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Q1 2013 Earnings Call
April 22, 2013 5:00 pm ET
Rebecca Chambers - Senior Director, Investor Relations
Jason T. Flatley - Chief Executive Officer, President and Director
Marc A. Stapley - Chief Financial Officer and Senior Vice President
Christian O. Henry - Senior Vice President and General Manager of Genomic Solutions
Tycho W. Peterson - JP Morgan Chase & Co, Research Division
Doug Schenkel - Cowen and Company, LLC, Research Division
Derik De Bruin - BofA Merrill Lynch, Research Division
Ross Muken - ISI Group Inc., Research Division
Amanda Murphy - William Blair & Company L.L.C., Research Division
Daniel Brennan - Morgan Stanley, Research Division
Isaac Ro - Goldman Sachs Group Inc., Research Division
William R. Quirk - Piper Jaffray Companies, Research Division
Amit Bhalla - Citigroup Inc, Research Division
Jonathan P. Groberg - Macquarie Research
Daniel Arias - UBS Investment Bank, Research Division
Previous Statements by ILMN
» Illumina Management Discusses Q4 2012 Results - Earnings Call Transcript
» Illumina Management Discusses Q3 2012 Results - Earnings Call Transcript
» Illumina Management Discusses Q2 2012 Results - Earnings Call Transcript
I would now like to turn the conference over to your host for today, Ms. Rebecca Chambers, Senior Director of Investor Relations. Please proceed.
Thank you, Phillip. Good afternoon, everyone and welcome to our earnings call for the first fiscal quarter -- the first quarter of fiscal 2013.
During the call today, we will review the financial results released after the close of market and offer commentary on our commercial activity, after which we will host a question-and-answer session. If you have not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.
Participating for Illumina today will be Jay Flatley, President and Chief Executive Officer; Marc Stapley, Senior Vice President and Chief Financial Officer; and Christian Henry, Senior Vice President and General Manager of our Genomic Solutions business. Jay will provide a brief update on the state of our business and markets and Marc will review our first quarter financial results.
This call is being recorded and the audio portion will be archived in the Investors section of our website. It is our intent that all forward-looking statements regarding expected financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed.
All forward-looking statements are based upon current information available and Illumina assumes no obligation to update these statements. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent Forms 10-Q and 10-K.
Before I turn the call over to Jay, I would like to let you know that we will be participating in a number of upcoming conferences this quarter; including the Bear growth conference, the Bank of America Merrill Lynch conference, the UBS conference and the Goldman Sachs conference. For those of you unable to attend, we encourage you to listen to the webcast presentation, which will be available through our Investor Relations section of our website.
With that, I'll now turn the call over to Jay.
Jason T. Flatley
Thanks, Rebecca, and good afternoon, everyone. Q1 was an extraordinary quarter for Illumina. Our business continued to accelerate, delivering orders substantially above our plan, with strong underlying trends across all geographies.
Revenue grew 21% year-over-year to $331 million, which was not only the sixth quarter of sequential growth, but also a record for quarterly revenue.
Total micro-array revenue increased 1% year-over-year, due to a combination of BlueGnome, strong instrument shipments and a robust quarter in genotyping services.
Additionally, we saw a sequential increase in both sample volume and orders. Our outlook for arrays is generally as expected, with customer interest remaining high in our standard micro-array products, including Infinium OmniExpress Exome, Core Exome and the Omni2.5 products. In fact, we set a record for whole genome association, with approximately 300,000 samples shipped in the quarter.
Additionally, our iSelect genotyping products are doing well across many customer types, including consumer customers. Our consumer array business appears to have hit a pricing sweet spot, leading to significant market elasticity. This resulted in a large order during the quarter, which is deliverable over several years.
Turning to our sequencing business. Total sequencing revenue grew 32% year-over-year to more than $235 million. This substantial growth was a result of increased demand for consumables, sequencing services and HiSeq instruments. In fact, during the first quarter, sequencing consumables grew more than 40% compared to Q1 of last year, as a result of our larger install base, higher utilization per instrument and share gains in our Sample Prep business.
Our Sample Prep kits continue to demonstrate robust year-over-year growth, as more customers switch from competitor's products or homebrew. Our Nextera kits drove a significant portion of the growth, along with demand from TruSight kits from commercial customers. New product introductions, specifically the Nextera Rapid Capture Exome Kit, which enables the fastest exome enrichment workflow, have been positively received.
Since launched in Q1, a large genome center has switched from a competitor's exome enrichment platform to our new exome kit and many other customers are beginning to adopt this accelerated workflow.
Shipments of our TruSeq targeted RNA kits will begin this month. These kits offer highly customizable gene expression profiling and will serve as a technology alternative in the mid-plex realtime PCR market, which we estimate to be approximately $300 million in size.
The sequencing instrument revenue increased 7% compared to the first quarter of 2012, as we saw a resurgence in HiSeq instrument sales, including unit shipment levels above those seen in the fourth quarter of 2011. We attribute this demand to acquisition of new customers, as well as capacity constraints in our install base.