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ILMN · Illumina

28 filings

10-K

ILMN 10-K Annual Reports

Illumina - 28 annual reports

Filing record · 2016–202610-K1110-Q338-K167

2025
Illumina Annual Report, Year Ended Dec 28, 2025
Illumina, Inc. reported fiscal 2025 (year ended December 28, 2025) total revenue of $4.34 billion, down from $4.37 billion in 2024, with consumables revenue of $3,227 million up from $3,169 million, offset by instruments revenue of $482 million (down from $501 million) and service and other revenue of $634 million (down from $662 million Core Illumina). Net income was $850 million, compared with a net loss of $1,223 million in 2024, which had included $1,889 million of goodwill and intangible impairments tied to GRAIL. Operating income was $807 million versus a loss of $833 million, and the company cited tariffs, the Greater China revenue decline of $65 million from its inclusion on China's List of Unreliable Entities, and reduced U.S. NIH funding as headwinds. Gross margin was 66.1% compared with 65.4% in 2024. Cash flow from operations was $1,079 million, and the company ended the year with cash, cash equivalents and short-term investments of $1,633 million. During 2025 Illumina repurchased $742 million of stock, issued $500 million of 4.750% 2030 Term Notes, and repaid $500 million of 2025 Term Notes. Remaining authorization under the $1.5 billion repurchase program was $643 million at year end. Subsequent to year end, on January 30, 2026, the company completed the acquisition of SomaLogic and other assets from Standard BioTools for $350 million in cash, plus a separate $50 million intellectual property portfolio purchase, with up to $75 million in potential milestone payments. The filing also details significant legal exposure tied to the 2024 GRAIL acquisition, including federal and state securities class actions and multiple Delaware shareholder derivative complaints, all described as being at an early stage. Ernst & Young LLP issued an unqualified opinion on both the financial statements and internal control over financial reporting, which management concluded was effective as of December 28, 2025.
Feb 12, 2026
2024
Illumina Annual Report, Year Ended Dec 29, 2024
Illumina, Inc. reported a net loss of $1,223 million for the fiscal year ended December 29, 2024, compared with a net loss of $1,161 million in 2023, on total revenue of $4,372 million, down from $4,504 million. The results were driven largely by a $1,889 million goodwill and intangible impairment, most of it tied to GRAIL, and by a $456 million benefit from legal contingency and settlement, primarily the reversal of the European Commission fine accrual. Gross margin improved to 65.4% from 60.9%, and loss from operations narrowed to $833 million from $1,069 million. The company completed the Spin-Off of GRAIL on June 24, 2024, distributing approximately 85.5% of GRAIL shares to stockholders and retaining about 14.5%. Illumina still owes contingent value right payments tied to GRAIL revenues through August 2033. Cash, cash equivalents and short-term investments totaled $1,220 million at year end. Operating cash flow was $837 million, against $478 million in 2023. The company issued $500 million of 4.650% Term Notes due 2026 and repaid a $750 million delayed draw term loan, and it repurchased $116 million of stock during 2024. Its board authorized a new $1.5 billion repurchase program in August 2024, with about $1.4 billion still available at year end. The filing also flags several risks for 2025. On February 4, 2025, China's Ministry of Commerce added Illumina to its List of Unreliable Entities, and Greater China revenue was $308 million in 2024, down from $384 million in 2023. The company faces multiple shareholder derivative and securities class actions related to the GRAIL acquisition, plus an SEC investigation and a Department of Justice civil investigative demand. Backlog stood at $657 million, with 78% expected to ship in 2025.
Feb 12, 2025
2023
Illumina Annual Report, Year Ended Dec 31, 2023
Illumina, Inc. reported fiscal 2023 total revenue of $4,504 million, down from $4,584 million in 2022, with a net loss of $1,161 million compared with a net loss of $4,404 million in 2022. The loss was driven largely by a $827 million goodwill and intangible impairment, $712 million of which related to the GRAIL reporting unit, plus $1,069 million of loss from operations. Gross margin fell to 60.9% from 64.8%, reflecting lower fixed-cost leverage on lower manufacturing volumes and lower instrument margins from the NovaSeq X launch. Core Illumina revenue was $4,438 million, down from $4,553 million, while Core Illumina gross margin was 64.4% versus 68.2%. The filing is dominated by the GRAIL acquisition dispute. The European Commission's October 12, 2023 EC Divestment Decision requires Illumina to divest GRAIL, and on December 17, 2023 the company announced it will do so, with a goal of finalizing terms by the end of the second quarter of 2024. The company has accrued $484 million for a €432 million Article 14(2)(b) fine, satisfied through guarantees while under appeal. Illumina also faces three federal and two state securities class actions, a stockholder derivative suit, an SEC inquiry, and a DOJ civil investigative demand under the False Claims Act. Liquidity remained adequate, with cash and cash equivalents of $1,048 million at year-end, down $963 million, after repaying $500 million of 2023 Term Notes and $750 million of convertible notes. The company says current cash, short-term investments, operating cash flow, and undrawn credit facility capacity should fund needs for at least the next 12 months. No share repurchases were made in 2023, and the company does not intend to make any in 2024.
