LabCorp the have as several was guidance fact that receive in QX revenue orders range driven first we previously This were in X% mainly received down the received have adjust short the days but QX. leadership, by been to the quarter With our of for under quarter been our growth revenue to actually However, just we communicated. expected the revenues in grew molecular they two time we is fell been was would end. that revenue my just due X%. of overall that If had after diagnostic quarter departure, about third businesses, by third planned, This have middle the by

was This growth mode to X% both quarter-over-quarter. LTG than growth consumables stream and XX% returned Our more has royalties. expected, by driven revenue by as in growing

by XX% assay Our departure, an by revenue for but for additional quarter. the grew actually during it franchise LabCorp have and the declined XX revenue adjusting Sample-to-answer systems the grew contracted quarter, X%. when we MDx by XX%

usage a about As both VERIGENE Utilization and of for three nicely almost increased reminder, per of contracted increase customers requirement the a system or years. active and quarter, of at the XX%. year-over-year is At system and we more XX% respectively. X%, an customer ARIES had end XXX

opportunity to We adopted cytometry an first sell science agreement last, additional to state-of-the-art exciting life This was from within our asset to their long signing MilliporeSigma. us to directly Another probably trusted provide a workflow increase customers products. they’ve quarter development flow their in of in of existing our confidence a name that of delivery acquisition, name customer tool not that will believe fit this and Luminex the for research so ability the acquire our for analytical purchase technology. definitive production for xMAP that the and and space who will

the accomplish announcing in acquisition, we a mentioned we number call this will with objectives strategic As of the transaction.

will our We product offering. diversify

product growth We markets. acquire attractive will in

product be quality finally experienced and management people new into importantly, and team. bringing strong development most pipeline. Luminex add And will probably We we will

an that $XX As our two between since exciting. million could of the and accretive. space $XX this and revenue compelling within be to our year and top believe million is acquisition innovator We add more flow decades expand the line inception next footprint ago, opportunity both our technology in than flow to

market growth end a consumable like discuss growth XXXX and begin the above Overall, in LTG and as my in And exceeding approximately track towards I we placement to to thoughts royalty grow our the just those growth are year. expected XXXX. on we to the for are on head system Finally, XXXX. briefly of with XXXX X% would in rate deliver

expect a during finish to departure a approximately to digits are result adjusted departure We the when in slightly up our but the recurring revenue of up as solidifying expected as product the for both sales the growth. and MDx whole year almost for be of assay revenue NuSwab the foundation contracted LabCorp Sample-to-answer XX% new million. down year double the with the for systems for $XX approximately XXX

our we anticipate the As on that flow And approximately year. million portfolio fourth last add XX a We from targeted quarter million meet run $XX to million fourth up remain addition of MilliporeSigma have the rate of will should the matter by portfolio XXX year. million line we end mentioned, from of our [ph] of exceed quarter in $XX sample-to-answer XX between next as and in million to revenue top of [ph], track fact, the XXXX. the the cytometry

we about results. year-end XXXX talk will announce guidance XXXX specific We assumption our when and

in will results Now, our my details. financial review Harriss,

Thanks, Homi.

X% we another was effects we the up or consolidated when Homi of had with LabCorp revenue up XX.X revenues, we mentioned, departure. quarter As quarter when X% third exclude million, and period, X% good And X% down absent was the LabCorp. revenue exclude for year-to-date quarter for the LabCorp. the Consolidated

XX year Our stream by revenue. quarter, for LTG consumable and in up growth driven revenue quarter, the to double-digit was royalty the both million prior X% compared

revenue reference, prior up quarter For year versus up and versus was was consumable XX% quarter. royalty XX% the year revenue the prior

the down million revenue was diagnostic molecular departure. driven XX.X Our for LabCorp XX% the quarter, by primarily stream

the franchise, year-to-date period, for quarter the of this up XX% continued LabCorp, was X% sample-to-answer performance for up Excluding respectively. success which stream and with and driven quarter our was revenue the XX% by the

customers each continued the our and the both sample-to-answer number increase to customer active utilization of For per has quarter. products

was For line, from up third to our the XX%. per XX,XXX, average ARIES quarter, X% And rate utilization the annual increased for VERIGENE prior year annual XXX,XXX, customer product quarter. utilization products up our the for

Turning to our revenue items. line

HLA was include not end the quarter. XXX the which During xMAP quarter, placements, of and of system and revenue third VERIGENE in by the audit system the range or End other royalty placed placed to partner reflecting allocations sold we driven reported large compared and rental. minimums, primarily do revenue year above over findings and year Royalty user an the and by purchases partners our ARIES prior our sales Consumable communicated prior of higher multiplex increase grew XX% between by systems, a sales quarter. reagent adjustments. X% findings for our quarter assay XX% Included for the with systems our conjunction XXX with the those reduction were Consistent VERIGENE in of recognized are quarter and diagnostics were both in our XXX revenues XX% for by X% per under stream, sales in systems, quarter, driven reagent and high bulk audit the down rental for systems growth revenue primarily revenue up molecular ARIES the LabCorp. year-to-date.

