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Illumina 8-K Report, Financial Results (Nov 4, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 4, 2024
Period End
November 4, 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 November 4, 2024. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. filed this Form 8-K on November 4, 2024 to furnish its press release announcing financial results for the third quarter ended September 29, 2024 (Exhibit 99.1).

The company reported Core Illumina revenue of $1,080 milliona for Q3 2024, versus $1,106 million in Q3 2023, and a GAAP operating profit of $741 million (68.6% operating margin) that was boosted by a $488 million legal contingency and settlement benefit. On a non-GAAP basis, Core Illumina operating margin was 22.6% and diluted EPS was $1.14. Consolidated GAAP diluted EPS was $4.42 for the quarter, compared with a loss of $(4.77) in the prior-year period, which included an $821 million goodwill and intangible impairment.

For fiscal 2024, the company lowered its Core Illumina revenue guidance to a decline of approximately 3% from fiscal 2023, and expects Q4 2024 Core Illumina revenue of approximately $1.07 billionb. It raised its Core Illumina non-GAAP operating margin guidance to 21% to 21.5% and its non-GAAP diluted EPS guidance to $4.05 to $4.15. Nine-month GAAP results remained a net loss of $(1,410) million, driven by a $1,889 million goodwill and intangible impairment, largely related to GRAIL, which was spun off on June 24, 2024.

Cash flow from operations was $316 millionc for the quarter, and free cash flow was $284 million. The company held $939 million in cash, cash equivalents and short-term investments at quarter end. Total term debt rose to $1,988 million from $1,489 million at December 31, 2023, while stockholders' equity fell to $2,125 million from $5,745 million.

02—Key points

Key Highlights

  1. Core Illumina revenue was $1,080 million in Q3 2024, down from $1,106 million in Q3 2023, with Core Illumina revenue guidance for fiscal 2024 lowered to a decline of about 3%.
  2. Q3 2024 GAAP operating profit of $741 million was driven by a $488 million legal contingency and settlement benefit; non-GAAP Core Illumina operating margin was 22.6%.
  3. Consolidated GAAP diluted EPS was $4.42 for Q3 2024, versus a loss of $(4.77) in Q3 2023, which included an $821 million goodwill and intangible impairment.
  4. Non-GAAP operating margin guidance for Core Illumina was raised to 21% to 21.5%, and non-GAAP diluted EPS guidance was raised to $4.05 to $4.15 for fiscal 2024.
  5. Q3 2024 cash flow from operations was $316 million and free cash flow was $284 million; cash, equivalents and short-term investments totaled $939 million.
  6. Nine-month GAAP net loss was $(1,410) million, including a $1,889 million goodwill and intangible impairment, largely tied to GRAIL, which was spun off on June 24, 2024.
  7. Term debt increased to $1,988 million at September 29, 2024 from $1,489 million at December 31, 2023.

03—Questions

Frequently Asked Questions

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

    Core Illumina revenue was $1,080 million, compared with $1,106 million in Q3 2023. GAAP operating profit was $741 million, helped by a $488 million legal contingency and settlement benefit, and GAAP diluted EPS was $4.42 for consolidated results. Non-GAAP Core Illumina operating margin was 22.6% and non-GAAP diluted EPS was $1.14.

  2. What changed in Illumina's fiscal 2024 guidance?

    Core Illumina revenue guidance was lowered to a decline of approximately 3% from fiscal 2023, and Q4 2024 Core Illumina revenue is expected to be about $1.07 billion. Non-GAAP operating margin guidance was raised to 21% to 21.5%, and non-GAAP diluted EPS guidance was raised to $4.05 to $4.15.

  3. Why was the prior-year quarter's GAAP result a loss?

    In Q3 2023, consolidated GAAP operating loss was $(754) million, which included an $821 million goodwill and intangible impairment. The filing identifies this impairment as related to GRAIL.

  4. What is the company's cash and debt position?

    At September 29, 2024, Illumina held $869 million in cash and cash equivalents and $70 million in short-term investments, totaling $939 million. Term debt was $1,988 million, up from $1,489 million at December 31, 2023.

  5. What did the company say about its GRAIL spin-off and the legal settlement?

    GRAIL was spun off on June 24, 2024, and the financial results for year-to-date 2024 include GRAIL. The Q3 2024 legal contingency and settlement benefit of $488 million primarily reflects the reversal of the accrued EC fine, including accrued interest.

04—Continue

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