- Core Illumina revenue of $1.1
billion for Q3 2024, down 2% from Q3 2023 and on a constant
currency basis
- Core Illumina GAAP operating margin of 68.6% and non-GAAP
operating margin of 22.6% for Q3 2024
- Core Illumina GAAP diluted EPS of $4.03 and non-GAAP diluted EPS of $1.14 for Q3 2024
- Lowered fiscal year 2024 Core Illumina revenue guidance to
decline ~3% from fiscal year 2023; expect Q4 2024 Core Illumina
revenue of approximately $1.07
billion
- Raised fiscal year 2024 Core Illumina non-GAAP operating margin
guidance to a range of 21% to 21.5%
- Raised fiscal year 2024 Core Illumina non-GAAP diluted EPS
guidance to a range of $4.05 to
$4.15
SAN
DIEGO, Nov. 4, 2024 /PRNewswire/ -- Illumina,
Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced
its financial results for the third quarter of fiscal year 2024.
The financial results for YTD 2024 and Q3 2023 and YTD 2023 include
the financial results for GRAIL which was spun off on June 24, 2024.
"During the third quarter, the Illumina team delivered strong
operating results, and revenue met our expectations," said
Jacob Thaysen, Chief Executive
Officer. "We are making good strides towards Illumina's strategic
goals, both in launching breakthrough innovation and in helping our
customers accelerate their adoption of the NovaSeq™ X."
"The near-term macroeconomic environment remains constrained,
and we are slightly lowering our 2024 revenue guidance," Thaysen
continued. "The underlying demand for Illumina's products and
applications remains strong and we are demonstrating significant
progress in driving margin and earnings expansion."
Third quarter Core Illumina segment results
|
GAAP
|
|
Non-GAAP
(a)
|
Dollars in
millions
|
Q3
2024
|
|
Q3
2023
|
|
Q3
2024
|
|
Q3
2023
|
Revenue (b)
|
$
1,080
|
|
$
1,106
|
|
$
1,080
|
|
$
1,106
|
Gross margin
(c)
|
68.9 %
|
|
64.7 %
|
|
70.5 %
|
|
66.0 %
|
Research and
development (R&D) expense
|
$ 253
|
|
$ 238
|
|
$ 249
|
|
$ 235
|
Selling, general and
administrative (SG&A) expense
|
$ 239
|
|
$ 216
|
|
$ 268
|
|
$ 246
|
Legal contingency and
settlement
|
$
(488)
|
|
$
(1)
|
|
$
—
|
|
$ —
|
Operating
profit
|
$ 741
|
|
$ 262
|
|
$ 244
|
|
$ 249
|
Operating
margin
|
68.6 %
|
|
23.7 %
|
|
22.6 %
|
|
22.5 %
|
Tax
provision
|
$
77
|
|
*
|
|
$
48
|
|
*
|
Tax rate
|
10.8 %
|
|
*
|
|
21.0 %
|
|
*
|
Net income
|
$ 642
|
|
*
|
|
$ 181
|
|
*
|
Diluted EPS
|
$
4.03
|
|
*
|
|
$
1.14
|
|
*
|
|
* Prior
year information not provided.
|
(a)
|
See tables in "Results
of Operations - Non-GAAP" section below for GAAP and non-GAAP
reconciliations.
|
(b)
|
Core Illumina revenue
for Q3 2023 included intercompany revenue of $8 million which,
prior to the spin-off of GRAIL in Q2 2024, was eliminated in
consolidation.
|
(c)
|
The increase in gross
margin was driven by execution of our operational excellence
priorities that delivered cost savings, including freight, and
improved productivity and a more favorable mix of sequencing
consumables.
|
Third quarter consolidated results
|
GAAP
|
|
Non-GAAP
(a)
|
Dollars in
millions
|
Q3
2024
|
|
Q3
2023
|
|
Q3
2024
|
|
Q3
2023
|
Revenue
|
$
1,080
|
|
$
1,119
|
|
$
1,080
|
|
$
1,119
|
Gross margin
|
68.9 %
|
|
61.1 %
|
|
70.5 %
|
|
65.4 %
|
R&D
expense
|
$ 253
|
|
$ 315
|
|
$ 249
|
|
$ 312
|
SG&A
expense
|
$ 239
|
|
$ 303
|
|
$ 268
|
|
$ 328
|
Goodwill and intangible
impairment
|
$
—
|
|
$ 821
|
|
$
—
|
|
$ —
|
Legal contingency and
settlement
|
$
(488)
|
|
$
(1)
|
|
$
—
|
|
$ —
|
Operating profit
(loss)
|
$ 741
|
|
$
(754)
|
|
$ 244
|
|
$ 93
|
Operating
margin
|
68.6 %
|
|
(67.3) %
|
|
22.6 %
|
|
8.3 %
|
Tax provision
(benefit)
|
$
15
|
|
$
(28)
|
|
$
48
|
|
$ 35
|
Tax rate
|
2.1 %
|
|
3.6 %
|
|
21.0 %
|
|
39.7 %
|
Net income
(loss)
|
$ 705
|
|
$
(754)
|
|
$ 181
|
|
$ 52
|
Diluted earnings (loss)
per share
|
$
4.42
|
|
$
(4.77)
|
|
$
1.14
|
|
$
0.33
|
|
(a) See
tables in "Results of Operations - Non-GAAP" section below for GAAP
and non-GAAP reconciliations.
|
Capital expenditures for free cash flow purposes were
$32 million for Q3 2024. Cash flow provided by operations was
$316 million, compared to $139 million in the prior year
period. Free cash flow (cash flow provided by operations less
capital expenditures) was $284 million for the quarter,
compared to $94 million in the prior year period.
Depreciation and amortization expenses were $70 million for Q3
2024. At the close of the quarter, the company held
$939 million in cash, cash equivalents and short-term
investments.