Feb 16, 2024
2023
Illumina Annual Report, Year Ended Jan 1, 2023
Illumina, Inc. reported a net loss of $4,404 million for the fiscal year ended January 1, 2023, compared with net income of $762 million in 2021, driven mainly by a $3,914 million goodwill impairment related to its GRAIL reporting unit and a $619 million legal contingency and settlement charge. Total revenue rose to $4,584 million from $4,526 million, with Core Illumina revenue of $4,553 million and GRAIL revenue of $55 million. Gross margin fell to 64.8% from 69.7%, which the company attributed mainly to GRAIL's gross loss and lower fixed-cost leverage in Core Illumina. Loss from operations was $(4,179) million, versus $(123) million in 2021. The bulk of the investor focus centers on the GRAIL acquisition, which remains subject to legal and regulatory proceedings. On September 6, 2022, the European Commission adopted a Prohibition Decision against the acquisition, and on December 5, 2022 it issued a Statement of Objections signaling an order requiring divestiture of GRAIL. Interim measures require GRAIL to be held separate, and the company accrued $458 million for a potential European Commission fine of up to 10% of consolidated annual revenues. The FTC's appeal of an administrative law judge's ruling in Illumina's favor was pending before the full FTC. The company also disclosed that a divestiture could create significant tax liabilities, with tax basis in GRAIL estimated at between $500 million and $1 billion. Liquidity remained solid: cash, cash equivalents and short-term investments totaled $2.0 billion at year-end, and the company issued $1,000 million of term notes in December 2022, with net proceeds of $991 million. Operating cash flow was $392 million, and the company stated that it does not intend to make share repurchases in fiscal 2023.
Feb 17, 2023
2022
Illumina Annual Report, Year Ended Jan 2, 2022
Illumina, Inc. (ILMN) reported fiscal 2021 (year ended January 2, 2022) revenue of $4.53 billion, up 40% from $3.24 billion in 2020, driven mainly by growth in sequencing consumables and instruments as customers recovered from the COVID-19 pandemic. Gross margin rose to 69.7% from 68.0%, but the company reported a loss from operations of $123 million (-2.7% of revenue) versus income of $580 million in 2020, primarily due to share-based compensation tied to the GRAIL acquisition and other GRAIL-related expenses. Net income attributable to Illumina stockholders was $762 million, supported by a $899 million gain on the company's previously held GRAIL investment and an effective tax rate of 13.8%. The company acquired GRAIL, Inc. on August 18, 2021 for total consideration of $9.7 billion, including $2.9 billion in cash and $757 million in contingent value rights. GRAIL is currently held and operated as a separate company under an interim measures order from the European Commission, with an independent monitoring trustee overseeing it during the ongoing merger review. The FTC administrative trial concluded live testimony in September 2021, and Illumina's challenge to the European Commission's jurisdiction awaits a ruling from the EU General Court. The filing states the company may face a fine of up to 10% of consolidated annual revenues under the EU Merger Regulation, and Illumina intends to vigorously defend against the FTC and European Commission actions. At year-end, cash and cash equivalents were $1.23 billion and short-term investments were $107 million. Illumina issued $1 billion of term notes in March 2021 and reported total debt-related carrying amounts that include $993 million of term notes and $702 million of convertible senior notes. The company stated it expects revenue to continue increasing in 2022 and that research and development expense will rise, and it does not intend to repurchase shares in fiscal 2022.
Feb 18, 2022
2021
Illumina Annual Report, Year Ended Jan 3, 2021
Illumina, Inc. (ILMN) reported fiscal 2020 (53 weeks ended January 3, 2021) with total revenue down 9% to $3.24 billion from $3.54 billion in 2019, driven mainly by COVID-19 effects on consumable and instrument shipments. Gross margin declined to 68.0% from 69.6%, and income from operations fell to $580 million (17.9% of revenue) from $985 million. Net income attributable to Illumina stockholders was $656 million, or $4.45 diluted EPS, versus $1,002 million in 2019. Other income, net of $284 million, was boosted by unrealized gains on marketable equity securities of $270 million, and the effective tax rate rose to 23.3% from 11.4%, reflected in part by a $68 million valuation allowance on California R&D credits and $28 million tied to the Altera case. The pending acquisition of GRAIL, Inc. dominates the outlook. Illumina agreed on September 20, 2020 to acquire GRAIL for total consideration of $8 billion, consisting of $3.5 billion in cash and $4.5 billion in Illumina stock subject to a collar, plus contingent value rights tied to GRAIL revenue. The filing expects closing in the second half of 2021, funded by balance sheet cash and up to $1 billion of debt, with a $1 billion 364-day bridge facility from Goldman Sachs Bank USA. Illumina is making $35 million monthly Continuation Payments to GRAIL, and termination could trigger a $300 million fee plus a $300 million investment in GRAIL preferred stock. Liquidity remained solid, with cash and cash equivalents of $1.81 billion and short-term investments of $1.66 billion at year end. Operating cash flow was $1.08 billion, and the company repurchased $736 million of stock during 2020, with $15 million remaining under the $750 million authorization. Convertible notes totaling $517 million due 2021 became convertible on January 1, 2021, and the company expects its cash and operating cash flow to fund needs for at least the next 12 months.
Feb 17, 2021
2019
Illumina Annual Report, Year Ended Dec 29, 2019
Illumina, Inc. reported fiscal 2019 (52 weeks ended December 29, 2019) total revenue of $3.54 billion, up from $3.33 billion in 2018, driven mainly by sequencing consumables and revenue from development and licensing agreements, partly offset by weakness in the direct-to-consumer (DTC) microarray market. Gross margin rose to 69.6% from 69.0%, and income from operations was $985 million, or 27.8% of revenue, compared with 26.5% in 2018. Consolidated net income was $990 million, and net income attributable to Illumina stockholders was $1.00 billion, or $6.74 per diluted share. Sequencing accounted for 87% of 2019 total revenue, and consumables were 68% of revenue. The balance sheet remained strong, with cash, cash equivalents and short-term investments of $3.41 billion at year-end and long-term debt of $1.14 billion, consisting of convertible senior notes due 2021 and 2023. Operating cash flow was $1.05 billion. Illumina repurchased $324 million of stock in 2019, and in February 2020 its board authorized a new $750 million repurchase program. The company terminated its merger agreement with Pacific Biosciences on January 2, 2020, and paid a $98 million reverse termination fee along with other Continuation Advances totaling $34 million. Management expects revenue to continue to grow in 2020, while noting ongoing DTC weakness and monitoring the effects of the coronavirus outbreak. Risk considerations highlighted in the filing include dependence on new product launches, reliance on single-source suppliers, reimbursement and FDA regulation of diagnostic products, intense competition, and exposure to international operations, where 48% of 2019 revenue came from shipments outside the United States. The company also disclosed that the Helix deconsolidation on April 25, 2019 produced a $39 million gain, and that a possible discrete tax expense of up to $30 million could arise from a Ninth Circuit ruling.
