Illumina, Inc. (NASDAQ: ILMN) stock surged over 7.9% on July 31st, 2018. For the second quarter of 2018, the sequencing consumable growth was broad-based driven by customers in research, translational and clinical settings. The group saw consumable growth across high throughput, which includes NovaSeq and HiSeq; mid throughput, which is NextSeq; and low throughput, which includes MiniSeq, MiSeq, iSeq.
NovaSeq consumables rose $40 million sequentially, driven by solid adoption of S4 and S2 and a healthy ramp in the S1 flow cell launched in February. Accordingly, sequencing consumable revenue rose 35% yoy to $455 million during the second quarter against pcp driven by better than expected demand. This comprises over $13 million of stocking related with Chinese customers buying ahead of potential tariffs.
Overall high throughput consumables rose greater than 35% against pcp. The group is nearing $1 billion annual run rate and a sizable majority of HiSeq customers. The group’s NovaSeq-related revenue is exceeding their forecasts while NextSeq consumables business is also strong driven by VeriSeq NIPT, oncology research, translational activity and clinical oncology testing.
The group sees that over 225 petabytes of sequence data have been generated on Illumina platforms alone since the last five years. That volume of sequence data is roughly equivalent to 2.5 human genomes sequence of 30x coverage.
The group’s revenue rose 25% on a yoy basis to $830 million, for the second quarter of 2018 against pcp. Sequencing services and other revenue rose 10% on a qoq basis while rose 38% on a year-over-year basis to $106 million. Traditional maintenance contracts coupled with sequencing services labs which support Genomics England in addition to some NIPT and rugged customers drove the performance.
Library prep rose 25% on a yoy basis boosted by their core library prep portfolio, including traction with their new Nextera DNA Flex offering, which continues to get positive customer feedback. Library prep portfolio is currently approaching 15% of their sequencing consumable business.
Microarray revenue rose 25% on a year-over-year basis to $140 million, boosted by the direct-to-consumer or DTC but also in global research applications spanning genotyping and epigenetics. Launch of the Asian Screening Array enabled several iScan installations during the second quarter which indicates future growth for arrays in the region has sites scale their operations.