XX% X% the for impact, with products. a in assay was quarter Excluding our assay automated increase up this revenue

ancillary quarter through products that currently their after contribution for As of women's minimis contractual also women's for are significantly foundation placed confirmed declined de in Orders other minimums. end to a communicated last XXXX meeting panel, continue the XXXX. portfolio was health the previously, their in their has expected their second of the proprietary we’ve health order and have LabCorp with

Now as We carry third XX% turning attributable assays to This the to reduction X the from posted of the income gross is LabCorp these margins the in health statement. quarter, quarter decline a down primarily point percentage for margin. XXXX. women’s of products higher typically gross

both to and of cost We sample-to-answer margins on through increases our volume efficiency. continue focus improvement

margin to control modestly X.X our the year. because of primarily in R&D profit or decline to quarter declined the both from revenue our levels only X% the prior operation declines continue million and the X.X margin also for to in operating with and up SG&A compression. expenses We quarter relative planned aforementioned Operating in gross million

XX% the of and tax compares which Act rate the provision discrete The release XX.X XXX% to the in and a of year benefit related to by income third benefit quarter a for Canada. million U.S. the of was of allowance. quarter as foreign third of item intangible the XXXX in our impacted XXXX. of our Our This earnings Tax XX% prior included mainly valuation mix Canadian is to effective compared the

income, full federal incorporating quarter for and the XX%, year global or XXXX estimated but tax is XX% expected is rate after be to XX% including consolidated updates. rate rate low-taxed reform new discrete other full to Our XX% to tax XX% intangible GILTI year items four XXXX approximately this to related

dividends Our no cash million XXX strong with and million payment of balance million. in of in investments. quarter and cash nearly X.X of debt generated X sheet with even We the the remains

us royalties the to Prior XX increased previously, as more to to new the revenue due closely changes, sale of DSO the the timing standard prior record user was the receivable when with no partner. were royalties an DSO which for recognition for recognition we days end to recognized quarter three. communicated required by had our of quarter to each adoption receivable estimated the coincide paid. in accounts our As the unbilled they revenue year relative

been comparable it have royalty revenue the change. Excluding to would XX accrual, periods about days the prior with recognition

quarter us fourth year. fall our million to expect factors Looking currently million for million in and middle to be the between XX revenues guidance. XXX expect XX million in Three quarter of have full into settled range the to mid the fourth of the range our XXXX, we and XXX of guidance

a The more season first, respiratory planned contributing that than revenue. modest expected to related flu lower

as products of And our consumable than of VERIGENE three, underperformance in is Second challenges. Japan lower slightly a expected result growth. reimbursement

Now, I’d turn to it some comments. Homi over like final back for to

of Thanks, power diversifying the Harriss. In closing, Luminex businesses. continues demonstrate to its

continues Our product we meaningful committed in to and to across investing our model development entire pipeline drive remain businesses. wisely growth

be continued organic said inorganic achieved means. have I As many through and will growth times, both

the believe support this. announcement on of focus losing never with our MilliporeSigma line. I deal the We’re bottom

to strong for our synergetic Operator, open our opportunities further our In continue attractive growth exciting ends and questions. and accelerate our addition sheet remains current R&D line we for please the and will This projection. M&A to pipeline, balance to comments. organic search robust formal additional

Thank you. [Operator Instructions].

of Citigroup. first Arias Our from question comes Dan

is now line Your open.

