Illumina, Inc. · NASDAQ:ILMN
Illumina — Q4 2015 Earnings Presentation
16 slides from Illumina's earnings presentation, Feb 2, 2016
Slide 1: Illumina Q4 and Fiscal Year 2015 Financial Results
Illumina Q4 and Fiscal Year 2015 Financial Results February 2, 2016 © 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, HiS
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: Q4 2015 Highlights
Q4 2015 Highlights Revenue growth exceeded expectations Q4 15 Q4 14 Δ Q4 highlights: Revenue1 $592 $512 15% Revenue growth of 15% YoY Gross Margin2 71.7% 72.3% (60 bps) Constant currency revenue growth of 19% YoY Operating Margin2 33.4% 37.7% (430 bps) Revenue growth driven by strength EPS3 $0.81 $0
Slide 4: Q4 2015 Revenue Growth Rates
Q4 2015 Revenue Growth Rates Sequencing consumables and services fueled Q4 revenue growth Q4 YoY % Sequencing2 Microarray2 Total Instruments (5%) N/P1 (5%) Consumables ~30% (7%) 19% Service and Other N/P1 N/P1 ~50% Total 19% (2%) 15% Consumables accounted for 59% of total revenue Sequencing consumab
Slide 5: 2015 Revenue Growth Rates
2015 Revenue Growth Rates Services and sequencing consumables fueled FY’15 revenue growth 2015 YoY % Sequencing2 Microarray2 Total Instruments 8% N/P1 6% Consumables 34% (10%) 23% Service and Other N/P1 N/P1 36% Total 26% (10%) 19% Consumables accounted for 58% of total revenue Sequencing consumable
Slide 6: Sequencing Power for Every Scale
Sequencing Power for Every Scale The broadest portfolio offering available MiniSeq MiSeq NextSeq HiSeq HiSeq X 2500 4000 X Five X Ten Output per Run: 7.5 Gb 15 Gb 120 Gb 1 Tb 1.5 Tb 1.8 Tb 1.8 Tb Instrument Price: $49.5K $99K $250K $690K $900K $6M1 $10M1 $ Price/Gb: $200 $93 $33 $29 $20 $10.5 $7 Uti
Slide 7: Q4 2015 Non-GAAP P&L
Q4 2015 Non-GAAP P&L $ in millions, except % and per share data Q4 15 Q4 14 Δ Revenue $592 $512 15% GM %1 71.7% 72.3% (60 bps) R&D %1 17.5% 15.7% 180 bps SG&A %1 20.9% 18.9% 200 bps OM %1 33.4% 37.7% (430 bps) Stock Based Compensation $35 $38 (8%) Tax Rate 26.5% 16.2% 1,030 bps Consolidated Net Inco
Slide 8: 2015 Non-GAAP P&L
2015 Non-GAAP P&L $ in millions, except % and per share data 2015 2014 Δ Revenue $2,220 $1,861 19% GM %1 72.4% 71.7% 70 bps R&D %1 16.2% 15.3% 90 bps SG&A %1 19.8% 19.5% 30 bps OM %1 36.4% 36.9% (50 bps) Stock Based Compensation $133 $153 (13%) Tax Rate 27.1% 23.6% 350 bps Consolidated Net Income2 $
Slide 9: Balance Sheet / Cash Flow
Balance Sheet / Cash Flow Strong cash generation $ in millions, except DSO Q4 15 Q3 15 Cash & Investments $1,386 $1,439 Inventory $271 $234 Accounts Receivable (DSO) $386 (64) $413 (68) Operating Cash Flow $240 $181 Free Cash Flow $205 $152 In Q4’15, $29M of the 2016 0.25% convertible bonds were set
Slide 10: 2016 Guidance
2015 Guidance5 Continuing to deliver strong revenue growth 2016 Revenue1 Assumptions +16% YoY1 GM%3: ~73% NCI4: $30M EPS2 Shares: 149M $3.55 – $3.65 1. Revenue guidance assumes constant currency rates from January 29, 2016; a 1% headwind from currency is included in total company revenue guidance 2.
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations 11
Slide 12: 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 Years Ended January 3, December 28, January 3, December 28, 2016 2014 2016 2014 GAAP earnings per share attributable to Illumina stockholders - diluted $ 0.70 $ 1.03 $ 3.10 $ 2.37 Am
Slide 13: Reconciliation Between GAAP and Non-GAAP Tax Provision
Reconciliation Between GAAP and Non-GAAP Tax Provision: Three Months Ended Year Ended January 3, December 28, January 3, December 28, 2016 2014 2016 2014 GAAP tax provision $ 32,143 23.8 % $ 38,781 20.2 % $ 125,752 21.6 % $ 95,407 21.3 % Incremental tax expense (g) 10,584 39.6 % (13,925) 36.4 % 31,6
Slide 14: 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 Years Ended January 3, December 28, January 3, December 28, 2016 2014 2016 2014 GAAP gross profit $ 410,359 69.4 % $ 384,937 75.1 % $ 1,549,290 69.8 % $ 1,297,710 69.7 % Stock-based compensatio
Slide 15: Footnotes to the Reconciliation of Results of Operations
Footnotes to the Reconciliation Between GAAP and Non- GAAP Results of Operations: (a) Legal contingencies in fiscal 2015 represent charges related to patent litigation. Legal contingencies recorded in fiscal 2014 primarily represent a gain related to the settlement of our patent litigation with Synt
Slide 16: Reconciliation of Non-GAAP Financial Guidance
Reconciliation of Non-GAAP Financial Guidance Fiscal Year 2016 Gross margin Non-GAAP gross margin 73% Amortization of acquired intangible assets (2)% GAAP gross margin 71% Operating margin Non-GAAP operating margin (a) 33% Stock-based compensation expense (6)% Amortization of acquired intangible ass