Technology

Illumina Reports Financial Results for Second Quarter of Fiscal Year 2024

Published

5 months ago

August 6, 2024

Core Illumina revenue of $1.09 billion for Q2 2024, down 6% from Q2 2023 (down 6% on a constant currency basis) and up 3% from Q1 2024Core Illumina GAAP operating margin of 40.5% and non-GAAP operating margin of 22.2% for Q2 2024Core Illumina GAAP diluted earnings per share of $0.41 and non-GAAP diluted earnings per share of $1.09 for Q2 2024Lowered fiscal year 2024 Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) from 2023Raised Core Illumina non-GAAP operating margin guidance to a range of 20.5% to 21% for fiscal year 2024Introducing guidance for Core Illumina non-GAAP diluted earnings per share in the range of $3.80 to $3.95 for fiscal year 2024On June 24, 2024, we completed the spin-off of GRAIL into a new public company

SAN DIEGO, Aug. 6, 2024 /PRNewswire/ — Illumina, Inc. (Nasdaq: ILMN) (“Illumina” or the “company”) today announced its financial results for the second quarter of fiscal year 2024, which include the consolidated financial results for GRAIL through June 24, 2024.

“The Illumina team delivered results ahead of our expectations in the quarter, driven by disciplined execution on our strategic priorities,” said Jacob Thaysen, Chief Executive Officer. “Consumable sales remained solid as customers continued to increase their sequencing activity, but instrument demand has softened in a constrained funding environment. We are progressing our operating excellence initiatives and will deliver expanded margins this year.”

Second quarter consolidated results

GAAP

Non-GAAP (a)

Dollars in millions, except per share amounts

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue

$ 1,112

$ 1,176

$ 1,112

$ 1,176

Gross margin

64.8 %

62.2 %

69.0 %

66.5 %

Research and development (“R&D”) expense

$ 325

$ 358

$ 325

$ 345

Selling, general and administrative (“SG&A”) expense

$ 147

$ 462

$ 358

$ 355

Goodwill and intangible impairment (b)

$ 1,886

$ —

Operating (loss) profit

$ (1,637)

$ (88)

$ 84

$ 82

Operating margin

(147.2) %

(7.5) %

7.6 %

7.0 %

Tax provision

$ 12

$ 145

$ 16

$ 33

Tax rate

(0.6) %

(163.8) %

22.3 %

39.3 %

Net (loss) income

$ (1,988)

$ (234)

$ 57

$ 50

Diluted (loss) earnings per share

$ (12.48)

$ (1.48)

$ 0.36

$ 0.32

(a) See the tables included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

(b) During the second quarter of 2024, the company recognized $1,466 million in goodwill and $420 million in intangible asset (IPR&D) impairment related to the GRAIL segment.

Capital expenditures for free cash flow purposes were $32 million for Q2 2024. Cash flow provided by operations was $80 million, compared to cash flow provided by operations of $105 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $48 million for the quarter, compared to $58 million in the prior year period. Depreciation and amortization expenses were $105 million for Q2 2024. At the close of the quarter, the company held $994 million in cash, cash equivalents and short-term investments.

Second quarter segment results
Illumina has two reportable segments, Core Illumina and GRAIL, which was spun-off on June 24, 2024.

Core Illumina

GAAP

Non-GAAP (a)

Dollars in millions

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue (b)

$ 1,092

$ 1,159

$ 1,092

$ 1,159

Gross margin (c)

68.0 %

65.5 %

69.4 %

67.0 %

R&D expense

$ 241

$ 274

$ 241

$ 261

SG&A expense

$ 60

$ 371

$ 275

$ 270

Operating profit

$ 442

$ 115

$ 242

$ 245

Operating margin

40.5 %

9.9 %

22.2 %

21.2 %

Tax provision

$ 35

$ 55

Tax rate

35.0 %

24.2 %

Net income

$ 66

$ 174

Diluted earnings per share

$ 0.41

$ 1.09

* Prior year information not provided.

(a) See the tables included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

(b) Core Illumina revenue for Q2 2024 was down 6% as compared to Q2 2023 and down 6% on a constant currency basis. Amounts for Q2 2024 and Q2 2023 included intercompany revenue of $9 million and $5 million, respectively, which is eliminated in consolidation.

(c) The year-over-year increase in gross margin was primarily driven by a more favorable mix of sequencing consumables and execution of our operational excellence priorities that delivered cost savings, including freight and improved productivity.

GRAIL

GAAP

Non-GAAP (a)

In millions

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue

$ 29

$ 22

$ 29

$ 22

Gross (loss) profit

$ (16)

$ (24)

$ 15

$ 9

R&D expense

$ 88

$ 89

$ 88

$ 89

SG&A expense

$ 88

$ 91

$ 84

$ 85

Goodwill and intangible impairment

$ 1,886

$ —

Operating loss

$ (2,078)

$ (204)

$ (157)

$ (164)

(a) See Table 5 included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

Key announcements by Illumina since Illumina’s last earnings release

Completed the spin-off of GRAILAcquired Fluent Biosciences, developer of an emerging and highly differentiated single-cell technologyAppointed Everett Cunningham as Chief Commercial OfficerAnnounced that Anna Richo, Corporate Senior Vice President, Strategic Advisor to the General Counsel and CEO at Cargill, Inc., joined Illumina’s Board of DirectorsPresented research at the American Society of Clinical Oncology (ASCO) Annual Meeting, with 14 total abstracts accepted to the meetingCompleted integration of Illumina’s latest chemistry, XLEAP-SBS™, into all reagents for its NextSeq™ 1000 and NextSeq 2000 next-generation sequencing instrumentsExpanded its oncology menu for NovaSeq™ X Series customers by offering the newly verified high-throughput version of TruSight™ Oncology 500 (TSO 500 HT), and the latest version of its distributed liquid biopsy research assay, TruSight Oncology 500 ctDNA v2 (TSO 500 ctDNA v2)Launched DRAGEN™ v4.3, the latest version of Illumina’s DRAGEN™ software, part of the Illumina Connected Software portfolio, for analysis of next-generation sequencing data

A full list of recent Illumina announcements can be found in the company’s News Center.