wanted few but start ago a light quite I I last for through from Thanks. guys. touch I pretty down a Harriss, quarter. VERIGENE, bit believe to I is which afternoon, hi a from is a on, Good the respiratory quarter XXX,XXX which pull could was if rate think up quarters

would happening? just how pickup, season next the keep there model that that backup pull some is it quarters respiratory So wondering you coming with there? the from Does should or think through for we dynamic

heavier basis know, – we’re might per-customer the rather this a beginning light year-over-year midst, a didn’t of you we’re season, recognize now. really January, could year season. of was than in last lighter As but flu the last the any because flu pickup relative a respiratory year year February, extent be in it the months, it actually respiratory than season lot see I a is to so it March season pickup until not was then little right you the on

expectation has an would to year. of per couple going to added the of the customers this measure honest, we’ve be next active Now it that relative I don’t be be what’s increased because on happen customer. know flattish months, over Number to we prior my but average would

little hope it’s I that in or think bit likelihood that fourth the is a helps. the down flat modestly quarter. I

does. it Yes,

Okay. I just guys want And then to I know about want but go to Millipore, assumptions to there XXXX, back when the could. outlook you if on I there you talk guide to

asset the is XX You and outlook said on few which USD. about a weeks XX sales the million the acquired million, €XX million is XX year to ago next call that the for that were USD million

the wondering you or just have there, expectations growth percentage So, that wise? what in either you dollar if can are clarify XXXX wise

have get we like we expecting to into sale, recur. good $X we their or they’re one Dan, there remember would Homi. is understand In thing. going like range, question It’s a our €XX do it’s million the we to about is the things and to the €XX that when would to better million is one because it portfolio not million, of

So it want customer. whatever the flow the taking items we can in it’s thinking. don’t that you imaging Luminex I going Also within is product digit to I to tell it’s from to actually make the their double is that there would maybe which growing basically sure is XX portfolio of no nicely we very two-thirds the that like are at our carry numbers. cytometry to business Amnis,

especially which on the but is need which understand little the that’s bit product Guava around one a product revamping where low continue product million, I of double time time sense really to that. on the it more with between it the as digit, Guava, Muse, to the line, we launching growing Guava to more are XX business makes new million so line need are end, to the and So XX us Also, to imaging the said, they in two-thirds we spend the and we guide trying understand and and is to business. the a

could or sneak sort there Okay. is will related just sort I decline and you anything you on managing plan, one versus tighter that number just earlier? have I appreciate up that. more was if Maybe of the of that again SG&A XQ, thought would are the timing than Harriss, there in you

margin of result a departure the the LabCorp revenue. as tight pretty of higher managing We’re

to we at that So we’re profitability place protect extent squeezing any can we to can. the

important. that the less little we’re So plan is fact than

what’s think is relative more we’re year-over-year I flat. pretty much important

is So pay including to year-over-year that on what I a bigger important revenue base think most even to. the departure attention of LabCorp is

Okay. Thanks bunch. a

bet. You

you. Thank

Our from next Nam BTIG. Ji of question comes Sung

Your line is now open.

to? Hi. taking were year. that’s business and that referring what of for Harriss, de also for year being managing is Harriss you further clarifications next Homi. clarify remaining? terms minimis questions. or for this in Maybe couple about you away could one the pretty that of a You Is that Are LabCorp you Thanks next that the talked small then year?

in leaving CF-only XXXX ancillary products minimis about to current a to so tell about So $XX an to XXXX were year talking In about in there’s then Ji, LabCorp LabCorp expectation let million It’s And drop de or total XX year, that million. did that million contribution is of you it, the with next of or decline next revenue. revenue of by loss contribution me in XX million how lot. XX so is about to be XX we going to about. is Luminex going year, the Sung going the by those a to additional think that million

not will itself be that definitely the will really in of de XX we’re million So as nothing XXXX de the XXX LabCorp ancillary but left with minimis, purchased itself million overall the be plus CF minimis is but products on LabCorp contribution product.

cytometry Okay. reporting going be And purposes flow separately business? will are breaking to then year makes sense. for LTG that next That the into incorporated you out the for business, be or it

separate reporting the functions business instruments. business office to be back It revenue business. cytometry of a segment devoted order flow won’t provide lot revenue, to a will others use items the as in sales and it we will be service to level. lot integrated have significantly segment. the support Certainly but reportable likely Most visibility will be be a line the way of those to all down besides that, But the own unit force folks of likely like won’t we generating field its will a avoid

