illumina inc (ILMN) Key Developments
Illumina Inc. Reports Earnings Results for the Second Quarter of 2015; Provides Earnings Guidance for the Full Year 2015
Jul 21 15
Illumina Inc. reported earnings results for the second quarter of 2015. For the quarter, the company reported revenue increased 21% year-over-year to $539 million, slightly above the guidance provided on last quarter's earnings call. The leverage the company delivered this quarter was also remarkable as non-GAAP earnings per share grew 40% compared to the second quarter of 2014. These robust results were due to strength in sequencing revenue and solid operational execution. Second quarter total sequencing revenues grew 28% year-over-year, driven by record consumables and strength in services. Non-GAAP net income was $120 million for second quarter, and non-GAAP EPS was $0.80. This compares to non-GAAP net income and EPS of $85 million and $0.57, respectively, in the second quarter of 2014. The impact of foreign exchange lowered second quarter non-GAAP EPS by approximately $0.06 relative to last year. The company reported GAAP net income of $102 million or $0.69 per diluted share in the second quarter compared to net income of $47 million or $0.31 per diluted share in the prior year period. Cash flow from operations equaled $171 million. Capital expenditures in second quarter were $41 million, due to spending associated with ERP implementation as well as other ongoing investments focused on scaling the organization, resulting in $130 million of free cash flow.
For the year 2015, the company continues to project approximately 20% total company revenue growth and 23% growth on a constant currency basis based on current exchange rates. The company has increased 2015 non-GAAP EPS projections to $3.39 to $3.45, up from $3.36 to $3.42. Additionally, the company continues to project a full year pro forma tax rate of 27%, which assumes 2015 federal R&D tax credit and other tax extenders are passed prior to fiscal year-end. Forecasts are for sales of $2.26422 billion and non-GAAP EPS of $3.44.
Illumina Inc. Names Sanjay Chikarmane as Senior Vice President and General Manager of Enterprise Informatics
Jul 20 15
Illumina Inc. announced that Sanjay Chikarmane has been named Senior Vice President and General Manager of Illumina's Enterprise Informatics business. Chikarmane will lead the development and commercialization of products and services aimed at turning genomic data into actionable information for researchers and clinicians. He will report to Illumina President, Francis deSouza. Chikarmane joins Illumina with more than 20 years of experience in enterprise software at companies including
HP, BEA Systems and most recently, SAP.
Illumina, Inc. Introduces Illumina SeqLab
Jul 16 15
Illumina Inc. announced the launch of Illumina SeqLab, an integrated solution for customers with HiSeq X Systems to enable large-scale human whole-genome sequencing operations. Designed to increase laboratory efficiency for population-scale, human whole-genome sequencing (HWGS), this new offering provides a complete solution for Illumina customers who need streamlined workflows with integrated sample tracking and fast and accurate analysis solutions. Illumina partnered with GenoLogics and Hamilton Robotics to provide this streamlined end-to-end solution which includes Clarity LIMS X Edition, Microlab STAR liquid handling robotics, HiSeq Analysis Software (HAS) v2.0 and Illumina SeqLab Consulting Service.
Illumina, Inc. Announces Preliminary Study Results on the Verifi Noninvasive Prenatal Test
Jul 13 15
Illumina Inc. announced that a preliminary study retrospectively correlated 10 cases of occult maternal cancer among pregnant women receiving an aneuploidy detected or aneuploidy suspected positive results on the verifi® noninvasive Prenatal Test (NIPT)1 to discordant results of fetal karyotypes for the women, suggesting that discordant NIPT test results may be indicative of maternal cancer. Maternal cancers sometimes leave tell-tale abnormal cell free DNA fragments in plasma. In 8 of 10 reported cancer cases, Illumina scientists and physicians reviewed all the genome-wide sequencing data and identified nonspecific copy-number changes across multiple chromosomes, suggesting that these changes, when present in a woman whose fetal karyotype tests as normal, might represent a signal to the clinician to probe for the presence of cancer. In a retrospective analysis of 125,426 noninvasive verifi® Prenatal Tests, 3,757 (3%) were positive for one or more aneuploidies involving chromosomes 13, 18, 21, X or Y. As part of Illumina’s standard procedures, the laboratory contacts the referring physician to discuss all positive test results and to recommend a diagnostic procedure to obtain a confirmatory fetal karyotype. From this group of 3,757 positive cases, 10 cases of maternal cancers were subsequently (between 3 and 39 weeks after NIPT) reported to the laboratory. At the time of NIPT these women were not diagnosed with cancer. In 3 cases the abnormal NIPT findings prompted a search for an underlying malignancy. Seven of these eight women had diagnostic tests that indicated a chromosomally-normal fetus, discordant with the NIPT test result. One woman did not undergo a diagnostic procedure. Maternal cancers were most frequently associated with the rare NIPT finding of multiple aneuploidies that were discordant with the fetal karyotype. The cancer types were clinically diverse, including three cases of B cell lymphoma and single cases of T-cell leukemia, Hodgkin’s lymphoma, unspecified adenocarcinoma, leiomyosarcoma, and neuroendocrine, colorectal and anal carcinomas. The cancers ranged from stage II to metastatic disease (IV). In one case, after completion of treatment, the abnormal DNA signature became undetectable in follow-up testing.
Illumina Seeks Acquisitions
Jul 10 15
Illumina Inc. (NasdaqGS:ILMN) is looking at acquisitions. Marc Stapley, Senior Vice President and Chief Financial Officer of Illumina said, "Well, I mean, the M&A strategy for us really hasn't changed. We're looking at acquiring technology like you saw us do with ALL that might help on the sample prep side, an epicenter as well. We obviously acquired NextBio to help on the back end. Myraqa was a unique acquisition where we obtained some regulatory expertise. So that was a talent play. Beyond that, we're always looking at ways that we can continue to improve the whole sample clock the workflow and acquire the right people and the right technologies in some cases, like Myraqa acquiring IP. But, the funnel isn't that broad. But we're always looking at it and clearly, we have the appetite to do tuck-in acquisitions or acquisitions of the size you've seen us do previously. And so we'll continue to focus on that."