Key announcements since our last earnings release
- Presented strategy and three-year financial outlook that
features accelerating revenue growth and significant margin
expansion
- Introduced the MiSeq i100 Series: Illumina's simplest, fastest
benchtop sequencers
- Announced plans to provide updates on key innovations in
whole-genome sequencing, proteomics, and single-cell technology at
the American Society of Human Genetics Annual Meeting
- Announced European Court of Justice ruled in favor of Illumina
in jurisdictional appeal regarding GRAIL
- Obtained FDA approval for TSO Comprehensive with two companion
diagnostics to rapidly match patients to targeted therapies
- Announced Bengaluru global capability center, expanding
presence in the region
- Appointed Todd Christian as
Senior Vice President of Services, Arrays, and Genomics Access
- Announced that Charles Dadswell
will step down as General Counsel, initiated search for
successor
A full list of recent announcements can be found in the
company's News Center.
Financial outlook and guidance
For fiscal year 2024,
the company is lowering its guidance for Core Illumina revenue to
decline ~3% (down ~3% in constant currency) compared to fiscal year
2023. For the fourth quarter of 2024, the company expects Core
Illumina revenue of ~$1.07 billion. The company is raising its
guidance for Core Illumina non-GAAP operating margin to a range of
21% to 21.5%, and for Core Illumina non-GAAP diluted EPS to a range
of $4.05 to $4.15 for fiscal year 2024.
The company provides forward-looking guidance on a non-GAAP
basis. The company is unable to provide a reconciliation of
forward-looking non-GAAP financial measures to the most directly
comparable GAAP reported financial measures because it is unable to
predict with reasonable certainty the impact of items such as
acquisition-related expenses, gains and losses from strategic
investments, fair value adjustments to contingent consideration,
potential future asset impairments, restructuring activities, and
the ultimate outcome of pending litigation without unreasonable
effort. These items are uncertain, inherently difficult to predict,
depend on various factors, and could have a material impact on GAAP
reported results for the guidance period. For the same reasons, the
company is unable to address the significance of the unavailable
information, which could be material to future results.
Conference call information
The conference call will
begin at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Monday, November
4, 2024. Interested parties may access the live teleconference
through the Investor Info section of Illumina's website
at investor.illumina.com. Alternatively, individuals can
access the call by dialing 877.400.0505 or +1.323.701.0225 outside
North America, both using
conference ID 2966739. To ensure timely connection, please dial in
at least ten minutes before the scheduled start of the call.
A replay of the conference call will be posted on Illumina's
website after the event and will be available for at least 30 days
following.
Statement regarding use of non-GAAP financial
measures
The company reports non-GAAP results for diluted
earnings per share, net income, gross margin, operating expenses,
including research and development expense, selling general and
administrative expense, legal contingencies and settlement, and
goodwill and intangible impairment, operating income, operating
margin, gross profit, other income (expense), tax provision,
constant currency revenue growth, and free cash flow (on a
consolidated and, as applicable, segment basis) in addition to, and
not as a substitute for, or superior to, financial measures
calculated in accordance with GAAP. The company's financial
measures under GAAP include substantial charges such as
amortization of acquired intangible assets among others that are
listed in the reconciliations of GAAP and non-GAAP financial
measures included in this press release, as well as the effects of
currency translation. Management has excluded the effects of these
items in non-GAAP measures to assist investors in analyzing and
assessing past and future operating performance. Non-GAAP net
income, diluted earnings per share and operating margin are key
components of the financial metrics utilized by the company's board
of directors to measure, in part, management's performance and
determine significant elements of management's compensation.
The company encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand its business. Reconciliations between GAAP
and non-GAAP results are presented in the tables of this
release.
Use of forward-looking statements
This release may
contain forward-looking statements that involve risks and
uncertainties. Among the important factors to which our business is
subject that could cause actual results to differ materially from
those in any forward-looking statements are: (i) changes in the
rate of growth in the markets we serve; (ii) the volume, timing and
mix of customer orders among our products and services; (iii) our
ability to adjust our operating expenses to align with our revenue
expectations; (iv) our ability to manufacture robust
instrumentation and consumables; (v) the success of products and
services competitive with our own; (vi) challenges inherent in
developing, manufacturing, and launching new products and services,
including expanding or modifying manufacturing operations and
reliance on third-party suppliers for critical components; (vii)
the impact of recently launched or pre-announced products and
services on existing products and services; (viii) our ability to
modify our business strategies to accomplish our desired
operational goals; (ix) our ability to realize the anticipated
benefits from prior or future actions to streamline and improve our
R&D processes, reduce our operating expenses and maximize our
revenue growth; (x) our ability to further develop and
commercialize our instruments, consumables, and products; (xi) to
deploy new products, services, and applications, and to expand the
markets for our technology platforms; (xii) the risks and costs
associated with the divestment of GRAIL; (xiii) the risk of
additional litigation arising against us in connection with the
GRAIL acquisition; (xiv) our ability to obtain approval by
third-party payors to reimburse patients for our products; (xv) our
ability to obtain regulatory clearance for our products from
government agencies; (xvi) our ability to successfully partner with
other companies and organizations to develop new products, expand
markets, and grow our business; (xvii) uncertainty, or adverse
economic and business conditions, including as a result of slowing
or uncertain economic growth or armed conflict; (xviii) the
application of generally accepted accounting principles, which are
highly complex and involve many subjective assumptions, estimates,
and judgments and (xix) legislative, regulatory and economic
developments, together with other factors detailed in our filings
with the Securities and Exchange Commission, including our most
recent filings on Forms 10-K and 10-Q, or in information disclosed
in public conference calls, the date and time of which are released
beforehand. We undertake no obligation, and do not intend, to
update these forward-looking statements, to review or confirm
analysts' expectations, or to provide interim reports or updates on
the progress of the current quarter.
About Illumina
Illumina is improving human health by
unlocking the power of the genome. Our focus on innovation has
established us as a global leader in DNA sequencing and array-based
technologies, serving customers in the research, clinical, and
applied markets. Our products are used for applications in the life
sciences, oncology, reproductive health, agriculture, and other
emerging segments. To learn more,
visit www.illumina.com and connect with us on X,
Facebook, LinkedIn, Instagram, TikTok, and YouTube.
Illumina,
Inc.
