Illumina Inc. (NASDAQ:ILMN) Q2 2015 Earnings Conference Call - Final Transcript

Jul 21, 2015 • 05:00 pm ET

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Illumina Inc. (NASDAQ:ILMN) Q2 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, everyone, and welcome to the Second Quarter 2015 Illumina, Inc. Earnings Conference Call. At this time, all participants are in listen-only mode. Towards the end of this session, we will hold a question-and-answer session. [Operator Instructions] And as a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to the Vice President, Investor Relations and Treasury, Rebecca Chambers.

Executive
Rebecca Chambers

Thank you, operator, and good afternoon, everyone. Welcome to our earnings call for the second quarter of fiscal year 2015.

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 website at illumina.com.

Participating for Illumina today will be Jay Flatley, Chief Executive Officer; Francis deSouza, President; and Marc Stapley, Senior Vice President and Chief Financial Officer. Jay will provide a brief update on the state of our markets. Francis will comment on product performance and Marc will review our second quarter financial results, as well as provide updated guidance for 2015.

This call is being recorded and the audio portion will be archived in the Investor section of our website. It is our intent that all forward-looking statements regarding our expected financial results and commercial activities made during today's call will be protected under the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current information available and Illumina assumes no obligation to update these 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 Morgan Stanley Healthcare Conference in New York the week of September 14. 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 website.

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

Executive
Jay T. Flatley

Thanks, Rebecca, and good afternoon, everyone. I'm pleased to report that Q2 was another strong quarter for the company.

Order receipts exceeded our expectations resulting in a record exiting backlog. Revenue increased 21% year-over-year to $539 million, slightly above the guidance provided on last quarter's earnings call. The leverage we delivered this quarter was also remarkable as non-GAAP earnings per share grew 40% compared to the second quarter of 2014. These robust results were due to strength in sequencing revenue and solid operational execution.

Second quarter total sequencing revenues grew 28% year-over-year driven by record consumables and strength