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Illumina 8-K Report, Financial Results (May 2, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 2, 2024
Period End
May 2, 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 May 2, 2024. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. reported first-quarter 2024 financial results in a press release furnished as Exhibit 99.1 to this Form 8-K, filed May 2, 2024.

Consolidated revenue was $1.08 billiona (1,076 million), down 1% from Q1 2023 on a constant currency basis as well. GAAP diluted loss per share was $(0.79), compared with GAAP diluted earnings of $0.02 in Q1 2023, reflecting a GAAP operating loss of $111 million. Non-GAAP diluted earnings per share were $0.09, compared with $0.08 a year earlier, and non-GAAP operating margin for consolidated results was 3.1%.

Core Illumina revenue was $1.06 billionb, down 2%, with a GAAP operating margin of 11.0% and a non-GAAP operating margin of 20.6%. GRAIL revenue was $27 million, and its GAAP operating loss was $227 million. The company reiterated its fiscal 2024 guidance for Core Illumina revenue to be approximately flat compared with 2023 and a Core Illumina non-GAAP operating margin of approximately 20%.

Management said it is focusing the outlook on Core Illumina because the timing and impact of the GRAIL divestment remain uncertain. Illumina stated it remains on track to divest GRAIL through a sale or a capital markets transaction, with the goal of finalizing divestiture terms by the end of Q2 2024. The European Commission approved the divestment plan in April, and a capital markets transaction would require approximately $1 billionc in funding to GRAIL.

For the quarter, operating cash flow was $77 milliond and free cash flow was $41 million, compared with $(42) million a year earlier. Cash, cash equivalents and short-term investments totaled $1,115 million at quarter end. Consolidated SG&A expense rose to $439 million from $378 million, while GAAP gross margin improved to 62.0% from 60.3%.

02—Key points

Key Highlights

  1. Consolidated Q1 2024 revenue of $1.08 billion, down 1% from Q1 2023 (down 1% on a constant currency basis); GAAP operating loss of $111 million versus $64 million a year earlier
  2. GAAP diluted loss per share of $(0.79) versus GAAP diluted earnings of $0.02 in Q1 2023; non-GAAP diluted EPS of $0.09 versus $0.08
  3. Core Illumina revenue of $1.06 billion, down 2%, with a non-GAAP operating margin of 20.6% versus 17.4% a year earlier
  4. GRAIL revenue of $27 million (up from $20 million) and GAAP operating loss of $227 million
  5. Fiscal 2024 guidance reiterated: Core Illumina revenue approximately flat versus 2023 and non-GAAP operating margin of approximately 20%
  6. GRAIL divestment remains on track, with the goal of finalizing terms by end of Q2 2024; the European Commission approved the divestment plan in April 2024
  7. Operating cash flow of $77 million and free cash flow of $41 million for Q1 2024, compared with $10 million and $(42) million a year earlier

03—Questions

Frequently Asked Questions

  1. How did Illumina perform in the first quarter of 2024?

    Consolidated revenue was $1.08 billion, down 1% year over year. GAAP operating loss was $111 million and GAAP diluted loss per share was $(0.79), while non-GAAP diluted EPS was $0.09. Core Illumina revenue was $1.06 billion, down 2%.

  2. What is the company's outlook for fiscal 2024?

    Illumina reiterated guidance for Core Illumina revenue to be approximately flat compared with fiscal 2023 and a Core Illumina non-GAAP operating margin of approximately 20%. The company is focusing its outlook on Core Illumina because the timing and impact of the GRAIL divestment remain uncertain.

  3. What is the status of the GRAIL divestment?

    Illumina said it remains on track to divest GRAIL through either a sale or a capital markets transaction, with the goal of finalizing terms by the end of Q2 2024. The European Commission approved the divestment plan in April 2024. A capital markets transaction would require Illumina to provide GRAIL with approximately $1 billion in funding.

  4. How did cash flow and liquidity look for the quarter?

    Cash flow provided by operations was $77 million and free cash flow was $41 million, compared with $10 million and $(42) million in the prior-year period. The company held $1,115 million in cash, cash equivalents and short-term investments at quarter end.

  5. Why did GAAP results differ from non-GAAP results?

    GAAP results include items such as amortization of acquired intangible assets, acquisition-related expenses tied to the planned GRAIL divestiture, restructuring costs, contingent consideration fair value adjustments, and strategic investment gains and losses. Consolidated SG&A expense was $439 million on a GAAP basis compared with $349 million on a non-GAAP basis.

04—Continue

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