With Views, With Attitude
This is the Life Science Industry Observer Official Account's Issue #827-3Expected Article
Source: Following the Cause and Investigating the MedicineActually, whether it's酱香科技or white silk black silk, neither can compare to presenting the new CEO with a special performance.
This performance must not be too good, nor too bad.
It needs to be just enough for the new CEO to turn things around, but not so messy that it's impossible to start.
And Illumina's Q3 financial report this year just meets the standard.
Special Love for Special You
On November 9, 2023, sequencing giant Illumina announced its latest financial report for Q3 2023.And this is the first earnings report since new CEO Jacob Thaysen joined Illumina on September 25, 2023.As it happens, this earnings report is both related and not too closely related to him.Special love, for special you.According to the financial report，2023Q3 Illumina Revenue $1.12 Billion, Up 0.36% Year-over-Year。Net profit of 52 million USD, a slight decrease of 3.7% compared to 54 million USD in the same period last year.。Of course, this refers to the results under the NON-GAAP accounting standards.However, under GAAP rules, it doesn't look as good.This quarter's loss reached 7.54 billion yuan, which, although much warmer than the 38.16 billion US dollars snowstorm in 2022, is still a heavy burden.Special love, for special you.A look at the data from recent quarters reveals that Illumina's core business is not optimistic.FromYear-on-year, the core business decreased by 0.36 percentage points.。Compared with the previous period, the decline was greater, reaching -4.57%.This shows that Illumina's growth has been challenged.Fortunately, the core gross margin did not continue to decline, holding the line at 66%.GRAIL's revenue grew by 110%, but it was meaningless.Under GAAP rules, GRAIL wrote down another $821 million in goodwill.This item had a write-down of 3.914 billion yuan in the same period last year, plus 821 million yuan in the same period this year, totaling over 4.6 billion yuan.Good grief, bought for 8 billion... This rate of losing money rivals that of seasoned stock investors.Even according to NON-GAAP accounting rules, this company lost $155 million this quarter.You say, is there a difference between his $21 million in revenue and $10 million in revenue?Earned 11 million more = Thanks to 7 million more, earned, but not completely.Next, let's look at the performance of another major highlight from Illumina, which isShipment Volume of NovaSeq X。According to the published data, a total of 273 units were shipped in the first three quarters.Among themQ3 Shipment97 units, which is even less than the shipment volume in Q2 2023.。Both GRAIL and NovaSeq X presented gifts to the new CEO, which might as well be called "Two Blades Thrust Into the Ribs."America - The Last Reserve
From the perspective of the company's revenue regional division, it seemsOnly the Americas maintained the growth momentum.Head.Still achieved both month-on-month and year-on-year growth, with the year-on-year growth approaching double digits.Greater China region shrank by 26.3% year-over-year and 14.8% quarter-over-quarter.Africa and the Middle East region shrank by 22.2% year-on-year and 16.9% quarter-on-quarter.EvenEurope has only managed to maintain a year-on-year positive growth appearance, while month-on-month, there was a 14.2% contraction.Moreover, with the continued turmoil in the Middle East and Europe, although Greater China does not experience that kind of instability, it still remains highly tense.ThisThe gunpowder smell does not come from the battlefield, but from the商场, from华大智造, from真迈, from赛陆...As Element, Onso, and other emerging U.S.-based sequencers accelerate their progress, how long this reserved land in the Americas will last has become a question mark.Faced with such a situation, we believe the new CEO must have a well-thought-out plan; we will wait and see.And this earnings report, the new CEO did reveal some clues.
As his first public appearance, new CEO Jacob Thaysen also introduced himself.However, we have long been familiar with him, even his salary we know.So, what important information did the CEO provide in this earnings call?First, the judgment of the macro environment.Jacob believes that the short-term macroeconomic situation will not improve, and geopolitical conflicts will persist.Establish a special committee to clarify GRAIL's decision-making issues and hire consultants to prepare for the sale of GRAIL.Because the litigation is still ongoing, it is expected that documents will be confidentially submitted to the SEC (U.S. Securities and Exchange Commission), after which a third party will be contacted as a source of investment funds or a potential buyer.Illumina to Focus on Core Business and Control R&D Costs.Illumina'sInnovation will focus primarily on customers' top priorities, includingAutomation and Sample-to-ResultThe solution.Hmm, this is like the smell of Agilent.FacingFinancial expectations for 2023 have been repeatedly lowered, leaving Illumina with no room to retreat.。From the very beginningRevenue growth of 7%–10%, estimated for 2023 Q3Decrease by 2%—3%。Overall, this situation andNot too bad。It's just a bit hard to accept, looking at the cash and cash equivalents falling below $1 billion for the first time in three years.However, fortunately, the total liquid assets are still over 2 billion US dollars, so overall, there seems to be no major problem.All of this seems just right for a new CEO.。Anyway, for Jacob, it's not a bad choice to leave old debts unsettled.All these are Francis deSouza's doing, and have nothing to do with me.In fact, that's exactly what was done.Yes,Financial Guidance for 2024 to be Announced in 2024。And this is very reasonable.---The End---
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