Illumina, Inc. announced its financial results for the first quarter of fiscal year 2022, which include consolidated financial results for GRAIL.
- Revenue of $1.22 billion for Q1 2022, up 12% from Q1 2021
- Earnings per diluted share (diluted EPS) of $0.55 for Q1 2022, compared to $1.00 for Q1 2021
- Non-GAAP diluted EPS of $1.07 for Q1 2022, compared to $1.89 for Q1 2021
- Reiterating full year revenue guidance of 14-16% growth from fiscal year 2021
- Expect diluted EPS of $2.33 to $2.53 for fiscal year 2022
- Reiterating non-GAAP diluted EPS guidance of $4.00 to $4.20 for fiscal year 2022
SAN DIEGO, May 5, 2022 /PRNewswire/ -- Illumina, Inc. (NASDAQ: ILMN) today announced its financial results for the first quarter of fiscal year 2022, which include consolidated financial results for GRAIL.
“Illumina maintained strong momentum in the first quarter, particularly across oncology therapy selection, genetic disease testing, and pathogen surveillance,” said Francis deSouza, Chief Executive Officer. “Our business fundamentals are robust. We saw record total orders and exited the quarter with record total backlog. GRAIL also continued to gain traction and has now entered more than 30 partnerships with health systems, employers, and insurers. We are advancing our innovation roadmap, delivering the sequencing breakthroughs that power genomic research and improve human health.”
First quarter consolidated results
| GAAP | Non-GAAP (a) | ||||||
| Dollars in millions, except per share amounts | Q1 2022 (b) | Q1 2021 | Q1 2022 (b) | Q1 2021 | |||
| Revenue | $ 1,223 | $ 1,093 | |||||
| Gross margin | 66.6 % | 69.9 % | 69.9 % | 70.5 % | |||
| Research and development expense | $ 323 | $ 197 | $ 323 | $ 197 | |||
| Selling, general and administrative expense | $ 308 | $ 374 | $ 320 | $ 223 | |||
| Operating profit | $ 184 | $ 193 | $ 212 | $ 351 | |||
| Operating margin | 15.0 % | 17.7 % | 17.3 % | 32.1 % | |||
| Net income | $ 86 | $ 147 | $ 169 | $ 278 | |||
| Diluted EPS | $ 0.55 | $ 1.00 | $ 1.07 | $ 1.89 | |||
| (a) See the tables included in “Results of Operations - Non-GAAP” section below for reconciliations of these GAAP | |||||||
| (b) Consolidated financial results for GRAIL are included in Q1 2022, but not in Q1 2021, as GRAIL was acquired | |||||||
Capital expenditures for free cash flow purposes were $61 million during the first quarter of 2022. Cash flow from operations was $172 million compared to $282 million in the prior year period, with the year-over-year decrease primarily attributable to GRAIL’s operating loss. Free cash flow (cash flow from operations less capital expenditures) was $111 million for the quarter compared to $240 million in the prior year period. Depreciation and amortization expenses were $91 million during the first quarter of 2022. At the close of the quarter, the company held $1.4 billion in cash, cash equivalents and short-term investments, compared to $1.3 billion as of January 2, 2022.
First quarter segment results
Following the acquisition of GRAIL on August 18, 2021, we have two reportable segments, Core Illumina and GRAIL. GRAIL financial results are reflected for the period after the acquisition.
