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ILMN · Illumina

50 filings

10-Q

ILMN 10-Q Quarterly Reports

Illumina - 50 quarterly reports

Filing 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
  1. 2026-Q3

    Illumina Quarterly Report for Q3 Ended Sep 27, 2026

    Illumina, Inc. reported third-quarter 2026 revenue of $1,129 million, up from $1,084 million in Q3 2025, and net income of $220 million, up from $150 million. Income from operations rose to $305 million from $227 million. Results were helped by a net benefit of $42 million from IEEPA tariff refunds recognized in Q3 2026, comprising a $79 million reduction to cost of revenue offset by $37 million of revenue reduction for amounts to be credited to customers. Gross margin was 73.5% in Q3 2026 versus 67.6% in Q3 2025. For the nine months ended September 27, 2026, revenue was $3,380 million and net income was $561 million, with diluted EPS of $3.65. The company completed the acquisition of SomaLogic and other specified assets from Standard BioTools on January 30, 2026, for a total purchase price of $460 million, including $382 million in cash. Term debt was reshaped during the period: $500 million of 2026 notes were repaid, and $300 million of 4.950% notes due 2029 were issued in August 2026 with net proceeds of $297 million. Illumina also entered a $1 billion five-year revolving credit facility in August 2026 and, after the quarter end, on October 8, 2026, established a $1 billion commercial paper program. Cash and cash equivalents were $1,289 million at September 27, 2026, and total term debt carrying amount was $1,789 million. The filing also details ongoing litigation, including shareholder derivative suits and securities class actions tied to the GRAIL acquisition. A state securities class action was certified in May 2026, and trial is scheduled for March 20, 2028. The federal securities action was dismissed with leave to amend on September 30, 2026, and a Fourth Amended Complaint was filed on October 21, 2026. The company states it denies the allegations and intends to vigorously defend against them.

    Oct 30, 2026
  2. 2026-Q2

    Illumina Quarterly Report for Q2 Ended Jun 28, 2026

    Illumina, Inc. reported second-quarter 2026 revenue of $1,159 million, up from $1,059 million in Q2 2025, with net income of $207 million (diluted EPS of $1.35) versus $235 million (diluted EPS of $1.49) a year earlier. For the six months ended June 28, 2026, total revenue was $2,251 million compared with $2,100 million, income from operations was $454 million compared with $378 million, and net income was $340 million compared with $366 million. Growth was driven mainly by consumables and instruments tied to demand for the NovaSeq X, with service and other revenue boosted by the SomaLogic business acquired on January 30, 2026. Other income swung from a considerable gain on the retained GRAIL investment in the prior year to a net loss in YTD 2026. Gross margin was 66.2% for YTD 2026 versus 65.6% a year earlier, though the filing states that excluding a $23 million intangible impairment recognized in Q2 2025, gross margin decreased, due to higher tariff costs, sales mix shifting toward instruments, rising memory and freight costs, and lower-margin SomaLogic revenue. Cash and cash equivalents fell to $1,040 million from $1,418 million at year-end 2025, as the company spent $417 million on acquisitions and intangible assets and $370 million on share repurchases. Total term debt was $1,991 million net carrying amount, with $500 million current, and the company stated it had no borrowings under its $750 million revolving credit facility. Management continues to flag headwinds including tariffs (with IEEPA-related refunds being pursued but timing and amount uncertain), inclusion on China's unreliable entities list (which reduced Greater China revenue by $27 million in YTD 2026), reductions in NIH funding, and Middle East-related fuel and shipping costs. Shareholder derivative and securities class actions related to the GRAIL acquisition remain pending, and the company stated it intends to vigorously defend them.

    Jul 31, 2026
  3. 2026-Q1

    Illumina Quarterly Report for Q1 Ended Mar 29, 2026

    Illumina, Inc. reported first-quarter 2026 revenue of $1,091 million, up 5% from $1,041 million in the prior-year quarter, driven mainly by sequencing consumables and NovaSeq X instrument shipments. Service and other revenue rose primarily due to revenue attributable to SomaLogic, which Illumina acquired on January 30, 2026 for a total purchase price of $460 million. Income from operations increased to $209 million from $164 million, and operating margin rose to 19.2% from 15.8%. Net income was $134 million, compared with $131 million, and diluted earnings per share were $0.87, compared with $0.82. Below the operating line, other expense, net was $39 million, versus other income of $32 million a year earlier. The filing attributes this swing primarily to a net loss on strategic investments, primarily the retained GRAIL investment. The effective tax rate was 14.8%, compared with 27.9%, which the company attributes mainly to prior-year tax return adjustments. Greater China revenue fell to $52 million from $72 million, and the filing attributes a $20 million decrease in total revenue to the company's inclusion on China's unreliable entities list. At quarter end, Illumina held cash and cash equivalents of $1,089 million and short-term investments of $66 million, against term debt with a net carrying amount of $1,989 million and an undrawn $750 million revolving credit facility. The company repurchased $242 million of common stock in the quarter and, on April 28, 2026, its board authorized a new $1.5 billion repurchase program in addition to the existing 2024 program. The filing also states that the U.S. Supreme Court held in February 2026 that IEEPA does not authorize tariffs, but the timing and amount of any refunds remain uncertain, and the company will recognize recoveries when realized.

    May 4, 2026
  4. 2025-Q3

    Illumina Quarterly Report for Q3 Ended Sep 28, 2025

    Illumina, Inc. reported third-quarter 2025 revenue of $1,084 million, roughly flat versus $1,080 million in Q3 2024, with income from operations of $227 million compared with $741 million a year earlier, when results included a $488 million legal contingency gain. Net income was $150 million, or $0.98 per diluted share, versus $705 million ($4.42 per diluted share) in Q3 2024. For the nine months ended September 28, 2025, revenue declined to $3,184 million from $3,268 million, primarily due to lower service and other revenue (including the GRAIL Spin-Off in 2024) and fewer high- and mid-throughput instrument shipments. Management cited Greater China revenue decreases of $41 million year-to-date tied to Illumina's inclusion on China's unreliable entities list, and tariff costs that weighed on Core Illumina gross margin. Year-to-date net income was $516 million, against a net loss of $1,410 million in the prior-year period, which included a $1,889 million goodwill and intangible impairment. Operating cash flow was $758 million year-to-date, and the company repurchased $700 million of common stock. Cash, cash equivalents and short-term investments totaled $1,278 million at quarter end, and total term debt was $1,992 million, with $998 million classified as current, reflecting the 2025 Term Notes maturing in December 2025. The company has agreed to acquire SomaLogic and certain other assets from Standard BioTools for $350 million in cash, plus royalties and up to $75 million in potential milestone payments, with closing expected in the first half of 2026. Ongoing litigation includes shareholder derivative suits and securities class actions related to the GRAIL acquisition, and the company says these matters are at an early stage and that it intends to defend them vigorously.

    Oct 31, 2025
  5. 2025-Q2

    Illumina Quarterly Report for Q2 Ended Jun 29, 2025

    Illumina, Inc. reported second-quarter 2025 total revenue of $1,059 million, down from $1,112 million in Q2 2024, with product revenue of $912 million and service and other revenue of $147 million. Income from operations was $214 million versus a loss of $1,637 million a year earlier, which included a $1,886 million goodwill and intangible impairment tied to GRAIL. Net income was $235 million, or $1.49 per diluted share, compared with a net loss of $1,988 million in Q2 2024. Results were helped by a $107 million swing in other income (expense), net, driven primarily by gains on strategic investments, and by lower operating expense. Year-to-date, revenue was $2,100 million (versus $2,188 million) and net income was $366 million. The filing highlights several headwinds: tariffs beginning in April 2025, Illumina's inclusion on China's unreliable entities list and the resulting prohibition on exporting sequencing instruments into China, and reduced U.S. government funding for the NIH. Instruments revenue declined 16% in Q2 2025 as customers delayed capital purchases, and Greater China revenue fell to $63 million from $75 million. Management expects to partially mitigate tariff impacts in 2025 and more fully in 2026. On the balance sheet, cash and cash equivalents were $934 million and short-term investments were $221 million at June 29, 2025, against $1,491 million of term debt (current and non-current). The company repurchased $570 million of stock in year-to-date 2025 under a $1.5 billion authorization, with about $804 million remaining. It also agreed on June 22, 2025 to acquire SomaLogic and certain assets from Standard BioTools for $350 million in cash plus royalties and up to $75 million in milestones, with closing expected in the first half of 2026.

    Aug 1, 2025
  6. 2025-Q1

    Illumina Quarterly Report for Q1 Ended Mar 30, 2025

    Illumina, Inc. reported first-quarter 2025 (three months ended March 30, 2025) total revenue of $1,041 million, down from $1,076 million in Q1 2024, with the decline attributed mainly to lower service and other revenue, including decreased revenue from strategic partnerships. Gross margin was 65.6% versus 62.0% a year earlier, and income from operations was $164 million compared with a loss from operations of $(111) million in the prior year. Net income was $131 million, or $0.82 diluted EPS, compared with a net loss of $(126) million, or $(0.79) per share. The prior-year comparison was affected by the June 2024 spin-off of GRAIL, which removed GRAIL's results from the current period. The company flagged several headwinds. Illumina was added to China's unreliable entities list in February 2025 and was notified in March 2025 that it may no longer export sequencing instruments into China; Greater China revenue was $72 million in Q1 2025. Management estimates the April 2025 tariffs will cost approximately $85 million under the current tariff environment, with partial mitigation expected in 2025 and a fuller aim in 2026. To offset these pressures, the company implemented an incremental $100 million cost reduction program for 2025. On the balance sheet, cash, cash equivalents and short-term investments totaled $1,237 million, and term debt was $1,990 million net carrying amount. During the quarter Illumina repurchased $200 million of common stock, and $1.184 billion remained available under its repurchase authorization. The SEC staff also informed the company on May 1, 2025 that it had concluded its investigation of Illumina and did not intend to recommend enforcement action.