Financial outlook and guidance
For fiscal year 2024, the company lowered its Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) compared to fiscal year 2023 and raised its Core Illumina non-GAAP operating margin guidance to a range of 20.5% to 21%. The company is introducing guidance for Core Illumina non-GAAP diluted EPS in the range of $3.80 to $3.95 for fiscal year 2024.

The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the financial impact of items such as acquisition-related expenses, gains and losses from our strategic investments, fair value adjustments related to contingent consideration and contingent value rights, potential future asset impairments, restructuring activities, and the ultimate outcome of pending litigation without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

Conference call information
The conference call will begin at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Tuesday, August 6, 2024. Interested parties may access the live teleconference through the Investor Info section of Illumina’s website at investor.illumina.com. Alternatively, individuals can access the call by dialing 866.400.0049 or +1.323.701.0231 outside North America, both using conference ID 9881025. To ensure timely connection, please dial in at least ten minutes before the scheduled start of the call.

A replay of the conference call will be posted on Illumina’s website after the event and will be available for at least 30 days following.

Statement regarding use of non-GAAP financial measures
The company reports non-GAAP results for diluted earnings per share, net income, gross margin, operating expenses, including research and development expense, selling general and administrative expense, and from time to time, as applicable, legal contingencies and settlement, and goodwill and intangible impairment, operating income (loss), operating margin, gross profit (loss), other income (expense), tax provision, constant currency revenue growth, and free cash flow (on a consolidated and, as applicable, segment basis) in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company’s financial measures under GAAP include substantial charges such as amortization of acquired intangible assets among others that are listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release, as well as the effects of currency translation. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance, including in the non-GAAP measures related to our segments. Additionally, non-GAAP net income, diluted earnings per share and operating margin are key components of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation.

The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the tables of this release.

Use of forward-looking statements
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of growth in the markets we serve; (ii) the volume, timing and mix of customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our revenue expectations; (iv) our ability to manufacture robust instrumentation and consumables; (v) the success of products and services competitive with our own; (vi) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (vii) the impact of recently launched or pre-announced products and services on existing products and services; (viii) our ability to modify our business strategies to accomplish our desired operational goals; (ix) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (x) our ability to further develop and commercialize our instruments, consumables, and products; (xi) to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xii) the risks and costs associated with the divestment of GRAIL; (xiii) the risk of additional litigation arising against us in connection with the GRAIL acquisition; (xiv) our ability to obtain approval by third-party payors to reimburse patients for our products; (xv) our ability to obtain regulatory clearance for our products from government agencies; (xvi) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xvii) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xviii) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments and (xix) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current quarter.

About Illumina
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X (Twitter), Facebook, LinkedIn, Instagram, TikTok, and YouTube.

About GRAIL
GRAIL is a healthcare company whose mission is to detect cancer early, when it can be cured. GRAIL is focused on alleviating the global burden of cancer by developing pioneering technology to detect and identify multiple deadly cancer types early. The company is using the power of next-generation sequencing, population-scale clinical studies, and state-of-the-art computer science and data science to enhance the scientific understanding of cancer biology, and to develop its multi-cancer early detection blood test. GRAIL is headquartered in Menlo Park, CA with locations in Washington, D.C., North Carolina, and the United Kingdom. GRAIL, Inc. was spun-out into a new public company on June 24, 2024. For more information, please visit www.grail.com.

Illumina, Inc.

Condensed Consolidated Balance Sheets

(In millions)

June 30,
2024

December 31,
2023

ASSETS

(unaudited)

Current assets:

Cash and cash equivalents

$ 920

$ 1,048

Short-term investments

Accounts receivable, net

641

734

Inventory, net

561

587

Prepaid expenses and other current assets

263

234

Total current assets

2,459

2,609

Property and equipment, net

859

1,007

Operating lease right-of-use assets

460

544

Goodwill

1,079

2,545

Intangible assets, net

278

2,993

Deferred tax assets, net

632

Other assets

314

357

Total assets

$ 6,081

$ 10,111

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 199

$ 245

Accrued liabilities

1,265

1,325

Term debt, current portion

744

—

Total current liabilities

2,208

1,570

Operating lease liabilities

616

687

Term debt

1,490

1,489

Other long-term liabilities

331

620

Stockholders’ equity

1,436

5,745

Total liabilities and stockholders’ equity

$ 6,081

$ 10,111

Illumina, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Revenue:

Product revenue

$ 927

$ 1,001

$ 1,803

$ 1,923

Service and other revenue

185

175

385

340

Total revenue

1,112

1,176

2,188

2,263

Cost of revenue:

Cost of product revenue (a)

250

305

504

591

Cost of service and other revenue (a)

202

190

Amortization of acquired intangible assets

Total cost of revenue

391

444

800

877

Gross profit

721

732

1,388

1,386

Operating expense:

Research and development (a)

325

358

660

699

Selling, general and administrative (a)

147

462

588

839

Goodwill and intangible impairment

1,886

—

1,889

—

Total operating expense

2,358

820

3,137

1,538

Loss from operations

(1,637)

(88)

(1,749)

(152)

Other expense, net

(339)

(1)

(337)

(15)

Loss before income taxes

(1,976)

(89)

(2,086)

(167)

Provision for income taxes

145

Net loss

$ (1,988)

$ (234)

$ (2,114)

$ (231)

Loss per share:

Basic

$ (12.48)

$ (1.48)

$ (13.28)

$ (1.46)

Diluted

$ (12.48)

$ (1.48)

$ (13.28)

$ (1.46)

Shares used in computing loss per share:

Basic

159

158

159

158

Diluted

159

158

159

158

(a) Includes stock-based compensation expense for stock-based awards:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Cost of product revenue

$ 7

$ 8

$ 13

$ 15

Cost of service and other revenue

Research and development

Selling, general and administrative

109

Stock-based compensation expense before taxes

$ 110

$ 105

$ 208

$ 199

Illumina, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Net cash provided by operating activities

$ 80

$ 105

$ 157

$ 115

Net cash used in investing activities

(41)

(37)

(89)

(93)

Net cash used in financing activities

(225)

(3)

(191)

(476)

Effect of exchange rate changes on cash and cash equivalents

(2)

(6)

(5)

(4)

Net (decrease) increase in cash and cash equivalents

(188)

(128)

(458)

Cash and cash equivalents, beginning of period

1,108

1,494

1,048

2,011

Cash and cash equivalents, end of period

$ 920

$ 1,553

$ 920

$ 1,553

Calculation of free cash flow:

Net cash provided by operating activities

$ 80

$ 105

$ 157

$ 115

Purchases of property and equipment

(32)

(47)

(67)

(99)

Free cash flow (a)

$ 48

$ 58

$ 90

$ 16

(a) Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating activities reduced by purchases of property and equipment. Free cash flow is useful to management as it is one of the metrics used to evaluate our performance and to compare us with other companies in our industry. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

Illumina, Inc.

