Illumina Reports Financial Results for Fourth Quarter and Fiscal Year 2004; Revenue Increases by 80% over Prior Year.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- Illumina, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ILMN) announced today its financial results for the fourth quarter and fiscal year ended January January: see month. 2, 2005. For the fourth quarter, Illumina reported revenue of $14.8 million, compared to revenue of $10.7 million in the fourth quarter of 2003. Revenue for the fiscal year ended January 2, 2005 was $50.6 million, an 80% increase compared to revenue of $28.0 million for the fiscal year ended December December: see month. 28, 2003. For the quarter ended January 2, 2005, the Company reported a net income of $3.2 million, or $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $4.0 million, or $0.12 per share, in the fourth quarter of 2003. Results for the fourth quarter include a one-time gain of $3.3 million, or $0.08 per diluted share, related to reduction of damages previously awarded in a wrongful termination wrongful termination n. a right of an employee to sue his/her employer for damages (loss of wage and "fringe" benefits, and, if against "public policy," for punitive damages). lawsuit lawsuit: see procedure; tort. , which resulted in the payment of $5.9 million subsequent to our fiscal year end. Net loss for the fiscal year ended January 2, 2005 was $6.2 million, or $0.17 per share, compared to a net loss of $27.1 million, or $0.85 per share, for the prior year. Cash and investments at January 2, 2005 totaled $67.0 million. Gross margins in the quarter and fiscal year ended January 2, 2005 were 74%, compared to 68% and 64% for the comparable periods in 2003. Selling, general and administrative expenses for the quarter were $5.8 million, compared to $5.1 million for the prior year. This increase was comprised of $1.7 million associated with the growth in the field sales and marketing force, partially offset by a reduction in G&A expenses. Research and development expenses remained relatively constant at $5.3 million compared to $5.5 million in the fourth quarter of 2003. Jay Flatley, Illumina president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , provided the following highlights of fourth quarter and full-year achievements: --Booking of 22 service contracts in the fourth quarter and 52 for the year compared to a full-year goal of 20 --Completion in the quarter of two significant genotyping Genotyping refers to the process of determining the genotype of an individual with a biological assay. Current methods of doing this include PCR, DNA sequencing, and hybridization to DNA microarrays or beads. contracts, one related to a serious neurological disease Noun 1. neurological disease - a disorder of the nervous system nervous disorder, neurological disorder disorder, upset - a physical condition in which there is a disturbance of normal functioning; "the doctor prescribed some medicine for the disorder"; and one related to improvement of trait trait (trat) 1. any genetically determined characteristic; also, the condition prevailing in the heterozygous state of a recessive disorder, as the sickle cell trait. 2. a distinctive behavior pattern. selection in livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. breeding --Shipment of 13 BeadStations in the quarter and a total of three BeadLabs and 42 BeadStations for the year against a target of 20 total systems, resulting in a year-end installed base of 49 --Achievement of record sales of oligonucleotides in the fourth quarter and announcement in December of a landmark collaboration Working together on a project. See collaborative software. with Invitrogen for manufacture and distribution of oligos --Delivery of nearly all the remaining genotypes for our share of the International HapMap Project The International HapMap Project is an organization whose goal is to develop a haplotype map of the human genome (the HapMap), which will describe the common patterns of human genetic variation. , designed to create tools to help link genetic variation to the causes of complex diseases --Receipt of two new patents, bringing our total to 36 issued or allowed and 69 pending. Subsequent to the end of the quarter, Illumina announced a BeadLab sale to the Mayo Clinic Mayo Clinic: see Mayo, Charles Horace. Mayo Clinic voluntary association of more than 500 physicians in Rochester, Minnesota. [Am. Hist.: EB, 11: 723] See : Medicine . The Company also launched its new DASL See WebDAV. DASL - Datapoint's Advanced System Language. A cross between C and Pascal by Gene Hughes with custom features for Datapoint hardware (no stack). It is used internally by Datapoint. (TM) assay and a companion cancer panel. The DASL assay enables researchers to generate expression profiles from partially degraded de·grad·ed adj. 1. Reduced in rank, dignity, or esteem. 2. Having been corrupted or depraved. 3. Having been reduced in quality or value. RNAs such as those found in formalin-fixed, paraffin-embedded (FFPE FFPE Formalin-Fixed, Paraffin-Embedded (tissue) FFPE Fédération de la Fonction Publique Européenne (Staff Representation at the European Commission) ) samples, many of which represent known clinical outcomes. These recent product announcements are further examples of Illumina's strategy to build a comprehensive offering of scalable, multi-application systems. At the foundation of our systems are the Sentrix(R) Array Matrix, the Sentrix BeadChip, the BeadArray Reader and our Oligator(R) DNA synthesis DNA synthesis commonly refers to:
