NEW YORK (GenomeWeb) – Illumina reported after the close of the market Monday that its third quarter revenues climbed 35 percent year over year, as the firm easily beat Wall Street estimates on the top and bottom lines.
The San Diego-based genetic analysis products firm brought in total revenues of $480.6 million for the three months ended Sept. 28, compared to $356.8 million for the third quarter of 2013. Analysts, on average, had expected total revenues of $451.2 million.
It recorded product revenue of $416.2 million, up from $318.6 million year over year, and $64.5 million in service and other revenue, a 69 percent jump from $38.2 million in the third quarter of 2013.
"Illumina experienced tremendous momentum in the third quarter, with strong shipments in HiSeq X, NextSeq, and MiSeq, as well as the associated consumables, resulting in record financial results," Illumina CEO Jay Flatley said in a statement.
Illumina's instrument revenue grew 51 percent year over year to $150M, due to strong NextSeq placements, stable MiSeq and HiSeq sales, and a record number of HiSeq X Ten shipments, CFO Marc Stapley said on a conference call following the release of the financial results.
Sequencing instrument revenue grew 55 percent to $144 million compared to Q3 2013 and was fueled by demand for the HiSeq X Ten and NextSeq 500 platforms, Flatley added on the call. The firm now has 15 customers for the HiSeq X Ten who have ordered a total of 164 systems since the product launch in January.
"In addition, HiSeq and MiSeq demand remains strong, highlighting those instruments' position as the NGS gold standard in their respective segments," said Flatley.
Its consumable revenue in the quarter was $261M, an increase of 21 percent compared to the third quarter last year, driven by higher demand for sequencing consumables that was partially offset by a decline in array consumables, Stapley noted. He added that sequencing consumable revenue was approximately $200 million, an increase of 36 percent over Q3 2013, due to a larger installed base of instruments, including the addition of the HiSeq X Ten and NextSeq platforms.
The firm's microarray revenue was down 2 percent year over year to around $70.3 million, though Flatley noted that was above the firm's forecast.
Illumina posted a profit of $93.5 million, or $.63 per share, compared to net income of $31.4 million, or $.22 per share, for Q3 2013. On a non-GAAP basis, its EPS was $.77 versus $.45 and beat the consensus analysts' estimate of $.56.
The firm spent $85.1 million on R&D during the quarter, a 20 percent increase from $71 million in R&D spending in the third quarter of 2013. Its SG&A expenses climbed 25 percent to $119.9 million from $95.6 million. The firm also recorded a $7.7 million charge for legal contingencies.
Illumina finished the quarter with $829.9 million in cash and cash equivalents, and short-term investments totaling $441.5 million.
The firm increased its full-year 2014 guidance to revenue growth of approximately 30 percent year over year with non-GAAP earnings in the range of $2.63 to $2.65. It had previously said that it expected FY 2014 revenue growth of 25 percent to 26 percent.
In Tuesday afternoon trade on the Nasdaq, shares of Illumina were up 9 percent at $179.10.