Results of Operations – Revenue by Segment

(Dollars in millions)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

% Change

June 30,
2024

July 2,
2023

% Change

Consolidated revenue

$ 1,112

$ 1,176

(5) %

$ 2,188

$ 2,263

(3) %

Less: Hedge gains

Consolidated revenue, excluding hedge effect

1,108

1,174

2,181

2,260

Less: Exchange rate effect

(5)

—

(7)

—

Consolidated constant currency revenue (a)

$ 1,113

$ 1,174

(5) %

$ 2,188

$ 2,260

(3) %

Core Illumina revenue

$ 1,092

$ 1,159

(6) %

$ 2,148

$ 2,235

(4) %

Less: Hedge gains

Core Illumina revenue, excluding hedge effect

1,088

1,157

2,141

2,232

Less: Exchange rate effect

(5)

—

(7)

—

Core Illumina constant currency revenue (a)

$ 1,093

$ 1,157

(6) %

$ 2,148

$ 2,232

(4) %

(a) Constant currency revenue growth, which is a non-GAAP financial measure, is calculated using comparative prior period foreign exchange rates to translate current period revenue, net of the effects of hedges.

Illumina, Inc.
Results of Operations – Non-GAAP
(In millions, except per share amounts)
(unaudited)

TABLE 1: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP DILUTED (LOSS) EARNINGS PER SHARE:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

GAAP loss per share – diluted

$ (12.48)

$ (1.48)

$ (13.28)

$ (1.46)

Cost of revenue (b)

0.29

0.32

0.60

0.63

R&D expense (b)

—

0.08

0.01

0.09

SG&A expense (b)

(1.33)

0.68

(0.75)

0.89

Goodwill and intangible impairment (b)

11.84

—

11.86

—

Other expense, net (b)

2.06

0.01

2.01

0.08

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

0.62

0.44

0.73

0.16

Incremental non-GAAP tax expense (d)

(0.65)

0.27

(0.74)

(0.04)

Income tax provision (e)

0.01

—

0.01

0.05

Non-GAAP earnings per share – diluted (a)

$ 0.36

$ 0.32

$ 0.45

$ 0.40

TABLE 2: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET (LOSS) INCOME:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

GAAP net loss

$ (1,988)

$ (234)

$ (2,114)

$ (231)

Cost of revenue (b)

R&D expense (b)

—

SG&A expense (b)

(211)

107

(120)

142

Goodwill and intangible impairment (b)

1,886

—

1,889

—

Other expense, net (b)

328

319

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

116

Incremental non-GAAP tax expense (d)

(104)

(117)

(6)

Income tax provision (e)

—

Non-GAAP net income (a)

$ 57

$ 50

$ 71

$ 64

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(In millions, except per share amounts)
(unaudited)

TABLE 3: CORE ILLUMINA RECONCILIATION BETWEEN GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:

Three Months Ended

Six Months Ended

June 30,
2024

GAAP earnings per share – diluted

$ 0.41

$ 0.85

Cost of revenue (b)

0.10

0.19

R&D expense (b)

—

0.01

SG&A expense (b)

(1.35)

(0.84)

Goodwill and intangible impairment (b)

—

0.02

Other expense, net (b)

2.06

2.01

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

0.12

0.21

Incremental non-GAAP tax expense (d)

(0.26)

(0.39)

Income tax provision (e)

0.01

Non-GAAP earnings per share – diluted (a)

$ 1.09

$ 2.07

TABLE 4: CORE ILLUMINA RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME:

Three Months Ended

Six Months Ended

June 30,
2024

GAAP net income

$ 66

$ 135

Cost of revenue (b)

R&D expense (b)

—

SG&A expense (b)

(215)

(132)

Goodwill and intangible impairment (b)

—

Other expense, net (b)

328

319

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

Incremental non-GAAP tax expense (d)

(41)

(62)

Income tax provision (e)

Non-GAAP net income (a)

$ 174

$ 329

All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided.

(a) Non-GAAP net income and diluted earnings per share exclude the effects of the pro forma adjustments as detailed above. Non-GAAP net income and diluted earnings per share are key components of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing our past and future operating performance.

(b) Refer to the Itemized Reconciliations between GAAP and Non-GAAP Results of Operations for the components of these amounts.

(c) Amounts represent the impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective in Q1 2024.

(d) Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed.

(e) Amounts represent the difference between book and tax accounting related to stock-based compensation cost.

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5: ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Three Months Ended

June 30, 2024

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 743

68.0 %

$ (16)

$ (6)

$ 721

64.8 %

Amortization of acquired intangible assets

1.4 %

—

4.2 %

Non-GAAP gross profit (a)

$ 758

69.4 %

$ 15

$ (6)

$ 767

69.0 %

GAAP and Non-GAAP R&D expense

$ 241

22.1 %

$ 88

$ (4)

$ 325

29.2 %

GAAP SG&A expense

$ 60

5.5 %

$ 88

$ (1)

$ 147

13.2 %

Amortization of acquired intangible assets

—

(1)

—

(1)

(0.1) %

Contingent consideration liabilities (c)

271

24.8 %

—

271

24.4 %

Acquisition-related expenses (d)

(46)

(4.2) %

(3)

—

(49)

(4.4) %

Restructuring (g)

(3)

(0.3) %

—

(3)

(0.3) %

Accrued interest on EC fine (h)

(7)

(0.6) %

—

(7)

(0.6) %

Non-GAAP SG&A expense

$ 275

25.2 %

$ 84

$ (1)

$ 358

32.2 %

GAAP goodwill and intangible impairment

$ —

—

$ 1,886

$ —

$ 1,886

169.6 %

Goodwill impairment (i)

—

(1,466)

—

(1,466)

(131.8) %

Intangible (IPR&D) impairment (i)

—

(420)

—

(420)

