NEW YORK (GenomeWeb) – Illumina reported after the close of the market on Tuesday that its first quarter 2017 revenues rose 5 percent over the first quarter of 2016.
For the three months ended April 2, Illumina recognized $598.0 million, up from $572.0 million in Q1 2016, beating analysts' average estimate of $590.8 million.
Illumina's total revenue included $491.0 million in product revenue, up from $483.0 million a year earlier, and $107.0 million in service and other revenue, up from $89.0 million in Q1 2016.
The company's net income for the quarter rose to $373.0 million, or $2.52 per share, from $90.0 million, or $.60 per share, in the year-ago period. On an adjusted basis, Illumina reported net income of $.64 per share, in line with Wall Street EPS estimates. The firm said its Q1 net income included a pre-tax gain of $453.0 million as a result of Grail repurchasing a large part of Illumina's stake in that company in March.
In a statement, Illumina CEO Francis deSouza said that he was "pleased" with the results, and highlighted demand for the company's newest sequencing instrument, NovaSeq. Illumina received orders for 135 NovaSeq instruments in Q1 2017, deSouza added.
Illumina's Q1 R&D expenses rose 17 percent to $145.0 million from $124.0 million in the prior year period. Its SG&A expenses rose 9 percent to $163.0 million from $150.0 million in Q1 2016.
Illumina ended the quarter with $981.0 million in cash and cash equivalents and $797.0 million in short-term investments.
During fiscal year 2017, Illumina expects its total revenues to grow between 10 percent and 12 percent over 2016 revenues and anticipates revenue growth of 7 percent for the second quarter. The company also said it expects adjusted earnings of $3.60 to $3.70 per share for the year, and adjusted EPS of $.65 to $.70 for Q2. Analysts are expecting 2017 EPS of $3.64 and EPS of $.87 for Q2.
The firm's shares fell 3 percent to $176 in after-hours trading on the Nasdaq.