Illumina Inc. (ILMN) Monday reported a better-than-expected increase in first-quarter profit from a year ago, when results were hurt by one-time debt extinguishment charges. Revenue for the quarter meanwhile slid three percent on lower demand for its Genetic diagnostics products.
Moving ahead, Illumina reiterated its outlook for the full year 2012.
Illumina, which has repeatedly spurned a merger offer from Roche, develops life science tools and integrated systems for the analysis of genetic variation and biological function. Its total sales for the quarter slid to $273 million from $283 million last year. Twenty analysts expected revenue of $264.26 million.
Gross margin in the quarter was also lower at 66.4 percent compared to 66.6 percent in the prior year. On an adjusted basis, margin was higher at 69 percent, compared to 68.2 percent.
Illumina reported first-quarter net income of $26 million or $0.20 per share, compared to $24 million or $0.16 per share last year.
Excluding items, adjusted earnings were $48 million or $0.36 per share, compared to $50 million or $0.35 per share in the prior year. On average, 21 analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Illumina Board has authorized repurchase of up to $250 million of its outstanding common shares.
"We believe that the repurchase of our common stock represents an effective use of our capital and underscores our commitment to maximize value for our shareholders," said Chief Financial Officer Marc Stapley.
For full year 2012, the company continues to expect adjusted earnings of $1.40 to $1.50 per share and revenue of $1.10 billion to $1.175 billion. Analysts currently expect earnings of $1.47 per share on revenue of $1.13 billion for the full year.
Swiss drugmaker Roche Holding AG (RHHBY.PK) last week decided not to extend its $51.00 per share cash tender offer for Illumina in view of the re-election of the incumbent directors of Illumina. Roche in late January commenced a tender offer to acquire all the outstanding shares of Illumina for $44.50 per share in cash. It later raised the offer price to $51.00 per share in cash for an aggregate value of about $6.8 billion. But Illumina, whose shares saw gains following the Roche offer, rejected the bid. The shares have since pared the gains.
ILMN closed Monday on the Nasdaq at $43.90, down $0.46 or 1.04%, on a volume of over 3 million shares.
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