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Illumina Annual Report, Year Ended Dec 28, 2003

Filing Date
Filed March 12, 2004
Period End
December 28, 2003
Security
ILMN
In the record · 2016–202610-K1110-Q338-K167

ILMN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’17Feb ’17
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Deal closed8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 12, 2004. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. filed its Form 10-K for the fiscal year ended December 28, 2003, reporting total revenue of $28.0 milliona, 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 millionb, 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 millionc 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 milliond 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.

02—Key points

Key Highlights

  1. Total revenue rose to $28.0 million in 2003 from $10.0 million in 2002, with product revenue increasing to $18.4 million from $4.1 million.
  2. Net loss narrowed to $27.1 million ($0.85 per share) in 2003 from $40.3 million ($1.31 per share) in 2002.
  3. Six BeadLab SNP genotyping systems were sold in 2003, and the company launched new products including the BeadStation and whole-genome gene expression BeadChips.
  4. Applied Biosystems seeks $30 million in compensatory damages and a prohibition on future sales of genotyping products and services; arbitration could be completed as early as September 2004.
  5. Accumulated deficit was $117.5 million and total stockholders' equity was $47.4 million at December 28, 2003.
  6. Cash, cash equivalents and current restricted cash and investments totaled $32.9 million; management expects resources to fund operations for at least 18 to 24 months.
  7. A $7.7 million employment-related litigation judgment is under appeal, with a surety bond requiring about $12.5 million of marketable securities as collateral.

03—Questions

Frequently Asked Questions

  1. What drove the increase in revenue in 2003?

    Revenue rose to $28.0 million from $10.0 million, mainly because of first sales of the BeadLab SNP genotyping system, with six systems sold in 2003 along with consumables. SNP genotyping service revenue increased to $6.5 million, substantially all related to work for the International HapMap Project.

  2. What is the status of the dispute with Applied Biosystems?

    Applied Biosystems alleges breach of the joint development agreement and seeks $30 million in compensatory damages, disgorgement of revenues and a prohibition on future sales of the company's genotyping products and services. The San Diego Superior Court directed the parties to binding arbitration, and a separate patent infringement case has been stayed pending that arbitration. The company has not accrued for potential losses.

  3. Does the company have enough cash to continue operating?

    The company stated that its cash, cash equivalents, investments, revenues and grant funding should be sufficient to fund anticipated operating needs for at least 18 to 24 months. It also noted it may need additional funding sooner, and any equity financing could be dilutive to existing stockholders.

  4. What are the main risks to the company's business?

    The filing cites a limited history of commercial sales, dependence on a few large transactions that cause fluctuating revenue, intense competition from larger companies, reliance on single-source suppliers for certain components, limited manufacturing experience, and the outcome of the Applied Biosystems dispute, which could materially affect results if adverse.

04—Continue

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