    May 9, 2025
  7. 2024-Q3

    Illumina Quarterly Report for Q3 Ended Sep 29, 2024

    Illumina, Inc. reported a sharply different quarter and nine-month period in its 10-Q for the quarter ended September 29, 2024. Third-quarter total revenue was $1,080 million versus $1,119 million a year earlier, and net income was $705 million, compared with a net loss of $754 million in Q3 2023. The swing was driven largely by a $489 million gain from the reversal of the European Commission fine (recorded in legal contingency and settlement) following the Commission's withdrawal of the fine, and by the absence of the $821 million goodwill and intangible impairment recorded in Q3 2023. For the nine months (YTD 2024), revenue fell 3% to $3,268 million, gross margin rose to 65.3% from 61.2%, and the company posted a net loss of $1,410 million, reflecting a $1,889 million goodwill and intangible impairment, largely tied to GRAIL, and a $319 million net other expense that included a $332 million unrealized loss on Illumina's retained GRAIL investment. The filing centers on the June 24, 2024 Spin-Off of GRAIL, Inc., in which Illumina distributed approximately 85.5% of GRAIL's common stock to its stockholders and retained about 14.5%. GRAIL's assets, liabilities, and results were not reclassified as discontinued operations. Illumina contributed $974 million of Disposal Funding, and GRAIL cash of $968 million was deconsolidated. Balance sheet metrics shifted accordingly: total assets fell to $6,014 million from $10,111 million at year-end 2023, goodwill fell to $1,113 million, and term debt rose to $1,988 million from $1,489 million after the issuance of $500 million of 2026 Term Notes and repayment of a $750 million delayed draw term loan. The filing also reports ongoing legal exposure. The company disclosed numerous stockholder derivative suits, federal and state securities class actions tied to the GRAIL acquisition, an SEC investigation, and a Department of Justice civil investigative demand under the False Claims Act. The filing states that the lawsuits are at an early stage and that the company cannot predict their outcomes. Cash and cash equivalents ended the quarter at $869 million, and the company repurchased 770 thousand shares during Q3 2024 at a total cost of $99 million under a new $1.5 billion authorization.

    Nov 6, 2024
  8. 2024-Q2

    Illumina Quarterly Report for Q2 Ended Jun 30, 2024

    Illumina, Inc. reported a sharply weaker second quarter and first half of 2024, driven largely by the spin-off of GRAIL, Inc. on June 24, 2024, and related impairments. Total revenue for Q2 2024 was $1.112 billion versus $1.176 billion in Q2 2023, and YTD 2024 revenue was $2.188 billion versus $2.263 billion. The company recorded a net loss of $1.988 billion in Q2 2024 and $2.114 billion YTD 2024, compared with net losses of $234 million and $231 million in the prior-year periods. The loss was primarily attributable to goodwill and intangible impairment charges of $1.889 billion YTD, including a $1.466 billion goodwill impairment and a $420 million IPR&D impairment tied to GRAIL, along with a $328 million unrealized loss on the retained GRAIL investment after the spin-off. Gross margin improved to 63.5% YTD 2024 from 61.3% in YTD 2023, supported by favorable sequencing consumables mix and cost savings. Balance sheet and liquidity changed materially. Total assets fell to $6.081 billion at June 30, 2024 from $10.111 billion at December 31, 2023, and stockholders' equity dropped to $1.436 billion from $5.745 billion. Cash and cash equivalents were $920 million, and the company drew $750 million on a 364-day delayed draw term loan to fund the GRAIL disposal funding of $974 million. Total current liabilities rose to $2.208 billion, including $744 million of current term debt. The company also remains the obligor on contingent value rights tied to GRAIL, and carries an accrued liability of $481 million related to the European Commission Article 14(2)(b) fine of approximately €432 million. The filing also details ongoing legal and regulatory matters, including the EU General Court and Court of Justice proceedings on the GRAIL acquisition, an SEC inquiry, a DOJ civil investigative demand under the False Claims Act, multiple stockholder derivative suits, and federal and state securities class actions. The company stated that cash, short-term investments and available borrowing capacity are sufficient to fund near-term needs for at least the next 12 months.

    Aug 7, 2024
  9. 2024-Q1

    Illumina Quarterly Report for Q1 Ended Mar 31, 2024

    Illumina, Inc. reported a first-quarter 2024 net loss of $126 million, compared with net income of $3 million in Q1 2023, on total revenue of $1,076 million versus $1,087 million a year earlier. Loss from operations widened to $111 million from $64 million, driven by a $59 million rise in operating expense that included $36 million of restructuring charges, partially offset by a $12 million increase in gross profit. Gross margin improved to 62.0% from 60.3%, reflecting a more favorable sequencing consumables mix and cost savings, while Core Illumina instrument revenue fell 29% on fewer high-throughput and mid-throughput shipments. Cash and cash equivalents rose to $1,108 million, and operating cash flow was $77 million. The filing is dominated by the pending divestiture of GRAIL, which Illumina acquired in August 2021. The European Commission approved the divestment plan on April 12, 2024, and the company aims to finalize divestiture terms by the end of Q2 2024, though it states there can be no assurance on timing. The company has accrued $478 million for the European Commission's €432 million Article 14(2)(b) fine, which it has guaranteed while appealing. Multiple shareholder derivative and securities class actions, plus an SEC inquiry and a DOJ civil investigative demand, are pending and described as being at early stages. GRAIL's segment posted a loss from operations of $227 million in Q1 2024 versus $204 million a year earlier, while Core Illumina's income from operations declined to $116 million from $142 million. The company stated it does not intend to make share repurchases during fiscal year 2024 and that its current liquidity is sufficient for at least the next 12 months.

    May 3, 2024
  10. 2023-Q3

    Illumina Quarterly Report for Q3 Ended Oct 1, 2023

    Illumina, Inc. reported a third quarter 2023 net loss of $754 million on total revenue of $1,119 million, compared with a net loss of $3,816 million on revenue of $1,115 million in Q3 2022. The loss was driven largely by a $821 million goodwill and intangible impairment in Q3 2023, of which $712 million was goodwill and $109 million was IPR&D, both tied to the GRAIL reporting unit. Nine-month revenue fell to $3,382 million from $3,501 million, with gross margin of 61.2% versus 65.7% a year earlier, attributed mainly to lower fixed-cost leverage, NovaSeq X launch costs, and unfavorable product mix. Cash and cash equivalents declined to $927 million from $2,011 million at year-end 2022, reflecting repayment of $500 million of 2023 Term Notes and $750 million of 2023 Convertible Notes. The filing's most significant items concern the GRAIL acquisition. The European Commission adopted a decision on October 12, 2023 requiring Illumina to divest GRAIL and imposing transitional measures, which Illumina intends to appeal. The FTC Order requiring divestiture is stayed pending the Fifth Circuit appeal, and a €432 million Article 14(2)(b) fine from July 2023 is accruing interest at 5.5% per annum from October 2023; Illumina provided guarantees in lieu of cash payment while it appeals. The company accrued $458 million for the fine as of October 1, 2023. Illumina also disclosed an SEC investigation, a Delaware stockholder derivative and class action filed October 17, 2023, and that its stock price declined approximately 18% between October 1 and November 6, 2023. Core Illumina remained profitable at the operating level, with segment income from operations of $262 million in Q3 2023 versus $445 million in Q3 2022. Management expects 2023 revenue to decline 2% to 3% compared with 2022, and it stated that current cash, short-term investments, operating cash flow and the undrawn $750 million Credit Facility should fund near-term needs for at least 12 months.

    Nov 13, 2023
  11. 2023-Q3

    Illumina Quarterly Report for Q3 Ended Jul 2, 2023

    Illumina, Inc. reported a second-quarter 2023 net loss of $234 million on revenue of $1,176 million, compared with a net loss of $535 million on revenue of $1,162 million in Q2 2022. For the six months ended July 2, 2023, revenue was $2,263 million, down from $2,386 million, and net loss was $231 million versus $449 million a year earlier. Q2 2022 results included a $609 million legal contingency and settlement charge, which is the main driver of the year-over-year improvement in operating loss. Gross margin declined to 61.3% year-to-date from 66.3%, driven by lower manufacturing volume leverage and lower instrument margins from the NovaSeq X launch. The most significant development is the GRAIL acquisition dispute. On July 12, 2023, the European Commission imposed a fine of approximately €432 million for breaching the EU Merger Regulation, and the company accrued $471 million for it and intends to appeal. The FTC Order requiring divestiture of GRAIL is stayed pending the Fifth Circuit appeal, with oral argument scheduled for September 12, 2023. GRAIL must be held separate under interim measures, and the company disclosed an SEC inquiry in July 2023 relating to the GRAIL acquisition and related disclosures, which it is cooperating with. Liquidity remained solid, with cash and cash equivalents of $1,553 million at July 2, 2023, and $750 million of convertible senior notes due August 15, 2023, classified as current. The company repaid $500 million of term notes in March 2023 and reported no borrowings under its $750 million revolving Credit Facility. Management stated that current resources are sufficient for at least the next 12 months, and that it planned to issue a guarantee and defer payment of the EC fine pending appeal.

    Aug 10, 2023
  12. 2023-Q2

    Illumina Quarterly Report for Q2 Ended Apr 2, 2023

    Illumina, Inc. reported a first quarter 2023 (three months ended April 2, 2023) net income of $3 million, or $0.02 per diluted share, compared with $86 million, or $0.55 per diluted share, in Q1 2022. Total revenue was $1,087 million versus $1,223 million a year earlier, driven by lower sequencing consumables and instrument revenue, partly offset by higher service revenue. Gross profit fell to $655 million from $815 million, and the company reported a loss from operations of $(64) million compared with income from operations of $184 million in the prior-year quarter. Management noted the NovaSeq X launch lowered instrument margins and reduced fixed-cost leverage, and said it plans to reduce its annualized run-rate expenses by more than $100 million beginning later in 2023. The company also expects revenue to grow 7% to 10% in 2023 compared with 2022. The filing is dominated by the GRAIL acquisition dispute. The FTC issued an opinion and order on March 31, 2023 requiring Illumina to divest GRAIL, reversing an administrative law judge ruling in Illumina's favor; the order is stayed pending Illumina's Fifth Circuit appeal. The European Commission issued a Prohibition Decision on September 6, 2022 and a Statement of Objections on December 5, 2022 indicating an intended order to divest GRAIL. Illumina has accrued $458 million, representing 10% of fiscal 2022 consolidated annual revenues, for a potential EU fine. Net income was also affected by a $81 million income tax benefit, which produced an effective tax rate of 103.9%. Liquidity remained substantial, with cash and cash equivalents of $1,494 million at April 2, 2023, after the company repaid $500 million of 2023 Term Notes in March 2023. Total stockholders' equity was $6,693 million and the company had $750 million of 0% convertible senior notes due August 2023 classified as current. Net cash provided by operating activities was $10 million compared with $172 million a year earlier.

