01—Abstract
Summary
Summary of the 10-K filed March 29, 2001. Cited figures are marked; the original filing is the authoritative source.
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 $1,309,111a 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 $16.00b 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.
02—Key points
Key Highlights
- Revenue of $1,309,111 in 2000 versus $474,026 in 1999, virtually all from government grants from the National Institutes of Health
- Net loss of $18,606,465, or $(1.37) per share, compared with a net loss of $5,517,645 in 1999
- Initial public offering in July 2000: 6,000,000 shares at $16.00, with net proceeds of approximately $101.3 million
- Cash, cash equivalents and investments of $117,102,951 at December 31, 2000; stockholders' equity of $124,099,736
- Partnership with Applied Biosystems to commercialize the Array of Arrays, with first commercial product expected in early 2002
- Research and development expenses of $13.6 million in 2000 versus $4.1 million in 1999
- Accumulated deficit of $25,269,730, with the company stating it expects continued operating losses
03—Questions
Frequently Asked Questions
Does Illumina currently sell any products?
No. The filing states the company has generated no revenue from product sales to date and has no commercially available microarray products. It expects to commercialize its first products in the early part of 2002 in partnership with Applied Biosystems.
How much cash does the company have, and is it enough?
Cash, cash equivalents and investments totaled approximately $117.1 million at December 31, 2000. The company expects these resources, along with partner and grant funding, to be sufficient for at least the next 24 months, but states it may require additional funding within that period on terms that may not be acceptable.
Who are the company's key partners?
Applied Biosystems, a division of Applera Corporation, is the principal partner, developing the detection instrument and reagent kits and sharing profits from partnership products. Other research collaborations include Dow Chemical, Third Wave Technologies, PyroSequencing and Chevron U.S.A.
What legal proceedings are pending?
On March 15, 2001, Anthony W. Czarnik filed a complaint seeking damages of an unspecified amount in California Superior Court related to the termination of his employment. The company believes the lawsuit is without merit and intends to defend against it vigorously.
Why did the net loss increase in 2000?
The filing attributes the increase mainly to higher research and development spending, which rose $9.5 million to $13.6 million with added staffing, and to higher general and administrative expenses and amortization of deferred compensation of $6.8 million. Interest income of $4.6 million partly offset these costs.
04—Continue