ILMN 4Q2010 In-Line With Preannouncement, Goldman Sachs Reports

Illumina, Inc. ILMN reported 4Q2010 revenue/EPS of $261 mn/$0.29, in-line with the 1/11 preannouncement. “This represents yoy revenue growth of 47%,” Goldman Sachs writes. “HiSeq unit production increased another 30% sequentially, positioning the company to reduce lead times as promised heading into FY2011. “Gross margins of 64.5% were 150 bps below our forecast as GA2 trade-ins continue to progress quickly. Management stated that the impact of trade-ins on GM's should abate in 1Q11 and we continue to expect FY2011 annualized GM's of 70%. In arrays, management cited a sequential decline in revenues but a 7% sequential increase in orders, due largely to timing.” Illumina closed Tuesday at $70.25.