Condensed
Consolidated Balance Sheets
(In
millions)
|
|
September
29,
2024
|
|
December 31,
2023
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
869
|
|
$
1,048
|
Short-term
investments
|
70
|
|
6
|
Accounts receivable,
net
|
699
|
|
734
|
Inventory,
net
|
574
|
|
587
|
Prepaid expenses and
other current assets
|
161
|
|
234
|
Total current
assets
|
2,373
|
|
2,609
|
Property and equipment,
net
|
832
|
|
1,007
|
Operating lease
right-of-use assets
|
453
|
|
544
|
Goodwill
|
1,113
|
|
2,545
|
Intangible assets,
net
|
305
|
|
2,993
|
Deferred tax assets,
net
|
617
|
|
56
|
Other assets
|
321
|
|
357
|
Total
assets
|
$
6,014
|
|
$
10,111
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
191
|
|
$
245
|
Accrued
liabilities
|
784
|
|
1,325
|
Total current
liabilities
|
975
|
|
1,570
|
Operating lease
liabilities
|
613
|
|
687
|
Term debt
|
1,988
|
|
1,489
|
Other long-term
liabilities
|
313
|
|
620
|
Stockholders'
equity
|
2,125
|
|
5,745
|
Total liabilities and
stockholders' equity
|
$
6,014
|
|
$
10,111
|
Illumina,
Inc.
Condensed
Consolidated Statements of Operations
(In millions, except
per share amounts)
(unaudited)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
September
29,
2024
|
|
October 1,
2023
|
Revenue:
|
|
|
|
|
|
|
|
Product
revenue
|
$
914
|
|
$
941
|
|
$
2,718
|
|
$
2,864
|
Service and other
revenue
|
166
|
|
178
|
|
550
|
|
518
|
Total
revenue
|
1,080
|
|
1,119
|
|
3,268
|
|
3,382
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of product
revenue (a)
|
235
|
|
293
|
|
739
|
|
884
|
Cost of service and
other revenue (a)
|
84
|
|
95
|
|
286
|
|
285
|
Amortization of
acquired intangible assets
|
16
|
|
47
|
|
110
|
|
143
|
Total cost of
revenue
|
335
|
|
435
|
|
1,135
|
|
1,312
|
Gross
profit
|
745
|
|
684
|
|
2,133
|
|
2,070
|
Operating
expense:
|
|
|
|
|
|
|
|
Research and
development (a)
|
253
|
|
315
|
|
913
|
|
1,013
|
Selling, general and
administrative (a)
|
239
|
|
303
|
|
813
|
|
1,127
|
Goodwill and
intangible impairment
|
—
|
|
821
|
|
1,889
|
|
821
|
Legal contingency and
settlement
|
(488)
|
|
(1)
|
|
(474)
|
|
14
|
Total operating
expense
|
4
|
|
1,438
|
|
3,141
|
|
2,975
|
Income (loss) from
operations
|
741
|
|
(754)
|
|
(1,008)
|
|
(905)
|
Other expense,
net
|
(21)
|
|
(28)
|
|
(358)
|
|
(45)
|
Income (loss) before
income taxes
|
720
|
|
(782)
|
|
(1,366)
|
|
(950)
|
Provision (benefit)
for income taxes
|
15
|
|
(28)
|
|
44
|
|
36
|
Net income
(loss)
|
$
705
|
|
$
(754)
|
|
$
(1,410)
|
|
$
(986)
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.43
|
|
$
(4.77)
|
|
$
(8.86)
|
|
$
(6.23)
|
Diluted
|
$
4.42
|
|
$
(4.77)
|
|
$
(8.86)
|
|
$
(6.23)
|
Shares used in
computing earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
159
|
|
158
|
|
159
|
|
158
|
Diluted
|
160
|
|
158
|
|
159
|
|
158
|
|
|
|
|
|
|
|
|
(a) Includes
stock-based compensation expense for stock-based awards:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
September
29,
2024
|
|
October 1,
2023
|
Cost of product
revenue
|
$
7
|
|
$
7
|
|
$
19
|
|
$
22
|
Cost of service and
other revenue
|
1
|
|
2
|
|
5
|
|
5
|
Research and
development
|
33
|
|
36
|
|
115
|
|
117
|
Selling, general and
administrative
|
43
|
|
41
|
|
152
|
|
142
|
Stock-based
compensation expense before taxes
|
$
84
|
|
$
86
|
|
$
291
|
|
$
286
|
Illumina,
Inc.
Condensed
Consolidated Statements of Cash Flows
(In
millions)
(unaudited)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
September
29,
2024
|
|
October 1,
2023
|
Net cash provided by
operating activities
|
$
316
|
|
$
139
|
|
$
473
|
|
$
254
|
Net cash used in
investing activities
|
(42)
|
|
(54)
|
|
(130)
|
|
(146)
|
Net cash used in
financing activities
|
(332)
|
|
(707)
|
|
(523)
|
|
(1,183)
|
Effect of exchange rate
changes on cash and cash equivalents
|
7
|
|
(4)
|
|
1
|
|
(9)
|
Net decrease in cash
and cash equivalents
|
(51)
|
|
(626)
|
|
(179)
|
|
(1,084)
|
Cash and cash
equivalents, beginning of period
|
920
|
|
1,553
|
|
1,048
|
|
2,011
|
Cash and cash
equivalents, end of period
|
$
869
|
|
$
927
|
|
$
869
|
|
$
927
|
|
|
|
|
|
|
|
|
Calculation of free
cash flow:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
316
|
|
$
139
|
|
$
473
|
|
$
254
|
Purchases of property
and equipment
|
(32)
|
|
(45)
|
|
(99)
|
|
(144)
|
Free cash flow
(a)
|
$
284
|
|
$
94
|
|
$
374
|
|
$
110
|
|
|
(a)
|
Free cash flow, which
is a non-GAAP financial measure, is calculated as net cash provided
by operating activities reduced by purchases of property and
equipment. Free cash flow is useful to management as it is one of
the metrics used to evaluate our performance and to compare us with
other companies in our industry. However, our calculation of free
cash flow may not be comparable to similar measures used by other
companies.
|
Illumina,
Inc.
