UPDATE 2-Illumina sees Q2 rev lower than expected, shares tumble
* Sees Q2 revenue about $161 million
* Forecast for Q2 rev was $168-$173 mln
* Says resetting FY09 rev view to $690-$720 mln
* Shares down 21 percent (Recasts, adds details)
July 1 (Reuters) - Illumina Inc (ILMN.O) reported a lower-than-expected second-quarter revenue as customers delayed purchase of its arrays, and cut its 2009 revenue view, sending its shares tumbling 21 percent after the bell.
The company cited the impact of reduced foundation funding in a few key accounts and order delays tied to stimulus funding under the American Recovery & Reinvestment Act, for the lower revenue.
Illumina expects the academic and research stimulus funding to have a positive impact in fourth quarter and in 2010, but not in the short term.
"The program has caused order delays as customers wait to learn whether and to what extent they will receive incremental funding," the company said in a statement.
Illumina, which makes tools for genetic analysis, said the delay in purchase decision by its customers has reduced revenue by about $10 million to $15 million in the first half of 2009.
The life sciences tools maker reported preliminary revenue of about $161 million for the second quarter and lowered its 2009 revenue outlook to a range of $690 million to $720 million.
In April, Illumina raised its 2009 revenue forecast to $700 million to $720 million.
For the second quarter, analysts were expecting the company to post revenue of $172.6 million, according to Reuters Estimates. The company had forecast revenue of $168 million to $173 million for the quarter.
Analysts were expecting 2009 revenue of about $717.7 million.
Illumina shares were down 21 percent at $30.78 in after-hours trade, after closing at $38.94 Wednesday on Nasdaq. Shares of rival Life Technologies Corp (LIFE.O) were down about 8 percent. (Reporting by Anuradha Ramanathan in Bangalore; Editing by Ratul Ray Chaudhuri)
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