* 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 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
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
"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
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
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
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.