Results of
Operations - Constant Currency Revenue
(Dollars in
millions)
(unaudited)
|
TABLE 1: CORE
ILLUMINA - CONSTANT CURRENCY REVENUE:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
%
Change
|
|
September
29,
2024
|
|
October 1,
2023
|
|
%
Change
|
Core Illumina
revenue
|
$
1,080
|
|
$
1,106
|
|
(2) %
|
|
$
3,228
|
|
$
3,341
|
|
(3) %
|
Less: Hedge
gains
|
3
|
|
5
|
|
|
|
10
|
|
9
|
|
|
Core Illumina revenue,
excluding hedge effect
|
1,077
|
|
1,101
|
|
|
|
3,218
|
|
3,332
|
|
|
Less: Exchange rate
effect
|
(1)
|
|
—
|
|
|
|
(7)
|
|
—
|
|
|
Core Illumina constant
currency revenue (a)
|
$
1,078
|
|
$
1,101
|
|
(2) %
|
|
$
3,225
|
|
$
3,332
|
|
(3) %
|
|
TABLE 2:
CONSOLIDATED - CONSTANT CURRENCY REVENUE:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
%
Change
|
|
September
29,
2024
|
|
October 1,
2023
|
|
%
Change
|
Consolidated
revenue
|
$
1,080
|
|
$
1,119
|
|
(4) %
|
|
$
3,268
|
|
$
3,382
|
|
(3) %
|
Less: Hedge
gains
|
3
|
|
5
|
|
|
|
10
|
|
9
|
|
|
Consolidated revenue,
excluding hedge effect
|
1,077
|
|
1,114
|
|
|
|
3,258
|
|
3,373
|
|
|
Less: Exchange rate
effect
|
(1)
|
|
—
|
|
|
|
(7)
|
|
—
|
|
|
Consolidated constant
currency revenue (a)
|
$
1,078
|
|
$
1,114
|
|
(3) %
|
|
$
3,265
|
|
$
3,373
|
|
(3) %
|
|
|
(a)
|
Constant currency
revenue growth, which is a non-GAAP financial measure, is
calculated using comparative prior period foreign exchange rates to
translate current period revenue, net of the effects of
hedges.
|
Illumina,
Inc.
Results of
Operations - Non-GAAP
(In millions, except
per share amounts)
(unaudited)
|
TABLE 1: CORE
ILLUMINA - RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS PER
SHARE:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
September
29,
2024
|
GAAP earnings per
share - diluted
|
$
4.03
|
|
$
4.88
|
Cost of revenue
(b)
|
0.10
|
|
0.29
|
R&D expense
(b)
|
0.03
|
|
0.04
|
SG&A expense
(b)
|
(0.18)
|
|
(1.11)
|
Goodwill and intangible
impairment (b)
|
—
|
|
0.02
|
Legal contingency and
settlement (b)
|
(3.07)
|
|
(2.98)
|
Other expense, net
(b)
|
0.04
|
|
2.05
|
GILTI, US foreign tax
credits, and global minimum top-up tax (c)
|
0.34
|
|
0.55
|
Incremental non-GAAP
tax expense (d)
|
(0.16)
|
|
(0.56)
|
Income tax provision
(e)
|
0.01
|
|
0.02
|
Non-GAAP earnings per
share - diluted (a)
|
$
1.14
|
|
$
3.20
|
|
TABLE 2: CORE
ILLUMINA - RECONCILIATION OF GAAP AND NON-GAAP NET
INCOME:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
September
29,
2024
|
GAAP net
income
|
$
642
|
|
$
777
|
Cost of revenue
(b)
|
16
|
|
47
|
R&D expense
(b)
|
4
|
|
6
|
SG&A expense
(b)
|
(29)
|
|
(176)
|
Goodwill and intangible
impairment (b)
|
—
|
|
3
|
Legal contingency and
settlement (b)
|
(488)
|
|
(474)
|
Other expense, net
(b)
|
7
|
|
326
|
GILTI, US foreign tax
credits, and global minimum top-up tax (c)
|
54
|
|
87
|
Incremental non-GAAP
tax expense (d)
|
(26)
|
|
(89)
|
Income tax provision
(e)
|
1
|
|
3
|
Non-GAAP net income
(a)
|
$
181
|
|
$
510
|
Illumina, Inc.
Results of
Operations - Non-GAAP (continued)
(In millions, except
per share amounts)
(unaudited)
|
TABLE 3:
CONSOLIDATED - RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS
(LOSS) PER SHARE:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
September
29,
2024
|
|
October 1,
2023
|
GAAP earnings (loss)
per share - diluted
|
$
4.42
|
|
$
(4.77)
|
|
$
(8.86)
|
|
$
(6.23)
|
Cost of revenue
(b)
|
0.09
|
|
0.30
|
|
0.70
|
|
0.93
|
R&D expense
(b)
|
0.03
|
|
0.02
|
|
0.04
|
|
0.11
|
SG&A expense
(b)
|
(0.18)
|
|
(0.15)
|
|
(1.03)
|
|
0.64
|
Goodwill and intangible
impairment (b)
|
—
|
|
5.20
|
|
11.87
|
|
5.19
|
Legal contingency and
settlement (b)
|
(3.06)
|
|
(0.01)
|
|
(2.98)
|
|
0.09
|
Other expense, net
(b)
|
0.04
|
|
0.14
|
|
2.05
|
|
0.23
|
GILTI, US foreign tax
credits, and global minimum top-up tax (c)
|
0.16
|
|
0.24
|
|
0.89
|
|
0.40
|
Incremental non-GAAP
tax expense (d)
|
(0.37)
|
|
(0.65)
|
|
(1.11)
|
|
(0.68)
|
Income tax provision
(e)
|
0.01
|
|
0.01
|
|
0.02
|
|
0.05
|
Non-GAAP earnings per
share - diluted (a)
|
$
1.14
|
|
$
0.33
|
|
$
1.59
|
|
$
0.73
|
|
TABLE 4:
CONSOLIDATED - RECONCILIATION OF GAAP AND NON-GAAP NET INCOME
(LOSS):
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
October 1,
2023
|
|
September
29,
2024
|
|
October 1,
2023
|
GAAP net income
(loss)
|
$
705
|
|
$
(754)
|
|
$
(1,410)
|
|
$
(986)
|
Cost of revenue
(b)
|
16
|
|
48
|
|
112
|
|
147
|
R&D expense
(b)
|
4
|
|
3
|
|
6
|
|
17
|
SG&A expense
(b)
|
(30)
|
|
(24)
|
|
(163)
|
|
102
|
Goodwill and intangible
impairment (b)
|
—
|
|
821
|
|
1,889
|
|
821
|
Legal contingency and
settlement (b)
|
(488)
|
|
(1)
|
|
(474)
|
|
14
|
Other expense, net
(b)
|
7
|
|
22
|
|
326
|
|
36
|
GILTI, US foreign tax
credits, and global minimum top-up tax (c)
|
25
|
|
38
|
|
141
|
|
63
|
Incremental non-GAAP
tax expense (d)
|
(59)
|
|
(102)
|
|
(177)
|
|
(108)
|
Income tax provision
(e)
|
1
|
|
1
|
|
3
|
|
9
|
Non-GAAP net income
(a)
|
$
181
|
|
$
52
|
|
$
253
|
|
$
115
|
|
All amounts in
tables are rounded to the nearest millions, except as otherwise
noted. As a result, certain amounts may not recalculate using the
rounded amounts provided.
