Illumina Reports Financial Results for Second Quarter of Fiscal Year 2024

Core Financial Results - Core Illumina revenue for Q2 2024 was $1.09 billion, down 6% from Q2 2023 and up 3% from Q1 2024 [1] - Core Illumina GAAP operating margin was 40.5% and non-GAAP operating margin was 22.2% for Q2 2024 [1] - Core Illumina GAAP diluted earnings per share were $0.41 and non-GAAP diluted earnings per share were $1.09 for Q2 2024 [1] Guidance and Outlook - The company lowered its fiscal year 2024 Core Illumina revenue guidance to a decline of 2% to 3% compared to 2023 [1][9] - Core Illumina non-GAAP operating margin guidance was raised to a range of 20.5% to 21% for fiscal year 2024 [1][9] - Guidance for Core Illumina non-GAAP diluted earnings per share is introduced in the range of $3.80 to $3.95 for fiscal year 2024 [1][9] Segment Performance - Core Illumina revenue for Q2 2024 was $1.092 billion, down from $1.159 billion in Q2 2023 [5] - GRAIL, which was spun off on June 24, 2024, reported revenue of $29 million for Q2 2024, up from $22 million in Q2 2023 [7] Operational Highlights - Consumable sales remained solid as customers increased sequencing activity, although instrument demand softened due to a constrained funding environment [2] - The company completed the spin-off of GRAIL into a new public company on June 24, 2024 [1][8] Cash Flow and Expenses - Cash flow provided by operations was $80 million for Q2 2024, compared to $105 million in the prior year period [4] - Free cash flow for the quarter was $48 million, down from $58 million in the prior year period [4]