Summary by Futu AI
Illumina reported Q2 2024 revenue of $1.11 billion, down 5% year-over-year, with Core Illumina revenue declining 6% to $1.09 billion. The company recorded significant goodwill and intangible impairment charges of $1.89 billion related to GRAIL, leading to a net loss of $1.99 billion. Gross margin improved to 64.8% from 62.2% in Q2 2023, driven by favorable sequencing consumables mix and operational efficiencies.On June 24, 2024, Illumina completed the spin-off of GRAIL, distributing 85.5% of GRAIL shares to stockholders while retaining a 14.5% stake. The company recorded a $328 million unrealized loss on its retained GRAIL investment. To fund the spin-off, Illumina borrowed $750 million through a new delayed draw credit facility at 6.7% interest rate due June 2025.The company ended Q2 with $994 million in cash and investments, including $444 million held overseas. Operating cash flow was $157 million for the first half of 2024. Illumina faces ongoing regulatory challenges, including a €432 million fine from the European Commission related to the GRAIL acquisition, which is being appealed.
