Illumina, Inc. hit by shareholder investigation

Nov. 2, 2009 - PRLog -- An investigation on behalf of investors of Illumina, Inc. (Public, NASDAQ-ILMN) over possible securities laws violations by Illumina, Inc. and others was announced.

If you purchased Illumina, Inc.  ) shares and / or have additional information relating to the investigation, you should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com

or at: +1 (858) 779 – 1554

The investigation by a law firm focuses on the following events: On July 21, 2009 Illumina Inc reporting financial results for the second quarter of 2009 announced that it expected revenues for the third quarter to be between $162 million and $172 million and 2009 revenues in the range of $690 million to $720 million. But then on October 27, 2009, after the market close, Illumina Inc reported its financial results for the third quarter of 2009 and among other things, it reported total revenues of $158.4 million for the third quarter, and that it expects minimum full-year 2009 revenues of $651 million.

On October 27, 2009, Illumina also held a conference call further disclosing that it had “lost approximately 6 to 8 million in revenue due to a sequencing reagent quality issue, which had prevented [the Company] from shipping certain kits at the end of the quarter.”  In this regard Illumina Inc further stated as follows: “Not only did the sequencing reagent issue impact revenue in the third quarter, we expect it will have a negative impact of up to 15 million on Q4 revenue.  As a result, for the fourth quarter, we expect total revenues to be a minimum of 165 million, which implies a full-year 2009 revenue at a minimum of 651 million….In September, some of our customers began to see high error rate on the second read of their paired-end analysis.  As a result, we elected to hold shipments temporarily on all paired-end cluster kits, which were believed to be the cause of the failures in order to contain the problem and troubleshoot the cause. We tracked the root cause to a small group of purchase materials and have since reformulated our kits with new raw materials.  We’ve begun testing the new kits extensively, both internally and at various customer sites and believe that these new reagent batches are performing to specifications. Additionally, we’ve enhanced quality control procedures to ensure that no additional defective kits are produced or shipped…” On October 28, 2009, Illumina’s common stock declined by $8.29 per share, approximately 20%, from $41.66 per share to $33.37 per share on substantially greater than average volume.
Illumina, Inc., located in San Diego, California, is a developer, manufacturer and marketer of integrated systems for the large-scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that serve the sequencing, genotyping and gene expression markets. Illumina, Inc reported in 2007 Total Revenue of $366.80million and in 2008 Total Revenue of $573.23million with a Net Income of $50.48million. Shares of Illumina, Inc ILMN traded recently at $32.82 per share, down from its 52weekHigh of $44.07 per share.

Those who purchased Illumina, Inc.  ) shares and / or have additional information relating to the investigation, should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com

or at: +1 (858) 779 – 1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.