Illumina reports lower profit, plans restructuring

Illumina's 3Q profit falls on weak demand for gene sequencers, company plans restructuring

Associated Press

SAN DIEGO (AP) -- Genetic analysis instrument maker Illumina Inc. reported third-quarter earnings Tuesday that just missed Wall Street estimates, though the company expects sales to accelerate in the fourth-quarter as it rolls out a new gene sequencing device.The company said it would begin a restructuring effort to reduce costs, in light of the reduced funding for academic and government research. Illumina said it would record a one-time charge between $15 and $17 million in the fourth quarter.Company shares rose $2.02, or 7 percent, to $30.71.Earlier this month Illumina told investors it would stop giving specific guidance due to uncertainty surrounding research funding levels in the U.S. and Europe. Illumina relies on federally-funded research institutions for much of its business.In the last quarter the company said revenue fell 1 percent to $235.5 million from $237.3 million reported in the third quarter of 2010.The company's profit fell 43 percent to $20.2 million, or 15 cents per share, from $35.4 million, or 24 cents per share.When one-time costs and expenses are excluded the company earned $29.7 million, 22 cents per share. Analysts polled by FactSet expected earnings per share of 23 cents.The company said it expects revenue to increase sequentially next quarter as it rolls out its next-generation, lower-cost MiSeq gene sequencing device."However, given the uncertainty surrounding budgets for government funding of research and development, the company is not providing further guidance at this time," the company said in a statement.


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