Feb 11, 2020
2018
Illumina Annual Report, Year Ended Dec 30, 2018
Illumina, Inc. (ILMN) reported fiscal 2018 total revenue of $3.33 billion, up from $2.75 billion in 2017, with consumables sales of $2.16 billion and instruments of $569 million. Income from operations rose to $883 million from $606 million, and net income attributable to Illumina stockholders was $826 million, or $5.56 per diluted share, compared with $726 million in 2017. The filing states that gross margin was 69.0% versus 66.4% in 2017, and operating margin was 26.5% versus 22.0%. The effective tax rate fell to 12.5% from 35.0%, aided by the reduction in the U.S. federal statutory rate to 21% and excess tax benefits from share-based compensation. The 2017 results included a $453 million gain on the deconsolidation of GRAIL, which makes year-over-year net income comparisons less direct. The company ended 2018 with cash, cash equivalents and short-term investments of $3.51 billion, of which about $487 million was held by foreign subsidiaries. Total debt rose sharply: convertible senior notes principal stood at $1.9 billion across the 2019, 2021 and 2023 series, and $1.107 billion of debt is classified as current, largely the $633 million of 2019 notes maturing June 15, 2019. Operating cash flow was $1.14 billion. The company issued $750 million of 0% convertible notes due 2023 in August 2018 and announced on February 6, 2019 a new $550 million share repurchase authorization. The pending acquisition of Pacific Biosciences of California, Inc. for approximately $1.2 billion in cash ($8.00 per share) is a major item. The FTC has issued a second request under the HSR Act, and the company expects the deal to close in mid-2019 if antitrust approvals are received. The filing also notes that backlog was $909 million as of December 30, 2018, with about 80% expected to ship in fiscal 2019, and that the company expects revenue and research and development expense to continue increasing in 2019.
Feb 12, 2019
2017
Illumina Annual Report, Year Ended Dec 31, 2017
Illumina, Inc. (ILMN) reported total revenue of $2,752 million for fiscal 2017, up 15% from $2,398 million in 2016, driven by growth in sequencing consumables and genotyping services and the launch of the NovaSeq platform, partially offset by lower HiSeq instrument shipments. Gross margin declined to 66.4% from 69.5%, reflecting an $18 million impairment of an acquired intangible asset, a higher mix of lower-margin array services, inventory reserves tied to product transitions, and lower instrument margin from the NovaSeq introduction. Income from operations was $606 million, or 22.0% of revenue, versus $587 million in 2016, while consolidated net income rose to $678 million from $428 million, largely because of a $453 million pretax gain on the deconsolidation of GRAIL in February 2017. The bottom line is that reported net income was inflated by a one-time gain, and underlying operating profitability declined as a percentage of revenue. Income tax expense rose to $365 million, an effective tax rate of 35.0%, which includes a $150 million provisional charge under U.S. Tax Reform. Diluted EPS was $4.92, compared with $3.07 in 2016. Research and development expense rose to $546 million and selling, general and administrative expense to $674 million, and management expects both to continue growing. The company ended the year with $2,145 million in cash, cash equivalents and short-term investments, and $1,182 million of long-term debt, including convertible senior notes due 2019 and 2021. The company expects revenue to keep increasing in 2018, and about two-thirds of its $935 million backlog at December 31, 2017 is expected to ship within fiscal 2018. Management also cited risks including single-source suppliers, FDA and LDT regulatory uncertainty, reimbursement pressure, and intense competition. The company repurchased $251 million of common stock during 2017 and had $100 million of authorization remaining.
Feb 13, 2018
2017
Illumina Annual Report, Year Ended Jan 1, 2017
Illumina, Inc. reported fiscal 2016 (52 weeks ended January 1, 2017) total revenue of $2,398.4 million, up 8% from $2,219.8 million in 2015. Product revenue was $2,031,997 thousand and service and other revenue was $366,376 thousand. Consumables revenue rose 21% to $1,543.5 million, while instrument revenue fell 21% to $469.5 million, primarily due to lower shipments of high-throughput platforms. Gross margin edged down to 69.5% from 69.8%, and income from operations was $587.0 million, or 24.5% of revenue, versus 27.6% in 2015. Research and development expense rose 26% to $504.4 million, and the filing states that management expects R&D and SG&A expense to keep growing. Net income attributable to Illumina stockholders was $462.6 million, with diluted earnings per share of $3.07, compared with $3.10 in 2015. The effective tax rate rose to 23.7% from 21.6%. The company ended the year with $1.56 billion in cash, cash equivalents and short-term investments, and operating cash flow was $687.2 million. Capital expenditures were $259.9 million, and the company repurchased $249.3 million of common stock during the year. The filing highlights two consolidated variable interest entities, GRAIL and Helix, which became material enough to report as a separate segment. The Consolidated VIEs segment posted an operating loss of $81.1 million. The filing also notes that GRAIL expects to close a Series B financing of approximately $1 billion before the end of March 2017, after which Illumina's voting interest would fall below 20% and its remaining stake would be accounted for as a cost-method investment. Total convertible notes outstanding were $1.15 billion principal, consisting of $632.5 million due 2019 and $517.5 million due 2021.
