Illumina Announces Preliminary Revenue for Third Quarter 2011
October 06 2011 - 5:01PM
Business Wire
Illumina, Inc. (NASDAQ:ILMN) today announced estimated third
quarter revenue of approximately $235 million. This estimate is
based on management's preliminary financial review and remains
subject to review by our independent registered public accounting
firm.
We currently believe the following factors negatively affected
our revenue in the third quarter compared to our forecast:
- Continued uncertainty surrounding the
levels of research funding in the U.S. and Europe resulted in
purchasing delays for both instruments and consumables,
particularly among large volume centers;
- The launch of the V3 sequencing kits in
Q2 created excess capacity that customers were unable to fully
utilize. This resulted in a decrease in the consumable revenue per
instrument due to fewer runs. This impact will diminish as
customers scale and gain access to greater numbers of samples;
- A significant drop in reagent usage by
our remaining Genome Analyzer™ installed base; and
- Lower than expected upgrades of Genome
Analyzers to HiSeq™ 2000 systems.
“Clearly, we are highly disappointed with our revenue for the
third quarter. In the quarter, we saw what we believe to be an
unprecedented slowdown in purchasing due to uncertainties in
research funding and overall economic conditions, as well as a
temporary excess of sequencing capacity in the market. We expect
these conditions to continue through at least the fourth quarter,
while the 2012 – 2013 U.S. budgets for NIH and other related
agencies are determined,” stated Jay Flatley, President & CEO.
“In the face of these challenging macro conditions, our execution,
competitive position, and new product flow are as strong as ever.
As an example, the launch of the MiSeq™ has gone extremely well
with over 45 systems shipped after we commenced broad shipments in
mid-September. Additionally, I’m pleased that the system is
performing beyond our expectations in the hands of our
customers.”
While we believe that revenue for the fourth quarter
2011 will be higher than third quarter levels, we are
suspending the financial guidance for the full year 2011
as provided on July 26, 2011, due to the many market
uncertainties described earlier, and as such, this guidance should
no longer be considered as the Company's current expectations.
We will provide a more detailed business
update and complete financial
information when we report third
quarter results after the close of the market on Tuesday,
October 25, 2011. We are currently
observing a pre-earnings quiet period and will not make
further comments about our third quarter results in
the interim.
Conference Call Details
The conference call will begin at 2:30 p.m. Pacific Time (5:30
p.m. Eastern Time) on Tuesday, October 25, 2011. Interested parties
may listen to the call by dialing 800.573.4842 (passcode:
87293748), or if outside North America, by dialing +1-617-224-4327
(passcode: 87293748). Individuals may access the live
teleconference in the Investor Relations section of Illumina's web
site under the “Company” tab at www.illumina.com.
A replay of the conference call will be available from 6:30 p.m.
Pacific Time (9:30 p.m. Eastern Time) on October 25, 2011, through
November 1, 2011, by dialing 888-286-8010 (passcode: 74207499), or
if outside North America, by dialing +1-617-801-6888 (passcode:
74207499).
About Illumina
Illumina (www.illumina.com) is a leading developer,
manufacturer, and marketer of life science tools and integrated
systems for the analysis of genetic variation and function. We
provide innovative sequencing and array-based solutions for
genotyping, copy number variation analysis, methylation studies,
gene expression profiling, and low-multiplex analysis of DNA, RNA
and protein. We also provide tools and services that are fueling
advances in consumer genomics and diagnostics. Our technology and
products accelerate genetic analysis research and its application,
paving the way for molecular medicine and ultimately transforming
healthcare.
Forward-Looking Statements
This release contains forward looking statements that involve
risks and uncertainties. Examples of forward-looking statements
include, but are not limited to, statements we make regarding
expectations for the fourth quarter of 2011. Important factors that
could cause actual results to differ materially from those in any
forward-looking statements include continued uncertainty regarding
academic and government funding and global economic weakness,
together with other factors detailed in our filings with the
Securities and Exchange Commission, including our most recent
filings on Forms 10-K and 10-Q, or in information disclosed in
public conference calls, the date and time of which are released
beforehand. We do not intend to update any forward-looking
statements after the date of this release.
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