(37.8) %

Non-GAAP goodwill and intangible impairment

$ —

—

$ —

—

GAAP operating profit (loss)

$ 442

40.5 %

$ (2,078)

$ (1)

$ (1,637)

(147.2) %

Cost of revenue

1.4 %

—

4.2 %

SG&A costs

(215)

(19.7) %

—

(211)

(19.0) %

Goodwill and intangible impairment

—

1,886

—

1,886

169.6 %

Non-GAAP operating profit (loss) (a)

$ 242

22.2 %

$ (157)

$ (1)

$ 84

7.6 %

GAAP other (expense) income, net

$ (341)

(31.2) %

$ 2

$ —

$ (339)

(30.5) %

Strategic investment related loss, net (e)

334

30.5 %

—

334

30.0 %

Gain on Helix contingent value right (f)

(8)

(0.7) %

—

(8)

(0.7) %

Foreign currency loss on EC fine (j)

0.2 %

—

0.2 %

Non-GAAP other (expense) income, net (a)

$ (13)

(1.2) %

$ 2

$ —

$ (11)

(1.0) %

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Three Months Ended

July 2, 2023

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 760

65.5 %

$ (24)

$ (4)

$ 732

62.2 %

Amortization of acquired intangible assets

1.2 %

—

4.0 %

Restructuring (g)

0.3 %

—

0.3 %

Non-GAAP gross profit (a)

$ 777

67.0 %

$ 9

$ (4)

$ 782

66.5 %

GAAP R&D expense

$ 274

23.6 %

$ 89

$ (5)

$ 358

30.4 %

Acquisition-related expenses (d)

(1)

(0.1) %

—

(1)

(0.1) %

Restructuring (g)

(12)

(1.0) %

—

(12)

(1.0) %

Non-GAAP R&D expense

$ 261

22.5 %

$ 89

$ (5)

$ 345

29.3 %

GAAP SG&A expense

$ 371

31.9 %

$ 91

$ —

$ 462

39.3 %

Amortization of acquired intangible assets

—

(1)

—

(1)

(0.1) %

Contingent consideration liabilities (c)

(29)

(2.5) %

—

(29)

(2.5) %

Acquisition-related expenses (d)

(18)

(1.4) %

(3)

—

(21)

(1.8) %

Restructuring (g)

(17)

(1.5) %

(2)

—

(19)

(1.6) %

Legal contingency and settlement (k)

(12)

(1.0) %

—

(12)

(1.0) %

Proxy contest

(25)

(2.2) %

—

(25)

(2.1) %

Non-GAAP SG&A expense

$ 270

23.3 %

$ 85

$ —

$ 355

30.2 %

GAAP operating profit (loss)

$ 115

9.9 %

$ (204)

$ 1

$ (88)

(7.5) %

Cost of revenue

1.5 %

—

4.3 %

R&D costs

1.1 %

—

1.1 %

SG&A costs

100

8.7 %

—

107

9.1 %

Non-GAAP operating profit (loss) (a)

$ 245

21.2 %

$ (164)

$ 1

$ 82

7.0 %

GAAP other (expense) income, net

$ (3)

(0.3) %

$ 2

$ —

$ (1)

(0.1) %

Strategic investment related loss, net (e)

0.2 %

—

0.2 %

Non-GAAP other (expense) income, net (a)

$ (1)

(0.1) %

$ 2

$ —

$ 1

0.1 %

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Six Months Ended

June 30, 2024

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 1,436

66.9 %

$ (38)

$ (10)

$ 1,388

63.5 %

Amortization of acquired intangible assets

1.4 %

—

4.3 %

Non-GAAP gross profit (a)

$ 1,466

68.3 %

$ 27

$ (10)

$ 1,483

67.8 %

GAAP R&D expense

$ 479

22.3 %

$ 189

$ (8)

$ 660

30.2 %

Restructuring (g)

(2)

(0.1) %

—

(2)

(0.1) %

Non-GAAP R&D expense

$ 477

22.2 %

$ 189

$ (8)

$ 658

30.1 %

GAAP SG&A expense

$ 396

18.5 %

$ 192

$ —

$ 588

26.9 %

Amortization of acquired intangible assets

—

(2)

—

(2)

(0.1) %

Contingent consideration liabilities (c)

255

11.9 %

—

255

11.7 %

Acquisition-related expenses (d)

(70)

(3.3) %

(11)

—

(81)

(3.7) %

Restructuring (g)

(38)

(1.8) %

(1)

—

(39)

(1.8) %

Accrued interest on EC fine (h)

(14)

(0.7) %

—

(14)

(0.7) %

Non-GAAP SG&A expense

$ 529

24.6 %

$ 178

$ —

$ 707

32.3 %

GAAP goodwill and intangible impairment

$ 3

0.1 %

$ 1,886

$ —

$ 1,889

86.3 %

Goodwill impairment (i)

—

(1,466)

—

(1,466)

(67.0) %

Intangible (IPR&D) impairment (i)

(3)

(0.1) %

(420)

—

(423)

(19.3) %

Non-GAAP goodwill and intangible impairment

$ —

—

$ —

—

GAAP operating profit (loss)

$ 558

26.0 %

$ (2,305)

$ (2)

$ (1,749)

(79.9) %

Cost of revenue

1.4 %

—

4.3 %

R&D costs

0.1 %

—

0.1 %

SG&A costs

(133)

(6.2) %

—

(120)

(5.4) %

Goodwill and intangible impairment

0.1 %

1,886

—

1,889

86.3 %

Non-GAAP operating profit (loss) (a)

$ 460

21.4 %

$ (341)

$ (2)

$ 117

5.4 %

GAAP other (expense) income, net

$ (342)

(15.9) %

$ 5

$ —

$ (337)

(15.4) %

Strategic investment related loss, net (e)

327

15.2 %

—

327

15.0 %

Gain on Helix contingent value right (f)

(11)

(0.5) %

—

(11)

(0.5) %

Foreign currency loss on EC fine (j)

0.1 %

—

0.1 %

Non-GAAP other (expense) income, net (a)

$ (23)

(1.1) %

$ 5

$ —

$ (18)

(0.8) %

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Six Months Ended

July 2, 2023

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 1,446

64.7 %

$ (50)

$ (10)

$ 1,386

61.3 %

Amortization of acquired intangible assets

1.3 %

—

4.2 %

Restructuring (g)

