Illumina, Inc. · NASDAQ:ILMN
Illumina — Q2 2015 Earnings Presentation
13 slides from Illumina's earnings presentation, Jul 21, 2015
Slide 1: Illumina Q2 2015 Financial Results
Illumina Q2 2015 Financial Results July 21, 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, 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 2015 Highlights
Q2 2015 Highlights Another quarter of robust growth Q2 revenue growth of 21% YoY Q2 15 Q2 14 Δ Constant currency revenue growth Revenue1 $539 $448 21% of 25% YoY 2 Strong leverage with 40% YoY non- Gross Margin 72.4% 70.9% 150 bps GAAP EPS growth Operating Margin2 37.4% 34.8% 260 bps Cash flow from
Slide 4: Q2 2015 Revenue Growth Rates
Q2 2015 Revenue Growth Rates Sequencing consumables and services fueled Q2 growth Q2 YoY % Sequencing Microarray Total Instruments 13% N/P1 11% Consumables 36% N/P1 23% Service and Other N/P1 N/P1 35% Total 28% (11%) 21% Consumables accounted for 56% of total revenue 1. N/P items are not provided 4
Slide 5: Q2 2015 P&L
Q2 2015 P&L Revenue growth and leverage drove Q2 results $ in millions, except % and per share data Q2 15 Q2 14 Δ Revenue $539 $448 21% GM %1 72.4% 70.9% 150 bps R&D %1 15.8% 15.6% 20 bps SG&A %1 19.2% 20.5% (130 bps) OM %1 37.4% 34.8% 260 bps Stock Based Compensation $33 $36 (8%) Tax Rate2 28.9% 29
Slide 6: Balance Sheet / Cash Flow
Balance Sheet / Cash Flow Strong cash generation $ in millions, except DSO Q2 15 Q1 15 Cash & Investments $1,510 $1,366 Inventory $224 $205 Accounts Receivable (DSO) $369 (62) $350 (59) Operating Cash Flow $171 $67 Free Cash Flow $130 $30 6
Slide 7: 2015 Guidance
2015 Guidance3 Continuing to deliver strong revenue and EPS growth despite FX headwinds 2015 Revenue1 EPS2 +20% YoY $3.39 - $3.45 • Revenue guidance includes 300 bps FX headwind1 1. Revenue guidance assumes constant currency rates from July 21, 2015 2. Non-GAAP including stock based compensation 3.
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 Net Income Per Share
Reconciliation Between GAAP and Non-GAAP Net Income Per Share: Three Months Ended June 28, June 29, 2015 2014 GAAP net income per share – diluted $ 0.69 $ 0.31 Adjustments to net income: Amortization of acquired intangible assets 0.08 0.08 Non-cash interest expense (a) 0.07 0.06 Acquisition related
Slide 10: Reconciliation Between GAAP and Non-GAAP Tax Provision
Reconciliation Between GAAP and Non-GAAP Tax Provision: Three Months Ended June 28, June 29, 2015 2014 GAAP tax provision $ 38,925 27.6 % $ 13,861 22.9 % Incremental tax expense 9,617 35.6 % 22,025 36.7 % Non-GAAP tax provision $ 48,542 28.9 % $ 35,886 29.8 % Footnotes to the Reconciliation Between
Slide 11: 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 June 28, June 29, 2015 2014 GAAP gross profit $ 376,365 69.8 % $ 300,540 67.1 % Stock-based compensation expense 2,579 0.5 % 2,433 0.6 % Amortization of acquired intangible assets 11,384 2.1 %
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 Non-GAAP Net Income Per Share
Guidance Reconciliation Between GAAP and Non-GAAP Net Income Per Share: Fiscal Year 2015 Diluted net income per share Non-GAAP diluted net income per share $3.39 - $3.45 Amortization of acquired intangible assets (0.21) Non-cash interest expense (a) (0.17) Cost-method investment gain, net (b) 0.06 A