    May 5, 2023
  13. 2022-Q3

    Illumina Quarterly Report for Q3 Ended Oct 2, 2022

    Illumina, Inc. reported a sharply weaker third quarter and nine-month period ended October 2, 2022, driven almost entirely by the GRAIL acquisition. Revenue for Q3 2022 was $1.115 billion, up slightly from $1.108 billion a year earlier, while net loss was $3.816 billion, or $(24.26) per share, compared with net income of $317 million in Q3 2021. The loss primarily reflects a $3.914 billion goodwill impairment related to the GRAIL reporting unit, recorded after the European Commission's September 6, 2022 Prohibition Decision and a continued decline in the company's stock price and market capitalization. Year-to-date revenue was $3.501 billion and net loss was $4.265 billion. The filing details significant regulatory exposure. The European Commission has prohibited the GRAIL acquisition and is expected to order divestiture of GRAIL, though it has not said when. The company has accrued $453 million for a potential EU Merger Regulation fine, equal to 10% of 2021 consolidated annual revenues. Illumina also recorded a $598 million year-to-date legal contingency and settlement charge, including a $325 million payment to Complete Genomics under a settlement with BGI. The FTC administrative law judge ruled in Illumina's favor on September 1, 2022, and the FTC complaint counsel has appealed. Liquidity remains adequate for the near term but has tightened. Cash and cash equivalents fell to $1.000 billion from $1.232 billion at January 2, 2022, and total stockholders' equity declined to $6.731 billion from $10.740 billion. Term notes of $500 million due 2023 and convertible senior notes of $750 million due August 2023 are now classified as current liabilities, totaling $1.246 billion in current debt. The company had no borrowings under its $750 million revolving credit facility and states that current resources are sufficient for at least the next 12 months.

    Nov 4, 2022
  14. 2022-Q3

    Illumina Quarterly Report for Q3 Ended Jul 3, 2022

    Illumina, Inc. reported a net loss of $535 million for Q2 2022 (quarter ended July 3, 2022), compared with net income of $185 million in Q2 2021, and a net loss of $449 million for the six months ended July 3, 2022, versus net income of $333 million a year earlier. Total revenue rose to $1,162 million in Q2 2022 from $1,126 million, and to $2,386 million for YTD 2022 from $2,219 million. The swing to losses was driven by $609 million of legal contingencies recorded in Q2 2022, comprising a $453 million accrual for the potential European Commission fine related to the GRAIL acquisition and a $156 million estimated accrual related to the BGI litigation settlement. Gross margin declined to 66.3% YTD 2022 from 70.6%, primarily due to GRAIL's gross loss. The filing describes the GRAIL acquisition as subject to ongoing legal and regulatory proceedings. On July 13, 2022, the EU General Court ruled that the European Commission has jurisdiction to review the acquisition, and the company intends to appeal. On July 19, 2022, the European Commission issued a Statement of Objections alleging that the company breached the EU Merger Regulation by completing the acquisition. The FTC administrative decision is due no later than September 2, 2022. GRAIL is being held separate under an interim measures order with an appointed monitoring trustee. On July 14, 2022, the company entered into a Settlement and License Agreement with BGI and CGI, including a $325 million one-time payment, which was paid on July 25, 2022. As of July 3, 2022, the company held cash, cash equivalents, and short-term investments of about $1.3 billion, and had $1,132 million of remaining performance obligations. Total debt included $499 million of current term notes and $746 million of current convertible senior notes, both reclassified to current liabilities. Joydeep Goswami was appointed interim Chief Financial Officer on June 9, 2022, following the departure of Sam Samad.

    Aug 11, 2022
  15. 2022-Q2

    Illumina Quarterly Report for Q2 Ended Apr 3, 2022

    Illumina, Inc. reported first-quarter 2022 (three months ended April 3, 2022) revenue of $1,223 million, up 12% from $1,093 million a year earlier, driven mainly by sequencing consumables and instruments and higher service and other revenue. Net income was $86 million, or $0.55 per diluted share, compared with $147 million, or $1.00 per diluted share, in Q1 2021. Gross margin fell to 66.6% from 69.9%, reflecting a GRAIL gross loss and higher freight costs, while research and development expense rose to $323 million from $197 million. The effective tax rate was 38.3%, which the company attributed mainly to GRAIL pre-acquisition net operating losses on GILTI and to R&D expense capitalization for tax purposes, which it says will increase cash tax payments by approximately $103 million in 2022 if not repealed, modified, or deferred. The company reported two segments, Core Illumina and GRAIL. Core Illumina generated $1,221 million of revenue and $362 million of income from operations, while GRAIL recorded $10 million of revenue and a $172 million operating loss. Cash and cash equivalents were $1,351 million at quarter end, and total term notes outstanding were $994 million, of which $499 million is classified as current because the 2023 Term Notes mature March 23, 2023. The $750 million convertible senior notes due 2023 remain outstanding, and the $750 million revolving credit facility had no borrowings. The GRAIL acquisition remains the central legal and regulatory issue. The FTC's administrative trial concluded in September 2021, with post-trial briefs filed April 15, 2022 and a decision due no later than September 2, 2022. The European Commission's interim measures order requires GRAIL to be held and operated separately under an independent monitoring trustee, and the company states the European Commission will likely seek a fine of up to 10% of consolidated annual revenues. The company also disclosed patent litigation with BGI and Complete Genomics, including a jury verdict and an ongoing trial that began April 25, 2022, and the company cannot estimate any possible loss from the BGI and CGI claims.

    May 5, 2022
  16. 2021-Q3

    Illumina Quarterly Report for Q3 Ended Oct 3, 2021

    Illumina, Inc. reported third-quarter 2021 results (quarter ended October 3, 2021) that were dominated by its August 18, 2021 acquisition of GRAIL, Inc. Revenue for Q3 2021 was $1,108 million versus $794 million in Q3 2020, and year-to-date revenue was $3,327 million versus $2,286 million, with growth driven by sequencing consumables and instruments. Q3 2021 operating results swung to a loss from operations of $545 million, compared with income of $162 million a year earlier, reflecting $615 million of share-based compensation tied to accelerated GRAIL equity awards, $250 million of GRAIL-related research and development and selling, general and administrative costs, and related acquisition expenses. Net income for Q3 2021 was $317 million, or $2.08 per diluted share, helped by a $900 million non-operating gain from remeasuring the previously held GRAIL stake. The balance sheet expanded substantially: goodwill rose to $7,098 million and total assets to $15,063 million, with GRAIL contributing $9,270 million of segment assets. Total debt includes $993 million of 2031 and 2023 Term Notes and $694 million of convertible senior notes, and the company had $1,080 million of cash and cash equivalents and $185 million of short-term investments at quarter end. The company is also subject to significant regulatory risk: the FTC filed a complaint seeking to block the deal and the European Commission opened a Phase II review and issued interim measures requiring GRAIL to be held separate, with a possible fine of up to 10% of consolidated annual revenues. The filing notes that GRAIL is a separate reportable segment and that a trial on the FTC action concluded live testimony in September 2021.

    Nov 5, 2021
  17. 2021-Q3

    Illumina Quarterly Report for Q3 Ended Jul 4, 2021

    Illumina, Inc. reported strong second-quarter 2021 results in this Form 10-Q for the quarter ended July 4, 2021. Total revenue rose to $1,126 million from $633 million in Q2 2020, and year-to-date revenue was $2,219 million versus $1,492 million. Net income was $185 million for Q2 2021 (diluted EPS $1.26) and $333 million year-to-date (diluted EPS $2.26). Growth was driven mainly by sequencing consumables and instruments as customers recovered from the COVID-19 pandemic, and SG&A rose sharply due to costs tied to the pending GRAIL acquisition. The pending $8 billion acquisition of GRAIL, Inc. (cash of $3.5 billion plus $4.5 billion in stock, subject to a collar) remains the central uncertainty. The FTC filed an administrative complaint and preliminary injunction motion, the district court dismissed the FTC's complaint without prejudice on May 28, 2021, and an administrative trial is scheduled for August 24, 2021. The European Commission opened a Phase II review on July 22, 2021, and the filing notes that the company is required to make monthly Continuation Payments of $35 million to GRAIL. A termination would require a $300 million fee plus a $300 million GRAIL preferred stock investment. Balance sheet and liquidity strengthened materially in the period. Cash and cash equivalents were $4,196 million at July 4, 2021, up from $1,810 million at January 3, 2021, after the issuance of $1 billion in term notes and the sale of available-for-sale securities. The company repaid $517 million of 2021 convertible notes at maturity. Total stockholders' equity increased to $5,180 million, and the company stated that its liquidity is sufficient for at least the next 12 months, including the GRAIL cash requirements.

    Aug 6, 2021
  18. 2021-Q2

    Illumina Quarterly Report for Q2 Ended Apr 4, 2021

    Illumina, Inc. reported first-quarter 2021 (three months ended April 4, 2021) total revenue of $1,093 million, up from $859 million in Q1 2020, driven mainly by sequencing consumables and instruments, partially offset by lower service and other revenue. Net income fell to $147 million from $173 million, and diluted EPS was $1.00 versus $1.17. Gross margin declined to 69.9% from 72.1%, citing less favorable product mix, COVID-19-related freight costs, and lower development and licensing revenue. Operating expenses rose 33% to $571 million, largely reflecting $105 million of Continuation Payments to GRAIL recorded in SG&A. The balance sheet and liquidity position strengthened considerably during the quarter. Cash and cash equivalents rose to $4,433 million from $1,810 million at January 3, 2021, after Illumina issued $500 million of 2023 Term Notes and $500 million of 2031 Term Notes in March 2021 for net proceeds of $992 million, and sold all of its available-for-sale debt securities. Management stated that cash, cash equivalents, and short-term investments totaled $4.6 billion, with approximately $586 million held by foreign subsidiaries. Total debt-related balances include $1,168 million of convertible senior notes (carrying value) and $992 million of term notes. The pending $8 billion acquisition of GRAIL, Inc. remains the dominant event. The FTC filed an administrative complaint and preliminary injunction motion on March 30, 2021 alleging the deal violates Section 7 of the Clayton Act, and the European Commission accepted a referral for merger review on April 19, 2021 and purported to impose a stay on completion. The filing states the deal is expected to close in the second half of 2021 but that delay or prevention is possible, including beyond the September 20, 2021 outside date, and that a $300 million termination fee plus a $300 million GRAIL preferred stock investment could be payable in certain termination scenarios.

