Page 1

illuminaⓇ Illumina Reports Financial Results for First Quarter of Fiscal Year 2021 Investors : Juliet Cunningham +1.858.200.6583 ir@illumina.com Media : Dr. Karen Birmingham +1.646.355.2111 kbirmingham@illumina.com San Diego -- ( BUSINESS WIRE ) - April 27 , 2021 - Illumina , Inc. ( NASDAQ : ILMN ) today announced its financial results for the first quarter of fiscal year 2021 . First quarter results reflect record revenue : • Revenue of $ 1,093 million , a 27 % increase compared to the prior year period GAAP net income for the quarter of $ 147 million , or $ 1.00 per diluted share , compared to $ 173 million , or $ 1.17 per diluted share , for the prior year period Non - GAAP net income for the quarter of $ 278 million , or $ 1.89 per diluted share , compared to $ 243 million , or $ 1.64 per diluted share , for the prior year period . Non - GAAP net income excludes acquisition - related expenses , primarily the Continuation Payments paid to GRAIL ( see the " Reconciliation Between GAAP and Non - GAAP Net Income " table for a reconciliation of these GAAP and non - GAAP financial measures ) Cash flow from operations of $ 282 million compared to $ 281 million in the prior year period Free cash flow ( cash flow from operations less capital expenditures ) of $ 240 million for the quarter compared to $ 241 million in the prior year period “ Illumina achieved its first billion - dollar revenue quarter in company history and delivered a very strong start to 2021 , exceeding our expectations , " said Francis deSouza , Chief Executive Officer . " Orders during the first quarter of 2021 reached an all - time high demonstrating strength in our core business across all regions , reflecting growth in both clinical and research customers . We are seeing tremendous progress in clinical market access and reimbursement for genomic applications increasing access to genomic testing for patients worldwide . We are proud of the significant contributions our customers , partners , and employees are making to the creation of a genomic epidemiology infrastructure to combat COVID - 19 , as well as monitor for future pathogen outbreaks for the benefit of global public health . " Gross margin in the first quarter of 2021 was 69.9 % compared to 72.1 % in the prior year period . Excluding amortization of acquired intangible assets and expenses related to COVID - 19 , non - GAAP gross margin was 70.5 % for the first quarter of 2021 compared to 73.0 % in the prior year period . Research and development ( R & D ) expenses for the first quarter of 2021 were $ 197 million compared to $ 156 million in the prior year period . Non - GAAP R & D expenses as a percentage of revenue were 18.0 % compared to 18.3 % in the prior year period . Selling , general and administrative ( SG & A ) expenses for the first quarter of 2021 were $ 374 million compared to $ 274 million in the prior year period . Excluding acquisition - related expenses and expenses and income related to