Core Illumina
| GAAP | Non-GAAP (a) | ||||||
| Dollars in millions | Q1 2022 | Q1 2021 | Q1 2022 | Q1 2021 | |||
| Revenue (b) | $ 1,221 | $ 1,093 | |||||
| Gross margin | 69.7 % | 69.9 % | 70.2 % | 70.5 % | |||
| Research and development expense | $ 238 | $ 197 | $ 238 | $ 197 | |||
| Selling, general and administrative expense | $ 251 | $ 374 | $ 267 | $ 223 | |||
| Operating profit | $ 362 | $ 193 | $ 352 | $ 351 | |||
| Operating margin | 29.6 % | 17.7 % | 28.8 % | 32.1 % | |||
| (a) See Table 4 included in “Results of Operations - Non-GAAP” section below for reconciliations of these GAAP | |||||||
| (b) Amount for Q1 2022 includes intercompany revenue of $8 million, which is eliminated in consolidation. | |||||||
GRAIL
| GAAP | Non-GAAP (a) | ||||||
| In millions | Q1 2022 | Q1 2021 | Q1 2022 | Q1 2021 | |||
| Revenue | $ 10 | — | |||||
| Gross (loss) profit | $ (29) | — | $ 5 | — | |||
| Research and development expense | $ 85 | — | $ 85 | — | |||
| Selling, general and administrative expense | $ 58 | — | $ 54 | — | |||
| Operating loss | $ (172) | — | $ (134) | — | |||
| (a) See Table 5 included in “Results of Operations - Non-GAAP” section below for a reconciliation of these GAAP | |||||||
Key announcements by Illumina since Illumina’s last earnings release
- Established partnership with Deerfield Management to identify drug targets and accelerate novel therapy development using genomics and artificial intelligence
- Developed long-term strategic collaboration with Janssen Biotech, Inc. to accelerate the development of precision medicines by leveraging Illumina’s portfolio of next-generation sequencing (NGS) solutions
- Launched TruSight™ Oncology (TSO) Comprehensive (EU) in Europe, a single test that assesses multiple tumor genes and biomarkers to reveal the specific molecular profile of a patient’s cancer
- Invested in seven “omics” startup companies through Illumina Accelerator, advancing breakthrough therapeutics, diagnostics, DNA storage, mental wellness, and sustainable foods applications
- Released annual Corporate Social Responsibility (CSR) Report, highlighting contributions of genomics to advances in public health and overall health of our planet
- Opened State-of-the-Art Solution Center in São Paulo, Brazil, increasing access to genomics in Latin America
- Expanded senior leadership team with Carissa Rollins joining as Chief Information Officer, and John Frank as Chief Public Affairs Officer
A full list of recent Illumina announcements can be found in the company’s News Center.
Key announcements by GRAIL since Illumina’s last earnings release
- Announced a multi-year partnership with leading reinsurance provider, Munich Re Life US, to enable access to Galleri® as a benefit to policyholders of U.S. life insurance carriers and distributors
- Began collaboration with Point32Health, the combined organization of Harvard Pilgrim Health Care and Tufts Health plan, to collaborate on two-phased pilot of Galleri® multi-cancer early detection test
- Galleri® named in Fast Company’s 2022 World Changing Ideas Awards List
- Announced Galleri® Classic golf tournament in partnership with PGA TOUR Champions, debuting March 20-26, 2023
A full list of recent GRAIL announcements can be found in the company’s Newsroom.
Financial outlook and guidance
The non-GAAP financial guidance discussed below reflects certain pro forma adjustments to assist in analyzing and assessing our core operational performance, including our Core Illumina and GRAIL segments. Please see our Reconciliation of Consolidated Non-GAAP Financial Guidance included in this release for a reconciliation of these GAAP and non-GAAP financial measures.
For fiscal 2022, the company continues to expect consolidated revenue growth in the range of 14% to 16%. We now expect GAAP earnings per diluted share of $2.33 to $2.53. The company continues to expect non-GAAP earnings per diluted share of $4.00 to $4.20. Core Illumina revenue growth is still expected to be in the range of 13% to 15%. GRAIL revenue is still expected to be in the range of $70 million to $90 million.
Conference call information
The conference call will begin at 2 p.m. Pacific Time (5 p.m. Eastern Time) on Thursday, May 5, 2022. Interested parties may access the live teleconference through the Investor Info section of Illumina’s website under the “Company” tab at www.illumina.com. Alternatively, individuals can access the call by dialing (877) 502-9276 or +1 (313) 209-4906 outside North America, both using conference ID 7035119. 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 earnings per diluted share, net income, gross margin, operating expenses, including research and development expense and selling general and administrative expense, operating income (loss), operating margin, gross profit, other income (expense), and free cash flow (on a consolidated and, as applicable, segment basis for our Core Illumina and GRAIL segments) 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 itemized reconciliations between GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance, including in the non-GAAP measures related to our Core Illumina and GRAIL segments. Additionally, non-GAAP net income and earnings per diluted 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.