    Apr 28, 2021
  19. 2020-Q3

    Illumina Quarterly Report for Q3 Ended Sep 27, 2020

    Illumina, Inc. reported third-quarter 2020 revenue of $794 million, down from $907 million in Q3 2019, and year-to-date 2020 revenue of $2,286 million versus $2,591 million a year earlier. The filing attributes the decline primarily to decreased shipments of sequencing consumables and instruments as customers were affected by the COVID-19 pandemic, which the company says it expects to continue to negatively affect sales and results. Q3 2020 net income attributable to Illumina stockholders was $179 million, or $1.21 diluted EPS, compared with $234 million, or $1.58, in Q3 2019. Gross margin was 66.2% in Q3 2020 versus 71.5% a year earlier, and income from operations was $162 million versus $308 million. The most significant item for investors is the pending acquisition of GRAIL, Inc., agreed on September 20, 2020 for total consideration of $8 billion, consisting of $3.5 billion in cash and $4.5 billion in Illumina common stock subject to a collar. The transaction is expected to close in the second half of 2021 and is subject to customary conditions including GRAIL stockholder approval and regulatory clearances. Illumina has obtained a $1 billion 364-day bridge facility commitment and, if the deal is not completed by December 20, 2020, must make monthly continuation payments of $35 million to GRAIL. Cash, cash equivalents and short-term investments totaled $3.3 billion at September 27, 2020. The quarter also included a $132 million payment tied to the terminated PacBio merger, of which the $98 million reverse termination fee is no longer repayable, and a $25 million gain on litigation in SG&A. Year-to-date share repurchases were $455 million, with $295 million of authorization remaining.

    Oct 30, 2020
  20. 2020-Q2

    Illumina Quarterly Report for Q2 Ended Jun 28, 2020

    Illumina, Inc. reported a decline in its second-quarter 2020 results, with total revenue of $633 million for Q2 2020 versus $838 million in Q2 2019, and $1,492 million year-to-date versus $1,684 million. The filing attributes the decline primarily to decreased shipments of sequencing consumables and instruments due to the COVID-19 pandemic. Gross margin was 70.2% year-to-date compared with 68.7% a year earlier, while income from operations fell to $285 million from $410 million year-to-date. Net income attributable to Illumina stockholders was $47 million for Q2 2020 versus $296 million a year earlier, and the Q2 effective tax rate rose to 71.6%, driven by a $62 million valuation allowance on California R&D credits and a $28 million discrete tax expense from the Altera court case. The company ended the quarter with cash, cash equivalents and short-term investments totaling $3.3 billion, and its liquidity position is supported by $1.8 billion in cash and cash equivalents and $1.5 billion in short-term investments. Management stated it expects the pandemic to continue to negatively affect sales and results, and it declined to provide expectations for the rest of 2020. During the first half, the company repurchased about $330 million of common stock and had approximately $420 million of repurchase authorization remaining. Its terminated acquisition of Pacific Biosciences led to a $132 million cash outlay for derivative assets and a $92 million charge to SG&A. Debt declined to $1,162 million net carrying amount of convertible notes, with $503 million classified as current because the 2021 Notes became convertible on July 1, 2020. Management stated that cash, equivalents and investments are sufficient to fund near-term needs for at least the next 12 months.

    Aug 7, 2020
  21. 2020-Q1

    Illumina Quarterly Report for Q1 Ended Mar 29, 2020

    Illumina, Inc. reported first-quarter 2020 revenue of $859 million, up 2% from $846 million in Q1 2019, driven primarily by sequencing consumables growth of $72 million, partially offset by lower microarray revenue and fewer sequencing instrument shipments (except the NextSeq 2000, launched in Q1 2020). Gross margin rose to 72.1% from 69.1%, but income from operations fell to $189 million (22.0% of revenue) from $204 million (24.2%), as selling, general and administrative expense increased $63 million to $274 million, largely due to a $92 million charge tied to the terminated PacBio acquisition. Net income attributable to Illumina stockholders was $173 million, or $1.17 per diluted share, compared with $233 million, or $1.57 per diluted share, a year earlier. The effective tax rate was 2.5%. The company ended the quarter with cash, cash equivalents and short-term investments totaling $3.3 billion, and its board authorized a new $750 million share repurchase program on February 5, 2020, of which approximately $563 million remained available at quarter end. Management stated that COVID-19 is expected to negatively affect sales and results, though the size and duration of the impact cannot be predicted, and it will provide updates on quarterly results only, without guidance for the rest of the year. Total debt carrying value was $1.15 billion, with $499 million classified as current because the 2021 convertible notes become convertible within twelve months.

    May 1, 2020
  22. 2019-Q3

    Illumina Quarterly Report for Q3 Ended Sep 29, 2019

    Illumina, Inc. reported third-quarter 2019 results (quarter ended September 29, 2019) with total revenue of $907 million, up from $853 million a year earlier, and nine-month revenue of $2,591 million versus $2,466 million. Gross margin rose to 71.5% in Q3 2019 from 70.0% in Q3 2018, and income from operations increased to $308 million from $241 million. Net income attributable to Illumina stockholders was $234 million, or $1.58 per diluted share, compared with $199 million, or $1.33 per diluted share, in the prior-year quarter. Nine-month results were also stronger, with net income attributable to Illumina stockholders of $763 million. Q3 2019 total other expense was $38 million, driven by mark-to-market losses on marketable equity securities, while the first nine months benefited from a $39 million gain on the deconsolidation of Helix and a $15 million gain from settlement of a GRAIL-related contingency. Growth was driven primarily by sequencing consumables, which rose $53 million in Q3 2019 and $150 million in the first three quarters, partly offset by weakness in the direct-to-consumer microarray market and lower microarray instrument shipments. Operating expenses declined in the quarter, with R&D down to $151 million and SG&A down to $189 million, though management expects operating expenses to keep growing in absolute terms in 2019. Cash, cash equivalents and short-term investments totaled $3.2 billion at quarter end. The pending acquisition of Pacific Biosciences of California, Inc. for an all-cash price of approximately $1.2 billion remained subject to antitrust approvals. The merger agreement's end time was extended to December 31, 2019, with Illumina able to extend further to March 31, 2020 by additional payments. Management stated that current cash, short-term investments and operating cash flow are sufficient for at least the next 12 months, including the PacBio payment.

    Oct 25, 2019
  23. 2019-Q2

    Illumina Quarterly Report for Q2 Ended Jun 30, 2019

    Illumina, Inc. reported second-quarter 2019 total revenue of $838 million, up from $830 million in Q2 2018, and first-half 2019 revenue of $1.684 billion versus $1.612 billion. Growth was driven primarily by sequencing consumables, partly offset by weakness in the direct-to-consumer (DTC) market affecting microarray and genotyping services. Gross margin was 68.4% in Q2 2019 versus 69.3% a year earlier, and income from operations was $205 million compared with $227 million, as operating expenses rose, mainly for research and development. Net income attributable to Illumina stockholders was $296 million in Q2 2019 versus $209 million in Q2 2018, with the increase largely due to other income, net of $136 million, which included a $92 million unrealized gain on a strategic investment that completed an IPO, a $39 million gain on the deconsolidation of Helix, and mark-to-market adjustments. The balance sheet strengthened, with cash and cash equivalents of $1.943 billion and short-term investments of $1.230 billion at June 30, 2019, totaling $3.2 billion. The company repaid its 2019 convertible notes ($633 million principal) at maturity in June 2019. Pending acquisition of Pacific Biosciences of California, Inc. for approximately $1.2 billion in cash is now expected to close in Q4 2019, subject to antitrust approvals. The filing states that cash and short-term investments are sufficient to fund needs for at least the next 12 months, including the PacBio acquisition. Management expects revenue to continue to increase in 2019 compared with the prior year, while noting ongoing DTC weakness and delayed population genomics projects. Operating expenses are expected to grow on an absolute basis in 2019, with management focused on reducing operating expenses in the second half in response to lower revenue growth expectations. The effective tax rate was 10.8% for the first half of 2019, and management noted a possible discrete tax expense of less than $30 million following a Ninth Circuit decision.

    Jul 31, 2019
  24. 2019-Q1

    Illumina Quarterly Report for Q1 Ended Mar 31, 2019

    Illumina, Inc. reported first-quarter 2019 results in this Form 10-Q for the period ended March 31, 2019. Total revenue rose to $846 million from $782 million in Q1 2018, driven by consumables and services, primarily sequencing. Gross margin was 69.1% versus 68.8% a year earlier, while income from operations was $204 million compared with $218 million, with the filing attributing the decline in operating margin mainly to higher operating expenses. Net income attributable to Illumina stockholders was $233 million, or $1.57 per diluted share, versus $208 million, or $1.41, in the prior-year quarter. The effective tax rate was 3.9%, compared with 10.6% in Q1 2018. The balance sheet strengthened, with cash and cash equivalents rising to $2,270 million from $1,144 million at December 30, 2018, and short-term investments of $1,345 million. Total debt-related liabilities included $632 million of convertible senior notes due June 15, 2019, which the company said it expects to fund alongside the pending $1.2 billion all-cash acquisition of Pacific Biosciences of California, Inc. (PacBio), expected to close mid-2019. The company stated that its existing cash and operating cash flow are sufficient to meet needs for at least the next 12 months. Operating cash flow was $198 million in Q1 2019 versus $255 million a year earlier. A significant subsequent event occurred on April 25, 2019, when Illumina agreed to sell its interest in, and relinquish control over, its consolidated variable interest entity Helix, which will no longer be consolidated after that date. The filing also notes a $15 million gain tied to the settlement of a contingency related to the 2017 deconsolidation of GRAIL, and that Illumina repurchased $63 million of common stock during the quarter under a new $550 million authorization, leaving $488 million available.

    Apr 26, 2019
  25. 2018-Q3

    Illumina Quarterly Report for Q3 Ended Sep 30, 2018

    Illumina, Inc. (ILMN) reported its Form 10-Q for the quarter ended September 30, 2018. For the three months ended September 30, 2018, total revenue was $853 million, up from $714 million, and net income attributable to Illumina stockholders was $199 million, or $1.33 per diluted share, versus $163 million, or $1.11 per diluted share, a year earlier. For the nine months, total revenue reached $2.47 billion versus $1.98 billion, with income from operations of $686 million compared with $376 million. The prior-year nine-month results included a $453 million pretax gain on the deconsolidation of GRAIL, so the year-over-year comparison of other income and net income is distorted. Gross margin rose to 69.4% for the nine months from 65.0%, driven by higher consumables revenue. Liquidity remained strong, with cash, cash equivalents and short-term investments of $3.4 billion at September 30, 2018, of which approximately $817 million was held by foreign subsidiaries. In August 2018 the company issued $750 million of 0% convertible senior notes due 2023, with net proceeds of $735 million, and used $103 million of those proceeds to repurchase common stock concurrently with the offering. Total debt-related balances rose sharply, with long-term debt, current portion at $1.107 billion because the 2019 and 2021 convertible notes became convertible on October 1, 2018 and were reclassified as short-term. The company also disclosed that it expects the new lease accounting standard (ASU 2016-02) to have a material effect on its balance sheet when adopted in the first quarter of 2019. The filing states that the company expects revenue to continue increasing in 2018 compared with the prior year and that operating expenses will keep growing in absolute terms. Helix, a consolidated variable interest entity, remains a source of noncontrolling interests, with redeemable noncontrolling interests of $218 million at period end.

