NEW YORK (GenomeWeb) – Illumina reported after the close of the market on Monday that its second quarter 2018 revenues rose by 25 percent year over year.
The San Diego-based genomics technology company reported total Q2 revenues of $830 million, compared to $662 million in the second quarter 2017, and beating analysts' average estimate of $786.6 million.
Total Q2 revenue included $673 million in product revenue and $157 in service and other revenue, up from $543 million and $119 million, respectively, in Q2 2017.
Product revenue consisted of $127 million in instrument sales and $540 million in consumable revenues from both the sequencing and microarray businesses.
Sequencing consumable revenue of $455 million was particularly strong and exceeded the firm's forecast. Sequencing consumable revenue also included $13 million from Chinese customers stocking up on consumables in anticipation of tariffs, Illumina CEO and President Francis deSouza said during a conference call with investors.
Revenue from the microarray business grew 25 percent to $140 million.
Sequencing consumables, array consumables, and lab and other services each grew more than 30 percent compared to the second quarter of 2017, deSouza said in a statement.
During Q2, Illumina began shipping its newest instrument — the semiconductor sequencing-based system iSeq that it unveiled in January — and deSouza said on the call that the early orders are from a "healthy mix" of existing and new customers.
Illumina's Q2 2018 net income was $209 million, or $1.41 per share, up from $128 million, or $.87 per share, in Q2 2017. Its adjusted EPS was $1.43, beating the Wall Street estimate of $1.11 per share.
As a result of the quarter, Illumina has raised its guidance for fiscal year 2018 and now anticipates its total revenues will grow 20 percent with EPS between $5.10 and $5.20. Previously, it projected 15 percent to 16 percent growth with EPS of $4.45 to $4.55.
Illumina's R&D expenses grew 16 percent to $151 million from $130 million in the year-ago quarter. SG&A expenses grew 22 percent year over year to $197 million from $161 million.
As of July 1, 2018, the company held $1.3 billion in cash and cash equivalents and $1.2 billion in short-term investments.
On Tuesday morning, Illumina's stock was up around 7 percent at $309.14.