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8-K - FORM 8-K - ILLUMINA, INC. | a58340e8vk.htm |
Exhibit 99.1
Illumina Announces Preliminary Financial Results for Fourth Quarter 2010
Company Provides Guidance for 2011
Company Provides Guidance for 2011
SAN DIEGO BusinessWire January 11, 2011 Illumina, Inc. (NASDAQ:ILMN) today announced
preliminary revenue for the fourth quarter of 2010 of approximately $260 million. This implies
fiscal year 2010 revenue of approximately $901 million or annual growth of 35%. The company also
announced preliminary non-GAAP earnings per share for the fourth quarter and fiscal year 2010
between $0.28 and $0.29 and $1.05 and $1.06, respectively. It should be noted that revenue and
non-GAAP earnings per share estimates are preliminary and remain subject to the companys final
review and audit by the companys independent registered accounting firm.
Today the company also offered the following guidance for fiscal year 2011:
We expect revenue growth for the full year 2011 of approximately 20% from anticipated 2010 revenue
of $901 million and non-GAAP earnings per share to grow more than 30% from anticipated 2010
non-GAAP earnings per share between $1.05 and $1.06. We expect gross margin to improve over the
course of the year to approximately 70% for the full year. We expect pre-tax full year stock
compensation expense of approximately $101 million. We expect full-year weighted-average diluted
shares outstanding for the measurement of pro forma amounts to be approximately 145 million.
The non-GAAP financial guidance discussed above excludes the following items:
| charges associated with the move of the companys corporate headquarters including a non-cash charge related to a cease-use loss to account for the remaining lease payments on the companys current headquarters reduced by estimated sublease proceeds and anticipated double rent expense incurred during the transition to the new facility; | ||
| incremental interest expense associated with the companys convertible debt instruments that may be settled in cash; | ||
| double dilution associated with the accounting treatment of the companys outstanding convertible debt and the corresponding call option overlay; | ||
| amortization expense related to intangible assets; |
| contingent compensation expense and an accrual of in-process research and development |
(see table which reconciles these non-GAAP financial measures to the related GAAP measures).
Statement Regarding Use of Non-GAAP Financial Measures
The company reports non-GAAP results for diluted net income per share in addition to, and not as a
substitute for, or superior to, financial measures calculated in accordance with GAAP.
The companys financial results under GAAP include substantial non-cash and other charges related
to a cease-use loss to account for the remaining lease payments on the companys current
headquarters reduced by estimated sublease proceeds, incremental interest expense associated with
the companys convertible debt instruments that may be settled in cash, a gain on the acquisition
of an investee accounted for using the cost method of accounting prior to acquisition, amortization
expense related to intangible assets, anticipated double rent expense incurred during the
transition to the companys new headquarters, in-process research and development and contingent
compensation expense related to the acquisition of Avantome, Inc., and acquisition expense. Per share amounts also include the double dilution
associated with the accounting treatment of the companys convertible debt outstanding and the
corresponding call option overlay. Management believes that presentation of operating results that
excludes these charges provides useful supplemental information to investors and facilitates the
analysis of the companys core operating results and comparison of operating results across
reporting periods. Management also believes that this supplemental non-GAAP information is
therefore useful to investors in analyzing and assessing the companys past and future operating
performance.
The company encourages investors to carefully consider its results under GAAP, as well as its
supplemental non-GAAP information and the reconciliation between these presentations, to more fully
understand its business. Reconciliations between GAAP and non-GAAP results are presented in the
tables of this release.
Use of Forward Looking Statements
This release contains projections, information about our financial outlook, earnings guidance, and
other forward-looking statements that involve risks and uncertainties. These forward-looking
statements are based on our expectations as of the date of this release and may differ materially
from actual future events or results. Among the important factors that could cause actual results
to differ materially from those in any forward-looking statements are (i) our ability to develop
and commercialize further our BeadArray, VeraCode®, and Solexa® technologies and to deploy new
sequencing, gene expression, and genotyping products and applications for our technology platforms,
(ii) our ability to manufacture robust instrumentation and reagents technology, and (iii)
reductions in the funding levels to our primary customers, including as a result of the timing and
amount of funding provided by the American Recovery and Reinvestment Act of 2009, together with
other factors detailed in our filings with the Securities and Exchange Commission, including our
most recent filings on Forms 10-K and 10-Q or in information disclosed in public conference calls,
the date and time of which are released beforehand. We undertake no obligation, and do not intend,
to update these forward-looking statements, to review or confirm analysts expectations, or to
provide interim reports or updates on the progress of the current financial quarter.