    Oct 24, 2018
  26. 2018-Q3

    Illumina Quarterly Report for Q3 Ended Jul 1, 2018

    Illumina, Inc. reported second-quarter 2018 revenue of $830 million, up from $662 million a year earlier, and first-half 2018 revenue of $1.61 billion (reported as $1,612 million) versus $1,261 million in the first half of 2017. Growth was driven mainly by consumables, which rose to $540 million in the quarter from $402 million, primarily from sequencing consumables tied to growth in the instrument installed base. Gross profit was $575 million in Q2 2018 versus $434 million, with income from operations of $227 million compared with $143 million. Net income attributable to Illumina stockholders was $209 million in the quarter, or $1.41 per diluted share, compared with $128 million, or $0.87, in the prior-year quarter. First-half results were affected by a prior-year $453 million pretax gain on the deconsolidation of GRAIL recorded in other income, net, so first-half 2017 net income of $495 million is not directly comparable to the $417 million reported for 2018. Operating cash flow was $550 million for the first half of 2018, compared with $346 million a year earlier. Cash, cash equivalents and short-term investments totaled $2.5 billion at July 1, 2018, of which approximately $655 million was held by foreign subsidiaries. Balance sheet activity included the $100 million cash acquisition of Edico Genome, a $150 million increase to the share repurchase authorization, and $92 million of contributions from noncontrolling interest owners, mainly in Helix. The company's 2019 and 2021 convertible senior notes were not convertible as of July 1, 2018, and the 2019 notes became convertible at any time on or after March 15, 2019. The filing also notes that the company expects substantially all real-estate operating lease commitments to be recognized on the balance sheet upon adoption of ASU 2016-02, which it says will have a material effect on its financial statements.

    Jul 31, 2018
  27. 2018-Q2

    Illumina Quarterly Report for Q2 Ended Apr 1, 2018

    Illumina, Inc. reported first-quarter 2018 results (three months ended April 1, 2018) with total revenue of $782 million, up from $598 million in Q1 2017, a 31% increase. The filing attributes the growth to higher sales of sequencing consumables and genotyping services, as well as increased shipments of the NovaSeq instrument, partially offset by lower HiSeq instrument shipments. Gross margin rose to 68.8% from 61.5%, and income from operations was $218 million, or 27.8% of revenue, compared with $52 million in the prior-year quarter. The prior-year period included a $453 million gain on the deconsolidation of GRAIL, so net income attributable to Illumina stockholders fell to $208 million ($1.41 diluted EPS) from $367 million ($2.48 diluted EPS). The balance sheet strengthened over the quarter. Cash and cash equivalents rose to $1,560 million from $1,225 million at December 31, 2017, and short-term investments were $813 million, so cash, equivalents and short-term investments totaled about $2 billion, of which roughly $1 billion was held by foreign subsidiaries. Operating cash flow was $255 million. Long-term debt, current portion, increased to $620 million because the 2019 convertible notes were reclassified to short-term as they become convertible within twelve months, and financing lease obligations rose to $244 million from $113 million after a build-to-suit property was completed. The effective tax rate was 10.6%, compared with 30.8% a year earlier, reflecting the mix of earnings in lower-tax jurisdictions and a discrete benefit from recognizing prior-year Helix losses. The company notes that U.S. Tax Reform's provisional impacts are subject to revision and that it expects its future effective tax rate to trend lower than the 21% federal statutory rate. Management expects revenue to continue increasing in 2018 and expects R&D and SG&A expenses to keep growing.

    Apr 25, 2018
  28. 2017-Q3

    Illumina Quarterly Report for Q3 Ended Oct 1, 2017

    Illumina, Inc. reported third-quarter 2017 results (quarter ended October 1, 2017) with total revenue of $714 million, up 18% from $607 million a year earlier, and nine-month revenue of $1.975 billion, up 11% from $1.779 billion. Consumables revenue for the first three quarters rose to $1,240 million, instrument revenue to $376 million, and service and other revenue to $344 million. Gross margin for the first three quarters fell to 65.0% from 70.1%, driven by an $18 million impairment of an acquired intangible asset, an increase in lower-margin array services mix, inventory reserves tied to product transitions, and lower instrument margin from the NovaSeq introduction. Income from operations was $376 million for the nine months, compared with $444 million a year earlier. Net income attributable to Illumina stockholders for the nine months was $658 million, versus $339 million, but this was boosted by a $453 million pretax gain on the deconsolidation of GRAIL, Inc. recorded in February 2017. Diluted EPS for the nine months was $4.45, compared with $2.27. The company's cash, cash equivalents and short-term investments totaled $2.0 billion at quarter end, of which approximately $953 million was held by foreign subsidiaries. Total debt-related balances include $633 million of 2019 convertible notes and $517 million of 2021 convertible notes, and the company repurchased $75 million of stock in the third quarter under a Rule 10b5-1 plan, leaving $175 million authorized. The company stated that it expects revenue to continue to increase in 2017 and that research and development and SG&A expenses will continue to grow. It also noted that the effective tax rate is expected to trend lower than the U.S. federal statutory rate of 35% over time, and that it anticipates adopting ASU 2014-09 (revenue from contracts with customers) in the first quarter of 2018 using the modified retrospective method, with an adjustment not expected to be material.

    Oct 25, 2017
  29. 2017-Q3

    Illumina Quarterly Report for Q3 Ended Jul 2, 2017

    Illumina, Inc. reported second-quarter 2017 results in this Form 10-Q for the period ended July 2, 2017. Total revenue rose 10% to $662 million in Q2 2017 from $600 million, and gross margin declined to 65.5% from 70.6%. For the first half of 2017, revenue increased 8% to $1,261 million, but income from operations fell to $195 million (15.5% of revenue) from $283 million, mainly due to lower gross margins and higher R&D and SG&A spending. Net income attributable to Illumina stockholders for the first half was $495 million, far above the prior-year $210 million, reflecting a $453 million pretax gain on the deconsolidation of GRAIL, Inc. effective February 28, 2017. The balance sheet strengthened, with cash and cash equivalents of $1,219 million and short-term investments of $674 million at July 2, 2017, compared with $735 million and $824 million at January 1, 2017. Total debt-related balances rose, with long-term debt at $1,169 million, largely due to $109 million of financing lease obligations. The company repurchased $101 million of stock in the first half, completing its July 2016 program, and a new $250 million repurchase authorization approved May 4, 2017 remained available with no repurchases in Q2. The company reported that the NovaSeq platform launch drove instrument shipments and that it expects revenue to continue increasing in 2017, while expecting R&D and SG&A expenses to keep growing. The company also stated that it expects the new revenue recognition standard (ASU 2014-09) will not have a material impact on its existing policies or financial statements, with adoption planned in the first quarter of 2018.

    Aug 3, 2017
  30. 2017-Q2

    Illumina Quarterly Report for Q2 Ended Apr 2, 2017

    Illumina, Inc. reported first-quarter 2017 results (quarter ended April 2, 2017) with total revenue of $598 million, up 5% from $572 million in Q1 2016, driven by growth in sequencing consumables and genotyping services, partially offset by lower HiSeq shipments. Gross margin fell to 61.5% from 69.4%, reflecting a $18 million impairment of an acquired intangible asset, the NovaSeq product transition, higher array services revenue and product mix. Income from operations declined to $52 million from $121 million, or 8.7% of revenue versus 21.2% a year earlier, as R&D and SG&A expenses grew. Net income attributable to Illumina stockholders rose to $367 million (diluted EPS of $2.48) from $90 million, primarily due to a $453 million pretax gain on the deconsolidation of GRAIL, Inc. effective February 28, 2017. Following GRAIL's Series B financing, Illumina's equity ownership fell from 52% to 19%, and it no longer consolidates GRAIL. The company's cash, cash equivalents and short-term investments totaled $1.8 billion at quarter end, and it completed a $250 million share repurchase program during the quarter, with a new $250 million program authorized on May 4, 2017. The company also adopted ASU 2016-09 in Q1 2017 and noted that its ASU 2014-09 revenue standard assessment suggests no material impact, with adoption planned for 2018. The filing states the company expects revenue to continue to increase in 2017 and expects R&D and SG&A expenses to keep growing.

    May 5, 2017
  31. 2016-Q3

    Illumina Quarterly Report for Q3 Ended Oct 2, 2016

    Illumina, Inc. reported third-quarter 2016 results for the period ended October 2, 2016, with total revenue of $607.1 million, up 10% from $550.3 million in Q3 2015, and nine-month revenue of $1,779.0 million, up 9% from $1,628.2 million. Product revenue for the quarter was $513.7 million and service and other revenue was $93.4 million. Gross margin was 70.2% in Q3 2016 versus 70.4% a year earlier. Income from operations was $160.7 million in the quarter, compared with $140.8 million in Q3 2015, while nine-month income from operations fell to $444.0 million from $468.8 million, driven mainly by higher research and development and selling, general and administrative expenses. Net income attributable to Illumina stockholders was $128.9 million for the quarter, and diluted earnings per share were $0.87 versus $0.79. The balance sheet strengthened, with cash, cash equivalents and short-term investments totaling about $1.5 billion at October 2, 2016 ($794.7 million in cash and $741.6 million in short-term investments). Property and equipment, net, rose to $633.9 million from $342.7 million at year-end 2015, reflecting $308.8 million of construction in progress. The company repurchased $113.1 million of common stock in the first nine months under a new $250.0 million program authorized July 28, 2016, leaving $236.9 million available. Net cash provided by operating activities was $407.1 million for the nine months. The company's consolidated variable interest entities, GRAIL and Helix, drove a growing share of operating losses. GRAIL, in which Illumina holds a 52% fully diluted interest, raised $120.0 million in Series A preferred financing, of which Illumina invested $40.0 million. Segment operating loss for the consolidated VIEs was $25.1 million in the quarter and $49.7 million for the nine months. Illumina also reported a $24.8 million discrete tax benefit in Q3 2015 that did not recur, and the effective tax rate rose to 24.2% in Q3 2016 from 10.3% a year earlier.

