Analyst Conference Summary

conference date: August 6, 2020 @ 2:00 PM Pacific Time
for quarter ending: June 30, 2020 (second quarter, Q2 2020)

Forward-looking statements

Overview: Very bad quarter as pandemic impacted sales.

Basic data (GAAP):

Revenue was $633 million, down 26% sequentially from $859 million and down 25% from $838 million in the year-earlier quarter.

Net income was $47 million, down 73% sequentially from $173 million, and down 83% from $269 million year-earlier.

Diluted EPS was $0.32, down 73% sequentially from $1.17, and down 84% from $1.99 year-earlier.

Guidance:

Illumina has withdrawn its fiscal 2020 full year revenue EPS guidance due to the COVID-19 pandemic.

Conference Highlights:

Francis deSouza, President and CEO, 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."

Non-GAAP numbers: net income $92 million, down 62% sequentially from $243 million, and down 54% from $200 million year-earlier. Diluted EPS was $0.62, down 62% sequentially from $1.64, and down 54% from $1.35 year-earlier.

Cash, equivalents and investment balance was $3.27 billion, up sequentialy from $na billion. Long term debt was $0.66 billion. Cash flow from operations was $240 million. Free cash flow was $200 million. Capital expenditures were $ million. Cash used to repurchase stock was $143 million.

In Q2 2020 Illumina Launched TruSight software to accelerate the identification of rare genetic diseases through whole genome sequencing. Also received FDA authorization for a Covid-19 diagnostic test using sequencing.

In Q2 2020 Illumina acquired BlueBee and Enancio to lower data storage costs and accelerate data interpretation.

In Q2 2020 Illumina partnered with IDbyDNA to co-market IDbyDNA's Explify Platform for use with Illumina's NGS systems and library preparation to provide a complete, streamlined workflow solution for infectious disease applications.

GAAP cost of revenue was $205 million, leaving gross profit of $428 million. Operating expenses were $332 million, consisting of: $155 million for research and development; $177 million for selling, general, and administrative. Leaving income from operations of $96 million. Other income was $69 million. Income tax provision $118 million.

Q&A summary:

not available

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