|
(a)
|
Non-GAAP net income and
diluted earnings per share exclude the effects of the pro forma
adjustments detailed above. Non-GAAP net income and diluted
earnings per share are key components of the financial metrics
utilized by the company's board of directors to measure, in part,
management's performance and determine significant elements of
management's compensation. Management has excluded the effects of
these items in these measures to assist investors in analyzing and
assessing our past and future operating performance.
|
(b)
|
Refer to
Reconciliations between GAAP and Non-GAAP Results of Operations for
details of amounts.
|
(c)
|
Amounts represent the
impact of GRAIL pre-acquisition net operating losses on GILTI, the
utilization of US foreign tax credits, and the Pillar Two global
minimum top-up tax, which became effective in Q1 2024.
|
(d)
|
Incremental non-GAAP
tax expense reflects the tax impact of the non-GAAP adjustments
listed.
|
(e)
|
Amounts represent the
difference between book and tax accounting related to stock-based
compensation cost.
|
Illumina,
Inc.
Results of
Operations - Non-GAAP (continued)
(Dollars in
millions)
(unaudited)
|
TABLE 5:
RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A
PERCENT OF REVENUE:
|
|
Three Months
Ended
|
|
September 29,
2024
|
|
October 1,
2023
|
|
Core/Consolidated
|
|
Core
Illumina
|
|
GRAIL
|
|
Elims
|
|
Consolidated
|
GAAP gross profit
(loss) (b)
|
$
745
|
68.9 %
|
|
$ 715
|
64.7 %
|
|
$
(27)
|
|
$
(4)
|
|
$
684
|
61.1 %
|
Amortization of
acquired intangible assets
|
16
|
1.6 %
|
|
14
|
1.2 %
|
|
33
|
|
—
|
|
47
|
4.2 %
|
Restructuring
(g)
|
—
|
—
|
|
1
|
0.1 %
|
|
—
|
|
—
|
|
1
|
0.1 %
|
Non-GAAP gross profit
(a)
|
$
761
|
70.5 %
|
|
$ 730
|
66.0 %
|
|
$
6
|
|
$
(4)
|
|
$
732
|
65.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP R&D
expense
|
$
253
|
23.4 %
|
|
$ 238
|
21.5 %
|
|
$ 79
|
|
$
(2)
|
|
$
315
|
28.1 %
|
Acquisition-related
expenses (d)
|
(3)
|
(0.2) %
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
—
|
Restructuring
(g)
|
(1)
|
(0.1) %
|
|
(3)
|
(0.3) %
|
|
—
|
|
—
|
|
(3)
|
(0.3) %
|
Non-GAAP R&D
expense
|
$
249
|
23.1 %
|
|
$ 235
|
21.2 %
|
|
$ 79
|
|
$
(2)
|
|
$
312
|
27.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A
expense
|
$
239
|
22.2 %
|
|
$ 216
|
19.5 %
|
|
$ 87
|
|
$
—
|
|
$
303
|
27.0 %
|
Amortization of
acquired intangible assets
|
—
|
—
|
|
—
|
—
|
|
(1)
|
|
—
|
|
(1)
|
(0.1) %
|
Contingent
consideration liabilities (c)
|
49
|
4.6 %
|
|
110
|
9.9 %
|
|
—
|
|
—
|
|
110
|
9.8 %
|
Acquisition-related
expenses (d)
|
(15)
|
(1.4) %
|
|
(26)
|
(2.2) %
|
|
(3)
|
|
—
|
|
(29)
|
(2.5) %
|
Restructuring
(g)
|
(5)
|
(0.5) %
|
|
(54)
|
(4.9) %
|
|
(1)
|
|
—
|
|
(55)
|
(4.9) %
|
Non-GAAP SG&A
expense
|
$
268
|
24.9 %
|
|
$ 246
|
22.3 %
|
|
$ 82
|
|
$
—
|
|
$
328
|
29.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP goodwill and
intangible impairment
|
$
—
|
—
|
|
$ —
|
—
|
|
$
821
|
|
$
—
|
|
$
821
|
73.4 %
|
Goodwill impairment
(i)
|
—
|
—
|
|
—
|
—
|
|
(712)
|
|
—
|
|
(712)
|
(63.6) %
|
Intangible (IPR&D)
impairment (i)
|
—
|
—
|
|
—
|
—
|
|
(109)
|
|
—
|
|
(109)
|
(9.8) %
|
Non-GAAP goodwill and
intangible impairment
|
$
—
|
—
|
|
$ —
|
—
|
|
$ —
|
|
$
—
|
|
$ —
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP legal
contingency and settlement
|
$
(488)
|
(45.3) %
|
|
$ (1)
|
(0.2) %
|
|
$ —
|
|
$
—
|
|
$ (1)
|
(0.1) %
|
Legal contingency and
settlement (h)
|
488
|
45.3 %
|
|
1
|
0.2 %
|
|
—
|
|
—
|
|
1
|
0.1 %
|
Non-GAAP legal
contingency and settlement
|
$
—
|
—
|
|
$ —
|
—
|
|
$ —
|
|
$
—
|
|
$ —
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
profit (loss)
|
$
741
|
68.6 %
|
|
$ 262
|
23.7 %
|
|
$
(1,015)
|
|
$
(1)
|
|
$ (754)
|
(67.3) %
|
Cost of
revenue
|
16
|
1.5 %
|
|
15
|
1.3 %
|
|
33
|
|
—
|
|
48
|
4.3 %
|
R&D
costs
|
4
|
0.4 %
|
|
3
|
0.4 %
|
|
—
|
|
—
|
|
3
|
0.3 %
|
SG&A
costs
|
(29)
|
(2.6) %
|
|
(30)
|
(2.7) %
|
|
6
|
|
—
|
|
(24)
|
(2.3) %
|
Goodwill and intangible
impairment
|
—
|
—
|
|
—
|
—
|
|
821
|
|
—
|
|
821
|
73.4 %
|
Legal contingency and
settlement
|
(488)
|
(45.3) %
|
|
(1)
|
(0.2) %
|
|
—
|
|
—
|
|
(1)
|
(0.1) %
|
Non-GAAP operating
profit (loss) (a)
|
$
244
|
22.6 %
|
|
$ 249
|
22.5 %
|
|
$
(155)
|
|
$
(1)
|
|
$ 93
|
8.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other (expense)
income, net
|
$ (21)
|
(2.0) %
|
|
$
(33)
|
(3.0) %
|
|
$
5
|
|
$
—
|
|
$
(28)
|
(2.6) %
|
Strategic investment
related loss, net (e)
|
12
|
1.2 %
|
|
19
|
1.8 %
|
|
—
|
|
—
|
|
19
|
1.8 %
|
Gain on Helix
contingent value right (f)
|
(4)
|
(0.4) %
|
|
(5)
|
(0.5) %
|
|
—
|
|
—
|
|
(5)
|
(0.4) %
|
Acquisition-related
expenses (d)
|
(1)
|
(0.1) %
|
|
8
|
0.7 %
|
|
—
|
|
—
|
|
8
|
0.7 %
|
Non-GAAP other
(expense) income, net (a)
|
$ (14)
|
(1.3) %
|
|
$
(11)
|
(1.0) %
|
|
$
5
|
|
$
—
|
|
$ (6)
|
(0.5) %
|
Illumina,
Inc.