    Nov 8, 2016
  32. 2016-Q3

    Illumina Quarterly Report for Q3 Ended Jul 3, 2016

    Illumina, Inc. reported second-quarter 2016 results for the three months ended July 3, 2016, with total revenue of $600.1 million, up $60.7 million, or 11%, from $539.4 million in Q2 2015. Product revenue was $509.9 million and service and other revenue was $90.2 million. Consumables revenue rose $76.1 million, or 25%, to $379.4 million, while instrument revenue fell $29.7 million, or 19%, to $125.6 million, mainly on lower shipments of high-throughput platforms. Gross margin improved to 70.6% from 69.8%, but income from operations was $161.9 million versus $151.9 million, and operating expenses rose 17% as research and development grew 30% and selling, general and administrative expense grew 19%. Net income attributable to Illumina stockholders was $120.4 million, or $0.82 diluted EPS, compared with $102.2 million, or $0.69, a year earlier. Results were helped by a $11.5 million legal contingencies reversal tied to the Enzo settlement. First-half 2016 revenue was $1.17 billion, up 9%, with the company citing weaker performance in Europe. Cash, cash equivalents and short-term investments totaled about $1.4 billion at July 3, 2016. The company also repurchased $100.0 million of stock in the first half and is consolidating GRAIL and Helix, two variable interest entities in which it holds majority or 50% interests. GRAIL raised $120.0 million in Series A preferred financing, and the company absorbs about 90% of GRAIL losses through June 2016, dropping to approximately 50% thereafter. Total debt included $1.15 billion principal of convertible senior notes, and the company had $156.1 million remaining under repurchase authorizations.

    Aug 2, 2016
  33. 2016-Q2

    Illumina Quarterly Report for Q2 Ended Apr 3, 2016

    Illumina, Inc. reported first-quarter 2016 results (three months ended April 3, 2016) with total revenue of $571.8 million, up 6% from $538.6 million in Q1 2015. Product revenue was $482.8 million and service and other revenue was $89.0 million. Consumables revenue rose 17% to $360.8 million, while instrument revenue fell 20% to $117.6 million, primarily due to lower HiSeq X shipments. Gross margin was 69.4% versus 69.6% a year earlier, and gross profit rose to $397.1 million. Profitability declined. Income from operations fell $54.7 million to $121.4 million, as research and development expense rose 35% to $124.0 million and selling, general and administrative expense rose 28% to $149.2 million. Net income attributable to Illumina stockholders was $89.6 million, or $0.60 per diluted share, compared with $136.7 million, or $0.92 per diluted share, in the prior-year quarter. The prior-year quarter included a $12.6 million cost-method investment gain and a $9.9 million acquisition-related gain. Balance sheet and capital items: cash, cash equivalents and short-term investments totaled $1.3 billion. The 0.25% convertible notes due 2016 were fully converted by March 11, 2016, with $75.5 million of principal paid in cash. Outstanding convertible notes at quarter end were $1.15 billion in principal. Illumina consolidated two variable interest entities, GRAIL and Helix, and noncontrolling interests in these entities were a factor in the results. The company also committed $100.0 million to a new venture capital fund, and $256.1 million remained under stock repurchase authorizations.

    May 9, 2016
  34. 2015-Q3

    Illumina Quarterly Report for Q3 Ended Sep 27, 2015

    Illumina, Inc. reported third-quarter 2015 total revenue of $550.3 million, up 14% from $480.6 million in Q3 2014, and nine-month revenue of $1,628.2 million, up 21% from $1,349.0 million. Gross margin rose to 70.4% in the quarter and 69.9% year to date, driven by manufacturing efficiencies and a shift in product mix toward sequencing consumables. Income from operations for the first nine months was $468.8 million versus $311.8 million a year earlier, and net income attributable to Illumina stockholders was $357.1 million, or $2.39 diluted EPS, helped by a $24.8 million discrete tax benefit that lowered the year-to-date effective tax rate to 20.9%. The balance sheet shows cash, cash equivalents and short-term investments of about $1.4 billion at September 27, 2015, against $1,254.2 million of convertible senior notes outstanding. The company converted $215.9 million of its 2016 Notes during the nine months, and $104.2 million of those notes remain due March 15, 2016. Operating cash flow was $419.2 million for the nine months, while capital expenditures were $107.4 million. The company also consolidated Helix Holdings I, LLC, a consumer genomics venture in which it holds a 50% voting interest, and recorded $32.1 million in redeemable noncontrolling interests tied to it. Management expects operating expenses to keep growing and says current resources are sufficient for at least the next 12 months. The filing also records a $15.0 million legal contingency accrual in Q3 2015 and notes that the company is unable to predict the ultimate outcome of pending litigation. Share repurchases totaled $72.2 million year to date, and on October 29, 2015 the Board authorized a new $250.0 million discretionary repurchase program.

    Nov 2, 2015
  35. 2015-Q2

    Illumina Quarterly Report for Q2 Ended Jun 28, 2015

    Illumina, Inc. reported strong second-quarter and first-half 2015 results in this Form 10-Q for the period ended June 28, 2015. Total revenue for the three months ended June 28, 2015 was $539.4 million, up from $447.6 million, and first-half revenue was $1,077.9 million versus $868.3 million a year earlier. Net income for the quarter was $102.2 million ($0.69 per diluted share), compared with $46.6 million ($0.31 per diluted share) in Q2 2014. Gross margin improved to 69.7% for the first half of 2015 from 66.7%, and income from operations rose $135.7 million year over year to $328.1 million for the six months. The balance sheet strengthened, with cash, cash equivalents and short-term investments totaling $1.5 billion at June 28, 2015 ($591.1 million in cash and $919.3 million in short-term investments). Total stockholders' equity increased to $1.79 billion from $1.46 billion at year-end 2014, largely reflecting retained earnings growth. Convertible senior notes outstanding totaled $1.46 billion in principal, with $311.6 million of 0.25% notes due March 2016 remaining; the company stated that $152.5 million of these notes received conversion notices in July 2015, and that these notes remain convertible through September 30, 2015. Management noted that research and development and selling, general and administrative expenses are expected to continue growing, and that current cash, investments and operating cash flow are sufficient to fund operations for at least the next 12 months. The company also disclosed a $150.0 million Rule 10b5-1 repurchase authorization approved May 1, 2015, with $245.6 million in total repurchase authority remaining as of June 28, 2015, though no shares were repurchased in the second quarter.

    Jul 31, 2015
  36. 2015-Q1

    Illumina Quarterly Report for Q1 Ended Mar 29, 2015

    Illumina, Inc. reported first-quarter 2015 results (three months ended March 29, 2015) with total revenue of $538.6 million, up from $420.8 million in Q1 2014, and the filing states revenue increased 28%. Product revenue was $459.1 million and service and other revenue was $79.4 million. Gross margin rose to 69.6% from 66.1%, and the company attributes the improvement partly to the absence of Syntrix patent litigation legal contingency charges that affected Q1 2014 and to higher margins on sequencing instrument sales. Income from operations was $176.1 million versus $92.1 million a year earlier, and net income was $136.7 million, or $0.92 per diluted share, compared with $60.0 million, or $0.40 per diluted share. The effective tax rate was 23.2% versus 28.4%, partly reflecting a reversal of a valuation allowance for R&D tax credits recorded as a discrete item. Balance sheet and cash flow highlights include cash, cash equivalents and short-term investments totaling about $1.4 billion ($533.5 million cash and $833.0 million short-term investments). Net cash provided by operating activities was $66.8 million, while capital expenditures were $36.6 million. Convertible senior notes carried a principal amount of $1.47 billion, including $320.0 million of 0.25% notes due March 2016 that remain convertible through June 30, 2015. The company repurchased $34.8 million of stock in the quarter, leaving $95.6 million available under its authorizations. Management states that current cash and investments, together with operating cash flow, are sufficient to fund near-term needs for at least the next 12 months. The filing notes that operating expenses are expected to keep growing, with research and development up 19% and selling, general and administrative expense up 6% year over year.

    May 1, 2015
  37. 2014-Q3

    Illumina Quarterly Report for Q3 Ended Sep 28, 2014

    Illumina, Inc. reported strong results for the third quarter and first nine months of 2014. Total revenue for Q3 2014 was $480.6 million, up 35% from $356.8 million in Q3 2013, and year-to-date revenue was $1,349.0 million, up 30% from $1,033.9 million. Gross margin improved to 69.5% in Q3 2014 from 58.8% a year earlier, and net income for the quarter was $93.5 million, or $0.63 per diluted share, compared with $31.4 million, or $0.22 per diluted share, in the prior-year quarter. Year-to-date net income was $200.1 million, or $1.34 per diluted share. Results were also helped by the absence of the $115.4 million Syntrix legal contingency charge that burdened the first nine months of 2013. The balance sheet and capital structure changed meaningfully. In June 2014 the company issued $1,150.0 million of 0% convertible senior notes due 2019 and 0.5% convertible senior notes due 2021, and used $1,244.7 million in cash and proceeds to repurchase $600.0 million of its 0.25% notes due 2016. Total convertible notes principal outstanding was $1,470.0 million at September 28, 2014, and the company recorded a $31.4 million loss on extinguishment of debt. Cash, cash equivalents and short-term investments totaled $1.3 billion. Management stated that current resources are sufficient for at least the next 12 months. The main legal overhang is the Syntrix BeadChip patent case. The company recorded a legal contingency accrual of $148.8 million at September 28, 2014, which was reclassified to short-term liabilities because an appeals court decision is expected within one year. The company disagrees with the judgment and has appealed it, and $28.3 million has been deposited with the court for accrued post-judgment royalties. Operating expenses also grew with headcount, with research and development up 20% and selling, general and administrative expense up 25% in the quarter.

    Oct 29, 2014
  38. 2014-Q2

    Illumina Quarterly Report for Q2 Ended Jun 29, 2014

    Illumina, Inc. reported second-quarter 2014 total revenue of $447.6 million, up 29% from $346.1 million in Q2 2013, and first-half revenue of $868.3 million, up 28%. Income from operations rose to $100.2 million in Q2 2014 from $60.0 million, and net income was $46.6 million versus $35.9 million a year earlier. First-half 2014 net income was $106.6 million, compared with $13.3 million in the first half of 2013, which had carried a $115.4 million Syntrix legal contingency charge in operating expense. Gross margin was 67.1% in Q2 2014 and 66.7% for the first half. The balance sheet shows cash, cash equivalents and short-term investments of about $1.1 billion at June 29, 2014. In June 2014 the company issued $1,150.0 million of convertible senior notes due 2019 and 2021, net proceeds of $1,132.4 million, and used $1,244.7 million of cash and proceeds to repurchase $600.0 million of its 0.25% notes due 2016. That repurchase produced a $31.4 million loss on extinguishment of debt within other expense, net, which drove Q2 other expense to $31.3 million. Total long-term and current debt rose to about $1.27 billion net carrying value, and stockholders' equity fell to $1.08 billion from $1.53 billion, largely reflecting the equity component recorded against repurchased notes and share repurchases of $202.4 million in the first half. The Syntrix patent litigation remains a key overhang. The legal contingency accrual is $143.6 million, the company has appealed the Final Amended Judgment of $115.1 million, and it continues to deposit ongoing royalties of 8% on accused sales. Management states it believes it did not infringe the patent and that the patent is invalid. The company also reports that it expects research and development and selling, general and administrative expenses to keep growing, and that its effective tax rate in the first half was 26.1%.