Feb 14, 2017
2016
Illumina Annual Report, Year Ended Jan 3, 2016
Illumina, Inc. (ILMN) reported fiscal 2015 results for the 53-week year ended January 3, 2016. Total revenue rose to $2,219.8 million from $1,861.4 million in 2014, an increase the filing describes as 19%. Product revenue was $1,890.6 million and service and other revenue was $329.1 million. Gross margin was 69.8% versus 69.7% in 2014, driven by a shift in product mix toward sequencing consumables. Income from operations was $612.8 million, and consolidated net income was $457.4 million, with net income attributable to Illumina stockholders of $461.6 million. Diluted EPS was $3.10, compared with $2.37 in 2014. The effective tax rate was 21.6%, including a $24.8 million discrete tax benefit tied to a tax court opinion that the filing notes could be reversed. Liquidity remained strong. Cash, cash equivalents and short-term investments totaled $1.39 billion at year-end, and operating cash flow was $659.6 million. The company repurchased $274.3 million of stock during 2015 and had $256.1 million remaining under its authorizations. Convertible notes outstanding totaled $1,225.5 million in principal, including $75.5 million of 2016 notes due March 15, 2016. Backlog was approximately $560 million, including $130 million related to the Genomics England sequencing services project. Management expects research and development expense to increase in 2016. The filing also describes new ventures. GRAIL, Inc., majority owned by Illumina, was formed in early 2016 to develop a pan-cancer screening test, and Illumina invested $40 million in its Series A round. Helix, a consumer genomics marketplace in which Illumina holds a 50% voting interest, is consolidated, and certain noncontrolling investors may require redemption of their interests after January 1, 2021.
Mar 2, 2016
2014-A
Illumina Annual Report (Amendment), Year Ended Dec 28, 2014
This filing is Amendment No. 1 on Form 10-K/A to Illumina, Inc.'s Annual Report for the fiscal year ended December 28, 2014, filed on July 15, 2015. The amendment is an exhibit-only filing made solely to re-file Exhibit 10.27, the Pooled Patents Agreement between Illumina and Sequenom, Inc., dated December 2, 2014, with certain confidential portions omitted. It also includes new certifications by the principal executive and principal financial officers, Jay T. Flatley and Marc A. Stapley, under Sections 302 and 906 of the Sarbanes-Oxley Act. The filing states that it makes no other changes to the Original Form 10-K filed on February 18, 2015, and does not update or amend any other items or disclosures, nor does it reflect subsequent events. The financial statements are incorporated by reference to the Original Form 10-K rather than included in this amendment. According to the cover page, there were 143.8 million shares of common stock outstanding as of January 30, 2015, excluding 37.8 million shares held in treasury. The aggregate market value of common stock held by non-affiliates as of June 29, 2014 was $21.2 billion. The common stock trades on The NASDAQ Global Select Market.
Jul 15, 2015
2014
Illumina Annual Report, Year Ended Dec 28, 2014
Illumina, Inc. reported total revenue of $1.86 billion for the fiscal year ended December 28, 2014, up from $1.42 billion in 2013, with product revenue of $1.62 billion and service and other revenue of $241.8 million. Net income rose to $353.4 million ($2.37 per diluted share) from $125.3 million in 2013. Gross margin improved to 69.7% from 64.2%, helped by a $10.4 million cost-of-sales reversal tied to the Syntrix litigation settlement. Income from operations increased to $514.7 million, aided by an $82.1 million Syntrix legal contingency gain, partly offset by a $48.8 million research and development charge from the Sequenom patent pooling settlement. The balance sheet shows cash, cash equivalents and short-term investments of $1.34 billion at year-end, against $1.46 billion of total stockholders' equity and $1.29 billion of net carrying amount of convertible notes. In June 2014 the company issued $1.15 billion of convertible notes due 2019 and 2021 and used $1.24 billion in cash and proceeds to repurchase $600.0 million of its 2016 notes, leaving $320.0 million of 2016 notes outstanding, which became convertible and are classified as current. The company repurchased $237.2 million of stock during 2014, with $130.4 million remaining under authorized programs. Management expects revenue to continue increasing in 2015 and expects research and development and selling, general and administrative expenses to grow. Key risks the filing highlights include intense competition, dependence on research funding from governments and academic institutions, reliance on single-source suppliers, the evolving FDA regulatory treatment of molecular diagnostic and laboratory developed tests, and potential losses from conversion of its convertible notes. The company also notes that backlog was approximately $540 million at December 28, 2014, of which about $130 million relates to the Genomics England sequencing services project.
Feb 18, 2015
2013
Illumina Annual Report, Year Ended Dec 29, 2013
Illumina, Inc. reported fiscal 2013 total revenue of $1.42 billion, up from $1.15 billion in 2012, an increase the filing describes as 24%. Growth came mainly from sequencing consumables and instruments, with consumables making up 62% of total revenue and instruments 26%. Profitability declined sharply. Income from operations fell to $134.1 million from $200.8 million, and net income dropped to $125.3 million from $151.3 million, or $0.90 per diluted share versus $1.13. The decline reflects a $115.4 million legal contingency charge in operating expenses tied primarily to the Syntrix patent litigation, which resulted in a $115.1 million judgment that the company is appealing. Gross margin also fell to 64.2% from 67.4%, partly due to the Syntrix charge and the discontinuation of the Eco and NuPCR product lines. The balance sheet and cash flow remained solid. Cash, cash equivalents and short-term investments totaled $1.17 billion at year-end, and net cash provided by operating activities was $386.4 million, compared with $291.9 million in 2012. Illumina spent $523.5 million on acquisitions in 2013, including Verinata Health, which carried an aggregate purchase price of $396.3 million, and it retired $125.0 million of warrants. The company has $920.0 million of 0.25% convertible notes due 2016 outstanding, and on January 30, 2014 its board authorized an additional $250.0 million in share repurchases. Management highlighted the expansion of the installed base for HiSeq and MiSeq systems and new products announced in January 2014, including the HiSeq X Ten and NextSeq 500. Backlog rose to approximately $330 million from $260 million. The filing also notes that about 45% of 2013 revenue came from customers not directly reliant on government funding, and that 50% of revenue came from shipments outside the United States.
