San Diego, California, USA
April 22, 2013
Illumina, Inc. (NASDAQ:ILMN) today announced its financial results for the first quarter of 2013.
First quarter 2013 results:
- Revenue of $331 million, a 21% increase compared to $273 million in the first quarter of 2012
- GAAP net loss for the quarter of $23 million, or $0.18 per diluted share due to a charge of $106.9 million related to the Syntrix Biosystems, Inc. litigation; this compared to net income of $26 million, or $0.20 per diluted share, for the first quarter of 2012
- Non-GAAP net income for the quarter of $63 million, or $0.46 per diluted share, compared to non-GAAP net income of $48 million, or $0.36 per diluted share, for the first quarter of 2012 (see the table entitled “Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss)” for a reconciliation of these GAAP and non-GAAP financial measures)
- Cash flow from operations of $88 million and free cash flow of $66 million for the quarter
Gross margin in the first quarter of 2013 was 66.3% compared to 66.4% in the prior year period. Excluding the effect of non-cash charges associated with stock compensation, amortization of acquired intangible assets, amortization of inventory revaluation costs and legal contingencies, non-GAAP gross margin was 69.2% for the first quarter of 2013 compared to 69.0% in the prior year period.
Research and development (R&D) expenses for the first quarter of 2013 were $61.5 million compared to $48.8 million in the first quarter of 2012. R&D expenses included $8.0 million and $7.4 million of non-cash stock compensation expense in the first quarters of 2013 and 2012, respectively. Excluding these charges and contingent compensation expense, R&D expenses as a percentage of revenue were 16.0% compared to 14.9% in the prior year period.
Selling, general and administrative (SG&A) expenses for the first quarter of 2013 were $85.1 million compared to $68.0 million for the first quarter of 2012. SG&A expenses included $14.6 million and $13.8 million of non-cash stock compensation expense in the first quarters of 2013 and 2012, respectively. Excluding these charges, contingent compensation expense, and amortization of acquired intangible assets, SG&A expenses as a percentage of revenue were 19.9% compared to 18.9% in the prior year period.
Legal contingency expenses for the first quarter of 2013 were $106.9 million as a result of a jury decision, announced on March 14, 2013, in the patent litigation brought by Syntrix Biosystems, Inc. Legal contingency expenses were $2.2 million in the first quarter of 2012. Illumina continues to believe that Syntrix’s claims are without merit and intends to file post-trial motions asking the court to vacate the jury’s finding and to rule as a matter of law that the BeadChip does not infringe Syntrix’s patent.
Depreciation and amortization expenses were $20.5 million and capital expenditures were $21.4 million during the first quarter of 2013. The Company ended the quarter with $1.07 billion in cash, cash equivalents and short-term investments, compared to $1.35 billion as of December 30, 2012.
“We are pleased with our first quarter results,” said Illumina’s President and Chief Executive Officer Jay Flatley. “Our business demonstrated strong growth across the entire portfolio, which resulted in record revenue, and we made significant progress on furthering our reproductive health strategy with the closing of the Verinata acquisition. We are now focused on continuing to deliver on our 2013 strategic initiatives for strong long-term growth.”
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