Illumina Q2 revenue falls 25% but future bright says CEO
US genomics giant Illumina, which has major research operations at Cambridge’s Granta Park, saw Q2 revenues fall 25 per cent to $633 million from $838m in the same period of 2019 because of the coronavirus pandemic.
There were bright spots through the global gloom. Cashflow from operations of $240m compared to $143m in the second quarter of 2019. Cash flow from operations for the second quarter of 2019 included an $84 million payment of the accreted debt discount related to the conversion of 2019 Notes.
Free cash flow – cash flow from operations less capital expenditures – of $202m for the quarter compared to $96m in the second quarter of 2019. Research and development expenses for the second quarter of 2020 were $155m compared to $166m in the prior year period.
Excluding payroll credits related to COVID-19, non-GAAP R & D expenses as a percentage of revenue were 24.7 per cent compared to 19.8 per cent in the prior year period.
Selling, general and administrative (SG&A) expenses for the second quarter of 2020 were $177m compared to $202m in the prior year period.
Excluding acquisition-related expenses, restructuring charges, and the net impact from payroll credits and expenses related to COVID-19, non-GAAP SG&A expenses as a percentage of revenue were 28.1 per cent compared to 23.1 per cent in the prior year period.
At the close of the quarter, the company held $3.3 billion in cash, cash equivalents and short-term investments, compared to $3.4bn at December 29, 2019.
President and CEO Francis deSouza said: “As expected, the second quarter was significantly impacted by pandemic-related disruption in our customers’ operations and was particularly challenging for many of our research customers who remain closed or operating at limited scale.
“It is clear that the role of genomics in infectious disease will continue to grow through and beyond this pandemic.”