0.1 %

—

0.1 %

Non-GAAP gross profit (a)

$ 1,478

66.1 %

$ 17

$ (10)

$ 1,485

65.6 %

GAAP R&D expense

$ 532

23.7 %

$ 175

$ (8)

$ 699

30.9 %

Acquisition-related expenses (d)

(1)

—

(1)

—

Restructuring (g)

(13)

(0.5) %

—

(13)

(0.6) %

Non-GAAP R&D expense

$ 518

23.2 %

$ 175

$ (8)

$ 685

30.3 %

GAAP SG&A expense

$ 656

29.4 %

$ 184

$ (1)

$ 839

37.1 %

Amortization of acquired intangible assets

—

(2)

—

(2)

(0.1) %

Contingent consideration liabilities (c)

(28)

(1.3) %

—

(28)

(1.2) %

Acquisition-related expenses (d)

(38)

(1.7) %

(9)

—

(47)

(2.1) %

Restructuring (g)

(17)

(0.7) %

(2)

—

(19)

(0.8) %

Legal contingency and settlement (k)

(15)

(0.7) %

—

(15)

(0.7) %

Proxy contest

(31)

(1.4) %

—

(31)

(1.4) %

Non-GAAP SG&A expense

$ 527

23.6 %

$ 171

$ (1)

$ 697

30.8 %

GAAP operating profit (loss)

$ 257

11.5 %

$ (408)

$ (1)

$ (152)

(6.7) %

Cost of revenue

1.4 %

—

4.3 %

R&D costs

0.6 %

—

0.6 %

SG&A costs

129

5.8 %

—

142

6.3 %

Non-GAAP operating profit (loss) (a)

$ 432

19.3 %

$ (328)

$ (1)

$ 103

4.5 %

GAAP other (expense) income, net

$ (19)

(0.9) %

$ 4

$ —

$ (15)

(0.7) %

Strategic investment related loss, net (e)

0.7 %

—

0.7 %

Gain on Helix contingent value right (f)

(3)

(0.1) %

—

(3)

(0.1) %

Non-GAAP other (expense) income, net (a)

$ (6)

(0.3) %

$ 4

$ —

$ (2)

(0.1) %

All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided. Percentages of revenue are calculated based on the revenue of the respective segment.

(a) Non-GAAP gross profit, included within non-GAAP operating profit (loss), is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and the average selling prices of our products and services. Non-GAAP operating profit (loss) and non-GAAP other (expense) income, net exclude the effects of the pro forma adjustments as detailed above. Non-GAAP operating margin is a key component of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing past and future operating performance, including in the non-GAAP measures related to our segments.

(b) Reconciling amounts are recorded in cost of revenue.

(d) Amounts consist primarily of legal and other expenses related to the acquisition and divestiture of GRAIL.

(e) Amounts consist primarily of mark-to-market adjustments and impairments from our strategic investments. Amounts for Q2 2024 and YTD 2024 primarily relate to the impairment on our retained investment in GRAIL post spin-off.

(f) Amounts consist of fair value adjustments related to our Helix contingent value right.

(g) Amount for Q2 2024 consists primarily of employee severance costs. Amount for YTD 2024 consists primarily of lease and other asset impairments. Amounts for Q2 2023 and YTD 2023 consist primarily of employee severance costs and lease and other asset impairments.

(h) Amounts for Q2 2024 and YTD 2024 consist of accrued interest on the fine imposed by the European Commission.

(i) Amounts for Q2 2024 and YTD 2024 consist of goodwill and IPR&D intangible asset impairments related to GRAIL. Amount for YTD 2024 also consists of an IPR&D intangible asset impairment related to Core Illumina in Q1 2024.

(j) Amounts for Q2 2024 and YTD 2024 consist of unrealized gains/losses related to foreign currency balance sheet remeasurement of the EC fine liability and unrealized/realized mark-to-market gains/losses on the hedge associated with the EC fine.

(k) Amount for Q2 2023 consists of an adjustment to our accrual for the fine imposed by the European Commission. Amount for YTD 2023 also consists of a loss related to a patent litigation settlement in Q1 2023.

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 6: CONSOLIDATED ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP TAX PROVISION:

Three Months Ended

Six Months Ended

June 30,
2024

GAAP tax provision

$ 12

(0.6) %

$ 28

(1.4) %

Incremental non-GAAP tax expense (b)

104

117

Income tax provision (c)

(1)

GILTI, U.S. foreign tax credits, and global minimum top-up tax (d)

(99)

(116)

Non-GAAP tax provision (a)

$ 16

22.3 %

$ 28

28.8 %

Three Months Ended

Six Months Ended

July 2,
2023

GAAP tax provision

$ 145

(163.8) %

$ 64

(38.5) %

Incremental non-GAAP tax expense (b)

(43)

Income tax provision (c)

—

(8)

GILTI and U.S. foreign tax credits (d)

(69)

(25)

Non-GAAP tax provision (a)

$ 33

39.3 %

$ 37

37.2 %

TABLE 7: CORE ILLUMINA ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP TAX PROVISION:

Three Months Ended

Six Months Ended

June 30,
2024

GAAP tax provision

$ 35

35.0 %

$ 80

37.3 %

Incremental non-GAAP tax expense (b)

Income tax provision (c)

(1)

GILTI, U.S. foreign tax credits, and global minimum top-up tax (d)

(20)

(33)

Non-GAAP tax provision (a)

$ 55

24.2 %

$ 108

24.9 %

(a) Non-GAAP tax provision excludes the effects of the pro forma adjustments as detailed above. Management has excluded the effects of these items in this measure to assist investors in analyzing and assessing past and future operating performance.

(b) Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed in Table 2 and 4.

(d) Amounts represent the impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective in Q1 2024.

Investors:
Salli Schwartz
+1.858.291.6421
ir@illumina.com

Media:
Bonny Fowler
+1.740.641.5579
pr@illumina.com

View original content:https://www.prnewswire.com/news-releases/illumina-reports-financial-results-for-second-quarter-of-fiscal-year-2024-302215890.html

SOURCE Illumina, Inc.

Technology

PIXIE LEGENDS: The First Fairy-Themed Trading Card Game Brings Enchantment to Kids Everywhere

Published

3 hours ago

January 4, 2025

PIXIE LEGENDS: A magical fairy trading card game offering screen-free fun, imaginative play, and enchanting adventures for kids.