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) the impact to our business and operating results of the COVID-19 pandemic; (ii) changes in the rate of growth in the markets we serve; (iii) the volume, timing and mix of customer orders among our products and services; (iv) our ability to adjust our operating expenses to align with our revenue expectations; (v) our ability to manufacture robust instrumentation and consumables; (vi) the success of products and services competitive with our own; (vii) 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; (viii) the impact of recently launched or pre-announced products and services on existing products and services; (ix) our ability to further develop and commercialize our instruments, consumables, and products, including Galleri, the cancer screening test developed by GRAIL, to deploy new products, services, and applications, and to expand the markets for our technology platforms; (x) the risks and costs associated with the integration of, and our ability to integrate, GRAIL’s business successfully to achieve anticipated synergies, including the restrictions on integration during any hold separate period or any delay in integration following any hold separate period; (xi) the risk that disruptions from the consummation of our acquisition of GRAIL or any associated legal or regulatory proceedings or obligations will harm our business, including current plans and operations; (xii) potential adverse reactions or changes to business relationships resulting from the consummation of our acquisition of GRAIL; (xiii) our ability to obtain approval by third-party payors to reimburse patients for our products; (xiv) our ability to obtain regulatory clearance for our products from government agencies; (xv) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xvi) our ability to successfully identify and integrate acquired technologies, products, or businesses; (xvii) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments and (xviii) 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 Twitter, Facebook, LinkedIn, Instagram, and YouTube.
About GRAIL
GRAIL is a healthcare company whose mission is to detect cancer early, when it can be cured. GRAIL is focused on alleviating the global burden of cancer by developing pioneering technology to detect and identify multiple deadly cancer types early. The company is using the power of next-generation sequencing, population-scale clinical studies, and state-of-the-art computer science and data science to enhance the scientific understanding of cancer biology, and to develop its multi-cancer early detection blood test. GRAIL is headquartered in Menlo Park, CA with locations in Washington, D.C., North Carolina, and the United Kingdom. GRAIL, LLC, is a wholly-owned subsidiary of Illumina, which is currently being held and operated separately in order to comply with the interim measures order imposed by the European Commission during the pendency of its ongoing merger review. For more information, please visit www.grail.com.
Investors:
Salli Schwartz
+1.858.291.6421
ir@illumina.com
Media:
Sarah Shew
+1.330.353.2512
sshew@illumina.com
| Illumina, Inc. Condensed Consolidated Balance Sheets (In millions) | |||
| April 3, | January 2, | ||
| ASSETS | (unaudited) | ||
| Current assets: | |||
| Cash and cash equivalents | $ 1,351 | $ 1,232 | |
| Short-term investments | 65 | 107 | |
| Accounts receivable, net | 614 | 648 | |
| Inventory, net | 465 | 431 | |
| Prepaid expenses and other current assets | 260 | 295 | |
| Total current assets | 2,755 | 2,713 | |
| Property and equipment, net | 1,034 | 1,024 | |
| Operating lease right-of-use assets | 706 | 672 | |
| Goodwill | 7,113 | 7,113 | |
| Intangible assets, net | 3,209 | 3,250 | |
| Other assets | 457 | 445 | |
| Total assets | $ 15,274 | $ 15,217 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 291 | $ 332 | |
