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Illumina Annual Report, Year Ended Jan 3, 2010

Filing Date
Filed February 26, 2010
Period End
January 3, 2010
Security
ILMN
One revenue dollarkept$0.11
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 February 26, 2010. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. (ILMN) reported total revenue of $666.3 milliona for the 53-week fiscal year ended January 3, 2010, up from $573.2 million in 2008.

Product revenue was $627.2 millionb 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 $10,000c 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 milliond 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.

02—Key points

Key Highlights

  1. Total revenue of $666.3 million for fiscal 2009, up from $573.2 million in fiscal 2008 (53-week year)
  2. Net income of $72.3 million, or $0.53 per diluted share, versus $39.4 million in 2008
  3. Sequencing consumable revenue rose $68.9 million, or 144%, and sequencing instrument sales rose $56.4 million, or 43%
  4. Microarray systems revenue fell $16.4 million, or 30%, as GWAS customers delayed new studies
  5. Backlog of $227.6 million at January 3, 2010, up from $113.0 million at December 28, 2008
  6. Cash and short-term investments of $693.5 million, including $54.9 million of auction rate securities
  7. Repurchased 6.1 million shares for $175.1 million during 2009

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2010, Illumina kept $0.11.

  1. Revenue$666.3M100.0%
  2. Cost of revenue−$212.4M31.9%
  3. Gross profit$453.9M68.1%
  4. Operating costs−$328.3M49.3%
  5. Operating income$125.6M18.8%
  6. Interest, other & tax−$53.3M8.0%
  7. Net income$72.3M10.8%
Computed from 10-KFY2010filed February 26, 2010Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

Where FY2010 revenue went

$666.3M
  • Cost of revenue: $212.4M, 32% of revenue
  • SG&A: $176.3M, 26% of revenue
  • R&D: $140.6M, 21% of revenue
  • Net income: $72.3M, 11% of revenue
  • Other operating costs: $11.3M, 1.7% of revenue
  • Interest, other & tax: $53.3M, 8.0% of revenue

Kept 11% as net income

Full revenue history →

04—Financials

Financial Highlights

Figures from 10-KFY2010filed February 26, 2010
Revenue$666.32M68.1% Gross MarginNet Income$72.28M10.8% Net MarginEPS (Diluted)$0.53Total Assets$1.43BCash & Equivalents$144.63MFree Cash Flow$119.52M

Financial Statements

Revenue$666.32M
Cost of Revenue$212.45M
Gross Profit$453.88M
R&D Expenses$140.62M
SG&A Expenses$176.34M
Operating Expenses$328.28M
Operating Income$125.60M
Interest Expense$23.72M
Net Income$72.28M
EPS (Basic)$0.59
EPS (Diluted)$0.53
Shares Outstanding (Basic)123.15M
Shares Outstanding (Diluted)137.10M

05—Questions

Frequently Asked Questions

  1. What drove revenue growth in 2009?

    Product revenue rose $94.9 million, or 18%, driven mainly by sequencing consumables and Genome Analyzer instruments. Microarray sales declined, partly due to customers delaying genome-wide association studies and order delays tied to Recovery Act funding.

  2. What is the outlook for 2010 revenue and expenses?

    The company expects 2010 revenue growth to be higher in the second half than the first, due to the timing of HiSeq 2000 manufacturing scale-up and other product launches. It also expects research and development and selling, general and administrative expenses to increase in absolute dollars.

  3. How is the company's debt structured?

    The company had $400.0 million principal of 0.625% convertible senior notes due 2014, with a conversion price of about $21.83 per share. Because the conversion conditions were met during 2009, the notes were classified as current, with a carrying amount of $290.2 million.

  4. What are the main risks to the business?

    The filing cites intense competition from companies such as Affymetrix and Roche, reliance on single-source suppliers for some components, uncertainty over the timing of Recovery Act funding, and the regulatory approval process required for molecular diagnostics products.

06—Continue

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