Illumina, Inc 10-Q for FY2021 Q2

Illumina, Inc. (ILMN)

10-Q 2021-08-06 For: 2021-07-04

Added on April 12, 2026

About this 10-Q

Illumina, Inc filed this 10-Q on August 6, 2021, covering the quarter ended July 4, 2021 (FY2021 Q2).

Headline figures

Quarter ended July 4, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.13B; up 77.9% from $633M a year earlier
Net income: $185M; up 293.6% from net income of $47M a year earlier
Diluted EPS: $1.26; up 293.8% from $0.32 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						33-0804655
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	ILMN	The NASDAQ Stock Market LLC


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			PAGE
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Income			6
Condensed Consolidated Statements of Comprehensive Income			7
Condensed Consolidated Statement s of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
1. Organization and Significant Accounting Policies			11
2. Revenue			12
3. Investments and Fair Value Measurements			14
4. Debt			17
5. Stockholders’ Equity			20
6. Supplemental Balance Sheet Details			21
7. Legal Proceedings			23
8. Income Taxes			25


MANAGEMENT’S DISCUSSION & ANALYSIS
Management’s Overview and Outlook			26
Results of Operations			28
Liquidity and Capital Resources			30
Critical Accounting Policies and Estimates			33
Recent Accounting Pronouncements			33
Off-Balance Sheet Arrangements			33
Quantitative and Qualitative Disclosures About Market Risk			33

OTHER KEY INFORMATION
Controls and Procedures			33
Legal Proceedings			34
Risk Factors			34
Share Repurchases and Sales			35
Exhibits			36
Form 10-Q Cross-Reference Index			37


	July 4, 2021		January 3, 2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,196	$	1,810
Short-term investments	90		1,662
Accounts receivable, net	540		487
Inventory	380		372

Prepaid expenses and other current assets	104		152
Total current assets	5,310		4,483
Property and equipment, net	915		922
Operating lease right-of-use assets	566		532
Goodwill	966		897
Intangible assets, net	162		142

Other assets	756		609
Total assets	$	8,675	$	7,585

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	200	$	192
Accrued liabilities	674		541


Convertible senior notes, current portion	—		511
Total current liabilities	874		1,244
Operating lease liabilities	704		671
Term notes	992		—
Convertible senior notes	687		673

Other long-term liabilities	238		303

Stockholders’ equity:

Common stock	2		2
Additional paid-in capital	3,993		3,815
Accumulated other comprehensive income	8		2
Retained earnings	5,055		4,723
Treasury stock, at cost	(3,878)		(3,848)


Total stockholders’ equity	5,180		4,694
Total liabilities and stockholders’ equity	$	8,675	$	7,585


	Three Months Ended				Six Months Ended
	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Revenue:
Product revenue	$	972	$	527	$	1,925	$	1,228
Service and other revenue	154		106		294		264
Total revenue	1,126		633		2,219		1,492
Cost of revenue:
Cost of product revenue	254		152		519		326
Cost of service and other revenue	63		46		121		105
Amortization of acquired intangible assets	7		7		13		14
Total cost of revenue	324		205		653		445
Gross profit	802		428		1,566		1,047
Operating expense:
Research and development	202		155		398		311
Selling, general and administrative	413		177		787		451




Total operating expense	615		332		1,185		762
Income from operations	187		96		381		285
Other income (expense):
Interest income	—		7		—		21
Interest expense	(16)		(11)		(34)		(22)

Other income, net	36		73		31		58
Total other income (expense), net	20		69		(3)		57
Income before income taxes	207		165		378		342
Provision for income taxes	22		118		45		122
Net income	$	185	$	47	$	333	$	220



Earnings per share:
Basic	$	1.27	$	0.32	$	2.28	$	1.50
Diluted	$	1.26	$	0.32	$	2.26	$	1.49
Shares used in computing earnings per share:
Basic	146		147		146		147
Diluted	147		148		147		148


☑			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



				Additional		Accumulated Other							Total
	Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Stockholders’
	Shares	Amount		Capital		Income		Earnings		Shares	Amount		Equity





























































































































































Balance as of December 29, 2019	194	$	2	$	3,560	$	5	$	4,067	(47)	$	(3,021)	$	4,613
Net income	—	—		—		—		173		—	—		173
Unrealized gain on available-for-sale debt securities, net of deferred tax	—	—		—		1		—		—	—		1
Issuance of common stock, net of repurchases	—	—		32		—		—		—	(223)		(191)
Share-based compensation	—	—		39		—		—		—	—		39
Balance as of March 29, 2020	194	2		3,631		6		4,240		(47)	(3,244)		4,635
Net income	—	—		—		—		47		—	—		47
Unrealized gain on available-for-sale debt securities, net of deferred tax	—	—		—		8		—		—	—		8
Issuance of common stock, net of repurchases	—	—		2		—		—		(1)	(145)		(143)
Share-based compensation	—	—		16		—		—		—	—		16
Balance as of June 28, 2020	194	2		3,649		14		4,287		(48)	(3,389)		4,563
Net income	—	—		—		—		179		—	—		179
Unrealized loss on available-for-sale debt securities, net of deferred tax	—	—		—		(2)		—		—	—		(2)
Issuance of common stock, net of repurchases	—	—		27		—		—		—	(128)		(101)
Share-based compensation	—	—		61		—		—		—	—		61
Balance as of September 27, 2020	194	2		3,737		12		4,466		(48)	(3,517)		4,700
Net income	—	—		—		—		257		—	—		257
Unrealized loss on available-for-sale debt securities, net of deferred tax	—	—		—		(10)		—		—	—		(10)
Issuance of common stock, net of repurchases	1	—		—		—		—		(1)	(331)		(331)
Share-based compensation	—	—		78		—		—		—	—		78
Balance as of January 3, 2021	195	$	2	$	3,815	$	2	$	4,723	(49)	$	(3,848)	$	4,694