Feb 18, 2014
2012
Illumina Annual Report, Year Ended Dec 30, 2012
Illumina, Inc. reported total revenue of $1,148,516 thousand ($1.15 billion) for fiscal 2012 (52 weeks ended December 30, 2012), up from $1,055,535 thousand in 2011, with product revenue of $1,055,826 thousand and service and other revenue of $92,690 thousand. Income from operations was $200,752 thousand, essentially flat versus $199,461 thousand in 2011, as higher gross profit from increased sales was largely offset by higher operating expenses, including a $26.3 million headquarter relocation expense, $23.1 million of expenses related to Roche's unsolicited tender offer, and a $21.4 million IPR&D impairment within research and development. Net income rose to $151,254 thousand from $86,628 thousand, helped by a $48.6 million gain on the sale of the company's deCODE Genetics stake and an effective tax rate of 32.1%. Diluted net income per share was $1.13, compared with $0.62 in 2011. Gross margin improved to 67.4% from 67.2%, reflecting a shift in sales mix from instruments to consumables. The company ended 2012 with cash, cash equivalents and short-term investments totaling $1.35 billion and total stockholders' equity of $1,318,581 thousand. Convertible senior notes outstanding were $920.0 million due 2016 and $40.1 million due 2014. The company repurchased $82.5 million of stock in 2012 and had $167.5 million remaining under its repurchase authorization. Management stated that the funding environment for research remains uncertain, with approximately one-third of revenue estimated to derive directly or indirectly from NIH funding, while about 30% of 2012 revenue came from commercial customers not reliant on government funding. Looking ahead, the company signed a definitive agreement on January 6, 2013 to acquire Verinata Health, Inc. for $350 million in cash plus up to $100 million in milestone payments through 2015, and it submitted a 510(k) application for its MiSeqDx system to the FDA in December 2012. Management expects revenue to continue growing in 2013 and anticipates research and development expense to increase. The company also disclosed the Syntrix Biosystems patent and trade secret lawsuit, with a trial scheduled to begin February 26, 2013, and stated it cannot estimate a possible loss.
Feb 15, 2013
2012
Illumina Annual Report, Year Ended Jan 1, 2012
Illumina, Inc. reported fiscal 2011 total revenue of $1,055.5 million, up from $902.7 million in 2010, with product revenue of $987.3 million and service and other revenue of $68.3 million. Gross margin improved to 67.2% from 66.6%, but income from operations fell to $199.5 million from $211.7 million, reflecting $41.8 million of headquarter relocation expense and an $8.1 million restructuring charge. Net income was $86.6 million, or $0.62 per diluted share, compared with $124.9 million, or $0.87 per diluted share, in 2010. Total other expense, net rose to $66.4 million, driven by a $37.6 million loss on extinguishment of debt tied to conversions of the 0.625% convertible notes due 2014 and higher interest expense from the 0.25% convertible notes due 2016. Balance sheet liquidity remained substantial, with cash, cash equivalents and short-term investments of $1,189.6 million at January 1, 2012, and cash provided by operating activities of $358.1 million. The company repurchased $570.4 million of common stock during the year, including $314.3 million concurrently with the issuance of $920.0 million of 2016 convertible notes. Long-term debt was $807.4 million, and total stockholders' equity declined to $1,075.2 million. Management states that it expects research and development and selling, general and administrative expenses to rise in 2012. The filing also discloses an unsolicited hostile cash tender offer from CKH Acquisition Corp. and Roche Holding Ltd. at $44.50 per share, commenced January 27, 2012. The board unanimously recommended that stockholders reject the offer, Roche intends to oppose the re-election of four directors including the Chairman and CEO, and four stockholder class action lawsuits have been filed. Management expects higher selling, general and administrative expenses in 2012 from costs of responding to the offer.
Feb 24, 2012
2011
Illumina Annual Report, Year Ended Jan 2, 2011
Illumina, Inc. reported total revenue of $902.7 million for the fiscal year ended January 2, 2011, up from $666.3 million in 2009 (a 52-week year versus a 53-week year for 2009). Product revenue was $842.5 million, with instruments at $324.6 million and consumables at $505.0 million. Income from operations was $211.7 million and net income was $124.9 million, or $0.87 per diluted share, compared with $72.3 million in the prior year. Gross margin was 66.6%, down from 68.1%, which management attributed to discounts on HiSeq 2000 sales tied to promotional and Genome Analyzer trade-in programs, along with lower margins on newer products. Management expects gross margin to improve during 2011 as the trade-in program completes and consumables become a larger share of revenue. The company ended the year with $894.3 million in cash and short-term investments and total assets of $1.84 billion. Its $390.0 million of 0.625% convertible senior notes due 2014 are classified as current because of their convertibility. Between January 3 and February 28, 2011, noteholders elected to convert $251.1 million of principal, and the company expects to record a likely loss on conversion in the first quarter of 2011. Management also expects significant income tax payments in 2011 and beyond as it uses net operating loss carryforwards, and it expects research and development expense to increase in 2011. The filing describes a company that is growing quickly, with 2,100 employees and a new San Diego headquarters lease commencing in late 2011. Risks highlighted include intense competition, dependence on single-source suppliers, manufacturing capacity constraints, and reliance on government and academic research funding, including the American Recovery and Reinvestment Act. The company also reported that it had approximately $70.4 million in 2010 orders directly related to Recovery Act grants.