    Aug 1, 2014
  39. 2014-Q1

    Illumina Quarterly Report for Q1 Ended Mar 30, 2014

    Illumina, Inc. reported first-quarter 2014 results (quarter ended March 30, 2014) with total revenue of $420.8 million, up 27% from $331.0 million in Q1 2013. Product revenue was $362.2 million and service and other revenue was $58.6 million, which the filing attributes to growth across its sequencing products, including consumables, instruments, and services. Gross margin was 66.1% versus 66.3% a year earlier, pressured by higher Syntrix legal contingency charges and a lower sales mix of consumables. Income from operations was $92.1 million, compared with a loss of $45.1 million in Q1 2013, which included a $105.9 million Syntrix legal charge. Net income was $60.0 million, or $0.40 per diluted share, versus a net loss of $22.6 million in the prior-year quarter. Cash, cash equivalents and short-term investments totaled $1.1 billion at quarter end, with cash and equivalents of $518.5 million and short-term investments of $573.3 million. Operating cash flow was $37.1 million, and the company spent $130.0 million repurchasing 0.8 million shares. The $920.0 million of 0.25% convertible senior notes due 2016 became convertible on April 1, 2014 and remain convertible through June 30, 2014, and the filing states the company intends to settle conversions through combination settlement. The Syntrix patent judgment remains on appeal, with a legal contingency accrual of $138.8 million at quarter end and an ongoing 8% royalty on accused sales. The company states that its current cash, cash equivalents and short-term investments, together with operating cash flow, are sufficient to fund near-term needs for at least the next 12 months. The filing notes that management expects research and development and selling, general and administrative expenses to continue growing, and that its effective tax rate is expected to trend lower than the U.S. federal statutory rate of 35%.

    May 7, 2014
  40. 2013-Q3

    Illumina Quarterly Report for Q3 Ended Sep 29, 2013

    Illumina, Inc. reported strong top-line growth in its third-quarter 2013 Form 10-Q, with total revenue of $356.8 million for the quarter (up 25% from $285.9 million) and $1.03 billion year-to-date (up 23%). However, profitability fell sharply: gross margin declined to 63.1% year-to-date from 67.9%, and income from operations dropped to $60.3 million from $141.4 million in the first three quarters of 2012. The decline was driven largely by a $115.4 million legal contingency charge tied to the Syntrix patent litigation, a $25.2 million impairment from discontinuing the Eco and NuPCR product lines, and higher operating expenses. Net income for the nine months was $44.6 million, versus $79.4 million a year earlier. The Syntrix matter is the central item for investors. A jury found Illumina's BeadChip kits infringed a Syntrix patent, the court entered a Final Amended Judgment of $115.1 million, and it awarded an ongoing 8% royalty through September 2019. The company recorded a $127.0 million legal contingency accrual as of September 29, 2013, and disclosed that it is appealing to the Federal Circuit. Following a November 4, 2013 order upholding the verdict, Illumina must secure the judgment amount and deposit royalties into escrow within 30 days. On the balance sheet, cash, cash equivalents and short-term investments totaled $1.03 billion, and the company completed several acquisitions during the period, including Verinata Health for $396.3 million. Management stated that current cash and operating cash flow should fund near-term needs for at least 12 months, and that operating expenses are expected to keep growing. Convertible notes remain outstanding: $920.0 million of 0.25% notes due 2016 and $29.6 million of 0.625% notes due 2014.

    Nov 6, 2013
  41. 2013-Q2

    Illumina Quarterly Report for Q2 Ended Jun 30, 2013

    Illumina, Inc. filed this Form 10-Q for the quarter ended June 30, 2013. Revenue for the three months rose to $346.1 million from $280.6 million a year earlier, and first-half revenue reached $677.1 million versus $553.4 million. Product revenue grew 21% in the quarter, and total first-half revenue increased 22.3%, which the filing describes as driven by sequencing consumables, instruments (notably HiSeq) and services. Gross margin fell to 64.6% in Q2 2013 from 68.8%, mainly from higher amortization of acquired intangibles and Syntrix legal charges. The dominant issue for investors is the Syntrix patent litigation. A jury found Illumina's BeadChip kits infringed a Syntrix patent, and on July 1, 2013 the court entered an amended judgment of $115.1 million plus an ongoing 8% royalty on accused sales. The company recorded a legal contingency accrual of $122.7 million, which drove first-half operating income down to $14.9 million from $92.6 million and produced a net income of $13.3 million for the six months. The company disagrees with the verdict, has filed a post-trial motion, and plans to appeal if necessary. The balance sheet remained strong, with cash, cash equivalents and short-term investments totaling $1.13 billion at June 30, 2013. Operating activities provided $176.4 million in the first half. The company also completed the $396.3 million Verinata Health acquisition in February 2013, and it settled warrants with a hedging counterparty for $125.0 million in cash on July 18, 2013. It also agreed to acquire Advanced Liquid Logic for up to $96.0 million in cash on July 1, 2013.

    Jul 29, 2013
  42. 2013-Q1

    Illumina Quarterly Report for Q1 Ended Mar 31, 2013

    Illumina, Inc. reported a first-quarter 2013 net loss of $22.6 million, or $0.18 per share, compared with net income of $26.2 million in the prior-year quarter. Total revenue rose to $330.96 million from $272.77 million, with product revenue of $296.17 million and service and other revenue of $34.79 million. The result was driven by a $105.9 million legal contingency charge tied to the Syntrix Biosystems patent litigation, after a March 14, 2013 jury verdict found that Illumina's BeadChip kits infringe the Syntrix patent and awarded damages of approximately $95.8 million. The company has recorded a total legal contingency accrual of $106.9 million as of March 31, 2013, and intends to file post-trial motions and, if needed, an appeal. Loss from operations was $45.1 million, versus income of $49.6 million a year earlier, and gross margin was 66.3% compared with 66.4%. The quarter also included the February 21, 2013 acquisition of Verinata Health, Inc. for an aggregate purchase price of $401.1 million, including $339.2 million in cash, and a $6.1 million gain on the sale of a cost-method investment. Goodwill rose to $604.5 million from $369.3 million, and intangible assets increased to $307.2 million from $130.2 million, reflecting the acquisition. Cash, cash equivalents and short-term investments totaled $1.07 billion at quarter end, and the company repurchased $25.0 million of common stock during the quarter. Management stated it expects revenue to continue to grow in 2013 and expects operating expenses to keep growing. For investors, the central questions are the size and timing of the Syntrix judgment and the potential ongoing royalty obligations, the effect of acquisition-related amortization on gross margin, and whether revenue growth can offset rising operating expenses. Sequencing consumables were the main driver of revenue growth, which the company attributed to a larger HiSeq installed base.

    May 1, 2013
  43. 2012-Q3

    Illumina Quarterly Report for Q3 Ended Sep 30, 2012

    Illumina, Inc. reported third-quarter 2012 results with total revenue of $285.9 million, up from $235.5 million in Q3 2011, and net income of $29.7 million, or $0.22 per diluted share, versus $20.2 million, or $0.15 per diluted share, a year earlier. For the first nine months of 2012, total revenue was $839.3 million compared with $805.5 million, and income from operations fell to $141.4 million from $172.2 million. The filing attributes the operating income decline mainly to a $21.4 million impairment of in-process research and development, headquarters relocation costs, expenses tied to Roche's unsolicited tender offer, and restructuring charges. Gross margin improved to 67.9% for the first three quarters of 2012 from 66.9% a year earlier, driven by a shift in sales mix toward higher-margin consumables. The balance sheet remained strong, with cash, cash equivalents and short-term investments totaling about $1.2 billion at September 30, 2012. Total assets rose to $2.44 billion from $2.20 billion at January 1, 2012, and total stockholders' equity was $1.22 billion. The company acquired BlueGnome Ltd. for total consideration of $95.5 million in September 2012 and repurchased $52.5 million of common stock during the first nine months under a $250 million program authorized in April 2012. The company says it expects to incur additional tender-offer-related expenses through the first half of 2013 and that its effective tax rate will trend lower than the U.S. federal statutory rate going forward. Management cites ongoing uncertainty in government and academic research funding in the United States and Europe, and states that approximately one-third of total revenue is derived, directly or indirectly, from NIH funding. Growth drivers highlighted include sequencing consumables and first commercial shipments of the HiSeq 2500 in Q3 2012.

    Oct 29, 2012
  44. 2012-Q3

    Illumina Quarterly Report for Q3 Ended Jul 1, 2012

    Illumina, Inc. reported second-quarter 2012 results (quarter ended July 1, 2012) with total revenue of $280.6 million, down from $287.5 million in Q2 2011, and net income of $23.4 million, or $0.18 per diluted share, versus $30.6 million, or $0.22 per diluted share, a year earlier. For the first half of 2012, total revenue was $553.4 million compared with $570.0 million in the first half of 2011, and net income was $49.6 million versus $54.8 million. Results were pressured by a $21.4 million impairment of in-process research and development recorded in research and development expense, as well as $14.8 million of expenses related to Roche's unsolicited tender offer, which expired April 20, 2012, and $3.3 million of restructuring charges for the first half. Gross margin improved to 67.6% for the first half of 2012 from 66.9% a year earlier, reflecting a shift toward higher-margin consumables. Consumables revenue rose 16% to $356.6 million in the first half of 2012, while instrument revenue fell 31% to $151.8 million as HiSeq 2000 shipments declined from the high level of the prior-year period, which was boosted by backlog and the Genome Analyzer trade-in program. The company ended the quarter with approximately $1.3 billion in cash, cash equivalents and short-term investments, $789.0 million of long-term convertible debt net of discount, and stockholders' equity of $1.18 billion. Operating cash flow for the first half of 2012 was $161.8 million, and the company repurchased $32.5 million of stock under a $250 million program authorized on April 18, 2012. Management stated that uncertainty around U.S. and European government and academic research funding could lead to purchasing delays, and estimated that roughly one-third of total revenue derives directly or indirectly from NIH funding. The company expects additional expenses related to the tender offer and its headquarters relocation through 2012, and anticipates its effective tax rate will trend below the U.S. federal statutory rate over the remainder of 2012 and beyond.

