Illumina Reports Financial Results for Fourth Quarter and Fiscal Year 2004
Tuesday February 22, 4:02 pm ET
Revenue Increases by 80% over Prior Year
SAN DIEGO--(BUSINESS WIRE)--Feb. 22, 2005--Illumina, Inc. (NASDAQ:ILMN - News) announced today its financial results for the fourth quarter and fiscal year ended January 2, 2005.
For the fourth quarter, Illumina reported revenue of $14.8 million, compared to revenue of $10.7 million in the fourth quarter of 2003. Revenue for the fiscal year ended January 2, 2005 was $50.6 million, an 80% increase compared to revenue of $28.0 million for the fiscal year ended December 28, 2003. For the quarter ended January 2, 2005, the Company reported a net income of $3.2 million, or $0.08 per diluted share, compared to a net loss of $4.0 million, or $0.12 per share, in the fourth quarter of 2003. Results for the fourth quarter include a one-time gain of $3.3 million, or $0.08 per diluted share, related to reduction of damages previously awarded in a wrongful termination lawsuit, which resulted in the payment of $5.9 million subsequent to our fiscal year end. Net loss for the fiscal year ended January 2, 2005 was $6.2 million, or $0.17 per share, compared to a net loss of $27.1 million, or $0.85 per share, for the prior year. Cash and investments at January 2, 2005 totaled $67.0 million.
Gross margins in the quarter and fiscal year ended January 2, 2005 were 74%, compared to 68% and 64% for the comparable periods in 2003. Selling, general and administrative expenses for the quarter were $5.8 million, compared to $5.1 million for the prior year. This increase was comprised of $1.7 million associated with the growth in the field sales and marketing force, partially offset by a reduction in G&A expenses. Research and development expenses remained relatively constant at $5.3 million compared to $5.5 million in the fourth quarter of 2003.
Jay Flatley, Illumina president and CEO, provided the following highlights of fourth quarter and full-year achievements:
Booking of 22 service contracts in the fourth quarter and 52 for the year compared to a full-year goal of 20
Completion in the quarter of two significant genotyping contracts, one related to a serious neurological disease and one related to improvement of trait selection in livestock breeding
Shipment of 13 BeadStations in the quarter and a total of three BeadLabs and 42 BeadStations for the year against a target of 20 total systems, resulting in a year-end installed base of 49
Achievement of record sales of oligonucleotides in the fourth quarter and announcement in December of a landmark collaboration with Invitrogen for manufacture and distribution of oligos
Delivery of nearly all the remaining genotypes for our share of the International HapMap Project, designed to create tools to help link genetic variation to the causes of complex diseases
Receipt of two new patents, bringing our total to 36 issued or allowed and 69 pending.
Subsequent to the end of the quarter, Illumina announced a BeadLab sale to the Mayo Clinic. The Company also launched its new DASL(TM) assay and a companion cancer panel. The DASL assay enables researchers to generate expression profiles from partially degraded RNAs such as those found in formalin-fixed, paraffin-embedded (FFPE) samples, many of which represent known clinical outcomes.
These recent product announcements are further examples of Illumina's strategy to build a comprehensive offering of scalable, multi-application systems. At the foundation of our systems are the Sentrix® Array Matrix, the Sentrix BeadChip, the BeadArray Reader and our Oligator® DNA synthesis capability. The BeadStation system addresses moderate-throughput requirements and complements Illumina's production-scale BeadLab. Both systems can be scaled in multiple dimensions, providing customers the flexibility to perform SNP genotyping or gene expression experiments on the same platform, with content ranging from whole genomes to focused sets, at various levels of throughput and automation and industry-leading cost per sample. Illumina is also developing a portfolio of powerful assay technologies to deliver even further benefit to BeadArray(TM) technology.
Conference Call Information
A conference call has been scheduled for 2:00 p.m. Pacific Time today to discuss Illumina's fourth quarter and full year 2004 results, as well as 2005 guidance. Interested parties may listen to the call by dialing 800-811-7286 (international callers should dial 913-981-4902) or by accessing the live webcast under the "Investors" tab of Illumina's website at: www.illumina.com.
A significant portion of the Company's revenue is derived from large individual transactions, such as the sale of production genotyping systems and large genotyping service contracts. It is also subject to fluctuations in demand for its products seasonality impacts and changes in overall spending levels in the life science industry. Market demand for our industry's products is typically lowest in the first calendar quarter and highest in the fourth calendar quarter as researchers spend unused budget allocations before the end of the year. As a result, the Company may experience quarter-to quarter fluctuations in revenue, with potential for a sequential decline in quarterly revenue. In particular, the Company's revenue for the first quarter of 2005 may be lower than revenue in the fourth quarter of 2004.
Illumina (www.illumina.com) is developing next-generation tools for the large-scale analysis of genetic variation and function. The Company's proprietary BeadArray technology -- now used in leading genomics centers around the world -- 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 help pave the way to personalized medicine by correlating 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. |