So I would tell certainly will you that be out separately. carved revenue

what hearing you’re could talk you guess you. customers your of panels preparing terms I kind decision, Okay. Palmetto syndromic Thank the what end about of And of with might markets, that in from how exposed you then, Homi, that? they’re be to your percentage and for recent

saying, be keep we pricing, decision Flex mainly pricing an I our opportunity in our selling. can I because that are think the As strategy current of Luminex Palmetto pricing to the

adopted, they recommendation us our selling competitive And giving almost is than what who our cost I Flex don’t say compared gain I to or be basically, can decision think will competitors edge here able I obviously the most of to have us. we think here. into double pricing their

it’s placed close have think focusing been system, look to new contracted demonstrated at that quarter, and that I if systems. system the you of this you targeting XX, to – in part be AMP. the are XXX or well we and obviously So we We number

behind Our customers that them. are adopting and for our they our are offering Flex pricing adopting

that’s So to to we feel achieving going going us help – market here. larger Palmetto in and is again share

you. Great. Thank

you. Thank

Weinstein comes question Blair. next from of Our Brian William

open. now line Your is

for guys. the taking Thanks questions. Hi,

on. kind I what’s that business, understand going the sure On just of sample-to-answer make I want to

So $XX I the million year with started target. think is the we

to you going be brought seems talked to there. and I XX that million that XX.X down take that like $XX about we’re You XX if it like to

back at were an you could sample-to-answer fell molecular want side? but kind follow original said look where have about the just where that from also roughly be as we expectations? Was to from that QX, And off year, that of a $X to sample-to-answer, the of fell? specific then as understanding the we in up, million I So you QX more

where you not anticipation, is more earlier, that I’m below again, is that on season. sure moderate be that reduction slightly here recall Harriss I to said as XX. respiratory the the million. our XX got the going think And I

be – are we a bit moderate strong there. So If track. the on season we we have will season, assume little a cautious then let’s

will showing taken couple a be Our mentioned, will that as achieving Japan of in dollar Hitachi achieving to They with modeling due XX few reimbursement thousand we And the blood the have thought not hundred be also, Harriss here. in leave what the sample-to-answer business a we XX.X less, more around culture. to than some we difficulty growing dollars best there. investment here is with

know So are where taking you on the to I But the that’s it respiratory But adjustment. where we a precautious really took million, Brian. don’t $XX very was season thinking the QX.

Okay. on We’ll check comments that. back the and go

can As you Sensiplex and on that? product pipeline far any as on contribute [ph] of some thoughts the when that give stuff think and updated the start to us may you an that goes, update

and don’t major Luminex perform. on talked to it we invite But revenue think year how them that on that we start with their the our partner I track here share are we let QX, see will them to – the contribute planning guidance. and it let kits system, any in in significant running next about are

Sensiplex be As we all backward should fully a the know, compatible.

significant and time contribution the it but in then and it, run we in AACC, XXXX. would we’ll seeing to contribute it assumption to when in it there about and introduce talked like when here our all to it start But can nothing about do XXXX and during the we talked them confirm they market. we want So

you, guys. Thank

bet. You

you. Thank

next Bank. of Our from comes Leonard Dan Deutsche question

Your line is open. now

question, my all Brian Actually I’m set. asked Thank so you.

you. Thank

Thank you.

question comes of next from Our Peterson Tycho JPMorgan.

Your line is now open.

the comments to comment been panels? on do want made maybe LTG LTG how think to their go in you’ve I for we Thanks. the issue have maybe but latest Palmetto past their minute. about around really think on RP, GI Can you GI? back Hi. your I a on

Tycho. Sure,

others guidance five are healthy. that patients panel finalized otherwise a Palmetto bacterial there’s well. So targets and their as individuals some obviously of little then limit patients, expands to as diff issues. know, C. may for There’s patients coverage transplant GI around for for having that cover full and have immunocompromised That you bit a suspected

really doing GI. company For and II going for covers ideal be patients with Flex with in flexible for it the GI VERIGENE addressing of GI, our testing types only all to to effective cost honest be we’re a this is market solution

So affected to times that it’s it’s priced a of offending number right panel. and be can in constituent patients, often going coverage the significant be going have to the right, the found base

Palmetto adopted thing follow. adopt one Meridian has are other likely similar has coming the guidance to there but these same now are in policy the guidance. private the is that are to to are that explicitly the Now months. adopted panels expected consider this in payers issue MACs And cover and WPS to already expected then CGS appropriate way. to going

than we So overall no it the a for we outpatient more ultimately that are actually we pay resides to want acknowledge way hospital, billing consistent that it for within going only the for the they today, impacts pricing believe patient matter us the but We and hospitals test. consistent where think positive anticipate. testing was

it up so end fits because us should panels a think becoming sell more are one difficult to overall being And size all these driver days. we value for

process alternative Flex some developing and we model on the decisions. our so of And also clinical testing on good these of that really utility we’re a impact specifically to patients the in the offers believe studies demonstrate treatment for solution

question. So answers that your hope I

Obviously panels? How utilization? but Yes. side, story up a a and think follow other utilization then. on Flex kind Maybe to migrates the of how do we therefore do gain think share we there’s as just about narrower more about

and of our customer because [indiscernible] bought the the our of with Flex. made customers system XX% We our

of bias is we the of the But model. to buying now maybe but obviously bit into the them Flex. are of have of in offer little the Flex because Flex clinical. Obviously, don’t it’s rationality them a So them all feature a bought we because

to answer the So that’s maybe question.

