This article has been updated with comments from Illumina's conference call.
NEW YORK (GenomeWeb News) - Illumina reported after the close of the market on Tuesday that its fourth-quarter revenues had increased 43 percent year over year and it swung to a profit from a loss.
The company reported total revenues of $160.9 million for the three-month period ended Dec. 28, compared to revenues of $112.6 million for the fourth quarter of 2007. Its product revenues increased sharply to $152.8 million from $101.1 million, while its service and other revenue decreased to $8.1 million from $11.5 million.
Illumina CFO Christian Henry said during the firm's conference call on Tuesday that consumables revenue grew 76 percent year over year to $98.6 million for the quarter, driven by demand for the company's Infinium HD BeadChips and sequencing kits. He also said that the firm's instrument revenue surpassed the $50 million mark for the first time, bringing in $51.2 million, an increase of 23 percent over instrument revenue of $41.8 million for Q4 2007.
"Our revenue growth reflects our strong market position in both arrays and sequencing," Illumina President and CEO Jay Flatley said during the call. "By our estimates, we believe that we have more than 70 percent market share in the high-multiplex genotyping market and more than 60 percent market share in the next-generation sequencing market."
Flatley said that Illumina shipped "a record" 38 BeadExpress systems during the quarter, each with a "consumable pull-through at the high end of our forecasted range of $50,000 to $100,000 per year."
Illumina posted a profit of $28.9 million, or $.22 per share, compared to a net loss of $4.1 million, or $.04 per share, for the fourth quarter of 2007. The 2007 fourth quarter included charges of $54.5 million related to the settlement of litigation.
Illumina's R&D spending rose 41 percent to $28.3 million from $20.1 million, while its SG&A spending increased 31 percent to $39.2 million from $30 million.
For full-year 2008, Illumina's revenues jumped 56 percent to $573.2 million from $366.8 million. Its product revenue for the year was $532.4 million versus $326.7 million in 2007, while its service and other revenue was $40.8 million, up slightly from $40.1 million the year before.
Illumina's net income for 2008 was $50.5 million, or $.38 per share, compared to a net loss of $278.4 million, or $2.57 per share, for 2007. The 2007 results include charges of $303.4 million for acquired in-process R&D, versus $24.7 million for similar charges in 2008.
The firm's R&D costs for the year were $100 million, up 35 percent from $73.9 million for 2007. Its SG&A spending rose 46 percent to $148 million from $101.3 million.
Illumina finished 2008 with $327 million in cash and cash equivalents.
The company expects to bring in revenues of between $158 million and $164 million in the first quarter of 2009, along with earnings per share of between $.23 and $.26. For full-year 2009, it is guiding for revenue between $690 million and $720 million, with EPS of between $1.10 and $1.20.
Company officials said during the call that it's too early to speculate about what impact additional NIH funding through an economic stimulus package would have on the firm's revenues for the year.
In early Wednesday trade on the Nasdaq, Illumina's shares were up 15 percent at $32.20.