Skip to content
AnalystLens

Illumina 8-K Report, Financial Results (Jan 9, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 9, 2024
Period End
January 9, 2024
Security
ILMN
In the record · 2016–202610-K1110-Q338-K167

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

  1. Leadership change8-K · Nov ’17Nov ’17
  2. Material agreement8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed January 9, 2024. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. (Nasdaq: ILMN) filed this Form 8-K on January 9, 2024 to furnish a press release announcing unaudited preliminary financial results for the fourth quarter and fiscal year ended December 31, 2023, ahead of its presentation at the J.P.

Morgan Healthcare Conference. Consolidated revenue was approximately $1,115 milliona for Q4 2023, up 3% from Q4 2022, and approximately $4,497 million for fiscal year 2023, down 2% from fiscal year 2022. Core Illumina revenue was approximately $1,090 million for Q4 2023, up 2%, and approximately $4,431 million for fiscal 2023, down 3%.

The company shipped 79 NovaSeq X instruments in Q4 2023 and 352 for the full year. Profitability was heavily affected by non-GAAP adjustments. Consolidated GAAP operating margin was approximately (15.5%b) for Q4 2023 and approximately (24.0%) for fiscal 2023, while non-GAAP operating margin was approximately 3.8% and 5.3%, respectively.

Core Illumina GAAP operating margin was approximately 2.4%c for Q4 and 12.3% for the year, and non-GAAP operating margin was approximately 18.0% and 19.8%. The reconciliations cite restructuring, goodwill and intangible (IPR&D) impairments related to GRAIL, acquisition-related expenses tied to the GRAIL acquisition, and contingent consideration fair value adjustments as major items excluded from non-GAAP results. The company stated that these results are preliminary, subject to completion of accounting and annual audit procedures, and may be adjusted.

Full fourth quarter and fiscal 2023 results are expected after market close on February 8, 2024. The release also flags continuing risks tied to GRAIL, including the European Commission and Federal Trade Commission orders requiring divestment of GRAIL.

02—Key points

Key Highlights

  1. Preliminary consolidated revenue of approximately $1,115 million for Q4 2023 (up 3% year over year) and approximately $4,497 million for fiscal 2023 (down 2%).
  2. Preliminary Core Illumina revenue of approximately $1,090 million for Q4 2023 (up 2%) and approximately $4,431 million for fiscal 2023 (down 3%).
  3. Consolidated GAAP operating margin of approximately (15.5%) in Q4 2023 and (24.0%) for fiscal 2023; non-GAAP operating margin of approximately 3.8% and 5.3%, respectively.
  4. Core Illumina non-GAAP operating margin of approximately 18.0% for Q4 2023 and 19.8% for fiscal 2023, versus GAAP margins of 2.4% and 12.3%.
  5. Shipped 79 NovaSeq X instruments in Q4 2023 and 352 instruments for fiscal 2023.
  6. Fiscal 2023 non-GAAP reconciliation includes an 18.4% goodwill and intangible (IPR&D) impairment charge, largely related to GRAIL.
  7. Results are unaudited and preliminary, subject to adjustment; full results are due after market close on February 8, 2024.

03—Questions

Frequently Asked Questions

  1. What were Illumina's preliminary revenues for the fourth quarter and fiscal year 2023?

    The company reported consolidated revenue of approximately $1,115 million for Q4 2023, up 3% from Q4 2022, and approximately $4,497 million for fiscal 2023, down 2% from fiscal 2022. Core Illumina revenue was approximately $1,090 million for Q4 and approximately $4,431 million for the year.

  2. Why do GAAP and non-GAAP operating margins differ so much?

    The reconciliation adds back items including amortization of acquired intangible assets, acquisition-related expenses, restructuring, contingent consideration fair value adjustments, proxy contest costs, goodwill and intangible (IPR&D) impairments, and legal contingency and settlement items. For fiscal 2023, the goodwill and intangible impairment alone accounts for 18.4 percentage points of the consolidated margin difference.

  3. Are these results final?

    No. The company states the unaudited preliminary results are subject to completion of accounting and annual audit procedures and are therefore subject to adjustment. Full fourth quarter and fiscal 2023 results are expected following market close on February 8, 2024.

  4. How many NovaSeq X instruments did Illumina ship?

    Illumina shipped 79 NovaSeq X instruments in Q4 2023 and 352 instruments for fiscal year 2023.

  5. What risks does the company highlight regarding GRAIL?

    The release cites the risks and costs of the ongoing inability to integrate GRAIL due to transitional measures imposed by the European Commission after it prohibited the acquisition, and orders from the European Commission and the Federal Trade Commission requiring divestment of GRAIL. It also cites the risk of additional fines and that divestment terms could be materially worse than those on which GRAIL was acquired.

04—Continue

← View all 8-K filings