two there��s to so Yes, what said, that Homi components just Tycho.

a first buying is Flex customers testing those the economic the buying that are value. are favorable. of and of left that are pricing’s The the it It’s number because significant it because

the the economic and those for Flex have want So want to to only we’re pay they upward effective just that ability of for customers’ value need. providing base for the XXX% or who what those

And obviously you a number that in Flex. see for obviously this we of They contract. they we is but the about reimbursement contracted from they Palmetto, years. And quarter, as believe know challenges the the five normally and contract said three earlier,

believe that’s to that that’s the trend influence they So market. the going

And up follow Okay. flow over shifting one then the just to business.

after two think one of to part are then obviously two of stream. mid-tier opportunities a I you’ve and mix talked of the consumable the to kind increase revenue the about and recurring market go

can on So What touch maybe is two specifically? there? just you initiatives strategy those

There’s the approach So and that what growth flow still systems between guy they the we molecular offer cost the the we’ve to base, guy lower cytometry obviously own. of and high approach, proprietary which the cytometry same focus need. in way going can cost the We level diagnostics to our used and is go up all primary business to everybody portfolio the product in the them right? low effectively opportunities to the are which it’s flow imaging expanding with

assay because obviously cytometry recurring I’ll flow growing what to to business, imaging you data and call have, haven’t applications respect with the So focus the seen revenue revenue the is the provides. on – we idea not imaging to is very today. low the Obviously which

of that most imaging likely opportunity recurring development the the of and mix. of line relative percentage revenue can it’s what be proprietary through in market’s we today it that revenue the there because flow the is portion towards products our as revenue additional insignificant is there well Now, because the but run it’s to product lower our cytrometres opportunity on think focused there significantly to of there’s grow in almost

Okay. Thank you.

bet. You

Thanks.

Thank you.

Our Brandon Jefferies. next of question from comes Couillard

line is now Your open.

Thanks. Good afternoon.

Brandon. Hi,

a just clarification. Harriss,

XX would suggest million about next for does whole I so the that be that revenues some Did CF million related for a business related I X tracking into was right? that you I built at XXXX. think number that CF quarter, that about I declines said year think year? next hear understood LabCorp

No. was million and between tracking a million XX -- year It XX

we but From business we have other okay. last quarter generate that additional from – customers,

Right.

is But XX LabCorp million XX million. to business

period CF. have We it end in to with we stay have this further might We but believe customers contracted beyond additional us of XXXX.

there they you customer. stay some When customers If was got in of from the CF, past recall, we Logic out them. some

orders So me and $X.X I you’re quarter, a example, of don’t LabCorp give But talking the you on so here. specific based be $X numbers an quarter. to too let the in Brandon, want between million, about million CF

Our in more was third than quarter the total CF revenue that. twice

in lot – mix. we other LabCorp CF So it’s besides of revenue had a our

what in, in on Got helpful. to you. That’s quarter of Harriss, penciling be higher in likely be And the third, then for the gross we fourth more, the relative should given the the that fourth margin, LabCorp revenue hit terms quarter? would

are in No. LabCorp quarter be the fourth going revenue less. to

will onset because matter additional the the in quarter. of the good likely in automated growth that flu for a our non-automated increase likely nonetheless margin VERIGENE compression the the quarter – bead-based for ARIES are be the however, there quarter, in with revenue to in and in to and for and bead fourth season increase technology have we’re modest molecular diagnostic royalties overall the expected some So volumes continuing quarter, the of for both fourth

So that high those items some loss. offset that are margin of very

the constrict quarter. two margins point in a or more expect I So to gross than fourth wouldn’t

the of Didn’t but timeline where you not an this then And some update the stand for hear development point? Homi. RVP the us Thanks. and started on with you. much one could VERIGENE about Okay. II trial whether at or share Thank you just

No.

the we to trial. with we’ll trial. part December of planning or are the continuing RP finish the start continue beginning GPP the sample of in and the with very And that somewhere We shortly. trial with It’s hopefully

Okay. Thank you.

