Illumina Reports Profits for Third Quarter 2011

Illumina, Inc. today announced its financial results for the third quarter of 2011.

Research and development expenses for the third quarter of 2011 were $50.4 million compared to $44.8 million in the third quarter of 2010. R&D expenses included $8.6 million and $6.5 million of non-cash stock compensation expense in the third quarters of 2011 and 2010, respectively. Excluding these charges and contingent compensation expense, R&D expenses as a percentage of revenue were 17.4% compared to 15.7% in the prior year period.

Selling, general and administrative expenses for the third quarter of 2011 were $66.0 million compared to $55.0 million for the third quarter of 2010. SG&A expenses included $13.8 million and $9.9 million of non-cash stock compensation expense in the third quarters of 2011 and 2010, respectively. SG&A expenses as well included contingent compensation expense and amortization of acquired intangibles in the third quarter of 2011. Excluding these charges, SG&A expenses as a percentage of revenue were 22.2% compared to 19.0% in the prior year period.

As we indicated in our press release before this month, we believe that fourth quarter revenue will be higher than third quarter levels, as a result of the commercialization of the MiSeq platform. Nevertheless, given the uncertainty surrounding budgets for government funding of innovation and development, the company is not providing furthermore guidance at this time.

The company encourages investors to carefully consider its results in accordance with GAAP, as then 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.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are our ability to develop and commercialize furthermore our sequencing, BeadArray", VeraCode®, Eco", and consumables technologies and to deploy new sequencing, genotyping, gene expression, and diagnostics products and applications for our research platforms, our ability to manufacture robust instrumentation and consumables, and significant uncertainty concerning government and academic innovation funding worldwide as governments in the United States and Europe, in particular, focus on reducing fiscal deficits while together confronting slowing economic growth, at the same time 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 financial quarter.

Leading developer

Illumina is a leading developer, manufacturer, and marketer of life science tools and integrated systems for the analysis of genetic variation and function. We provide innovative sequencing and array-based solutions for genotyping, copy number variation analysis, methylation studies, gene expression profiling, and low-multiplex analysis of DNA, RNA and protein. We as well provide tools and services that are fueling advances in consumer genomics and diagnostics. Our research and products accelerate genetic analysis technology and its application, paving the way for molecular medicine and ultimately transforming healthcare.