NEW YORK (GenomeWeb News) – Illumina reported after the close of the market Tuesday that its first-quarter revenues increased 47 percent, paced by strong growth in its sequencing business and demand for its HiSeq 2000 systems.
The San Diego-based firm reported total revenues of $282.5 million for the three-month period ended April 3, compared to revenues of $192.1million for the first quarter of 2010. Its product revenues were $266.7million versus $173.7 million for the prior year first quarter, and itsservices and other revenues were $15.8 million versus $18.5 million.
The revenues topped analysts' consensus estimate of $261.4 million.
"During the quarter, we worked through the majority of the remaining promotion-related HiSeqs from our backlog and recognized the corresponding benefit to gross margin," Illumina CEO Jay Flatley said during a conference call Tuesday evening. "The rapidly growing number ofHiSeq systems in the field led to a higher mix of consumable revenue inQ1."
He noted that the firm's microarray revenues were down slightly from Q4, though the first quarter is usually seasonally soft. "However, Q1 microarray revenue grew year over year led by strong results in array instrumentation due to shipments of the HiScan and HiScan SQ systems."
"Demand for our Eco real-time PCR instrument is continuing to build nicely," said Flatley. "We experienced some initial challenges in ramping manufacturing that we believe are now behind us. We're significantly scaling Eco production and expect to deliver the product with standard lead times by the end of this quarter."
Illumina posted net income of $24.1 million, or $.16 per share, compared to $21.2 million, or $.16 per share, for Q1 2010. On a non-GAAPbasis, the firm had net income of $50.3 million, or $.35 per share, compared to $26.6 million, or $.21 per share, for Q1 2010. Analysts had expected net income of $.31 per share.
The company spent $50.2 million on R"D, up 15 percent from $43.7 million. Its SG"A spending increased 31 percent to $65.9 million from $50.3 million. Illumina also recorded $2.5 million in headquarter relocation expense in the quarter.
The firm disclosed earlier this year that it will move to a new location in San Diego.
Illumina finished the quarter with $410.3 million in cash and cash equivalents.
