Illumina Reports Financial Results For Third Quarter Of Fiscal Year 2013

Illumina, Inc. (NASDAQ:ILMN) today announced its financial results for the third quarter of 2013.

Third quarter 2013 results:
  • Revenue of $357 million, a 25% increase compared to $286 million in the third quarter of 2012
  • GAAP net income for the quarter of $31 million, or $0.22 per diluted share, compared to $30 million, or $0.22 per diluted share, for the third quarter of 2012
  • Non-GAAP net income for the quarter of $63 million, or $0.45 per diluted share, compared to $54 million, or $0.41 per diluted share, for the third quarter of 2012 (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 $83 million and free cash flow of $64 million for the quarter

Gross margin in the third quarter of 2013 was 58.8% compared to 68.5% in the prior year period. Cost of product sales during the third quarter of 2013 included impairment charges of $25.2 million related to discontinuation of a non-core product line. Excluding the effect of these charges as well as stock compensation, amortization of acquired intangible assets, and legal contingencies, non-GAAP gross margin was 70.2% for the third quarter of 2013 compared to 70.5% in the prior year period.

Research and development (R&D) expenses for the third quarter of 2013 were $71.0 million compared to $54.1 million in the third quarter of 2012. R&D expenses included $9.6 million and $7.8 million of non-cash stock compensation expense in the third quarters of 2013 and 2012, respectively. Excluding these charges and contingent compensation, R&D expenses as a percentage of revenue were 17.2% compared to 15.9% in the prior year period.

Selling, general and administrative (SG&A) expenses for the third quarter of 2013 were $95.6 million compared to $69.8 million for the third quarter of 2012. SG&A expenses included $16.1 million and $13.2 million of non-cash stock compensation expense in the third quarters of 2013 and 2012, respectively. Excluding these charges, amortization of acquired intangible assets, and contingent compensation, SG&A expenses as a percentage of revenue were 20.6% compared to 19.5% in the prior year period.

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