San Diego, California, USA
April 24, 2012
Illumina, Inc. (NASDAQ:ILMN) today announced its financial results for the first quarter of 2012.
First quarter 2012 results:
- Revenue of $273 million, a 3% decrease compared to $283 million in the first quarter of 2011.
- GAAP net income for the quarter of $26 million, or $0.20 per diluted share, compared to net income of $24 million, or $0.16 per diluted share, for the first quarter of 2011.
- Non-GAAP net income for the quarter of $48 million, or $0.36 per diluted share, compared to $50 million, or $0.35 per diluted share, for the first quarter of 2011 (see the table entitled "Itemized Reconciliation Between GAAP and Non-GAAP Net Income" for a reconciliation of these GAAP and non-GAAP financial measures).
Gross margin in the first quarter of 2012 was 66.4% compared to 66.6% in the prior year period. Excluding the effect of non-cash charges associated with stock compensation, amortization of acquired intangibles, and legal contingencies, non-GAAP gross margin was 69.0% for the first quarter of 2012 compared to 68.2% in the prior year period.
Research and development (R&D) expenses for the first quarter of 2012 were $48.8 million compared to $50.2 million in the first quarter of 2011. R&D expenses included $7.4 million and $7.7 million of non-cash stock compensation expense in the first quarters of 2012 and 2011, respectively. Excluding these charges and contingent compensation expense, R&D expenses as a percentage of revenue were 14.9% compared to 14.5% in the prior year period.
Selling, general and administrative (SG&A) expenses for the first quarter of 2012 were $68.0 million compared to $65.7 million for the first quarter of 2011. SG&A expenses included $13.8 million and $12.6 million of non-cash stock compensation expense in the first quarters of 2012 and 2011, respectively. Excluding these charges, contingent compensation expense, and acquired intangible asset amortization, SG&A expenses as a percentage of revenue were 18.9% compared to 18.5% in the prior year period.
The company generated $65 million in cash flow from operations during the first quarter of 2012 compared to $89 million in the prior year period. Depreciation and amortization expenses were $15.2 million and capital expenditures were $13.1 million during the first quarter of 2012. The company ended the first quarter of 2012 with $1.3 billion in cash, cash equivalents and short-term investments compared to $1.2 billion as of January 1, 2012.
Share Repurchase Program
Illumina also announced today that on April 18, 2012, its Board of Directors authorized the Company to repurchase up to $250 million of its outstanding common shares.
"We believe that the repurchase of our common stock represents an effective use of our capital and underscores our commitment to maximize value for our shareholders," said Illumina's Marc Stapley, Senior Vice President and Chief Financial Officer. "Since 2008, we have bought over 19 million shares of our common stock through prior authorizations, returning over $860 million to shareholders, including shares repurchased in conjunction with our 2016 convertible debt offering. Through the Board's new authorization, we expect to continue our share repurchase programs."
Highlights since our last earnings release
- Announced that the company's stockholders supported all of the company's proposals at its Annual Meeting of Stockholders.
- Announced the TruSeq(R) Amplicon - Cancer Panel for MiSeq(R) system, a research use only, highly multiplexed panel with the ability to sequence hundreds of the most relevant cancer loci.
- Launched the Cancer Analysis Service from the Illumina Genome Network (IGN) which delivers the most accurate data for comprehensive cancer studies at the lowest sample input volume of any commercial whole human genome sequencing service (5ug).
- Announced that the Broad Institute joined the Illumina Genome Network to offer its proprietary sample preparation processes for whole human genome sequencing, enabling low input DNA (<500ng ) and FFPE samples.
- Announced a favorable Patent Claim Construction ruling in litigation against Complete Genomics, Inc.
- Announced that Macrogen, Inc., a global sequencing services company based in Korea, purchased an additional 10 HiSeq 2000 systems and two MiSeq systems, as well as HiSeq 2500 upgrades.
Financial outlook and guidance
"We are pleased with our financial performance for the first quarter of 2012," said Illumina's President and Chief Executive Officer Jay Flatley. "While some uncertainty exists with respect to academic and research funding in the second half of the year, we have built backlog for the 3rd consecutive quarter and our full-year outlook is generally as we anticipated. Accordingly, we are re-affirming our 2012 guidance."
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