Illumina, Inc. · NASDAQ:ILMN
Illumina — Q1 2015 Earnings Presentation
13 slides from Illumina's earnings presentation, Apr 21, 2015
Slide 1: Illumina Q1 2015 Financial Results
Illumina Q1 2015 Financial Results April 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, iS
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: Q1 2015 Highlights
Q1 2015 Highlights Another quarter of record results Q1 revenue growth of 28% YoY Q1 15 Q1 14 Δ Constant currency revenue growth Revenue1 $539 $421 28% of 33% YoY Strong operating and tax leverage Gross Margin2 72.2% 70.4% 180 bps with 72% YoY non-GAAP EPS growth Operating Margin2 39.3% 34.9% 440 bp
Slide 4: Q1 2015 Revenue Growth Rates
Q1 2015 Revenue Growth Rates Sequencing consumables fueled Q1 growth Q1 YoY % Sequencing Microarray Total Instruments 32% N/P1 26% Consumables 39% N/P1 27% Service and Other N/P1 N/P1 36% Total 40% (11%) 28% Consumables accounted for 57% of total revenue Microarray revenue was down 3% YoY excluding
Slide 5: Q1 2015 P&L
Q1 2015 P&L Revenue growth and expense leverage drove Q1 results $ in millions, except % and per share data Q1 15 Q1 14 Δ Revenue $539 $421 28% GM %1 72.2% 70.4% 180 bps R&D %1 14.9% 15.5% (60 bps) SG&A %1 18.0% 19.9% (190 bps) OM %1 39.3% 34.9% 440 bps Stock Based Compensation $32 $33 (3%) Tax Rate
Slide 6: Balance Sheet / Cash Flow
Balance Sheet / Cash Flow Strong capital position $ in millions, except DSO Q1 15 Q4 14 Cash & Investments $1,366 $1,338 Inventory $205 $191 Accounts Receivable (DSO) $350 (59) $289 (51) Operating Cash Flow1 $67 $141 Free Cash Flow $30 $106 1. Q1’15 impacted by additional paid in capital associated
Slide 7: 2015 Guidance
2015 Guidance Continuing to deliver strong revenue and EPS growth despite FX headwinds 2015 Revenue1 EPS2 +20% YoY $3.36 - $3.42 • Revenue guidance includes 300 bps FX headwind1 • ETR%2 ~ 27.0% 1. Revenue guidance assumes constant exchange rates 2. Non-GAAP including stock based compensation and ass
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 March 29, March 30, 2015 2014 GAAP net income per share - diluted $ 0.92 $ 0.40 Pro forma impact of weighted average shares (a) — — Adjustments to net income: Amortization of acquired intangible assets 0.09 0.09 Cost-m
Slide 10: Reconciliation Between GAAP and Non-GAAP Tax Provision
Reconciliation Between GAAP and Non-GAAP Tax Provision: Three Months Ended March 29, March 30, 2015 2014 GAAP tax provision $ 41,388 23.2 % $ 23,811 28.4 % Incremental tax expense 2,587 198.2% 10,411 34.2 % Non-GAAP tax provision $ 43,975 24.5 % $ 34,222 29.9 % Footnotes to the Reconciliation Betwee
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 March 29, March 30, 2015 2014 GAAP gross profit $ 375,027 69.6 % $ 278,292 66.1 % Stock-based compensation expense 2,611 0.5 % 2,380 0.6 % Amortization of acquired intangible assets 11,385 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 $3.36 - $3.42 Amortization of acquired intangible assets (0.21) Non-cash interest expense (a) (0.17) Cost-method investment gain, net (b) 0.06 A