Illumina Reports Record First Quarter 2021 Financial Results with Revenue Exceeding $1 Billion

On April 27, 2021, Illumina, Inc. (NASDAQ: ILMN) announced its financial results for the first quarter of fiscal year 2021.

Q1 Performance Achieved Record-Breaking Growth:

· Revenue of $1.093 billion, a 27% increase year-on-year

· Under Generally Accepted Accounting Principles (GAAP), net income for the first quarter was $147 million (diluted earnings per share of $1.00), compared to $173 million (diluted earnings per share of $1.17) in the same period last year.

· Non-GAAP net income for the first quarter was $278 million (diluted earnings per share of $1.89), compared with $243 million (diluted earnings per share of $1.64) in the same period last year. Non-GAAP net income excludes acquisition-related expenses, primarily subsequent payments made to GRAIL.

· Operating cash flow was $282 million, compared to $281 million in the same period last year

· Free cash flow (operating cash flow minus capital expenditures) for the first quarter was $240 million, compared to $241 million in the same period last year.

“Illumina achieved its first-ever $1 billion revenue quarter in company history, starting 2021 with strong momentum that exceeded our expectations,” said Francis deSouza, CEO of Illumina. “Orders in the first quarter of 2021 reached record highs, demonstrating the strength of our core business across all regions and reflecting growth among both clinical and research customers. We have made significant progress in clinical market access and reimbursement for genomic applications, providing patients worldwide with greater access to genomic testing. We are proud that our customers, partners, and employees are working together to build the infrastructure for genomic epidemiology, helping to combat the COVID-19 pandemic and continuously track future pathogen outbreaks, thereby making substantial contributions to the health and well-being of humanity.”

The gross profit margin for the first quarter of 2021 was 69.9%, compared with 72.1% in the same period last year. Excluding amortization of acquired intangible assets and expenses related to the COVID-19 pandemic, the non-GAAP gross profit margin for the first quarter of 2021 was 70.5%, compared with 73.0% in the same period last year.

R&D expenses in the first quarter of 2021 were $197 million, compared with $156 million in the same period last year. Non-GAAP R&D expenditures as a percentage of revenue stood at 18.0%, versus 18.3% in the same period last year.

Sales, general and administrative (SG&A) expenses were $374 million in the first quarter of 2021, compared with $274 million in the same period last year. Excluding acquisition-related expenses as well as COVID-19-related expenses and income, non-GAAP SG&A expenses as a percentage of revenue were 20.4%, compared with 21.1% in the same period last year.

In the first quarter of 2021, depreciation and amortization expenses amounted to $48 million, and capital expenditures for free cash flow were $42 million. As of the end of the quarter, the company held $4.6 billion in cash, cash equivalents, and short-term investments, compared with $3.5 billion as of January 3, 2021.

Updates Since the Last Earnings Report:

· Announced a partnership with Kartos Therapeutics based on TSO 500 to jointly advance comprehensive genomic profiling for blood cancers

· Published positive economic research findings in collaboration with Harvard Pilgrim Health Care, highlighting the cost-effectiveness of providing non-invasive prenatal testing (NIPT) to all pregnant women

· Illumina was named one of the 100 most influential companies in the world by TIME magazine

· Released our second annual Corporate Social Responsibility Report, highlighting our commitments to society, employees, and the environment

· Issued a total of $1 billion in senior unsecured investment-grade bonds and completed a $750 million five-year unsecured revolving credit facility

· Announced that Jay Flatley will step down from the Board of Directors and appointed John W. Thompson as the new Chairman of the Board, effective May 26, 2021

· NextSeq 550Dx and related kits obtain Russian medical device registration certificate