Feb 28, 2011
2010
Illumina Annual Report, Year Ended Jan 3, 2010
Illumina, Inc. (ILMN) reported total revenue of $666.3 million for the 53-week fiscal year ended January 3, 2010, up from $573.2 million in 2008. Product revenue was $627.2 million and service and other revenue was $39.1 million. Income from operations was $125.6 million and net income was $72.3 million, or $0.53 per diluted share, compared with a net income of $39.4 million in 2008. Consumable revenue rose to $391.3 million, while instrument revenue rose to $225.7 million, led by sequencing systems. Microarray instrument and consumable sales declined, which the company attributed to customers delaying genome-wide association studies, Recovery Act-related order delays and reduced foundation funding. Management highlighted next-generation sequencing as the main growth driver and said the HiSeq 2000 was expected to begin customer shipments in early 2010, with a stated goal of sequencing whole human genomes for less than $10,000 in reagent costs. Backlog was $227.6 million at January 3, 2010, versus $113.0 million a year earlier, and management expects about 90% of it to ship within fiscal 2010. A large single-customer order is expected to be recognized under operating lease accounting over three years, mostly in 2011 and 2012. The company ended the year with $693.5 million in cash and short-term investments, including $54.9 million of auction rate securities, against $400.0 million of 0.625% convertible senior notes due 2014. Repurchases of 6.1 million shares for $175.1 million were made during the year. The company identified risks including intense competition, dependence on single-source suppliers, the timing of Recovery Act funding, and the regulatory path for molecular diagnostics products. Management expects research and development expenses to increase in 2010 as the company expands its product base.
Feb 26, 2010
2008
Illumina Annual Report, Year Ended Dec 28, 2008
Illumina, Inc. reported total revenue of $573.2 million for fiscal 2008 (52 weeks ended December 28, 2008), up 56% from $366.8 million in 2007, with product revenue rising 63% to $532.4 million. The company returned to profitability with net income of $50.5 million, or $0.38 per diluted share, compared with a net loss of $278.4 million in 2007, which had included a $303.4 million acquired in-process R&D charge tied to the Solexa acquisition and a $54.5 million charge for the Affymetrix litigation settlement. Income from operations was $80.5 million in 2008. Growth was driven mainly by Infinium BeadChip and sequencing consumables, along with sequencing instrument shipments of the Genome Analyzer II. Shipments outside the United States were 51% of 2008 revenue. The company ended 2008 with cash, cash equivalents and investments of $696.0 million and total stockholders' equity of $848.6 million. It raised $342.6 million net in an August 2008 public offering, but $400.0 million of 0.625% convertible senior notes due 2014 are classified as a current liability because they were convertible through December 31, 2008. The notes ceased to be convertible from January 1, 2009 through March 31, 2009 unless another trigger occurs. The company also holds $55.9 million of auction rate securities that remain illiquid, offset by a UBS settlement that lets it sell them at par between June 30, 2010 and July 2, 2012. Management expects current cash and operating income to fund operations for at least the next twelve months. Looking ahead, Illumina expects to enter the molecular diagnostics market in 2009 and plans to submit its VeraCode platform to the FDA in 2009. It also expects research and development and selling, general and administrative expenses to increase in absolute dollars. The company faces intense competition from firms such as Affymetrix, Life Technologies and Roche Diagnostics, and it notes that its gross margin and operating results depend on product mix and the timing of large service projects.
Feb 26, 2009
2007
Illumina Annual Report, Year Ended Dec 30, 2007
Illumina, Inc. (ILMN) reported a net loss of $278.4 million for fiscal 2007 (year ended December 30, 2007), compared with net income of $40.0 million in 2006, driven mainly by a $303.4 million acquired in-process research and development charge tied to the January 26, 2007 acquisition of Solexa, Inc. and a $54.5 million litigation settlement charge. Total revenue rose to $366.8 million from $184.6 million, an increase of $182.2 million or 99%, with product revenue of $326.7 million (up 110%) driven by instrument sales of the Genome Analyzer and strong demand for Infinium products. Gross margin on product revenue declined to 63.3% from 67.1%, which the company attributed mainly to a shift in product mix toward instruments. The balance sheet strengthened substantially during the year. Cash, cash equivalents and short-term investments were $386.1 million at year-end, up from $130.8 million, supported by $400.0 million of 0.625% Convertible Senior Notes due 2014 issued in February 2007. The company also repurchased 7.4 million shares for approximately $251.6 million. Stockholders' equity rose to $411.7 million, and the accumulated deficit stood at $383.0 million. The company settled its Affymetrix patent litigation for $90.0 million, paid in January 2008, and it disclosed roughly $55.9 million of auction rate securities, of which auctions failed for $10.7 million in February 2008. Management expects continued growth in product revenue and research and development and selling, general and administrative expenses, and it expects capital expenditures of approximately $25.0 million in 2008. The company stated that its current cash and operating income should fund operations for at least the next 12 months. Risk factors emphasize intense competition, manufacturing scale-up, integration of Solexa, and the dilution and accounting risks associated with the convertible notes.
Feb 26, 2008
2006
Illumina Annual Report, Year Ended Dec 31, 2006
Illumina, Inc. (NASDAQ: ILMN) reported total revenue of $184.6 million for the year ended December 31, 2006, up 151% from $73.5 million in 2005, with product revenue of $155.8 million and service and other revenue of $27.5 million. The company posted net income of $40.0 million, or $0.82 per diluted share, compared with a net loss of $20.9 million in 2005, and reported income from operations of $37.8 million. Its accumulated deficit narrowed to $104.6 million, and it had cash, cash equivalents and short-term investments of $130.8 million at year-end. The filing notes that gross margin on product revenue rose to 67.1%, and that stock-based compensation under SFAS No. 123R reduced diluted EPS by $0.29. Subsequent to year-end, Illumina completed its merger with Solexa, Inc. on January 26, 2007, issuing approximately 13.1 million shares, and on February 16, 2007 issued $400 million of 0.625% Convertible Senior Notes due 2014, using about $202 million of the net proceeds to repurchase common stock. The company expects research and development and selling, general and administrative expenses to increase in 2007, and says the merger is expected to be dilutive to earnings per share at least through 2007. The principal risk highlighted is ongoing patent litigation with Affymetrix, which filed suit in 2004 alleging infringement of six patents; trial was scheduled to begin in phases starting March 5, 2007. Additional matters include a suit by Applied Biosystems against Solexa over Sequencing-by-Ligation patents, which the company says is not material, and a former employee's inventorship claim. Foreign sales were 44% of 2006 revenue, and the company has only recently achieved annual profitability.