Results of
Operations - Non-GAAP (continued)
(Dollars in
millions)
(unaudited)
|
TABLE 5:
RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A
PERCENT OF REVENUE:
|
|
Nine Months
Ended
|
|
September 29,
2024
|
|
Core
Illumina
|
|
GRAIL
|
|
Elims
|
|
Consolidated
|
GAAP gross profit
(loss) (b)
|
$
2,181
|
67.6 %
|
|
$
(38)
|
|
$
(10)
|
|
$
2,133
|
65.3 %
|
Amortization of
acquired intangible assets
|
46
|
1.4 %
|
|
65
|
|
—
|
|
111
|
3.4 %
|
Restructuring
(g)
|
1
|
—
|
|
—
|
|
—
|
|
1
|
—
|
Non-GAAP gross profit
(a)
|
$
2,228
|
69.0 %
|
|
$
27
|
|
$
(10)
|
|
$
2,245
|
68.7 %
|
|
|
|
|
|
|
|
|
|
|
GAAP R&D
expense
|
$
732
|
22.7 %
|
|
$ 189
|
|
$
(8)
|
|
$ 913
|
27.9 %
|
Acquisition-related
expenses (d)
|
(4)
|
(0.1) %
|
|
—
|
|
—
|
|
(4)
|
(0.1) %
|
Restructuring
(g)
|
(2)
|
(0.1) %
|
|
—
|
|
—
|
|
(2)
|
—
|
Non-GAAP R&D
expense
|
$
726
|
22.5 %
|
|
$ 189
|
|
$
(8)
|
|
$ 907
|
27.8 %
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A
expense
|
$
621
|
19.3 %
|
|
$ 192
|
|
$
—
|
|
$ 813
|
24.8 %
|
Amortization of
acquired intangible assets
|
—
|
—
|
|
(2)
|
|
—
|
|
(2)
|
(0.1) %
|
Contingent
consideration liabilities (c)
|
304
|
9.3 %
|
|
—
|
|
—
|
|
304
|
9.3 %
|
Acquisition-related
expenses (d)
|
(85)
|
(2.6) %
|
|
(11)
|
|
—
|
|
(96)
|
(2.9) %
|
Restructuring
(g)
|
(43)
|
(1.3) %
|
|
(1)
|
|
—
|
|
(44)
|
(1.3) %
|
Non-GAAP SG&A
expense
|
$
797
|
24.7 %
|
|
$ 178
|
|
$
—
|
|
$ 975
|
29.8 %
|
|
|
|
|
|
|
|
|
|
|
GAAP goodwill and
intangible impairment
|
$
3
|
0.1 %
|
|
$
1,886
|
|
$
—
|
|
$
1,889
|
57.8 %
|
Goodwill impairment
(i)
|
—
|
—
|
|
(1,466)
|
|
—
|
|
(1,466)
|
(44.9) %
|
Intangible (IPR&D)
impairment (i)
|
(3)
|
(0.1) %
|
|
(420)
|
|
—
|
|
(423)
|
(12.9) %
|
Non-GAAP goodwill and
intangible impairment
|
$ —
|
—
|
|
$
—
|
|
$
—
|
|
$
—
|
—
|
|
|
|
|
|
|
|
|
|
|
GAAP legal
contingency and settlement
|
$
(474)
|
(14.7) %
|
|
$
—
|
|
$
—
|
|
$
(474)
|
(14.4) %
|
Legal contingency and
settlement (h)
|
474
|
14.7 %
|
|
—
|
|
—
|
|
474
|
14.4 %
|
Non-GAAP legal
contingency and settlement
|
$ —
|
—
|
|
$
—
|
|
$
—
|
|
$
—
|
—
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
profit (loss)
|
$
1,298
|
40.2 %
|
|
$
(2,305)
|
|
$
(1)
|
|
$
(1,008)
|
(30.8) %
|
Cost of
revenue
|
47
|
1.5 %
|
|
65
|
|
—
|
|
112
|
3.4 %
|
R&D
costs
|
6
|
0.2 %
|
|
—
|
|
—
|
|
6
|
0.2 %
|
SG&A
costs
|
(176)
|
(5.5) %
|
|
13
|
|
—
|
|
(163)
|
(5.1) %
|
Goodwill and intangible
impairment
|
3
|
0.1 %
|
|
1,886
|
|
—
|
|
1,889
|
57.8 %
|
Legal contingency and
settlement
|
(474)
|
(14.7) %
|
|
—
|
|
—
|
|
(474)
|
(14.4) %
|
Non-GAAP operating
profit (loss) (a)
|
$
704
|
21.8 %
|
|
$
(341)
|
|
$
(1)
|
|
$ 362
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
GAAP other (expense)
income, net
|
$
(363)
|
(11.2) %
|
|
$
5
|
|
$
—
|
|
$
(358)
|
(11.0) %
|
Strategic investment
related loss, net (e)
|
339
|
10.5 %
|
|
—
|
|
—
|
|
339
|
10.4 %
|
Gain on Helix
contingent value right (f)
|
(15)
|
(0.5) %
|
|
—
|
|
—
|
|
(15)
|
(0.5) %
|
Acquisition-related
expenses (d)
|
2
|
0.1 %
|
|
—
|
|
—
|
|
2
|
0.1 %
|
Non-GAAP other
(expense) income, net (a)
|
$
(37)
|
(1.1) %
|
|
$
5
|
|
$
—
|
|
$ (32)
|
(1.0) %
|
Illumina,
Inc.