About Illumina
Illumina (www.illumina.com) is a leading developer, manufacturer, and marketer of life science
tools and integrated systems for large-scale analysis of genetic variation and function. We provide
innovative sequencing and array-based solutions for genotyping, copy number variation analysis,
methylation studies, gene expression profiling, and low-multiplex analysis of DNA, RNA and protein.
We also provide tools and services that are fueling advances in consumer genomics and diagnostics.
Our technology and products accelerate genetic analysis research and its application, paving the
way for molecular medicine and ultimately transforming healthcare.
# # #
CONTACT:
Investors:
|
Peter J. Fromen | Media: | Wilson Grabill | |||
Senior Director | Senior Manager | |||||
Investor Relations | Public Relations | |||||
858-202-4507 | 858-882-6822 | |||||
pfromen@illumina.com | wgrabill@illumina.com |
Illumina, Inc.
Reconciliation Between Preliminary GAAP and Non-GAAP Diluted Net Income Per Share
(unaudited)
Reconciliation Between Preliminary GAAP and Non-GAAP Diluted Net Income Per Share
(unaudited)
Three Months Ended | Year Ended | |||||||
January 2, | January 2, | |||||||
2011 | 2011 | |||||||
Non-GAAP |
$ | 0.28 - $0.29 | $ | 1.05 - $1.06 | ||||
Non-cash interest expense (a) |
($0.02 | ) | ($0.09 | ) | ||||
Pro forma impact of weighted average shares (b) |
($0.02 | ) | ($0.06 | ) | ||||
Amortization of intangible assets |
($0.01 | ) | ($0.04 | ) | ||||
Other non-GAAP adjustments (c) |
($0.01 | ) | ($0.02 | ) | ||||
GAAP |
$ | 0.22 - $0.23 | $ | 0.84 - $0.85 | ||||
(a) Non-cash interest expense is calculated in accordance with the authoritative accounting
guidance for convertible debt instruments that may be settled in cash.
(b) Pro forma impact of weighted average shares represents the estimated impact of double dilution
associated with the accounting treatment of the companys outstanding convertible debt and the
corresponding call option overlay.
(c) Other non-GAAP adjustments reflect the estimated impact on diluted net income per share from
contingent compensation expense and the accrual of in-process research and development, the gain on
acquisition, and acquisition related expense.
Illumina, Inc.
Reconciliation of Non-GAAP Financial Guidance
Reconciliation of Non-GAAP Financial Guidance
The financial guidance provided below assumes an estimated non-GAAP diluted net income per share of
$1.40 and is based on information available as of January 11, 2011. The companys future
performance and financial results are subject to risks and uncertainties, and actual results could
differ materially from the guidance set forth below. Some of the factors that could affect the
companys financial results are stated above in this press release. More information on potential
factors that could affect the companys financial results is included from time to time in the
companys public reports filed with the SEC, including the companys Form 10-K for the fiscal year
ended January 3, 2010, the companys Form 10-Q for the fiscal quarters ended April 4, 2010, July 4,
2010 and October 3, 2010 and the companys Form 10-K for the fiscal year ended January 2, 2011 to
be filed with the SEC. The company assumes no obligation to update any forward-looking statements
or information, which speak as of their respective dates.
Diluted net income per | ||||
share | ||||
Fiscal Year 2011 |
||||
Non-GAAP |
$ | 1.40 | ||
Cease-use loss (a) |
($0.16 | ) | ||
Non-cash interest expense (b) |
($0.09 | ) | ||
Pro forma impact of weighted average shares (c) |
($0.06 | ) | ||
Amortization of intangible assets |
($0.04 | ) | ||
Other non-GAAP adjustments (d) |
($0.04 | ) | ||
GAAP |
$ | 1.01 | ||
(a) Under the terms of a lease agreement executed by the company in Q4 2010, the companys
headquarters will move to a new location during the second half of 2011. Cease-use loss reflects a
non-cash charge to account for the remaining lease payments on the companys current headquarters
reduced by estimated sublease proceeds.
(b) Non-cash interest expense is calculated in accordance with the authoritative accounting
guidance for convertible debt instruments that may be settled in cash.
(c) Pro forma impact of weighted average shares represents the estimated impact of double dilution
associated with the accounting treatment of the companys outstanding convertible debt and the
corresponding call option overlay.
(d) Other non-GAAP adjustments reflect the estimated impact on diluted net income per share for
fiscal year 2011 from the amortization of intangible assets, double rent expense during the period
of transition to the companys new headquarters, compensation expense for the contingent
consideration due to stockholders of Avantome, Inc., acquired in-process research and development
and the adjustment to the number of diluted shares due to the double dilution associated with the
accounting treatment of the companys convertible debt outstanding and the corresponding call
option overlay.