Illumina, Inc. (Illumina), a US-based medical devices company, has reported total revenues of $165.8 million for the first quarter of 2009, up 36%, compared with the total revenues of $121.9 million in the year-ago quarter. It has also reported net income of $18.8 million, or $0.14 per diluted share, for the first quarter 2009, compared with net income of $10.7 million, or $0.08 per diluted share, in the year-ago quarter.
For the first quarter of 2009, Illumina reported gross margin of 66.4% compared with 60.2% in the comparable period of 2008. Excluding the effect of the amortization of intangibles and non-cash charges associated with stock compensation, non-GAAP gross margin was 68.3% for the first quarter of 2009 compared with 63.3% in the prior year period.
Research and development (R&D) expenses for the first quarter of 2009 were $32.7 million compared with $20.6 million in the first quarter of 2008. R&D expenses include $4.6 million and $3.3 million of non-cash stock compensation expense in the first quarter of 2009 and 2008, respectively, as well as $2.0 million expense related to acquired research and development and $0.9 million of accrued contingent compensation associated with the Avantome acquisition, both of which are recognized in the first quarter of 2009. Excluding these charges, R&D expenses as a percentage of revenues were 15.2% compared with 14.2% in the prior year period.
Selling, general, and administrative (SG&A) expenses for the quarter were $42.8 million compared with $33.8 million for the first quarter of 2008. SG&A expenses include $8.8 million and $6.1 million of non-cash stock compensation expense in the first quarter of 2009 and 2008, respectively. Excluding these charges, SG&A expenses as a percentage of revenues were 20.5% compared with 22.7% in the prior year period.
The company generated $50.7 million in cash flow from operations during the first quarter of 2009. In the comparable period of 2008, the company used $26.8 million of cash from operations which included a portion of one-time litigation settlement payments of $54.5 million. Excluding these payments, the company generated $27.8 million in non-GAAP cash flow from operations in the first quarter of 2008. Depreciation and amortization expenses were $7.3 million and capital expenditures were $12.6 million during the quarter. The company ended the first quarter with $728 million in cash and investments compared with $696 million as of December 28, 2008.
Financial Outlook and Guidance For second quarter and full year of 2009
For the second quarter of 2009, Illumina projects earnings in the range of $0.27 to $0.30 per share assuming about 131 million shares, with revenues in the range of $168 and $173 million. The company said that it expects stock compensation expense during the second quarter of about $16 million or a tax-adjusted amount of $0.08 per pro forma share.
For the full year 2009, the company projects revenue in the range of $700 and $720 million due to better-than-expected results in the first quarter. On the low end of the range, this is an increase of $10 million over the original guidance of $690 million.