Results of
Operations - Non-GAAP (continued)
(Dollars in
millions)
(unaudited)
|
TABLE 5:
RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A
PERCENT OF REVENUE:
|
|
Nine Months
Ended
|
|
October 1,
2023
|
|
Core
Illumina
|
|
GRAIL
|
|
Elims
|
|
Consolidated
|
GAAP gross profit
(loss) (b)
|
$ 2,161
|
64.7 %
|
|
$ (77)
|
|
$
(14)
|
|
$
2,070
|
61.2 %
|
Amortization of
acquired intangible assets
|
43
|
1.3 %
|
|
100
|
|
—
|
|
143
|
4.3 %
|
Restructuring
(g)
|
4
|
0.1 %
|
|
—
|
|
—
|
|
4
|
0.1 %
|
Non-GAAP gross profit
(a)
|
$ 2,208
|
66.1 %
|
|
$ 23
|
|
$
(14)
|
|
$
2,217
|
65.6 %
|
|
|
|
|
|
|
|
|
|
|
GAAP R&D
expense
|
$
771
|
23.1 %
|
|
$ 254
|
|
$
(12)
|
|
$
1,013
|
30.0 %
|
Acquisition-related
expenses (d)
|
(1)
|
—
|
|
—
|
|
—
|
|
(1)
|
—
|
Restructuring
(g)
|
(16)
|
(0.6) %
|
|
—
|
|
—
|
|
(16)
|
(0.5) %
|
Non-GAAP R&D
expense
|
$
754
|
22.5 %
|
|
$ 254
|
|
$
(12)
|
|
$ 996
|
29.5 %
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A
expense
|
$
857
|
25.7 %
|
|
$ 271
|
|
$
(1)
|
|
$
1,127
|
33.3 %
|
Amortization of
acquired intangible assets
|
(1)
|
—
|
|
(3)
|
|
—
|
|
(4)
|
(0.1) %
|
Contingent
consideration liabilities (c)
|
82
|
2.5 %
|
|
—
|
|
—
|
|
82
|
2.3 %
|
Acquisition-related
expenses (d)
|
(64)
|
(1.9) %
|
|
(11)
|
|
—
|
|
(75)
|
(2.1) %
|
Restructuring
(g)
|
(72)
|
(2.3) %
|
|
(3)
|
|
—
|
|
(75)
|
(2.2) %
|
Proxy
contest
|
(29)
|
(0.9) %
|
|
—
|
|
—
|
|
(29)
|
(0.9) %
|
Non-GAAP SG&A
expense
|
$
773
|
23.1 %
|
|
$ 254
|
|
$
(1)
|
|
$
1,026
|
30.3 %
|
|
|
|
|
|
|
|
|
|
|
GAAP goodwill and
intangible impairment
|
$ —
|
—
|
|
$ 821
|
|
$
—
|
|
$ 821
|
24.3 %
|
Goodwill impairment
(i)
|
—
|
—
|
|
(712)
|
|
—
|
|
(712)
|
(21.1) %
|
Intangible (IPR&D)
impairment (i)
|
—
|
—
|
|
(109)
|
|
—
|
|
(109)
|
(3.2) %
|
Non-GAAP goodwill and
intangible impairment
|
$ —
|
—
|
|
$
—
|
|
$
—
|
|
$ —
|
—
|
|
|
|
|
|
|
|
|
|
|
GAAP legal
contingency and settlement
|
$ 14
|
0.4 %
|
|
$
—
|
|
$
—
|
|
$ 14
|
0.4 %
|
Legal contingency and
settlement (h)
|
(14)
|
(0.4) %
|
|
—
|
|
—
|
|
(14)
|
(0.4) %
|
Non-GAAP legal
contingency and settlement
|
$ —
|
—
|
|
$
—
|
|
$
—
|
|
$ —
|
—
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
profit (loss)
|
$
519
|
15.5 %
|
|
$ (1,424)
|
|
$
—
|
|
$
(905)
|
(26.8) %
|
Cost of
revenue
|
47
|
1.4 %
|
|
100
|
|
—
|
|
147
|
4.4 %
|
R&D
costs
|
17
|
0.5 %
|
|
—
|
|
—
|
|
17
|
0.5 %
|
SG&A
costs
|
84
|
2.6 %
|
|
18
|
|
—
|
|
102
|
3.0 %
|
Goodwill and intangible
impairment
|
—
|
—
|
|
821
|
|
—
|
|
821
|
24.3 %
|
Legal contingency and
settlement
|
14
|
0.4 %
|
|
—
|
|
—
|
|
14
|
0.4 %
|
Non-GAAP operating
profit (loss) (a)
|
$
681
|
20.4 %
|
|
$
(485)
|
|
$
—
|
|
$ 196
|
5.8 %
|
|
|
|
|
|
|
|
|
|
|
GAAP other (expense)
income, net
|
$
(53)
|
(1.6) %
|
|
$
8
|
|
$
—
|
|
$ (45)
|
(1.3) %
|
Strategic investment
related loss, net (e)
|
36
|
1.1 %
|
|
—
|
|
—
|
|
36
|
1.0 %
|
Gain on Helix
contingent value right (f)
|
(8)
|
(0.2) %
|
|
—
|
|
—
|
|
(8)
|
(0.2) %
|
Acquisition-related
expenses (d)
|
8
|
0.2 %
|
|
—
|
|
—
|
|
8
|
0.2 %
|
Non-GAAP other
(expense) income, net (a)
|
$
(17)
|
(0.5) %
|
|
$
8
|
|
$
—
|
|
$ (9)
|
(0.3) %
|
All amounts in
tables are rounded to the nearest millions, except as otherwise
noted. As a result, certain amounts may not recalculate using the
rounded amounts provided. Percentages of revenue are calculated
based on the revenue of the respective segment.