| Accrued liabilities | 700 | 761 | |
| Term notes, current portion | 499 | — | |
| Total current liabilities | 1,490 | 1,093 | |
| Operating lease liabilities | 803 | 774 | |
| Term notes | 495 | 993 | |
| Convertible senior notes | 746 | 702 | |
| Other long-term liabilities | 845 | 915 | |
| Stockholders’ equity | 10,895 | 10,740 | |
| Total liabilities and stockholders’ equity | $ 15,274 | $ 15,217 | |
| Illumina, Inc. Condensed Consolidated Statements of Income (In millions, except per share amounts) (unaudited) | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| Revenue: | |||
| Product revenue | $ 1,070 | $ 953 | |
| Service and other revenue | 153 | 140 | |
| Total revenue | 1,223 | 1,093 | |
| Cost of revenue: | |||
| Cost of product revenue (a) | 299 | 265 | |
| Cost of service and other revenue (a) | 69 | 58 | |
| Amortization of acquired intangible assets | 40 | 6 | |
| Total cost of revenue | 408 | 329 | |
| Gross profit | 815 | 764 | |
| Operating expense: | |||
| Research and development (a) | 323 | 197 | |
| Selling, general and administrative (a) | 308 | 374 | |
| Total operating expense | 631 | 571 | |
| Income from operations | 184 | 193 | |
| Other expense, net | (44) | (24) | |
| Income before income taxes | 140 | 169 | |
| Provision for income taxes | 54 | 22 | |
| Net income | $ 86 | $ 147 | |
| Earnings per share: | |||
| Basic | $ 0.55 | $ 1.01 | |
| Diluted | $ 0.55 | $ 1.00 | |
| Shares used in computing earnings per common share: | |||
| Basic | 157 | 146 | |
| Diluted | 159 | 147 | |
| (a) Includes stock-based compensation expense for stock-based awards: | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| Cost of product revenue | $ 6 | $ 7 | |
| Cost of service and other revenue | 1 | 1 | |
| Research and development | 36 | 24 | |
| Selling, general and administrative | 49 | 35 | |
| Stock-based compensation expense before taxes | $ 92 | $ 67 | |
| Illumina, Inc. Condensed Consolidated Statements of Cash Flows (In millions) (unaudited) | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| Net cash provided by operating activities | $ 172 | $ 282 | |
| Net cash (used in) provided by investing activities | (74) | 1,376 | |
| Net cash provided by financing activities | 21 | 968 | |
| Effect of exchange rate changes on cash and cash equivalents | — | (3) | |
| Net increase in cash and cash equivalents | 119 | 2,623 | |
| Cash and cash equivalents, beginning of period | 1,232 | 1,810 | |
| Cash and cash equivalents, end of period | $ 1,351 | $ 4,433 | |
| Calculation of free cash flow: | |||
| Net cash provided by operating activities | $ 172 | $ 282 | |
| Purchases of property and equipment | (61) | (42) | |
| Free cash flow (a) | $ 111 | $ 240 | |
| (a) Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating activities | |||
| Illumina, Inc. Results of Operations - Non-GAAP (In millions, except per share amounts) (unaudited) | |||
| TABLE 1: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP EARNINGS PER SHARE: | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| GAAP earnings per share - diluted | $ 0.55 | $ 1.00 | |
| Cost of revenue (b) | 0.25 | 0.05 | |
| Selling, general and administrative costs (b) | (0.08) | 1.03 | |
| Other expense, net (b) | 0.24 | 0.14 | |
| GILTI and U.S. foreign tax credits (c) | 0.15 | — | |
| Incremental non-GAAP tax expense (d) | (0.07) | (0.30) | |
| Income tax provision (benefit) (e) | 0.03 | (0.03) | |
| Non-GAAP earnings per share - diluted (a) | $ 1.07 | $ 1.89 | |
| TABLE 2: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME: | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| GAAP net income | $ 86 | $ 147 | |
| Cost of revenue (b) | 40 | 7 | |
| Selling, general and administrative costs (b) | (12) | 151 | |
| Other expense, net (b) | 38 | 21 | |
| GILTI and U.S. foreign tax credits (c) | 24 | — | |
| Incremental non-GAAP tax expense (d) | (11) | (44) | |
