SAN DIEGO (AP) -- Illumina Inc., which makes genetic testing tools, said Tuesday that its net income climbed 53 percent in the second quarter as it booked fewer charges and posted a big jump in product and service revenue.
Illumina also announced the purchase of Advanced Liquid Logic, a maker of technology that can manipulate small droplets within a sealed disposable cartridge to perform complex lab testing. Financial terms weren't disclosed. The deal furthers Illumina's aim of providing tools to quickly and easily handle small samples, which it says is an increasingly important area for customers. The results and acquisition prompted Illumina to raise its forecast for the full year.
Shares gained $4.53, or 6.1 percent, to $78.30 in aftermarket trading, having closed the regular session down 96 cents to $73.77 before the report. The stock is trading around its highest price in two years, having peaked at $78.24 on July 12.
The San Diego company said that its net income rose to $35.9 million, or 26 cents per share, from $23.4 million, or 18 cents per share, a year earlier. Excluding one-time items including patent litigation costs, Illumina said earnings would have totaled 43 cents per share in the latest quarter, up from 40 cents in the prior-year period when it booked a big charge to write down the value of certain research and development work. Revenue increased 23 percent to $346.1 million from $280.6 million.
The results topped analysts' average forecast for adjusted net income of 39 cents per share and $333 million in revenue, according to FactSet.
The company now expects to report adjusted earnings between $1.68 and $1.72 per share this year and said its revenue will grow 20 percent, to about $1.39 billion. Previously Illumina forecast profit of $1.55 to $1.62 per share on revenue growth of 15 percent to about $1.32 billion. The latest estimates include the expected impact of both the acquisitions of Advanced Liquid Logic and Verinata, a prenatal testing company that Illumina bought earlier this year.
Analysts, on average, expect the company to report $1.67 per share and $1.36 billion in revenue for the full year.