|
|
|
(a)
|
Non-GAAP gross profit,
included within non-GAAP operating profit (loss), is a key measure
of the effectiveness and efficiency of manufacturing processes,
product mix and the average selling prices of our products and
services. Non-GAAP operating profit (loss) and non-GAAP other
(expense) income, net exclude the effects of the pro forma
adjustments as detailed above. Non-GAAP operating margin is a key
component of the financial metrics utilized by the company's board
of directors to measure, in part, management's performance and
determine significant elements of management's compensation.
Management has excluded the effects of these items in these
measures to assist investors in analyzing and assessing past and
future operating performance.
|
(b)
|
Reconciling amounts are
recorded in cost of revenue.
|
(c)
|
Amounts consist
primarily of fair value adjustments for our contingent
consideration liability related to GRAIL.
|
(d)
|
Amounts consist
primarily of legal and other expenses related to the acquisition
and divestiture of GRAIL, as well as the acquisition of Fluent
Biosciences which was completed in Q3 2024. Amounts in other
(expense) income, net for Q3 2023 and YTD 2023 relate to unrealized
gains/losses for foreign currency balance sheet remeasurement of
the EC fine liability, which was reversed in Q3 2024, and
mark-to-market gains/losses on the hedge for the EC
fine.
|
(e)
|
Amounts consist
primarily of mark-to-market adjustments and impairments from
strategic investments. Amount for YTD 2024 primarily relates to
impairment recorded on our retained investment in GRAIL post
spin-off.
|
(f)
|
Amounts consist of fair
value adjustments related to our Helix contingent value right,
which was settled in Q3 2024.
|
(g)
|
Amounts for Q3 2024
consist primarily of employee severance costs. Amounts for YTD 2024
also consist of lease and other asset impairments. Amounts for Q3
2023 consist primarily of lease and other asset impairments and
amounts for YTD 2023 consist primarily of employee severance costs
and lease and other asset impairments.
|
(h)
|
Amounts for Q3 2024 and
YTD 2024 primarily consist of the reversal of the accrued EC fine,
including accrued interest. Amount for YTD 2023 primarily consists
of an adjustment recorded to our accrual for the EC
fine.
|
(i)
|
Amount for YTD 2024
consists of goodwill and IPR&D intangible asset impairments
related to GRAIL in Q2 2024. Amount for YTD 2024 also consists of
an IPR&D intangible asset impairment related to Core Illumina
in Q1 2024. Amounts for Q3 2023 and YTD 2023 consist of goodwill
and IPR&D intangible asset impairments related to
GRAIL.
|
Illumina,
Inc.
Results of
Operations - Non-GAAP (continued)
(Dollars in
millions)
(unaudited)
|
TABLE 6: CORE
ILLUMINA - RECONCILIATION OF GAAP AND NON-GAAP TAX
PROVISION:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
September
29,
2024
|
GAAP tax
provision
|
$
77
|
10.8 %
|
|
$
158
|
16.9 %
|
Incremental non-GAAP
tax expense (b)
|
26
|
|
|
89
|
|
Income tax provision
(c)
|
(1)
|
|
|
(3)
|
|
GILTI, US foreign tax
credits, and global minimum top-up tax (d)
|
(54)
|
|
|
(87)
|
|
Non-GAAP tax provision
(a)
|
$
48
|
21.0 %
|
|
$
157
|
23.6 %
|
|
TABLE
7: CONSOLIDATED - RECONCILIATION OF GAAP AND NON-GAAP
TAX PROVISION (BENEFIT):
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
29,
2024
|
|
September
29,
2024
|
GAAP tax
provision
|
$
15
|
2.1 %
|
|
$
44
|
(3.2) %
|
Incremental non-GAAP
tax expense (b)
|
59
|
|
|
177
|
|
Income tax provision
(c)
|
(1)
|
|
|
(3)
|
|
GILTI, US foreign tax
credits, and global minimum top-up tax (d)
|
(25)
|
|
|
(141)
|
|
Non-GAAP tax provision
(a)
|
$
48
|
21.0 %
|
|
$
77
|
23.4 %
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
October 1,
2023
|
|
October 1,
2023
|
GAAP tax (benefit)
provision
|
$ (28)
|
3.6 %
|
|
$
36
|
(3.8) %
|
Incremental non-GAAP
tax expense (b)
|
102
|
|
|
108
|
|
Income tax provision
(c)
|
(1)
|
|
|
(9)
|
|
GILTI and US foreign
tax credits (d)
|
(38)
|
|
|
(63)
|
|
Non-GAAP tax provision
(a)
|
$
35
|
39.7 %
|
|
$
72
|
38.3 %
|
|
|
(a)
|
Non-GAAP tax provision
excludes the effects of the pro forma adjustments detailed above,
which have been excluded to assist investors in analyzing and
assessing past and future operating performance.
|
(b)
|
Incremental non-GAAP
tax expense reflects tax impact of the non-GAAP adjustments listed
in Table 2 and 4.
|
(c)
|
Amounts represent the
difference between book and tax accounting related to stock-based
compensation cost.
|
(d)
|
Amounts represent the
impact of GRAIL pre-acquisition net operating losses on GILTI, the
utilization of US foreign tax credits, and the Pillar Two global
minimum top-up tax, which became effective in Q1
2024.
|
Investors:
Salli Schwartz
+1.858.291.6421
ir@illumina.com
Media:
Bonny Fowler
+1.740.641.5579
pr@illumina.com
View original
content:https://www.prnewswire.com/news-releases/illumina-reports-financial-results-for-third-quarter-of-fiscal-year-2024-302295734.html
SOURCE Illumina, Inc.