TEL AVIV, Israel, Jan. 4, 2025 /PRNewswire-PRWeb/ — PIXIE LEGENDS, a brand-new fairy-themed trading card game, has launched, offering young girls and kids everywhere a captivating entry into the world of collectible card games. Designed specifically for children who love fairy tales, princesses, and magic, PIXIE LEGENDS provides a fresh alternative to the TCG (trading card game) landscape, historically dominated by themes more tailored to boys.

Bringing Screen-Free Fun and Magical Adventures for Young Girls

PIXIE LEGENDS was inspired by the creator’s vision to give young girls their adventure in the TCG world. Featuring a collection of fairy and fantasy characters from mystical worlds like Water, Nature, the Moon, and more, PIXIE LEGENDS encourages creativity, social interaction, and imagination—all while remaining screen-free.

✨ A Game of Collecting, Strategy, and Play ✨

PIXIE LEGENDS isn’t just a beautiful card game; it’s designed to be versatile and accessible for players of all ages. Kids can enjoy the game in various modes:

Fairy War Game – Battle with friends, using the cards’ powers to determine who holds the ultimate deck.Quartets Game – Gather and trade cards to create sets of themed fairy characters.Collection Mode – Trade, collect, and organize PIXIE LEGENDS cards in a special fairy-themed album, helping kids develop social skills and trading techniques.

✨ Pixie Worlds and Magical Characters ✨

PIXIE LEGENDS introduces children to five unique, colorful worlds filled with diverse fairies, each with its traits, strengths, and magical abilities:

Green World: Guardians of Nature who communicate with plants and animals.Blue World: Mystical Water Fairies who command the oceans and interact with marine life.Yellow World: Powerful Warrior Fairies symbolizing strength, courage, and love.Purple World: Fairies of Spiritual Energy, Fortune, and Cosmic Power.Silver World: Fairies who command the Weather and Moon, harnessing the forces of the skies.

Each card is crafted with beautiful artwork and classified by rarity, encouraging young players to explore the thrill of collecting common and rare characters.

✨ A Healthy, Screen-Free Activity ✨

PIXIE LEGENDS provides a refreshing, screen-free way for kids to socialize and play, especially when screen time is a concern for many parents. With its emphasis on collection, trading, and imaginative play, PIXIE LEGENDS helps children develop critical social and cognitive skills while fostering friendships and shared interests.

✨ Perfect for Birthdays and Playdates ✨

PIXIE LEGENDS isn’t just a game—it’s a magical experience perfect for girls’ birthdays and after-school playdates. Its enchanting fairy theme makes it an ideal centerpiece for birthday parties, where kids can bond over card battles, trades, and collections, creating lasting memories. For after-school activities, PIXIE LEGENDS offers an engaging, screen-free way for girls to socialize, fostering creativity and collaboration as they explore magical realms together. Parents love how it turns gatherings into moments of fun, learning, and imagination!

✨ Special Launch Offer ✨

To celebrate the release of PIXIE LEGENDS, customers can enjoy special launch prices on all PIXIE LEGENDS products, available exclusively on the official website at [insert website link]. This limited-time offer is the perfect opportunity for families and young collectors to begin their magical journey into the enchanting world of PIXIE LEGENDS.

🧚‍♂Enter the World of PIXIE LEGENDS🧚‍♂

✨ About PIXIE LEGENDS ✨

PIXIE LEGENDS was created by a team dedicated to enriching children’s play experiences. It provides a unique product that resonates with young girls who love fantasy, fairies, and adventure. With PIXIE LEGENDS, kids can collect, trade, and play in a world of imagination that celebrates creativity, connection, and magic.

For more information on PIXIE LEGENDS or to schedule an interview with the founder, please contact:

Neriad Hakak

CEO

FairiesAndBeyond.com

Media Contact

Neriad Hakak, eCommerce and So, 1 9496681585, info@fairiesandbeyond.com, FairiesAndBeyond.com

View original content to download multimedia:https://www.prweb.com/releases/pixie-legends-the-first-fairy-themed-trading-card-game-brings-enchantment-to-kids-everywhere-302340659.html

SOURCE PIXIE LEGENDS

Technology

WHAT NOT TO MISS AT CES 2025

Published

6 hours ago

January 4, 2025

World’s Most Powerful Tech Event Returns to Las Vegas January 7-10

ARLINGTON, Va., Jan. 4, 2025 /PRNewswire/ — CES® 2025, the world’s most powerful tech event, returns to Las Vegas, January 7-10, bringing together global companies, from top brands to innovative startups, industry executives, media, and government leaders.

What Not To Miss at CES® 2025. The world’s most powerful tech event returns to Las Vegas, January 7-10.

“We’re ready to DIVE IN to CES 2025. There is great momentum heading into the show with a record 3400+ Innovation Award submissions, over 4500 exhibitors including roughly 1400 startups, and 1100 speakers for over 300 conference sessions,” said Gary Shapiro, CEO and Vice Chair, Consumer Technology Association (CTA)®, owner and producer of CES. “We are on track for an incredible show where attendees will see everything that is new in tech from the latest in AI and digital health to advanced mobility, smart communities, sustainability, and accessibility tech.”

DIVE IN to the CES 2025 Experience

CES App – Plan for and navigate CES 2025 with the official show app. Search “CES App” in your app store. New for CES 2025 is blue-dot navigation at the Las Vegas Convention Center (LVCC) and the Venetian.CES Tech Talk – Download and listen for the top trends expected at CES 2025.CES Creator Space, presented by Sony – A new space for storytellers – media and creators – to produce compelling content.