Noun 1. SNP - (genetics) genetic variation in a DNA sequence that occurs when a single nucleotide in a genome is altered; SNPs are usually considered to be point mutations that have been evolutionarily genotyping or gene expression experiments on the same platform, with content ranging from whole genomes to focused sets, at various levels of throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and automation and industry-leading cost per sample. Illumina is also developing a portfolio of powerful assay technologies to deliver even further benefit to BeadArray(TM) technology. Conference Call Information A conference call has been scheduled for 2:00 p.m. Pacific Time today to discuss Illumina's fourth quarter and full year 2004 results, as well as 2005 guidance. Interested parties may listen to the call by dialing 800-811-7286 (international callers should dial 913-981-4902) or by accessing the live webcast under the "Investors" tab of Illumina's website at: www.illumina.com. A significant portion of the Company's revenue is derived from large individual transactions, such as the sale of production genotyping systems and large genotyping service contracts. It is also subject to fluctuations in demand for its products seasonality impacts and changes in overall spending levels in the life science industry. Market demand for our industry's products is typically lowest in the first calendar quarter and highest in the fourth calendar quarter as researchers spend unused budget allocations before the end of the year. As a result, the Company may experience quarter-to quarter fluctuations in revenue, with potential for a sequential decline in quarterly revenue. In particular, the Company's revenue for the first quarter of 2005 may be lower than revenue in the fourth quarter of 2004. Illumina (www.illumina.com) is developing next-generation tools for the large-scale analysis of genetic variation and function. The Company's proprietary BeadArray technology -- now used in leading genomics centers around the world -- provides the throughput, cost effectiveness and flexibility necessary to enable researchers in the life sciences and pharmaceutical industries to perform the billions of tests necessary to extract medically valuable information from advances in genomics and proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. . This information will help pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way to personalized medicine  The external links in this article or section may require cleanup to comply with Wikipedia's content policies. by correlating genetic variation and gene function
with particular disease states, enhancing drug discovery, allowing
diseases to be detected earlier and more specifically, and permitting
better choices of drugs for individual patients.Use of Non-GAAP Financial Measure: management believes that the presentation of the per-share effect of the one-time gain related to a termination-of-employment lawsuit, which is a non-GAAP financial measure, gives investors an enhanced understanding of the Company's business and results of operations by providing additional information regarding the effect of a gain that is considered to be outside the Company's core business. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: this release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are the costs and outcome of Illumina's litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Affymetrix, the Company's ability to scale oligo synthesis output and technology to satisfy market demand deriving from the Company's collaboration with Invitrogen, Illumina's ability to further develop and commercialize its BeadArray technologies and to deploy new gene expression products and applications for its platform technology, to manufacture robust Sentrix(R) arrays and Oligator(R) oligonucleotides, and other factors detailed in the Company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q or in information disclosed in public conference calls, the date and time of which are released beforehand. Illumina disclaims any intent or obligation to update these forward-looking statements beyond the date of this release.
ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
(in thousands except per share amounts)
Three months Year ended
ended
----------------- ------------------
January December January December
2, 28, 2, 28,
2005 2003 2005 2003
-------- -------- -------- ---------
(Unaudited) (Note)
Revenue:
Product $10,422 $7,753 $40,497 $18,378
Service 4,039 2,106 8,075 6,496
Research 321 882 2,011 3,161
-------- -------- -------- ---------
Total revenue 14,782 10,741 50,583 28,035
Costs and expenses:
Cost of revenue 3,873 3,420 13,259 10,037
Research and development 5,262 5,453 21,114 22,511
Selling, general and
administrative 5,786 5,083 25,080 18,899
Amortization of deferred
compensation and other
non-cash compensation
charges 109 394 844 2,454
Litigation judgment
(settlement) (3,268) 189 (4,201) 756
-------- -------- -------- ---------
Total costs and expenses 11,762 14,539 56,096 54,657
-------- -------- -------- ---------
Income (Loss) from operations 3,020 (3,798) (5,513) (26,622)
Other income (expense) 228 (202) (712) (441)
-------- -------- -------- ---------
Net income (loss) $3,248 $(4,000) $(6,225) $(27,063)
======== ======== ======== =========
Basic net income (loss) per share $0.09 $(0.12) $(0.17) $(0.85)
======== ======== ======== =========
Diluted net income (loss) per
share $0.08 $(0.12) $(0.17) $(0.85)
======== ======== ======== =========
Shares used in calculating basic
net income (loss) per share 37,909 32,254 35,845 31,925
======== ======== ======== =========
Shares used in calculating diluted
net income (loss) per share 39,204 32,254 35,845 31,925
======== ======== ======== =========
Note: The Statements of Operations at January 2, 2005 and December 28,
2003 have been derived from the audited financial statements as of
those dates.
ILLUMINA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
(in thousands)
January December
2, 28,
2005 2003
-------- --------
(Note)
ASSETS
Current assets:
Cash and investments $66,994 $32,882
Other current assets 16,697 7,536
-------- --------
Total current assets 83,691 40,418
Property and equipment, net 8,574 45,777
Long term restricted investments - 12,191
Intangible and other assets, net 2,642 848
-------- --------
Total assets $94,907 $99,234
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $19,048 $8,189
Long-term debt and liabilities 3,597 43,657
Stockholders' equity 72,262 47,388
-------- --------
Total liabilities and stockholders' equity $94,907 $99,234
======== ========
Note: The Balance Sheets as of January 2, 2005 and December 28, 2003
have been derived from the audited financial statements as of those
dates.
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