Illumina CEO: Several deals may not close in Q4, no longer expecting uptick
Speaking during a conference call regarding the company's Q3 preannouncement, Illumina CEO Francis deSouza stated: "The primary driver of this miss was high-throughput instrument sales compared to our expectations. HiSeq 2500 and 4000 orders in the Americas were lower than expected, and we closed one less HiSeq X system deal than anticipated, resulting in a shipment figure of 26 X units during the quarter. As a result, total sequencing instrument revenue declined 26% year over year, a larger decrease than that anticipated at the beginning of Q3. Sequencing consumables were generally consistent with our expectations. Pull-through across our bench job instruments was in line with our guidance ranges. HiSeq utilization was slightly below $300,000, the low end of its range, and HiSeq X exceeded $725,000, the high end of the range, due primarily to a large, one time stocking order, similar to that seen in Q3 of last year. As you know, our quarter ended a week ago, and our revenue is back-end loaded. Consequently, we are still closing our books... We are also in the midst of rolling up our Q4 forecast... We are no longer counting on the uptick in high-throughput sequencing instruments that we were previously predicting, and there are a number of large binary deals that may or may not close during the quarter."