| Income tax provision (benefit) (e) | 4 | (4) | |
| Non-GAAP net income (a) | $ 169 | $ 278 | |
| All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may | |||
| (a) Non-GAAP net income and earnings per diluted share exclude the effects of the pro forma adjustments as detailed | |||
| (b) Refer to our Itemized Reconciliations between GAAP and Non-GAAP Results of Operations below for the | |||
| (c) Amount represents the impact of GRAIL pre-acquisition net operating losses on GILTI and the utilization of U.S. | |||
| (d) Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed. | |||
| (e) Amounts represent 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 3: CONSOLIDATED ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF | |||||
| Three Months Ended | |||||
| April 3, | April 4, | ||||
| GAAP gross profit | $ 815 | 66.6 % | $ 764 | 69.9 % | |
| Core Illumina cost of revenue | 6 | 0.5 % | 7 | 0.6 % | |
| GRAIL cost of revenue | 34 | 2.8 % | — | — | |
| Non-GAAP gross profit (a) | $ 855 | 69.9 % | $ 771 | 70.5 % | |
| GAAP selling, general and administrative expense | $ 308 | 25.2 % | $ 374 | 34.2 % | |
| Core Illumina selling, general and administrative costs | 16 | 1.3 % | (151) | (13.8)% | |
| GRAIL selling, general and administrative costs | (4) | (0.3)% | — | — | |
| Non-GAAP selling, general and administrative expense | $ 320 | 26.2 % | $ 223 | 20.4 % | |
| GAAP operating profit | $ 184 | 15.0 % | $ 193 | 17.7 % | |
| Core Illumina adjustments | (10) | (0.8) % | 158 | 14.4 % | |
| GRAIL adjustments | 38 | 3.1 % | — | — | |
| Non-GAAP operating profit (a) | $ 212 | 17.3 % | $ 351 | 32.1 % | |
| GAAP other expense, net | $ (44) | (3.6)% | $ (24) | (2.2)% | |
| Core Illumina adjustments | 38 | 3.0 % | 21 | 2.0 % | |
| Non-GAAP other expense, net (a) | $ (6) | (0.5)% | $ (3) | (0.2)% | |
| All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may | |||||
| Illumina, Inc. Results of Operations - Non-GAAP (continued) (Dollars in millions) (unaudited) | |||||
| TABLE 4: CORE ILLUMINA ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF | |||||
| Three Months Ended | |||||
| April 3, | April 4, | ||||
| GAAP gross profit - Core Illumina (b) | $ 851 | 69.7 % | $ 764 | 69.9 % | |
| Amortization of acquired intangible assets | 6 | 0.5 % | 6 | 0.5 % | |
| Expenses related to COVID-19 (c) | — | — | 1 | 0.1 % | |
| Non-GAAP gross profit - Core Illumina (a) | $ 857 | 70.2 % | $ 771 | 70.5 % | |
| GAAP selling, general and administrative expense - Core Illumina | $ 251 | 20.6 % | $ 374 | 34.2 % | |
| Contingent consideration liability (d) | 49 | 4.0 % | — | — | |
| Acquisition-related expenses (e) | (33) | (2.7)% | (150) | (13.7)% | |
| Expenses related to COVID-19 (c) | — | — | (2) | (0.2)% | |
| Income related to COVID-19 (f) | — | — | 1 | 0.1 % | |
| Non-GAAP selling, general and administrative expense - Core Illumina | $ 267 | 21.9 % | $ 223 | 20.4 % | |
| GAAP operating profit - Core Illumina | $ 362 | 29.6 % | $ 193 | 17.7 % | |
| Cost of revenue | 6 | 0.5 % | 7 | 0.6 % | |
| Selling, general and administrative costs | (16) | (1.3)% | 151 | 13.8 % | |
| Non-GAAP operating profit - Core Illumina (a) | $ 352 | 28.8 % | $ 351 | 32.1 % | |
| GAAP other expense, net - Core Illumina | $ (44) | (3.6)% | $ (24) | (2.2)% | |
| Strategic investment related loss, net (g) | 43 | 3.5 % | 39 | 3.6 % | |
| Gain on Helix contingent value right (h) | (5) | (0.4)% | (10) | (0.9)% | |
| Non-cash interest expense (i) | — | — | 11 | 1.0 % | |
| Gain on derivative assets (j) | — | — | (26) | (2.3)% | |
| Bridge facility fees (k) | — | — | 7 | 0.6 % | |
| Non-GAAP other expense, net - Core Illumina (a) | $ (6) | (0.5)% | $ (3) | (0.2)% | |
| All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may | |||||
| Illumina, Inc. Results of Operations - Non-GAAP (continued) (In millions) (unaudited) | |||