Top Trends

Artificial Intelligence: Generative AI is driving innovation. The entire AI ecosystem will be throughout CES, enhancing user experiences, increasing productivity, advancing health, and more.Exhibitor Examples: DeepX, EMD, LG, Lotte, Samsung, SiemensDigital Health: CES will showcase tech innovation across the entire spectrum of health, increasing longevity, lowering costs, and improving health equity and patient empowerment.Exhibitor Examples: AARP, EssilorLuxottica, Nuvilab, OnMed, Resmed, Variowell, WithingsEnergy Transition: Emerging technologies both drive and address the challenges of the energy transition. A new conference track on the energy transition will dive in to shaping a sustainable future while overcoming technical and scalability barriers.Exhibitor Examples: Eaton, Eneos, Hitachi, Qnovo, SK, WePower TechnologiesMobility: CES brings together the entire ecosystem of mobility—from passenger and autonomous cars to construction, agriculture, marine tech, and advanced air travel. The new stage in West Hall will showcase programming that envisions the future of mobility and explores how we can create a more sustainable and connected world.Exhibitor Examples: BMW, Brunswick, Caterpillar, Honda, John Deere, Oshkosh, Scout MotorsQuantum: Expect hardware, software, and AI using quantum mechanics to improve technologies and create new applications with enhanced security, sensing, and computing that will drive innovation forward. A new half-day of conference programming in partnership with Quantum World Congress will highlight these advancements.Exhibitor Examples: Cellid, Combat Capabilities Development Command (DEVCOM), Integrated Quantum PhotonicSustainability: Exhibitors will show technologies aimed at reducing emissions and improving energy efficiency, as well as innovations in sustainable and carbon-neutral materials.Exhibitor Examples: D-Carbonize, Exeger, Jackery, Panasonic

Must-See Keynotes and Presentations

Monday, January 6NVIDIA Founder and CEO Jensen Huang – 6:30 PM, Mandalay BayTuesday, January 7Panasonic Holdings Corporation Group CEO Mr. Yuki Kusumi, 8:30 AM, The VenetianCTA CEO and Vice Chair Gary Shapiro and CTA President Kinsey Fabrizio, 8:30 AM, The VenetianSiriusXM CEO Jennifer Witz, 11 AM, ARIAX Corp CEO Linda Yaccarino, 1:30 PM, The VenetianDelta Air Lines CEO Ed Bastian, 5 PM, SphereThis will mark the first CES keynote ever hosted at the groundbreaking venue.This keynote will have a different ticketing process and venue policies than other keynotes. For more information, visit ces.tech. Get the full Delta keynote experience at Sphere beginning at 3 PM when the doors open for an immersive and interactive exhibit in the venue’s Atrium to celebrate Delta’s 100-year journey. Following the keynote, Delta is thrilled to welcome multiple GRAMMY Award winning music icon Lenny Kravitz to the stage.Professional photography and videography will be available on Delta News Hub shortly after the keynote. Wednesday, January 8Volvo Group President and CEO Martin Lundstedt, 9 AM, The VenetianAccenture Chair and CEO Julie Sweet, 2 PM, The VenetianWaymo Co-CEO Tekedra Mawakana, Leaders in Technology Dinner *invite only

Top Conference Tracks

Accessibility – Discover innovation and technologies for people of all ages and abilities.

Accessibility and Mobility: Bridging the Gap, Tuesday, January 7, 11 AM, Venetian, LandoTech for Good: How Technology is Empowering Neurodivergent, Tuesday, January 7, 2 PM, Venetian, LandoEmpowering Independence: How AI is Improving Daily Lives, Tuesday, January 7, 3 PM, Venetian, Lando

CES Creator Space, presented by Sony – The stage at the CES Creator Space, sponsored by Pinterest and emceed by Shira Lazar, will feature three days of programming designed to help creators hone their craft. The area is open to credentialed media only.

State of the Creator Economy, Tuesday, January 7, 10:30 AM, CES Creator Stage, LVCC, Grand LobbyMeasuring Success in the Creator Economy, Thursday, January 9, 11:45 AM, CES Creator Stage, LVCC, Grand LobbyKeeping Sane: Mental Health in the Creator Economy, Thursday, January 9, 2:15 PM, CES Creator Stage, LVCC, Grand Lobby

Digital Health – Learn about the innovations that tackle major health challenges and empower consumers to take control of their health.

Health AI in 2030, Wednesday, January 8, 2 PM, Venetian, Marcello 4404Next Gen Wearable Tech, Thursday, January 9, 9 AM, Venetian, Marcello 4404Advancing Women’s Health: Innovations, Challenges, and Solutions, Thursday, January 9, 10 AM, Venetian, Level 4, Marcello 4404

Energy Transition – Explore how companies plan to address sustainable power solutions.

The Energy Infrastructure of the Future, Thursday, January 9, 9 AM, LVCC, N261Navigating the Energy Transition, Thursday, January 9, 10 AM, LVCC, N261The Key to Powering a Sustainable AI Revolution, Thursday, January 9, 11 AM, LVCC, N261

Great Minds – Explore the intersection of technology and humanity. Speakers featured in the Great Minds series include C-Suite executives, philanthropists, influencers, government leaders, entrepreneurs, venture capitalists, and more. Sessions include:

The New Era of the Automotive Ecosystem, Wednesday, January 8, 11 AM, LVCC West Hall, W232Shaping a New Era of Ingenuity: The Power of Inclusive Innovation, Wednesday, January 8, 3 PM, LVCC, West Hall, W232Revolutionizing Customer Engagement, Thursday, January 9, 10 AM, LVCC, West Hall, W232Don’t miss experts from NASA, Netflix, Mastercard, Coach, and more on the stage.

Innovation Policy Summit – CES gathers policymakers from across the world to discuss domestic and global tech policy issues including privacy, trade, competition, and more.

Is Big Always Bad: Big Tech and the Innovation Economy, Tuesday, January 7, 1 PM, LVCC, N258Tech Without Borders: The Benefits of Tech for All Communities, Wednesday, January 8, 9 AM, LVCC, N258Trade in 2025: Will the World Fracture or Reglobalize, Wednesday, January 8, 3:40, PM, LVCC, N258

Mobility Stage – New stage features the future of mobility, from electrification to connected vehicles, new battery technology, and advancements in AI.

How to Build Physical AI for Mobility, Tuesday, January 7, 10:30 AM, LVCC West Hall 1, Mobility StageBreakthroughs in Battery Tech Redefine EV Driving, Tuesday, January 7, 2:20 PM, LVCC West Hall 1, Mobility StageRevolutionizing the Future of Driving – Unleashing the Power of AI, Wednesday, January 8, 2:20 PM, LVCC, West Hall 1, Mobility Stage

Quantum Means Business – New partnership with Quantum World Congress to address how hardware, software, and AI are using quantum mechanics to improve technologies and create new applications.

