Illumina announced its financial results for the third quarter of fiscal year 2015. Revenue was $550 million, a 14% increase compared to $481 million in the third quarter of 2014, and an increase of 18% on a constant currency basis.
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Gross margin in the third quarter of 2015 was 70.4% compared to 69.5% in the prior year period. Excluding the effect of non-cash stock compensation expense, amortization of acquired intangible assets, and legal contingencies, non-GAAP gross margin was 73.2% for the third quarters of 2015 and 2014.
Research and development (R&D) expenses for the third quarter of 2015 were $99.2 million compared to $85.1 million in the prior year period. R&D expenses included $9.1 million and $14.6 million of non-cash stock compensation expense in the third quarters of 2015 and 2014, respectively.
Excluding these charges and contingent compensation, R&D expenses as a percentage of revenue were 16.4% compared to 14.6% in the prior year period.
Selling, general and administrative (SG&A) expenses for the third quarter of 2015 were $136.6 million compared to $119.9 million in the prior year period. SG&A expenses included $20.1 million and $27.2 million of non-cash stock compensation expense in the third quarters of 2015 and 2014, respectively.
Excluding these charges, amortization of acquired intangible assets, and contingent compensation, SG&A expenses as a percentage of revenue were 20.9% compared to 19.0% in the prior year period.
During the quarter, the company recorded a GAAP tax benefit of $24.8 million, or $0.17, related to the exclusion of stock compensation from prior period cost-sharing charges as a result of a recent tax court ruling in which an unrelated third party was successful in challenging such charges. This benefit is reflected in the GAAP net income attributable to Illumina stockholders.
Depreciation and amortization expenses were $32.9 million and capital expenditures were $29.5 million during the third quarter of 2015. The company settled $207.4 million of the 0.25% Convertible Senior Notes due 2016 and repurchased $37.5 million of common stock under the previously announced 10b5-1 share repurchase program.
At the close of the quarter the company held $1.44 billion in cash, cash equivalents and short-term investments, compared to $1.34 billion as of December 28, 2014. ■