| TABLE 5: GRAIL ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS: | |||
| Three Months Ended | |||
| April 3, | April 4, | ||
| GAAP gross loss - GRAIL (b) | $ (29) | — | |
| Amortization of acquired intangible assets | 34 | — | |
| Non-GAAP gross profit - GRAIL (a) | $ 5 | — | |
| GAAP selling, general and administrative expense - GRAIL | $ 58 | — | |
| Acquisition-related expenses (e) | (3) | — | |
| Amortization of acquired intangible assets | (1) | — | |
| Non-GAAP selling, general and administrative expense - GRAIL | $ 54 | — | |
| GAAP operating loss - GRAIL | $ (172) | — | |
| Cost of revenue | 34 | — | |
| Selling, general and administrative costs | 4 | — | |
| Non-GAAP operating loss - GRAIL (a) | $ (134) | — | |
| All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may | |||
| (a) Non-GAAP gross profit, included within non-GAAP operating profit (loss), is a key measure of the effectiveness and | |||
| (b) Reconciling amounts are recorded in cost of revenue. | |||
| (c) Amounts consist of direct and incremental expenses incurred due to the COVID-19 pandemic, primarily expenses | |||
| (d) Amount consists of fair value adjustments for our contingent consideration liability related to the GRAIL acquisition. | |||
| (e) Amount for Q1 2022 consists primarily of legal expenses related to our acquisition of GRAIL. Amount for Q1 2021 | |||
| (f) Amount consists of direct and incremental income due to the COVID-19 pandemic, primarily payroll-related credits | |||
| (g) Amounts consist primarily of mark-to-market adjustments from our strategic investments. | |||
| (h) Amounts consist of fair value adjustments related to our Helix contingent value right. | |||
| (i) Non-cash interest expense is calculated in accordance with the authoritative accounting guidance for convertible debt | |||
| (j) Amount represents gain recorded on our derivative assets related to the terminated acquisition with Pacific Biosciences | |||
| (k) Amount consists of expenses related to the bridge facility commitment, which was terminated in March 2021 in | |||
| Illumina, Inc. Reconciliation of Consolidated Non-GAAP Financial Guidance (unaudited) | |
| Our future performance and financial results are subject to risks and uncertainties, and actual results could differ | |
| TABLE 6: RECONCILIATION BETWEEN GAAP AND NON-GAAP EARNINGS PER DILUTED SHARE GUIDANCE: | |
| Fiscal Year 2022 | |
| Consolidated GAAP earnings per diluted share | $2.33 - $2.53 |
| Amortization of acquired intangible assets | 1.03 |
| Acquisition-related expenses (b) | 0.23 |
| Strategic investment related loss, net (c) | 0.27 |
| Gain on Helix contingent value right (d) | (0.03) |
| Contingent consideration liability (e) | (0.31) |
| GILTI and U.S. foreign tax credits (f) | 0.69 |
| Incremental non-GAAP tax expense (g) | (0.24) |
| Income tax provision (h) | 0.03 |
| Consolidated non-GAAP earnings per diluted share (a) | $4.00 - $4.20 |
| (a) Non-GAAP earnings per diluted share exclude the effect of the pro forma adjustments as detailed above. Non-GAAP | |
| (b) Amount consists primarily of legal expenses related to our acquisition of GRAIL. | |
| (c) Amount consists primarily of mark-to-market adjustments from our strategic investments. | |
| (d) Amount consists of fair value adjustments related to our Helix contingent value right. | |
| (e) Amount consists of fair value adjustment for our contingent consideration liability related to the GRAIL acquisition. | |
| (f) Amount represents the impact of GRAIL pre-acquisition net operating losses on GILTI and the utilization of U.S. | |
| (g) Incremental non-GAAP tax expense reflects the tax impact related to the non-GAAP adjustments listed. | |
| (h) Amount represents difference between book and tax accounting related to stock-based compensation cost. | |
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SOURCE Illumina, Inc.
Company Codes: NASDAQ-NMS:ILMN
