San Diego, California, USA
July 24, 2012
Illumina, Inc. (NASDAQ:ILMN) today announced its financial results for the second quarter of 2012.
Second quarter 2012 results:
- Revenue of $281 million, a 2% decrease compared to $287 million in the second quarter of 2011.
- GAAP net income for the quarter of $23 million, or $0.18 per diluted share, compared to net income of $31 million, or $0.22 per diluted share, for the second quarter of 2011.
- Non-GAAP net income for the quarter of $53 million, or $0.40 per diluted share, compared to $52 million, or $0.38 per diluted share, for the second 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).
- Cash flow from operations of $96 million compared to cash flow from operations of $71 million for the second quarter of 2011.
Gross margin in the second quarter of 2012 was 68.8% compared to 67.3% 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 70.9% for the second quarter of 2012 compared to 69.0% in the prior year period.
Research and development (R&D) expenses for the second quarter of 2012 were $71.2 million compared to $50.8 million in the second quarter of 2011. R&D expenses in the second quarter of 2012 included a one-time charge of $21.4 million related to in-process research and development associated with the impairment of an early-stage technology acquired in 2010 as well as $7.7 million and $8.5 million of non-cash stock compensation expense in the second quarters of 2012 and 2011, respectively. Excluding these charges and contingent compensation, R&D expenses as a percentage of revenue were 14.7% compared to 14.1% in the prior year period.
Selling, general and administrative (SG&A) expenses for the second quarter of 2012 were $68.5 million compared to $69.2 million for the second quarter of 2011. SG&A expenses included $14.3 million and $13.3 million of non-cash stock compensation expense in the second quarters of 2012 and 2011, respectively. Excluding these charges, contingent compensation, and acquired intangible asset amortization, SG&A expenses as a percentage of revenue were 19.4% compared to 19.1% in the prior year period.
Depreciation and amortization expenses were $14.7 million and capital expenditures were $20.9 million during the second quarter of 2012. The company ended the second 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.
Highlights since our last earnings release
- Announced BaseSpace Apps, a dedicated application store allowing customers to access a growing community of academic, commercial, and open source applications that simplify and accelerate the analysis of genomic data.
- Announced BaseSpace pricing for both data storage and downstream analysis.
- Launched the MyGenome application for the iPad®, empowering users to explore a real human genome and view reports about important genetic variation through a simple, intuitive, and educational interface.
- Launched the real-time PCR reagent portfolio compatible with any real-time PCR platform, including a novel, probe-based chemistry for gene expression analysis called NūPCR as well as qPCR DNA Binding Dye (DBD) Assays for gene expression analysis and qPCR High Resolution Melting (HRM) Assays for genotyping studies.
- Launched Nextera XT DNA Sample Preparation kits, which support both the MiSeq and HiSeq sequencing platforms, allowing researchers the easiest and fastest way to prepare and sequence small genomes, PCR amplicons, and plasmids.
- Launched Nextera Exome and Custom Enrichment Sample Preparation kits, allowing researchers to quickly and economically perform a wide range of studies – from small, focused gene panels to full human exomes with the lowest DNA sample input requirements (50ng).
- Launched the RapidTrack Whole Genome Sequencing Service, which delivers the fastest sample-to-data turnaround time of any commercially available whole human genome sequencing service.
- Announced that the Cold Spring Harbor Laboratory joined the Illumina Genome Network.
- Announced that the Queensland Centre for Medical Genomics will replace their fleet of SOLiD/5500 systems with three Illumina HiSeq 2500 systems.
- Announced the iSAAC genome alignment tool that maps sequencing reads to their proper location up to 10 times faster than existing aligners, significantly expediting and simplifying a critical component in data analysis.
- Repurchased $32 million of common stock under our previously announced discretionary stock repurchase program.
Financial outlook and guidance
“We are very pleased with our operational execution for the first half of 2012 and the resulting financial performance,” said Jay Flatley, Illumina’s President and Chief Executive Officer. “While some uncertainty exists with respect to academic and research funding in the second half of the year, our outlook is generally as we anticipated. Accordingly, we are re-affirming our 2012 revenue guidance and increasing our non-GAAP earnings per fully diluted share guidance to between $1.50 - $1.60 (previously $1.40 - $1.50).”
Full release
Topics
Species