    Jul 30, 2012
  45. 2012-Q2

    Illumina Quarterly Report for Q2 Ended Apr 1, 2012

    Illumina, Inc. reported first-quarter 2012 results (three months ended April 1, 2012) with total revenue of $272.8 million, down from $282.5 million in the prior-year quarter. Product revenue was $255.6 million and service and other revenue was $17.1 million. Net income was $26.2 million, or $0.20 per diluted share, compared with $24.1 million, or $0.16 per diluted share, a year earlier. Income from operations fell to $49.6 million from $69.4 million, reflected in $8.1 million of unsolicited tender offer expense related to Roche's offer, $2.6 million of restructuring charges, and higher selling, general and administrative expense. Gross profit was $181.0 million, and cash provided by operating activities was $65.4 million. The balance sheet remained liquid, with cash, cash equivalents and short-term investments totaling about $1.3 billion at April 1, 2012, and the company stated that current cash and operating cash flow should fund operations for at least the next 12 months. Convertible senior notes outstanding were $920.0 million principal due 2016 and $40.1 million due 2014. On April 18, 2012, the Board authorized a $250 million stock repurchase program. The filing also reports a February 28, 2012 federal jury verdict finding certain sample preparation and cluster generation products infringe a LadaTech patent, and three stockholder class actions related to the Roche tender offer, which expired on April 20, 2012 without being extended. Management attributed the revenue decline to a large volume of HiSeq 2000 shipments and Genome Analyzer trade-in activity in the prior-year quarter, partly offset by higher consumables sales. The company expects additional expenses related to the tender offer and restructuring through 2012, and anticipates an effective tax rate below the U.S. federal statutory rate for the remainder of 2012 and beyond.

    May 3, 2012
  46. 2011-Q3

    Illumina Quarterly Report for Q3 Ended Oct 2, 2011

    Illumina, Inc. reported third-quarter 2011 results (quarter ended October 2, 2011) with total revenue of $235.5 million, down slightly from $237.3 million a year earlier, while nine-month revenue rose 26% to $805.5 million. Gross margin for the nine months was 66.9% versus 67.9% in the prior-year period, reflecting a shift in mix toward lower-margin instruments tied to the HiSeq 2000 launch. Net income for the quarter was $20.2 million ($0.15 diluted per share), compared with $35.4 million a year earlier, as operating expenses grew 21% in the quarter and the company recorded $11.6 million of year-to-date headquarter relocation expense and a $37.6 million loss on extinguishment of debt. The balance sheet changed meaningfully during the period. Illumina issued $920.0 million of 0.25% convertible senior notes due 2016, used $314.3 million to repurchase 4.89 million shares concurrently, and retired $349.9 million of its 0.625% notes due 2014 through conversions. Cash and short-term investments totaled about $1.1 billion at quarter end, and treasury stock rose to $1.11 billion from $541.6 million at fiscal year-end. Management noted that NIH-related funding, which it estimates supports roughly one-third of total revenue, remains uncertain, and that instrument sales declined in Q3 as customers delayed purchases. Management expects Q4 2011 revenue to exceed Q3 2011 and announced a restructuring to cut about 200 employees (roughly 8%), with a charge of approximately $15 to $17 million mostly recorded in the fourth quarter. The company also said it expects significant income tax payments in 2011 and beyond, and that existing cash and operating income should fund operations for at least the next 12 months.

    Nov 4, 2011
  47. 2011-Q3

    Illumina Quarterly Report for Q3 Ended Jul 3, 2011

    Illumina, Inc. reported a strong first half and second quarter of 2011 in this Form 10-Q for the quarter ended July 3, 2011. Total revenue for the three months ended July 3, 2011 was $287.5 million, up from $212.0 million in the prior-year quarter, and net income was $30.6 million versus $29.8 million. For the six months, total revenue was $570.0 million and net income was $54.8 million. Growth was driven mainly by HiSeq 2000 shipments, improved microarray sales, and higher consumables sales. Gross margin for the first half declined to 66.9% from 68.9%, which the company attributed to a shift in sales mix toward lower-margin instruments and promotional discounts, including the Genome Analyzer trade-in program. The balance sheet and capital structure changed significantly during the period. In March 2011 the company issued $920.0 million of 0.25% convertible senior notes due 2016 (including an additional $120 million issued in April), used $314.3 million of proceeds to repurchase 4,890,500 shares, and used $340.9 million to retire 0.625% notes due 2014 upon conversion. Total long-term debt rose to $757.3 million, and the company reported a $36.9 million loss on extinguishment of debt for the six months. Cash, cash equivalents and short-term investments totaled about $1.2 billion at July 3, 2011, and management stated that current cash and operating income should fund operations for at least the next 12 months. Operating expenses rose 28% in the first half, and management expects research and development and selling, general and administrative expense to keep increasing in absolute dollars. The company is also relocating its headquarters to San Diego, recording $5.1 million of headquarter relocation expense in the first half, with more expected in 2011. Other expense, net was $37.1 million for the six months, driven mainly by the debt extinguishment loss. Management noted that the MiSeq was expected to begin volume shipments in Q4 2011.

    Aug 10, 2011
  48. 2011-Q2

    Illumina Quarterly Report for Q2 Ended Apr 3, 2011

    Illumina, Inc. reported first-quarter 2011 results for the three months ended April 3, 2011, with total revenue of $282.5 million, up from $192.1 million in the prior-year quarter. Product revenue was $266.7 million versus $173.7 million, while service and other revenue declined to $15.8 million from $18.5 million, which the filing attributes mainly to a one-time significant service contract recorded in Q1 2010. Gross profit was $188.0 million and gross margin was 66.6%, compared with 68.8% a year earlier; the filing attributes the decline to customer discounts on HiSeq 2000 sales, including the Genome Analyzer trade-in program, and lower margins on newer products. Income from operations rose to $69.4 million from $38.2 million, and net income was $24.1 million, or $0.16 per diluted share, compared with $21.2 million, or $0.16 per diluted share, a year earlier. Other expense, net, included a $27.2 million loss on the conversion of 0.625% convertible senior notes due 2014. The balance sheet and financing activity were significant in the quarter. On March 18, 2011, the company issued $800.0 million of 0.25% convertible senior notes due 2016, with an additional $120.0 million issued on April 18, 2011. The company used $314.3 million of the proceeds to repurchase 4,890,500 shares concurrently with the issuance and used $253.1 million to retire 2014 notes converted during the quarter. Cash and short-term investments totaled approximately $1,134.6 million at April 3, 2011. Cash from operations was $88.6 million, and the company stated its current cash and income from operations should fund operations for at least the next 12 months. Management highlighted strong demand for next-generation sequencing, with HiSeq 2000 unit shipments increasing after added manufacturing capacity and instrument lead times reduced to four to eight weeks. The company expects to launch consumable kits in Q2 2011 that it believes will allow whole human genome sequencing for less than $5,000 in consumable costs, begin volume MiSeq shipments in Q4 2011, and begin customer shipments of the Omni 5 microarray in mid-2011. Acquisitions included Epicentre Technologies Corporation in January 2011, for total consideration of $72.5 million.

    May 4, 2011
  49. 2010-Q3

    Illumina Quarterly Report for Q3 Ended Oct 3, 2010

    Illumina, Inc. reported strong third-quarter 2010 results, with total revenue of $237.3 million for the three months ended October 3, 2010, up from $158.4 million in the prior-year quarter. Product revenue was $224.7 million and service and other revenue was $12.6 million. Gross margin was 66.2% versus 67.6% a year earlier, which the company attributed mainly to discounts on HiSeq 2000 sales under the Genome Analyzer trade-in program. Net income for the quarter was $35.4 million, or $0.24 per diluted share, compared with $17.1 million, or $0.12 per diluted share, in Q3 2009. For the nine months, total revenue was $641.4 million and net income was $86.5 million, or $0.61 per diluted share. Growth was driven primarily by next generation sequencing. Consumable revenue rose $46.0 million, or 53%, in the quarter, and instrument revenue rose $27.1 million, or 45%, to $87.8 million, with the HiSeq 2000 launched in Q1 2010. The company expects gross margins in the mid 60s in Q4 2010 as it continues shipping discounted HiSeq 2000 systems, and it expects research and development and selling, general and administrative expenses to rise in absolute dollars. Liquidity remained solid, with approximately $806.8 million in cash and short-term investments at October 3, 2010. The company completed the Helixis, Inc. acquisition in April 2010 for approximately $86.7 million in total consideration, and it repurchased 347,112 shares during the quarter under a $200 million repurchase program authorized in July 2010. The $400.0 million 0.625% convertible senior notes due 2014 remain outstanding at $390.0 million principal, and management expects current cash and operations to fund needs for at least the next 12 months.

    Nov 5, 2010
  50. 2010-Q3

    Illumina Quarterly Report for Q3 Ended Jul 4, 2010

    Illumina, Inc. reported a strong second quarter of 2010, with total revenue of $212.0 million for the three months ended July 4, 2010, up from $161.6 million in the prior-year quarter, and net income of $29.8 million, compared with $24.7 million a year earlier. For the six months ended July 4, 2010, total revenue was $404.1 million and net income was $51.0 million. Product revenue growth was driven by sequencing consumables and instruments, with the company citing strong demand for next generation sequencing and the launch of the HiSeq 2000 in Q1 2010. Gross margin was 68.9% for the quarter, roughly flat versus 68.8% a year earlier, and management expects gross margin to decline in the second half of 2010 due to the Genome Analyzer trade-in program and lower margins on newer products. Operating expenses rose to $98.7 million in the quarter, led by research and development of $43.7 million and selling, general and administrative expenses of $53.7 million. The company completed the acquisition of Helixis, Inc. on April 30, 2010 for approximately $86.7 million in total consideration, including $70.0 million in cash and contingent consideration of up to $35 million. Liquidity remained solid, with approximately $785.4 million in cash and short-term investments at July 4, 2010, against $390.0 million in principal of 0.625% convertible senior notes due 2014. Management stated that current cash and income from operations should fund operations for at least the next 12 months, and it expects significant income tax payments in 2010 and beyond as it uses net operating loss carryforwards. The company also noted that approximately $46.9 million of orders in the first six months of 2010 were directly related to Recovery Act grants, and that it began shipping the Omni 2.5 microarray in Q2 2010. The effective tax rate rose to 36.0% for the quarter from 29.5% a year earlier, which management attributed mainly to the expiration of the federal research and development credit on December 31, 2009.

    Aug 4, 2010