Illumina Reports Financial Results for Third Quarter 2002
Wednesday October 23, 4:21 pm ET
SAN DIEGO--(BUSINESS WIRE)--Oct. 23, 2002--Illumina, Inc. (NASDAQ:ILMN - News) announced today its financial results for the third quarter and nine-month period ended September 29, 2002.
For the quarter ended September 29, 2002, the Company reported a net loss of $7.6 million, or $0.24 per share, compared to a net loss of $5.8 million, or $0.19 per share, in the third quarter of 2001. Net loss for the nine-month period ended September 29, 2002 was $32.7 million, or $1.06 per share, compared to a net loss of $16.6 million, or $0.56 per share, for the same nine-month period in 2001. Revenues for the third quarter and nine-month period were $3.0 million and $6.2 million, respectively, compared to $0.7 million and $1.7 million for the same periods in 2001. Cash and investments at September 29, 2002 totaled $73.7 million. The net loss for the nine-month period in 2002 includes a charge of $7.9 million, or $0.26 per share, relating to a litigation judgment which was announced in the second quarter and which the Company is currently appealing.
Jay Flatley, President and CEO, commented, "We're delighted to see the continued acceleration of oligo sales this quarter and the first material revenues from our genotyping services business. This strong quarter-to-quarter revenue growth is being driven by the expanding market penetration of our BeadArray(TM) and Oligator(TM) technologies. Importantly, these revenues are generating healthy gross margins as a result of favorable manufacturing cost positions in both oligos and SNP genotyping. We are now beginning to deliver results from the growing backlog of genotyping service agreements signed earlier this year, and we continue to experience robust oligo order performance as a result of our product quality and price leadership strategy."
During the quarter, Illumina announced significant SNP genotyping service agreements with the Wellcome Trust Sanger Institute, GlaxoSmithKline (GSK), and the National Institutes of Health (NIH). The Sanger study, involving millions of genotypes, will result in a detailed map of a chromosomal DNA region and represent a candidate model strategy for whole-genome haplotyping. The GSK agreement provides for very large-scale assay development and genotyping, and will produce a high-density, SNP-based linkage disequilibrium (LD) product for genome-wide association studies. The NIH accord provides $9 million for large-scale genotyping of the human genome.
Commenting further, Flatley noted, "Each of these large agreements follows earlier and smaller studies that we had performed for these customers. We are gratified by the growing acceptance of Illumina's technology in public, private, and non-profit organizations seeking high sample throughput, accurate results, and industry-leading pricing."
Other Quarterly News and Highlights
Illumina announced the launch of its fully integrated, LIMS-controlled genotyping system offering unparalleled assay multiplexing levels and ultra-high throughput (greater than 1 million genotypes per day). The system is generating strong commercial interest and we expect to have the system available for shipment in the fourth quarter.
The Company signed seven genotyping agreements during the quarter including a service agreement with the University of Cambridge (U.K.) and a previously unannounced genotyping service agreement with Novartis Pharmaceuticals.
Illumina began the build-out of its international sales and distribution network, with regional sales managers hired for both Northern and Southern Europe. The Company expects to open its Japanese subsidiary in early 2003.
The Company appointed Susan Eddins to head up worldwide marketing. Ms. Eddins was previously Director of Genomic Assays at Applied Biosystems and brings to Illumina an extensive background in leading the commercialization efforts for both SNP genotyping and gene expression assays.
Illumina is developing next-generation tools for the large-scale analysis of genetic variation and function. The information provided by these analyses will enable the development of personalized medicine, a key goal of genomics and proteomics. The Company's proprietary BeadArray technology provides the throughput, cost effectiveness and flexibility necessary to enable researchers in the life sciences and pharmaceutical industries to perform the billions of tests necessary to extract medically valuable information from advances in genomics and proteomics. This information will correlate genetic variation and gene function with particular disease states, enhancing drug discovery, allowing diseases to be detected earlier and more specifically, and permitting better choices of drugs for individual patients. |
