Illumina, Inc. · NASDAQ:ILMN
Illumina — Q3 2015 Earnings Presentation
13 slides from Illumina's earnings presentation, Oct 20, 2015
Slide 1: Illumina Q3 2015 Financial Results
Illumina Q3 2015 Financial Results October 20, 2015 © 2015 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,
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: Q3 2015 Highlights
Q3 2015 Highlights Another quarter of double-digit growth Q3 revenue growth of 14% YoY Q3 15 Q3 14 Δ Constant currency revenue Revenue1 $550 $481 14% growth of 18% YoY Revenue growth due to strength Gross Margin2 73.2% 73.2% 0 bps from sequencing consumables Operating Margin2 36.0% 39.7% (370 bps) 4
Slide 4: Q3 2015 Revenue Growth Rates
Q3 2015 Revenue Growth Rates Sequencing consumables and services fueled Q3 growth Q3 YoY % Sequencing Microarray Total Instruments (2%) N/P1 (3%) Consumables 36% (18%) 23% Service and Other N/P1 N/P1 23% Total 21% (17%) 14% Consumables accounted for 58% of total revenue Sequencing consumables were a
Slide 5: Q3 2015 Non-GAAP P&L
Q3 2015 Non-GAAP P&L $ in millions, except % and per share data Q3 15 Q3 14 Δ Revenue $550 $481 14% GM %1 73.2% 73.2% 0 bps R&D %1 16.4% 14.6% 180 bps SG&A %1 20.9% 19.0% 190 bps OM %1 36.0% 39.7% (370 bps) Stock Based Compensation $32 $45 (29%) Tax Rate2 28.6% 21.3% 730 bps Consolidated Net Income2
Slide 6: Balance Sheet / Cash Flow
Balance Sheet / Cash Flow Strong cash generation $ in millions, except DSO Q3 15 Q2 15 Cash & Investments $1,439 $1,510 Inventory $234 $224 Accounts Receivable (DSO) $413 (68) $369 (62) Operating Cash Flow $181 $171 Free Cash Flow $152 $130 In Q3’15, $207M of the 2016 0.25% convertible bonds were se
Slide 7: 2015 Guidance
2015 Guidance3 Continuing to deliver strong revenue growth despite FX headwinds Q4 2015 Revenue1 Revenue1 ~$570M +18% YoY1 +21% YoY (constant currency basis) EPS2 EPS2 $0.78 - $0.80 $3.29 - $3.31 1. Revenue guidance assumes constant currency rates from October 20, 2015 2. Non-GAAP attributable to Il
Slide 8: Non-GAAP Reconciliations
Non-GAAP Reconciliations to Cane. S a SIREERT AATCATINGIONN XSAN oe CTTCATASSTIN gar BA ae eC ae rent BSS, CoS ene ey TACOMA, a sr oe 3 , G6 ni Uy \= oe 5 < oe 8 illumina’
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 September 27, September 28, 2015 2014 GAAP earnings per share attributable to Illumina stockholders - diluted $ 0.79 $ 0.63 Amortization of acquired intangible assets 0.09 0.08 Legal
Slide 10: Reconciliation Between GAAP and Non-GAAP Tax Provision
Reconciliation Between GAAP and Non-GAAP Tax Provision: Three Months Ended September 27, September 28, 2015 2014 GAAP tax provision $ 13,296 10.3 % $ 18,954 16.9 % Tax benefit related to cost-sharing arrangement (e) 24,757 70.7 % — — Incremental tax expense (f) 8,833 25.2 % 11,723 36.8 % Non-GAAP ta
Slide 11: Reconciliation Between GAAP and Non-GAAP Results of Operations
Reconciliation Between GAAP and Non-GAAP Results of Operations as a Percent of Revenue: Three Months Ended September 27, September 28, 2015 2014 GAAP gross profit $ 387,539 70.4 % $ 333,941 69.5 % Stock-based compensation expense 3,065 0.6 % 2,883 0.6 % Amortization of acquired intangible assets 12,
Slide 12: Footnotes to the 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: Guidance Reconciliation Between GAAP and Non-GAAP Earnings Per Share
Guidance Reconciliation Between GAAP and Non-GAAP Earnings Per Share Attributable to Illumina Stockholders Fiscal Year 2015 Q4 2015 Diluted earnings per share attributable to Illumina stockholders Non-GAAP diluted earnings per share attributable to Illumina stockholders $3.29 - $3.31 $0.78 - $0.80 A