Illumina Inc. (NASDAQ:ILMN) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 05:00 pm ET


Illumina Inc. (NASDAQ:ILMN) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q4 2014 Illumina, Inc., earnings conference call. My name is Jasmine and I'll be your operator for today.

(Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Ms. Rebecca Chambers, Senior Director of Investor Relations. Please proceed.

Rebecca Chambers

Thank you. Good afternoon, everyone. Welcome to our earnings call for the fourth quarter and fiscal year 2014. During the call today, we will review the financial results released after the close of the market, and offer commentary on our commercial activity, after which we will host a question-and-answer session. If you have not had a chance to review the earnings release, it can be found in the Investor Relations section of our Web site at Participating for Illumina today will be Jay Flatley, Chief Executive Officer; Marc Stapley, Senior Vice President and Chief Financial Officer; and Francis deSouza, President.

Jay will provide a brief update on the state of our Business, and Marc will review the fourth quarter and FY14 financial results, as well as detail our guidance for 2015. This call is being recorded, and the audio portion will be archived in the Investor section of our Web site. (Forward-Looking Cautionary Statements) To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent Forms 10-Q and 10-K.

Before I turn the call over to Jay, I would like to let you know that we will participate in the Cowen Health Care Conference in Boston the week of March 2. For those of you unable to attend, we encourage you to listen to the webcast presentation, which will be available through the Investor Relations section of our Web site.

With that, I will now turn the call over to Jay.

Jay Flatley

Thanks, Rebecca, and good afternoon, everyone. I'm very pleased to report that Q4 was another record quarter, which closed out arguably the most impressive annual performance in the history of the Company. Revenue increased 32% year over year to $512 million, our 13th quarter of sequential revenue growth.Equally impressive was the leverage we delivered this quarter, as non-GAAP earnings per share grew 93% compared to the fourth quarter of 2013. These record results were due to strong underlying trends across our

Jay Flatley

customer segments and sequencing portfolio, solid operational execution, and a greater-than-anticipated tax benefit. Fourth-quarter total sequencing revenue grew 48% year over year, driven by demand across our platforms, record consumables, and continued uptake of our products across market segments, applications, and experimental scales. Sequencing instrument revenue grew 93% compared to the fourth quarter of 2013, driven by demand for the NextSeq 500 and the HiSeq X instruments. In addition, HiSeq and MiSeq again exceeded our projections, as customers continue to view these instruments as the NGS gold standard in their respective segments.