Illumina, Inc. · NASDAQ:ILMN
Illumina — Q2 2016 Earnings Presentation
14 slides from Illumina's earnings presentation, Jul 26, 2016
Slide 1: Illumina Q2 2016 Financial Results
Illumina Q2 2016 Financial Results July 26, 2016 © 2016 Illumina, Inc. All rights reserved. Illumina, 24sure, BaseSpace, BeadArray, BlueFish, BlueFuse, BlueGnome, cBot, CSPro, CytoChip, DesignStudio, Epicentre, ForenSeq, Genetic Energy, GenomeStudio, GoldenGate, HiScan, HiSeq, HiSeq X, Infinium, iSc
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication may contain statements that are forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected o
Slide 3: Q2 2016: Revenue and non-GAAP EPS exceeded expectations
Q2 2016 Revenue and non-GAAP EPS exceeded expectations Q2’16 Q2’15 Δ Revenue1 $600 $539 11% Gross Margin2 72.8% 72.4% 40 bps Operating Margin2 32.6% 37.4% (480 bps) EPS3 $0.86 $0.80 8% ● Revenue growth driven by strength in sequencing consumables and microarray portfolio ● Increased investments in h
Slide 4: Q2 2016 Revenue Growth Rates
Q2 2016 Revenue Growth Rates Sequencing consumables and microarrays fueled revenue growth Q2 YoY% Sequencing2 Microarray2 Total Instruments (21%) N/P1 (19%) Consumables 25% 24% 25% Service and Other N/P1 N/P1 18% Total 8% 30% 11% ● Consumables accounted for 63% of total revenue ● Sequencing consumab
Slide 5: Q2 2016 Non-GAAP P&L
Q2 2016 Non-GAAP P&L Dilution from GRAIL and Helix was $0.06 and $0.02, respectively $ in millions, except % and per share data Q2’16 Q2’15 Δ Revenue $600 $539 11% GM%1 72.8% 72.4% 40 bps R&D%1 19.0% 15.8% 320 bps SG&A%1 21.2% 19.2% 200 bps OM%1,2 32.6% 37.4% (480 bps) Stock Based Compensation $32 $
Slide 6: Balance Sheet / Cash Flow
Balance Sheet / Cash Flow Strong cash generation $ in millions, except DSO Q2’16 Q1’16 Cash & Investments $1,425 $1,343 Inventory $311 $288 Accounts Receivable (DSO) $372 (56) $403 (64) Principal Amount of Convertible Notes Outstanding $1,150 $1,150 Operating Cash Flow $217 $40 Free Cash Flow $149 (
Slide 7: 2016 Guidance
2016 Guidance4 Increased Non-GAAP EPS Guidance Q3 2016 2016 Revenue1 Revenue1 $625M - $630M +12% YoY EPS2,3 $3.48 - $3.58 1. Revenue guidance assumes constant currency rates from July 26, 2016 2. Non-GAAP EPS attributable to Illumina stockholders, including stock based compensation expense 7 3. Incl
Slide 8: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 8
Slide 9: Reconciliation Between GAAP and Non-GAAP Earnings Per Share
Reconciliation Between GAAP and Non-GAAP Earnings Per Share Attributable to Illumina Stockholders: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, 2016 2015 2016 2015 GAAP earnings per share attributable to Illumina stockholders - diluted $ 0.82 $ 0.69 $ 1.43 $ 1.61 Amortizatio
Slide 10: Footnotes to the Reconciliation Between GAAP and Non-GAAP Measures
Footnotes to the Reconciliation Between GAAP and Non- GAAP Measures: (a) Legal contingencies represent a reversal of previously recorded expense related to the settlement of patent litigation. (b) Non-cash interest expense is calculated in accordance with the authoritative accounting guidance for co
Slide 11: Reconciliation Between GAAP and Non-GAAP Results of Operations as a Percent of Revenue
Reconciliation Between GAAP and Non-GAAP Results of Operations as a Percent of Revenue: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, 2016 2015 2016 2015 GAAP gross profit $ 423,805 70.6 % $ 376,365 69.8 % $ 820,859 70.0 % $ 751,392 69.7 % Stock-based compensation expense 2,3
Slide 12: Footnotes to the Reconciliation Between GAAP and Non-GAAP Results of Operations
Footnotes to the Reconciliation Between GAAP and Non- GAAP Results of Operations: (a) Non-GAAP gross profit, included within non-GAAP operating profit, is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and the average selling prices of the company’s product
Slide 13: Reconciliation of Non-GAAP Financial Guidance
Reconciliation of Non-GAAP Financial Guidance The company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. More information on potential factors that could affect the company’s financial r
Slide 14: Footnotes to the Reconciliation of Non-GAAP Financial Guidance
Footnotes to the Reconciliation of Non-GAAP Financial Guidance: (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) Legal contingencies represent a reversal of previously recorded expen