Illumina reports $44.17 million of cash, increased revenues due to strong demand for genotyping products

By Jennifer Lanning Drey

Portland, Ore., Oct. 17 - Illumina, Inc. reported cash and cash equivalents of $44.17 million at Oct. 1, compared with $50.82 million at the beginning of the year, according to a company news release.

During the third quarter, the company was cash flow positive and generated total cash of roughly $13.2 million, primarily through operations, Christian Henry, chief financial officer of Illumina, said during a company conference call held Tuesday.

During the third quarter, the company's revenues grew by 174% over the same period in 2005 to a total of $53.5 million, according to the release. The quarter represented Illumina's twenty-first consecutive quarter of revenue growth, Henry said.

"We continue to see strong demand for our products and services and expect the robust growth of the whole genome/genotyping market to continue to drive our revenue growth," Henry said.

Illumina also announced on Tuesday that it signed an agreement with one of the top five pharmaceutical companies for the purchase and installation of a multi-component genetic analysis system.

"This announcement, along with an expanded relationship with GlaxoSmithKline that we announced earlier this quarter, are strong indicators of the adoption of genotyping by the pharmaceutical market segment," Jay Flatley, chief executive officer of Illumina, said during Tuesday's call.

The multi-million-dollar project will initially involve 3,200 samples that will be run using Illumina's Infinium Assay and the HumanHap650Y BeadChip, the company said.

Additional specific details of the agreement were not disclosed.

Based on the current market conditions and Illumina's year-to-date performance, the company increased its revenue guidance by $8 million to $12 million for 2006.

"Overall, we continue to believe that we are in the early phases of the development of the genotyping market and that it will continue to see rapid market expansion over the next several years," Flatley said.

He also said Illumina plans to launch new products that will leverage the flexibility of its technology platform in 2007.

Illumina is a San Diego biotechnology company that makes tools for large-scale analysis of genetic variation and function.

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