Illumina responded to China’s export ban on sequencing instruments, assuring compliance. The company targets high-single-digit revenue growth by 2027, with a projected fiscal 2025 non-GAAP diluted EPS of $4.50. A cost reduction strategy is being implemented to mitigate revenue impacts from China. Illumina aims to innovate and expand its multiomics portfolio while continuing to serve its clientele.

Illumina, Inc. announced its response to the initial report from the China Ministry of Commerce (MOFCOM) regarding the prohibition of exporting sequencing instruments into China. The company acknowledges MOFCOM’s decision, emphasizing its dedication to adhering to applicable regulations. Illumina maintains a robust presence in China, fulfilling the needs of its clinical and research clients.

CEO Jacob Thaysen stated that the company aims to achieve high-single-digit revenue growth by 2027, while also enhancing its margins. He expressed confidence in Illumina’s strong market position and commitment to driving innovation in genomics and multiomics to benefit customers.

Illumina is expanding its multiomics portfolio with advanced technologies spanning genomics, spatial analysis, single-cell research, and methylation, along with a new multimodal data analysis platform. These innovations derive from the NovaSeq X series platform and aim to provide significant insights into disease mechanisms. The firm will continue investing in services, data, and software to bolster its core offerings, as articulated during the August 2024 Strategy Update.

The company expects fiscal year 2025 non-GAAP diluted earnings per share of approximately $4.50. Additionally, Illumina is implementing a cost reduction strategy to save approximately $100 million in fiscal 2025, targeting areas such as stock-based compensation and non-labor expenses to offset potential revenue declines from its Greater China business.

CFO Ankur Dhingra indicated that this new guidance reflects a reduced earnings contribution expected from China amid prevailing macroeconomic trends. He asserted the commitment to the growth strategy aimed at reaching the EPS target while navigating challenges ahead.

Illumina utilizes non-GAAP metrics to report performance, alongside GAAP results which include significant charges like amortization. The company aims to provide clarity on its financial performance while highlighting important operating measures that inform board evaluations and compensations.

Forward-looking statements in the announcement reveal uncertainties impacting the company’s future performance, including market growth rates, order volumes, manufacturing capabilities, and regulatory challenges. Illumina expresses clear caution regarding the unpredictability of these factors.

Illumina is a pioneer in the field of DNA sequencing and genomic technologies improving human health. The company serves a diverse client base across research, clinical, and applied markets and remains committed to unlocking genome potential. To learn more, visit illumina.com and connect with the company on social media platforms.

For inquiries, the media contacts are Salli Schwartz at +1.858.291.6421 and Bonny Fowler at +1.740.641.5579.

In summary, Illumina has addressed recent restrictions imposed by the Chinese government on exporting sequencing instruments, while reassuring its commitment to compliance and customer service in the region. The company aims for substantial revenue growth and has introduced a cost-saving initiative in response to potential market challenges. With a strong focus on innovation and diversification in its product offerings, Illumina remains poised to navigate the evolving market landscape effectively.

Original Source: www.news-journal.com

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