UPDATE 2-Illumina reports eighth beat in a row, raises profit forecast
* Q3 adj shr $0.45 vs est $0.40
* Q3 rev $357 mln vs est $343.6 mln
* Sees FY13 adj shr $1.75-$1.77 vs est $1.72
* Shares up 6 pct in aftermarket
By Adithya Venkatesan
Oct 21 (Reuters) - Gene sequencing products maker Illumina Inc's results beat analysts' estimates for the eighth straight quarter, and the company forecast higher-than-expected earnings for the year.
Illumina shares, which have almost doubled this year, were up 7 percent at $87.20 in extended trading on Monday.
The company which gets its revenues from government funding to academic laboratories, as well as R&D spending by pharmaceutical and biotechnology companies, said it does not expect the recent U.S. government shutdown to have a material impact on spending patterns in the fourth quarter.
The company's gene sequencing devices help read more than 3 billion "letters" in the human genetic code which can help in tracking food-related pathogens like salmonella outbreaks and other genetic disorders.
"The world needs to do more and more sequencing... the demand for sequencing over the next 5 years is going to be absolutely enormous," chief executive Jay Flatley said in a conference call.
Illumina valued at about $10 billion, was subject of a $6.8 billion takeover from Swiss drugmaker Roche Holding AG which fell apart in April last year.
San Diego-California based Illumina has been shopping since the failed takeover from Roche, buying Verinata Health Inc for about $350 million to gain access to Verinta's non-invasive tests for detecting chromosomal abnormalities in a fetus.
Illumina which offers a variety of sequencing instruments, kits, and data analysis solution for analyzing DNA in animals, plants and human beings raised its adjusted earnings forecast for the year to $1.75-$1.77 per share. Analysts were expecting a profit of $1.72 per share.
Illumina's high-speed gene sequencer HiSeq 2500 can sequence the entire genetic code in about 25 hours helping doctors identify genetic diseases quick enough to make important treatment decisions.
"Sales were strong across all geographic regions, and despite the uncertainty in the academic funding environment, they've shipped more than 100 HiSeqs as they continue to penetrate commercial and translational customers with both their high-end and desktop instruments," Maxim Group analyst Bryan Brokmeier said.
Bryan who has a "hold" rating on the stock said the market disruption caused by Thermo Fisher Scientific Inc's pending takeover of Life Technolgies Corp has also benefitted Illumina's strong quarter.
Typically, genetic testing on newborns using conventional methods takes four to six weeks, long enough that the infant has either died or been sent home.
The company, which has life sciences and diagnostics divisions, is in the process of a restructuring to expand into newer markets and expects to keep the restructuring expenses to be minimal, it said in a conference call.
Illumina will align its business into five units - life sciences, reproductive and genetic health, oncology, enterprise informatics and emerging markets. The changes will be effective Jan. 1.
Third-quarter net income rose to $31.4 million, or 22 cents per share, from $29.7 million, or 22 cents per share, a year earlier.
Total revenue jumped 25 percent to $357 million.
Analysts on average had expected a profit of 40 cents per share, according to Thomson Reuters I/B/E/S.
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