Second-quarter sales rose 31.2 percent and net income jumped 20.7 percent for Illumina Inc. (NSDQ:ILMN), even as the company announced its plans to get into the bench-top polymerase chain reaction business with the acquisition of Helixis Inc.
The San Diego-based genetic lab instruments maker reported net income of $29.8 million, or 21 cents per diluted share, on sales of $212.0 million during the three months ended July 4. That compares with net income of $24.7 million, or 18 cents per diluted share, on sales of $161.6 million during the three months ended June 28, 2009.
As nice as those numbers are, it’s Illumina’s move to acquire Helixis that’s likely to grab more attention. That Carlsbad, Calif.-based company is developing cheaper, bench-top PCR equipment designed to put the DNA analysis technique into the hands of individual researchers. Illumina said it spent $70 million in cash on the acquisition, with another $35 million on the line in "contingent consideration." Helixis CEO Alex Dickinson will become Illumina’s vice president of PCR solutions as part of the deal.
Illumina also said its board of directors authorized it to buy back $200 million worth of its own stock, with half to be spent under a 10b5-1 plan over the next year and the remainder "at management’s discretion during open trading windows," according to a press release.
And its move to drive the cost of individual genome sequencing even lower bore fruit, as the company said it reduced the price of its sequencing service from $48,000 to $19,500 per genome, $14,500 per genome for groups of five or more patients with the same physician and $9,500 for individuals whose physicians believe sequencing could provide "direct clinical value in light of their serious medical conditions," according to the release.
Illumina said it expects to post roughly 28 percent revenue growth for the full year, meaning 2010 sales could near the $950 million mark. Adjusted earnings per share are expected to be between 93 cents and a dollar, including dilution from the Helixis buy.