Feb 28, 2007
2006
Illumina Annual Report, Year Ended Jan 1, 2006
Illumina, Inc. reported total revenue of $73.5 million for the year ended January 1, 2006, up 45% from $50.6 million in 2004, with product revenue rising to $57.8 million and service and other revenue to $13.9 million. The company still posted a net loss of $20.9 million, or $0.52 per share, which compares with a net loss of $6.2 million in the prior year. The loss was driven in large part by a $15.8 million non-cash charge for acquired in-process research and development from the April 2005 CyVera acquisition, and the company recorded accumulated deficit of $144.6 million. Management stated that it recorded a modest profit in the fourth quarter of 2005 but may not be profitable in 2006, partly because SFAS 123R is expected to add $9.0 million to $12.0 million of expense in 2006. The company operates in a single segment focused on SNP genotyping and gene expression tools built on its BeadArray technology. Cash and cash equivalents were $50.8 million at year-end, down from $54.8 million, and the company had no credit facility. Operating cash use narrowed to $9.0 million from $19.6 million. Management expects current cash, sales and grant funding to be sufficient for anticipated operating needs, barring unforeseen developments, but notes that additional capital may be needed in the future. Key risks include a pending patent infringement lawsuit from Affymetrix seeking an injunction and damages, with trial scheduled for October 16, 2006, and a former employee's inventorship suit. The company also depends on Invitrogen to sell its oligo products under a collaboration agreement, and about 38% of 2005 revenue came from customers outside the United States.
Mar 6, 2006
2005-A2
Illumina Annual Report (Amendment), Year Ended Jan 2, 2005
This filing is Amendment No. 2 to Illumina, Inc.'s Form 10-K for the fiscal year ended January 2, 2005, filed April 28, 2005. It supplies Part III information (directors, executive compensation, security ownership, related-party transactions, and accounting fees) and Part IV exhibits, and it states that it speaks as of the date of the original Annual Report. It does not contain the company's financial statements, operating results, or business discussion, which the filing says appear in the original Form 10-K filed March 8, 2005. The filing reports that the board had seven members, that Paul Grint, M.D. joined in April 2005, and that R. Scott Greer resigned in April 2005, leaving one vacancy on the nominating and corporate governance committee. Jay T. Flatley, President and CEO, received a 2004 salary of $399,315 and a bonus of $147,747. Beneficial ownership as of January 31, 2005 totaled 38,124,708 common shares outstanding, with all directors and executive officers as a group beneficially owning 4,084,280 shares (10.4%). ARCH Venture Partners, LLC (7.1%) and Federated Investors, Inc. (8.4%) were identified as 5% stockholders based on Schedule 13G filings. Ethical and governance details include an audit committee chaired by Daniel M. Bradbury, with Karin Eastham identified as the audit committee financial expert. Ernst & Young LLP's audit fees were $312,226 for fiscal 2004 and $135,720 for fiscal 2003, and no audit-related fees were reported for either year. The stock performance graph shows Illumina's cumulative total return at 59.25 on December 31, 2004, compared with 103.03 for the NASDAQ Composite Index and 80.21 for the NASDAQ Pharmaceutical Index, based on a $100 investment on July 27, 2000.
Apr 28, 2005
2005-A
Illumina Annual Report (Amendment), Year Ended Jan 2, 2005
This filing is Amendment No. 1 to Illumina, Inc.'s Form 10-K for the fiscal year ended January 2, 2005, filed March 29, 2005. The amendment consists of Part IV (Item 15) and the consolidated financial statements, including the report of Ernst & Young LLP, which issued an unqualified opinion on the financial statements and on internal control over financial reporting as of January 2, 2005. It states that it continues to speak as of the date of the original Annual Report and should be read with the Company's other SEC filings. Financially, total revenue for the year ended January 2, 2005 was $50.6 million, up from $28.0 million in 2003 and $10.0 million in 2002, while the net loss narrowed to $6.2 million, or $0.17 per share, from $27.1 million, or $0.85 per share, in 2003. The improvement was helped by a $4.2 million litigation judgment (settlement) credit and a $1.5 million legal settlement gain tied to the Applera/Applied Biosystems settlement. Cash and cash equivalents rose to $54.8 million from $12.5 million, largely due to the $40.7 million of net proceeds from the sale of the land and building, which was followed by a leaseback, and $30.5 million from common stock issuance. Net cash used in operating activities was $19.6 million. The filing also discloses material legal and business risks. Affymetrix filed a patent infringement complaint in July 2004 seeking unspecified damages and an injunction, and the Company states that an adverse outcome could have a material adverse effect. The Company also disclosed a February 2005 merger agreement with CyVera Corporation for $17.5 million in consideration, consisting of about 1.5 million shares and approximately $2.3 million of CyVera liabilities.