In millions	Q2 2021	Q2 2020	YTD 2021	YTD 2020
Weighted average shares outstanding	146	147	146	147
Effect of potentially dilutive common shares from:
Equity awards	—	1	—	1
Convertible senior notes	1	—	1	—

Weighted average shares used in calculating diluted earnings per share	147	148	147	148
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	—	—	—	1



Based on region of destination (in millions)	Q2 2021		Q2 2020		YTD 2021		YTD 2020
Americas	$	589	$	335	$	1,151	$	812
Europe, Middle East, and Africa	320		168		625		389
Greater China (1)	132		79		259		163
Asia-Pacific	85		51		184		128
Total revenue	$	1,126	$	633	$	2,219	$	1,492


	July 4, 2021				January 3, 2021
In millions	Amortized Cost		Gross Unrealized Gains		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Estimated Fair Value

Debt securities in government-sponsored entities	$	—	$	—	$	—	$	10	$	—	$	10
Corporate debt securities	—		—		—		445		—		445
U.S. Treasury securities	—		—		—		830		1		831
Total	$	—	$	—	$	—	$	1,285	$	1	$	1,286


In millions	July 4, 2021


Principal amount of 2031 Term Notes outstanding	$	500
Principal amount of 2023 Term Notes outstanding	500

Unamortized discounts and debt issuance costs	(8)

Net carrying amount of term notes	992
Less: current portion	—
Term notes, non-current	$	992
Fair value of term notes outstanding (Level 2)	$	1,010


In millions	2021 Notes
Cash paid for principal of notes converted	$	517
Conversion value over principal amount, paid in shares of common stock	$	313
Number of shares of common stock issued upon conversion	0.7
Loss on extinguishment of debt	$	1


	Restricted Stock Units (RSU)	Performance Stock Units (PSU)(1)	Weighted-Average Grant Date Fair Value per Share
Units in thousands			RSU		PSU
Outstanding at January 3, 2021	1,721	—	$	313.35	—
Awarded	97	428	$	431.51	$	474.86
Vested	(73)	—	$	268.96	—
Cancelled	(159)	(20)	$	314.25	$	482.69
Outstanding at July 4, 2021	1,586	408	$	322.49	$	474.48


Units in thousands	Options	Weighted-Average Exercise Price
Outstanding at January 3, 2021	10	$	59.11

Exercised	(1)	$	24.58

Outstanding and exercisable at July 4, 2021	9	$	63.45


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


2. REVENUE


	YTD 2021						YTD 2020
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	1,399	$	153	$	1,552	$	940	$	116	$	1,056
Instruments	365		8		373		166		6		172
Total product revenue	1,764		161		1,925		1,106		122		1,228
Service and other revenue	236		58		294		219		45		264
Total revenue	$	2,000	$	219	$	2,219	$	1,325	$	167	$	1,492


3. INVESTMENTS AND FAIR VALUE MEASUREMENTS


	Employee Stock Purchase Rights
Risk-free interest rate	0.08% - 1.46%
Expected volatility	32% - 47%
Expected term	0.5 - 1.0 year
Expected dividends	0		%
Weighted-average grant-date fair value per share	$	114.48


Dollars in millions	Q2 2021		Q2 2020		Change		% Change		YTD 2021		YTD 2020		Change		% Change
Consumables	$	778	$	436	$	342	78	%	$	1,552	$	1,056	$	496	47	%
Instruments	194		91		103		113		373		172		201		117
Total product revenue	972		527		445		84		1,925		1,228		697		57
Service and other revenue	154		106		48		45		294		264		30		11
Total revenue	$	1,126	$	633	$	493	78	%	$	2,219	$	1,492	$	727	49	%


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements			5
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Income			6
Condensed Consolidated Statements of Comprehensive Income			7
Condensed Consolidated Statement of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			33

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			34
Item 1A. Risk Factors			34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 3. Defaults Upon Senior Securities			None
Item 4. Mine Safety Disclosures			Not Applicable
Item 5. Other Information			None
Item 6. Exhibits			36
Signatures			38


		ILLUMINA, INC. (registrant)

Date:	August 5, 2021		/s/ SAM A. SAMAD
			Sam A. Samad Senior Vice President and Chief Financial Officer


1	I have reviewed this Quarterly Report on Form 10-Q of Illumina, Inc.;

2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			By:						/s/ FRANCIS A. DESOUZA
									Francis A. deSouza
									President and Chief Executive Officer


			By:						/s/ SAM A. SAMAD
									Sam A. Samad
									Senior Vice President and Chief Financial Officer