This article has been updated from a previous version to include information from Illumina's Q2 earnings call.
NEW YORK (GenomeWeb) – Illumina's second quarter revenues rose 29 percent year over year, the company announced after the close of the market on Wednesday.
The firm recognized total revenues of $448 million for the three months ended June 30, compared to $346 million in the second quarter of 2013. It beat the average analyst estimate of $427 million. Product revenue increased to $391 million from $313 million in the year ago quarter. Service and other revenue jumped to $56.8 million from $32.6 million, due in part to record orders for the firm's noninvasive prenatal fetal aneuploidy test, Verifi.
"We are witnessing tremendous interest in our products, which led to record financial results in the second quarter," CEO Jay Flatley said in a statement. "With the most extensive sequencing portfolio available, we remain extremely well-positioned to develop and address the large and untapped market opportunities ahead of us."
During a conference call discussing the company's Q2 financial results, Flatley added that Illumina's revenue growth was due mainly to its sequencing business, which grew 44 percent driven by consumable demand, the firm's new HiSeq X Ten and NextSeq 500 instruments, and noninvasive prenatal testing.
"These results clearly demonstrate the breadth of our portfolio, with options for customers across all experimental scales and applications," Flatley said during the call.
By contrast, its array business declined 10 percent and as a result, Illumina has updated its guidance to indicate that its array business will likely decline in the mid- to high-single digits this year. Beyond 2014, Flatley said the firm projects the array business will stabilize or grow due to strength in the agriculture and in vitro fertilization markets.
Illumina posted a profit of $47 million, or $.31 per share, up from $36 million, or $.26 per share in Q2 of last year. On a non-GAAP basis, its profit was $85 million, or $.57 per share, compared to $60 million or $.43 per share in Q2 2013. It beat the Wall Street consensus estimate of $.51 per share.
R&D spending increased 23 percent to $83 million from $67.6 million in the prior year quarter. SG&A expenses increased 29 percent to $114.6 million from $88.7 million year over year.
As a result of a strong first half to 2014, Illumina said it has increased its 2014 guidance to between 25 percent and 26 percent revenue growth.
The firm exited the quarter with $1.1 billion in cash, cash equivalents, and short-term investments.