Illumina Inc. (NASDAQ:ILMN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET


Illumina Inc. (NASDAQ:ILMN) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Second Quarter 2020 Illumina Earnings Conference. [Operator Instructions]

I would now like to introduce your host for today's conference, Ms. Jacquie Ross, Illumina Investor Relations.

Jacquie Ross

Good afternoon, everyone, and thanks for joining us for our 2020 second quarter results. 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've not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at Participating for Illumina today will be Francis deSouza, President and Chief Executive Officer; and Sam Samad, Chief Financial Officer. Francis will share an update on our business, and Sam will review our financial results. Similar to last quarter, we are hosting our call from a number of different locations, so please bear with us if there are any technical challenges or pauses.

[Operator Instructions], 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 financial results and commercial activity 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 available information, 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 documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent forms 10-Q and 10-K.

With that, I'll turn the call over to Francis.

Francis deSouza

Thank you, Jacquie. Good afternoon, everyone, and thank you for joining us today. As expected, the second quarter was tough in the context of our original 2020 plan. But nonetheless, a quarter of strong execution in the current environment that further strengthens our foundation for future expansion. I've been proud to see how our employees have pivoted and flexed to support customers, how we have stepped up what was already an aggressive innovation engine and how we have supported each other and our communities through this pandemic. As we navigate the near-term disruption, we remain focused on the long-term opportunity for Illumina and for sequencing which, if anything, is larger today than it was six months ago. To summarize our second quarter experience and outlook, our second quarter revenue of $633 million was down 25% from a year ago as our customers around the world continued to be impacted by the pandemic.

We're seeing indicators of gradual recovery, and barring an unexpected development in the course of the pandemic, the second quarter should represent the revenue floor for the year. Further, we expect sequential revenue growth in the third and fourth quarters. Second, despite lower patient visits, our clinical business remains more resilient than research,