Illumina Third-Quarter Revenues to Decline
A survey of Wall Street analysts by Thomson Reuters showed Illumina’s third-quarter sales were estimated to be $278 million. In July, the company forecast revenues to increase 24%–26% this year to $1,128 million. At that time, the company commented that it expected sequencing and other technologies that it provides to receive funding despite anticipated US government cutbacks (see IBO 8/15/11). The latest announcement triggered a decline in stock prices for US life science instrument companies. Fluidigm issued a press release on October 7 announcing that it is maintaining its full-year forecast of product revenue growth of 27%–30%. In an SEC filing on October 10, Bruker stated that it expects third-quarter revenues to exceed its guidance of $400 million.
San Diego, CA 10/6/11—Illumina has announced that it expects third-quarter revenues of $235 million. This figure would be a 1% decrease year over year and an 18% decline from the second quarter. The company attributed the forecast to: uncertainty about US and European research-funding levels that resulted in purchasing delays for both instruments and consumables; a decrease in consumables sales due to the second-quarter launch of the V3 sequencing kits, which created excess capacity; a drop in reagent usage among the Genome Analyzer installed base; and lower-than-expected upgrades to HiSeq 2000 systems. “In the quarter, we saw what we believe to be an unprecedented slowdown in purchasing due to uncertainties in research funding and overall economic conditions, as well as a temporary excess of sequencing capacity in the market,” said Illumina President and CEO Jay Flatley. “We expect these conditions to continue through at least the fourth quarter, while the 2012–2013 US budgets for NIH and other related agencies are determined.” He also stated that the company has shipped 45 MiSeq systems starting in mid-September. The company expects fourth-quarter revenues to be higher than third-quarter sales but has suspended the financial guidance provided on July 26 (see IBO 8/31/11).
