In an announcement released this morning, Illumina Inc. (ILMN:NASDAQ) reported lower preliminary revenue for Q2/19 and adjusted annual revenue guidance across three different business areas. The company advised that later this month it expects to report Q2/19 revenue of approximately $835 million, up from $830 million in Q2/18.
The firm advised that Q2/19 results were impacted by approximately $30 million lower revenue than expected associated with population genomics initiatives; $10 million lower revenue than expected associated with ongoing weakness in the direct-to-consumer (DTC) market, primarily array services; and $10 million lower revenue than expected with Illumina's non-high-throughput sequencing systems and consumables. NovaSeq consumable volume growth was up 40% sequentially, and more than 100% year-over-year with system shipments ahead of expectations in the second quarter.
Illumina now expects fiscal year revenue growth of approximately 6%, primarily associated with lower near-term expectations in DTC.
Francis deSouza, president and CEO of Illumina, commented, "We are obviously disappointed with our second quarter financial results. Our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business." Additionally, the firm advised that in light of the lower revenue growth expectations for 2019 it is taking immediate action to adjust operating expenses for the remainder of the year.
Investors can expect additional details from the firm including full year earnings guidance during the company's upcoming quarterly conference call scheduled for July 29, 2019, at 5:00 pm EDT.
Illumina is based in San Diego, Calif., and describes itself as a global leader in DNA sequencing and array-based technologies fueling advancements in life sciences, oncology, reproductive health, genetic disease, agriculture, microbiology and other emerging segments. The company states that is dedicated to improving human health by unlocking the power of the genome. The firm provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.
Illumina shares have been trading down more than 15% today from yesterday's closing price of $363.66 on higher than average volume. In the first half of the trading day, shares have traded between $305.00 and $312.47/share. With 147 million outstanding, its market cap has taken a hit of around $8 billion today based on the current share price of $308.55.
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