Analyst Conference Summary


conference date: January 29, 2020 @ 2:00 PM Pacific Time
for quarter ending: December 31, 2019 (fourth quarter, Q4 2019)

Forward-looking statements

Overview: Growth of 10% y/y is good, but not as high as in the past, raising question of what is now an appropriate P/E?

Basic data (GAAP):

Revenue was $953 million, up 5% sequentially from $907 million and up 10% from $867 million in the year-earlier quarter.

Net income was $239 million, up 2% sequentially from $234 million, and up 14% from $210 million year-earlier.

Diluted EPS was $1.61, up 2% sequentially from $1.58, and up 14% from $1.41 year-earlier.


Full year fiscal 2020 revenue growth in the range of 9% to 11%. GAAP EPS of $6.45 to $6.65 and non-GAAP EPS of $6.80 to $7.00. GAAP guidance does not include potential impact resulting from the termination of the merger agreement with Pacific Biosciences.

Conference Highlights:

Francis deSouza, President and CEO, said "Illumina shipped a record 2,400 sequencing systems in 2019, including a record number of our high-throughput NovaSeq systems and mid-throughput NextSeq systems, reflecting strong demand for research and clinical sequencing. Delived higher than expected revenue in the fourth quarter." First NextSeq 2000s should ship later this quarter.

Non-GAAP numbers: net income $ million, up % sequentially from $286 million, and up % from $ million year-earlier. Diluted EPS was $1.70, down 12% sequentially from $1.93, and up 29% from $1.32 year-earlier.

Cash, equivalents and investment balance was $3.41 billion, up sequentialy from $3.2 billion. Long term debt was $1.14 billion. Cash flow from operations was $443 million. Free cash flow was $386 million. Capital expenditures were $57 million. Cash used to repurchase stock was $63 million.

Helix was deconsolidated effective April 25, 2019.

GAAP cost of revenue was $291 million, leaving gross profit of $662 million. Operating expenses were $394 million, consisting of: $161 million for research and development; $233 million for selling, general, and administrative. Leaving income from operations of $268 million. Other income was $1 million. Income tax provision $30 million. Net loss to noncontrolling interests $0 million.



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Disclaimer: My analyst call summaries may include both condensations of statements made by company representatives and my own analysis. They are not covered by any warranty. I cannot guarantee anything said by company representatives is true. I try not to make errors, but it is possible. This is journalism, not advice.

Copyright 2020 William P. Meyers