Illumina Lowers Annual Forecast Due to First Quarter Results
The company had previously forecast 2016 sales growth of 16% (see IBO 2/15/16). On a conference call, Mr. Flatley stated that sales of HiSeq 4000 were affected by outsourcing to service providers and fewer upgrades. He also stated, “Our HiSeqX, benchtop sequencing, array and services portfolios performed to expectations in the quarter.” Sequencing consumables shipment increased 24%, and total company shipments to clinical customers rose 20%. Regarding non-GAAP EPS, Mr. Flatley said that it will be below “current consensus expectations, consistent with the revenue shortfall.”
San Diego, CA 4/18/16—Illumina has announced that its first quarter sales were below forecast due to lower-than-anticipated sales of the HiSeq 2500, 3000 and 4000 systems. First quarter sales grew 6%, 7% in constant currency, to $572 million. Consequently, the company now expects revenue to grow 12% in 2016. “Despite this slow start in Q1, we anticipate that our Americas and Asia Pacific regions will meet our expectations for the full year, but that Europe will underperform,” commented Illumina Chairman and CEO Jay Flatley. The company is making management changes in Europe to address the problem.