Mar 29, 2005
2005
Illumina Annual Report, Year Ended Jan 2, 2005
Illumina, Inc. filed its Form 10-K for the fiscal year ended January 2, 2005, on March 8, 2005. The company develops and markets next-generation tools for large-scale analysis of genetic variation and function, centered on its BeadArray technology for SNP genotyping and gene expression, along with its Oligator oligonucleotide synthesis platform. Total revenue rose to $50.6 million in 2004 from $28.0 million in 2003, with product revenue of $40.5 million, service revenue of $8.1 million, and research revenue of $2.0 million. The company still reported a net loss of $6.2 million, or $0.17 per share, compared with a net loss of $27.1 million, or $0.85 per share, in 2003. Results were helped by a $4.2 million net litigation benefit and a $3.3 million gain on the Applied Biosystems settlement and judgment reduction, and the filing notes that roughly 30% of 2004 revenue came from International HapMap Project transactions that are expected to wind down in early 2005. The balance sheet strengthened during the year. Cash, cash equivalents and current restricted cash and investments totaled $67.0 million at year-end, up from $32.9 million, following the August 2004 sale of the San Diego land and buildings for $42.0 million and a May 2004 common stock sale that netted $28.7 million. Accumulated deficit stood at $123.7 million and stockholders' equity at $72.3 million. Management states that current cash, investments, revenues and grant funding should be sufficient for at least 24 months, while also noting it may need additional funding within that period. Looking ahead, management expects revenue growth in 2005 from new products including the DASL gene expression assay, whole-genome expression and genotyping BeadChips, BeadStation sales, and the Invitrogen oligo collaboration, while acknowledging declines in HapMap and BeadLab revenue. Research and development expense is expected to rise, and stock-based compensation will increase significantly after SFAS 123R adoption in July 2005. The company also agreed in February 2005 to acquire CyVera Corporation for $17.5 million, and it faces a pending patent infringement lawsuit from Affymetrix filed in July 2004.
Mar 8, 2005
2003
Illumina Annual Report, Year Ended Dec 28, 2003
Illumina, Inc. filed its Form 10-K for the fiscal year ended December 28, 2003, reporting total revenue of $28.0 million, up from $10.0 million in 2002, driven mainly by first sales of its BeadLab SNP genotyping systems (six systems sold in 2003) and consumables. Net loss narrowed to $27.1 million, or $0.85 per share, from $40.3 million, or $1.31 per share, in 2002. The company's accumulated deficit reached $117.5 million and total stockholders' equity was $47.4 million. Cash, cash equivalents and current restricted cash and investments totaled $32.9 million at year end, and the company stated that these resources, together with revenues and grant funding, would fund operations for at least 18 to 24 months. The filing also notes a shelf registration for up to $65 million of common stock sales, though no formal arrangements were in place. The most significant risk flagged for investors is the dispute with Applied Biosystems. Applied Biosystems seeks $30 million in compensatory damages, disgorgement of genotyping product revenues and a prohibition on future sales, and a patent infringement suit is also pending. The company terminated the joint development agreement in December 2003, and the San Diego Superior Court directed the parties to binding arbitration that could be completed as early as September 2004. Illumina has not accrued for potential losses, citing its view that an adverse outcome is not probable, but the filing states that an unfavorable outcome could have a material adverse effect. A $10 million advance payment from Applied Biosystems could partially offset an adverse arbitration result. Additional items include a $7.7 million litigation judgment from a former employee lawsuit under appeal, with a surety bond and restricted investments of about $12.5 million as collateral, and a $26.0 million mortgage on the company's San Diego facility. The filing also describes the company's reliance on a few large transactions, a limited history of commercial sales, and an expectation of continued net losses and increased selling and marketing spending.
Mar 12, 2004
2002
Illumina Annual Report, Year Ended Dec 29, 2002
Illumina, Inc. reported a net loss of $40.3 million for the fiscal year ended December 29, 2002, compared with $24.8 million in fiscal 2001, as total revenue rose to $10.0 million from $2.5 million. Product revenue was $4.1 million, service revenue $3.3 million and research revenue $2.6 million. Total costs and expenses were $51.9 million, including research and development of $26.8 million, selling, general and administrative expenses of $9.1 million, and an $8.1 million litigation judgment charge tied to a termination-of-employment lawsuit that the company is appealing. The accumulated deficit reached $90.4 million and stockholders' equity was $71.7 million at year-end. Cash, cash equivalents, restricted cash and investments totaled $66.3 million, and the company states these resources should fund operations for at least 18 to 24 months, though it may need additional funding. The company's strategy centers on its BeadArray and Oligator technologies, with its production-scale SNP genotyping system launched in July 2002 and first system sales agreements announced in early 2003. Management expects net losses to continue and states that revenue must increase significantly to reach profitability. It also expects selling, general and administrative and selling and marketing expenses to rise as it builds its sales infrastructure. The most significant risk disclosed is the dispute with Applied Biosystems, which filed a patent infringement suit in December 2002 and sought arbitration seeking $30 million in compensatory damages and a prohibition on sales of the genotyping system. A San Diego Superior Court granted Illumina a preliminary injunction preventing arbitration on February 18, 2003, and the company treats the $10 million of Applied Biosystems funding as deferred revenue until that dispute is resolved. The filing states that an adverse outcome could have a material adverse effect on the business.
Mar 27, 2003
2000
Illumina Annual Report, Year Ended Dec 31, 2000
Illumina, Inc. (ILMN) reported its annual results for the fiscal year ended December 31, 2000, in its Form 10-K. The company is an early-stage developer of next-generation BeadArray and Oligator technologies for large-scale analysis of genetic variation and function, with no commercially available microarray products yet. Revenue was $1,309,111 in 2000, up from $474,026 in 1999, and virtually all of it came from government grants. Net loss widened to $18,606,465 ($1.37 per share) from $5,517,645 in 1999, and the accumulated deficit reached $25,269,730. The company completed its initial public offering in July 2000, selling 6,000,000 shares at $16.00 and receiving net proceeds of approximately $101.3 million. Cash, cash equivalents and investments totaled $117,102,951 at year-end, and stockholders' equity was $124,099,736. Management expects the current resources to fund operations for at least the next 24 months, though it states additional funding may be needed. The company expects to commercialize its first products in early 2002 in partnership with Applied Biosystems, and it expects operating expenses to increase significantly. Investors should note the company's heavy reliance on its Applied Biosystems partnership and single-source fiber optic bundle supply, along with the filing's statement that it has never generated product sales. A lawsuit filed March 15, 2001 by a former employee, Anthony W. Czarnik, seeks unspecified damages, which the company says is without merit.
Mar 29, 2001