The stock was trading at $6.54, down from a high of $7.19 reached following the release of the company's third-quarter earnings yesterday after the market closed.
Though Illumina reported a 64-percent increase in revenue in the quarter, the company failed by a small margin to meet analysts' estimates. Revenues increased to $13.5 million in the three months ended Sept. 30, missing by $100,000 Wall Street's expectations, according to a market report by Pacific Growth Equities, which covers Illumina.
However, 15 placements of its flagship BeadStation during the quarter helped drive $12.1 million in product sales, which beat expectations.
Net loss fell to $2 million, or $.05 per share, from $5.5 million, or $.17 per share, missing analysts' estimates by 2 cents per share. The San Diego-based firm recognized a one-time gain during the quarter of $1.5 million, or $.04 per share, related to the settlement of litigation with Applera. But microarray industry leader Affymetrix filed suit against Illumina in August for alleged infringement of six patents.
The company finished the quarter with cash and investments of $66.5 million.
Pacific Growth estimates that Illumina will generate $14 million in product revenue during the fourth quarter. The equities company had originally said Illumina would generate $13.4 million in the quarter. It projects that Illumina to post $52 million in revenue in 2004 and $79 million in 2005.
Illumina also announced that CFO Tim Kish would be leaving the firm in the second quarter of 2005 to return to the East Coast to be closer to his family. He will continue in his current role as the firm searches for a new CFO.
In addition to its genotyping products and services, Illumina is expected to soon unveil new BeadStation products for the gene-expression field.