Friday, February 4, 2011

Illumina Inc. (NASDAQ: ILMN): Q4 Earnings Preview 2010

Illumina Inc. (NASDAQ: ILMN) is scheduled to release its fourth-quarter financial results after the closing bell on Tuesday, February 8, 2011. Analysts, on average, expect the company to report earnings of 29 cents per share on revenue of $255.75 million. In the year ago quarter, the company reported earnings of 21 cents per share on revenue of $180.56 million.

Illumina, Inc. engages in the development, manufacture, and marketing of integrated systems for the analysis of genetic variation and biological function. Genomics is emerging as a growing market within the life sciences sector, offering attractive growth opportunities and products that will potentially change the field of research. Illumina's customers include genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, and biotechnology companies.

In the preceding third quarter, the San Diego, California-based company's net income was $35.4 million or $0.24 per share compared to $17.1 million or $0.12 per share last year. Adjusted income, which excludes special items, was $40.7 million or $0.30 per share for the third quarter. Revenue jumped 50% to $237.3 million from $158.4 million last year. Analysts, on average, expected the company to report earnings of $0.24 per share on revenue of $218.15 million.

Last month, the company said that it anticipates fourth-quarter GAAP earnings of $0.22 to $0.23 per share, non-GAAP earnings of $0.28 to $0.29 per share, and revenue of about $260 million.

Thew company also raised its fiscal 2010 outlook. The company said that it expects GAAP earnings of $0.84 to $0.85 per share, non-GAAP earnings of $1.05 to $1.06 per share, on revenue growth of 35% to $901 million. Previously, Illumina said it would earn 93 cents to $1 on 28% revenue growth.

For fiscal 2011, the company expects GAAP earnings of $1.01 per share, non-GAAP earnings of $1.40 per share, and about 20% revenue growth from expected 2010 revenue. 

In January, Illumina unveiled MiSeq, a low-cost personal sequencing system that provides individual researchers a platform with rapid turnaround time, unmatched accuracy, and radically improved ease of use. Leveraging the company's TruSeq sequencing chemistry, the system's revolutionary workflow offers the flexibility to go from purified DNA to analyzed data in as few as eight hours, or to generate in excess of 1 gigabase per run in slightly over a day. Expected to be priced under $125,000 with individual run prices ranging from $400-$750, MiSeq will be the next-generation sequencing platform available, the company said.

During the quarter in review, Illumina acquired Epicentre Biotechnologies, which provides nucleic acid sample preparation reagents and specialty enzymes for sequencing and microarray applications. With this deal, the company will have access to Epicentre’s proprietary Nextera technology, which simplifies genetic analysis workflows and results in lower costs and better turnaround times for sequencing applications.

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