Thank you. [Operator Instructions].

Our from comes next Piper question Jaffray. Daniel Macek of

now line is Your open.

Great. Bill Quirk on. actually Thanks. It’s

couple if Palmetto to may. I So want I to go questions back on of a

just as that at to should continue it’s follow capital is to in sense reimbursement potential we a would then acquisitions. with And get to kind get Luminex off as you the tuck-in, And first the form Millipore? about a on a these I’ve Thanks. being multiplex this or more got on think or to revenue trying of the deployment is Homi, what you did new then, referenced of with of issue So akin just taking longer more Japan, core side? business somewhat aligned I’m better up. look new sources you

we’ve and blood Thanks. investment But no, Japan been Hitachi. culture. a that a And year – a about new half we’ve on got with Japan is ago working not

the it’s XX taking like more we it We bring have been it’s and active – because We than are not item that thought by buy also have don’t to It’s And week them to customers. to need [indiscernible] that level. everybody the point we how try increase will investment we to the some not in was I But they level to right have to put because used tough what the again, or that initially here, Japanese of length. mainly in this talked and than and of more rental. it’s It’s itself assumptions. money not dollars again, become equipment. this doing with anticipated. find again But the capital here thousands reagent want a is highly that we make claim reimbursement to reimbursement the compared able the affecting But what in you they they time to equipment, Japan as there. to the know get you again we anticipate really Japan in millions. the it’s the and want When get are to capital apply time take was different XX and we time in Hitachi reimbursed hundreds – just but our in off the in the included to that again, taking thing

concerning that’s question. So first the

in for we I successful. to and The the acquisition, think second this both a was space. good believe continue and Nanosphere very earnings ourselves how acquisition after also one, acquisition we eventually We from seek very Millipore us price from position a was

continued in we in have that we things operating where the position molecular more make at company science. look So life us are our diversified either of diagnostic or to can

that So particular we in to I don’t say you. have can anything

we do the to we seeking are keep going and keep next We tomorrow, of But couple it looking. days.

earlier done acquisition. We to and need cash sometimes those some this agreements couple of continue to have licensing we year

that approach. maybe for looking a the put Okay, for got pressure us? downward to suggest see into lower the and which it. appreciate you’re it world, spread is here, Flex are that but just Thank changes and logical Can kind you help you. Thank given that going kind elaborate less that And it of priced together albeit want on here the you pricing? Flex back pay then commercial pricing some overall. term end following appreciate certain because maybe the potential strikes so seems a share your gains. what again our I your us fairly does piece I market And for to we’re I’m go And certainly just due on of assuming to to just you’re likely not at that competitors you. see contraction, I that And appreciate reason but maybe model, diligence that asking Palmetto

the on down XXXs the So like compression high panels to ranges which the reimbursement. from based overall XXXs reimbursement ours for expected of into to low XXXs,

base relative sell they well $XXX for is offer. are than others that in of products excess not that panel less today excess $XXX if the to in we Our

especially don’t on some our products growth Flex. accommodate than designed and the to know. in in place need GI, think sold there Flex Certainly, for no So price our be there exposure since assays be flexing beauty as the other flexing in designed revenues we to compression on we it to. up all more when a us charge they patients But at is respiratory upwards, we to were would were level modest low you the be to and in the material with events accommodate, effect I starting would price and that others sell about base whether line our lower with manner already top case

XXX, a talking You’re dollars. all couple hundred up about XXX, way the to

Our base at and make we money $XX. $XX price about is

whether any. So make going significant at if profit $XX I to are don’t others know

coming on us we add to a And the up flexing. Bill, go come you’re thing from top substantial when for of that and the assay more continue on sample-to-answer one that, amount VERIGENE, a to at our overall blood Now looking revenue culture. blood really to of we from culture. It’s P still good respiratory coming that and have will as GPP

we’re you positive gram them selling of each of can separately. pricing Flex in it, matter have a also call As culture – the gram, because if we fact, negative blood

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session. now Shamir Thank would any and turn our call gentlemen, Homi remarks. to I question-and-answer this you. over the Ladies to conclude back like closing does for

attendance you, today. on in the to and you you. forward for seeing in Thank your very our person Thank you call future. We Sonia, near earnings look thank everyone

today's gentlemen, and participating thank This Ladies you today’s for program. conference. in concludes

Everyone, a disconnect. great have all may day. You