LMNX Luminex Corp.

Management Discussion

• Total revenue increased by 9% to $78.7 million for the three months ended September 30, 2019 from $72.4 million for the comparable period in 2018. The Company experienced increases in system sales, consumable sales, royalty revenue and service revenue, mainly attributable to the addition of our newly acquired flow cytometry business, which comprised 11% of total revenue in the third quarter of 2019. Excluding the impact of the Acquisition, revenue decreased 3% from the prior year quarter, primarily attributable to the decrease in LabCorp sales in non-automated assays. Assay revenue overall declined 13%, driven by decreases in our non-automated assay revenue, partially offset by increases in our automated assay revenue. Non-automated assay revenue comprised 46% of total assay revenue for the three months ended September 30, 2019 compared to 64% for the comparable period in 2018. Automated assay revenue, which consists of VERIGENE and ARIES® assays, grew 26% to $15.5 million for the three months ended September 30, 2019 from the comparable period in 2018.