Illumina Reports 6% YoY Q1 Revenue Growth, Remains Bullish on Asia-Pacific Market

On April 18, Illumina announced its first-quarter financial results during a conference call. Revenue for the first quarter of 2016 was approximately $572 million, representing a 6% year-over-year increase from $539 million in the same period last year.

Illumina estimates that total annual revenue will decline due to reduced sales volume, though this will be partially offset by lower operating costs and gains from equity investments. The company’s HiSeq X sequencers and analysis services met expectations in the first quarter, but sales of the HiSeq 2500, 3000, and 4000 sequencers fell short of expectations, with HiSeq 4000 sales significantly missing targets.

In terms of consumables revenue, Illumina’s sales volume increased by 24% year-over-year, generating approximately $300 million in revenue. This growth was driven by sales of the MiSeq, NextSeq, and HiSeq platforms meeting or exceeding expectations (excluding the HiSeq X). Among these, sales volume to clinical laboratories grew by approximately 20% year-over-year.

Meanwhile, Illumina Chairman Jay Flatley stated that although revenue growth slowed in the first quarter, the company remains highly confident in the market prospects for the Americas and Asia-Pacific regions, which demonstrated strong momentum during the period.

For insights into the slowdown in Illumina’s instrument sales and the rationale behind building a DNA App Store, we invite you to read the report by VCBeat. Here is a sneak peek.