Illumina, Inc. (ILMN) has reported a 9.06 percent rise in profit for the quarter ended Oct. 02, 2016. The company has earned $128.89 million, or $0.87 a share in the quarter, compared with $118.18 million, or $0.79 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $144.06 million, or $0.97 a share compared with $119.59 million or $0.80 a share, a year ago.
Revenue during the quarter grew 10.33 percent to $607.14 million from $550.27 million in the previous year period. Gross margin for the quarter contracted 24 basis points over the previous year period to 70.19 percent. Total expenses were 73.53 percent of quarterly revenues, down from 74.42 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 26.47 percent.
Operating income for the quarter was $160.70 million, compared with $140.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $208.78 million compared to $197.94 million in the prior year period. At the same time, adjusted operating margin contracted 158 basis points in the quarter to 34.39 percent from 35.97 percent in the last year period.
"While sequencing sample volume growth remains robust, our lowered revenue outlook reflects our updated expectations for HiSeq 2500, HiSeq 4000 and HiSeq X instrument purchases, as well as HiSeq 2500 reagent sales," stated Francis deSouza, president and chief executive officer. "Over the last few weeks it has become clear that certain academic funding practices were modified in the third quarter, limiting our customers’ ability to make HiSeq X capital commitments. Further, HiSeq 2500 and 4000 demand has been impacted by a migration to NextSeq, for enhanced workflow flexibility and HiSeq X, given its beneficial pricing for whole genome sequencing."
For financial year 2016, the company forecasts diluted earnings per share to be in the range of $2.92 to $2.97. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $3.27 to $3.32 on adjusted basis.
Cash and cash equivalents stood at $794.70 million as on Oct. 02, 2016, up 44.09 percent or $243.17 million from $551.53 million on Sep. 27, 2015.
Working capital increases marginally
Illumina, Inc. has recorded an increase in the working capital over the last year. It stood at $1,648.98 million as at Oct. 02, 2016, up 1.38 percent or $22.41 million from $1,626.57 million on Sep. 27, 2015. Current ratio was at 3.62 as on Oct. 02, 2016, down from 3.79 on Sep. 27, 2015.
Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 128 days for the last year period. Days sales outstanding went down to 56 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 78 days for the quarter compared with 128 days for the previous year period. At the same time, days payable outstanding went up to 106 days for the quarter from 65 for the same period last year.
Debt comes down
Illumina, Inc. has recorded a decline in total debt over the last one year. It stood at $1,042.02 million as on Oct. 02, 2016, down 6.13 percent or $68.09 million from $1,110.10 million on Sep. 27, 2015. Total debt was 24.65 percent of total assets as on Oct. 02, 2016, compared with 29.73 percent on Sep. 27, 2015. Debt to equity ratio was at 0.45 as on Oct. 02, 2016, down from 0.57 as on Sep. 27, 2015.
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