Illumina, Inc. (NASDAQ:ILMN) stock fell 4.10% (As on February 9, 11:26:14 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Illumina has recently announced it will divest GRAIL. The GRAIL divestiture will be executed through a third-party sale or capital markets transaction, consistent with the European Commission’s divestiture order, with the goal of finalizing the divestiture terms by the end of the second quarter of this year. The company has shipped 79 NovaSeq X instruments in Q4 2023 and 352 instruments for fiscal year 2023

Meanwhile, the company has Signed agreement with Janssen Research & Development, LLC (Janssen) to collaborate on the development of Illumina’s novel molecular residual disease (MRD) assay. ILMN has expanded the Alliance for Genomic Discovery, adding Bristol Myers Squibb (BMS), GSK and Novo Nordisk to join founding member organizations AbbVie, Amgen, AstraZeneca, Bayer, and Merck, who together will co-fund the whole-genome sequencing (WGS) of 250,000 data samples and have access to the resulting data for use in drug discovery and therapeutic development. The company has launched the Global Health Access Initiative to support access to pathogen sequencing tools for public health in low- and middle-income countries (LMICs)

ILMN in the fourth quarter of FY 23 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 1 cent, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 4 percent to $1.12 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.09 billion. This is attributed to sales of NovaSeq X instruments and consumables. However, the fiscal year saw a 2% decline in revenue, which remained flat on a constant currency basis.

Additionally, Capital expenditures for free cash flow purposes were $51 million for Q4 2023. Cash flow provided by operations was $224 million, compared to cash flow provided by operations of $147 million in the prior year period. Free cash flow was $173 million for the quarter, compared to $59 million in the prior year period. Depreciation and amortization expenses were $109 million for Q4 2023. At the close of the quarter, the company held $1,054 million in cash, cash equivalents and short-term investments.

Illumina anticipates Core Illumina revenue to be approximately flat compared to 2023, with a non-GAAP operating margin of about 20%.