Quantum is Here: Computing Advancements and Tangible Applications, Thursday, January 9, LVCC, 9 AM, West Hall, W218Global Industry Challenge: Celebrating International Year of Quantum, Thursday, January 9, 10 AM, LVCC, West Hall, W218Quantum is Now: Unprecedented Improvement in Precision and Sensitivity, Thursday, January 9, 11 AM, LVCC, West Hall, W218

Research Summit – Learn about consumer and enterprise trends across verticals.

Breaking Through the EV Demand Plateau with AI and Data Analytics, presented by EY, Monday, January 6, 1 PM, LVCC, West Hall, W232Declaration of Autonomy: Is Trust the Limit of AI’s Possibilities, presented by Accenture, Tuesday, January 7, 2 PM, LVCC West Hall, W232Navigating the Consumer Tech Landscape: Insights to Drive Growth, presented by Circana, Tuesday, January 7, 3 PM, LVCC, West Level 2, W232

Familiar faces – from musicians to sports legends and film and television stars – will be on the CES stage and throughout the show discussing and experiencing the latest innovations.

Experience the CES Show Floor

Explore innovation from global companies, including first-time exhibitors such as Foxconn (FIH Mobile), Komatsu, Oshkosh, Suzuki, and Scout Motors.

LVCC Central Hall

Showcasing the latest technology around the home and immersive entertainment – the central hub for customized, in-home entertainment, and family gaming.Exhibitor Examples: Bosch, Hisense, LG, Panasonic, Samsung, Sony, TCL

LVCC North Hall

Focused on smart communities, IoT, AI, sustainability, energy, and enterprise solutions. North Hall shows how these technologies work together to support our daily lives now and in the future.Exhibitor Examples: AIMA E-Bike, Hitachi, Indiegogo, Siemens, Xpeng AeroHT

LVCC South Hall

Back for 2025, the South Hall is where the accessories and memorable products come to life to improve how we live and work.Exhibitor Examples: EcoFlow, Green Merit Ltd, Maono, Pecron, Pkcell

LVCC West Hall

Experience the entire ecosystem of mobility at CES—from passenger and self-driving cars to construction, agriculture, boating, and advanced air travel.Exhibitor Examples: Amazon Automotive, Honda, Invo Station, MobileEye, Qualcomm, Waymo

C Space®/ARIA

Where the world’s leading brands, advertisers, media platforms, and content creators meet to forge deals, explore trends, and unveil the latest technologies reshaping the industry.Exhibitor Examples: Disney, Fox, iHeart, Kroger, Mars, Reddit, Roku, T-Mobile, Uber Ads, Walmart Ads

The Venetian

The home of smart living, including digital health, smart home, energy management, security, education, lifestyle, and food tech.Exhibitor Examples: AARP, Pawport, RenphoThe Venetian is also home to the CES Innovation Awards Showcase, with the next round of embargo award honorees scheduled to be announced on January 5.

Eureka Park at The Venetian

The startup hub of CES, home to nearly 1400 startups from around the globe.Exhibitor Examples: Global pavilions from Korea, Japan, Taiwan, Ukraine, the U.S., and others from around the world.

To search for CES exhibiting companies – by product category, keyword, or country – visit the Exhibitor Directory.

Media Days
Hear from dozens of the world’s biggest brands breaking news at two days of media-only events, January 5-6 at Mandalay Bay, including CES Unveiled and CES Tech Trends to Watch.

Press Conferences – Major brands will make announcements, including LG, Hisense, John Deere, Samsung, and Sony – January 5 and 6, Mandalay BayCES 2025 Tech Trends to Watch – Hear the top trends at CES 2025 and beyond –Sunday, January 5, 4 PM, Mandalay Bay, Oceanside CCES Unveiled Las Vegas – The Official Media Event of CES 2025 with innovative product previews – Sunday, January 5, 5-8:30 PM, Mandalay Bay, Shoreline Exhibit Hall

Media Resources
Visit the CES Media Resources for access to:

Media Room Hours and LocationsShuttle Bus InformationB-RollCES Photo Gallery

For the latest news and information, visit CES.tech. Register for CES 2025 here.

About CES®:
CES is the most powerful tech event in the world – the proving ground for breakthrough technologies and global innovators. This is where the world’s biggest brands do business and meet new partners, and the sharpest innovators hit the stage. Owned and produced by the Consumer Technology Association (CTA)®, CES features every aspect of the tech sector. CES 2025 takes place Jan. 7-10, 2025, in Las Vegas. Learn more at CES.tech and follow CES on social.

About Consumer Technology Association (CTA)®:
As North America’s largest technology trade association, CTA is the tech sector. Our members are the world’s leading innovators – from startups to global brands – helping support more than 18 million American jobs. CTA owns and produces CES® – the most powerful tech event in the world. Find us at CTA.tech. Follow us @CTAtech.

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SOURCE Consumer Technology Association

Technology

SHOWCASING TOMORROW’S INNOVATORS: LG NOVA RETURNS TO CES 2025

Published

9 hours ago

January 4, 2025

LG NOVA Pushes Forward the Future of Collaboration and Innovation Across Healthtech, AI and Cleantech

LAS VEGAS, Jan. 4, 2025 /PRNewswire/ — LG NOVA, the North America Innovation Center for LG Electronics, returns to CES this year to showcase its commitment to a brighter future through building collaborations with entrepreneurs and startups working in healthtech, AI and cleantech. LG NOVA’s exhibit will feature startup companies building transformative solutions that address today’s real-world challenges impacting people and the planet.

At CES 2025, in LG NOVA’s Eureka Park exhibit, visiting attendees will have the opportunity to explore emerging technologies in healthtech, cleantech and AI; connect with LG executives and leading startups in their respective market areas, attend in-booth sessions and tech talks, learn about LG NOVA’s vision for the innovation ecosystem and discuss the latest trends and views on the markets with the team.

LG NOVA’s showcase will include Primefocus Health, the first new venture unveiled by LG Electronics, launched in collaboration with LG NOVA. At CES, Primefocus Health will demonstrate its new healthcare solution built for providers to support patients’ recovery at home with a remote-monitoring and healthcare delivery platform. The company is working on personalized, home-based healthcare solutions tackling rural access, obesity, healthy aging and substance abuse.

Additionally, with its continual efforts on creating innovative solutions for better health, LG NOVA is exhibiting a new mental health solution concept, Relief AI. This new concept is a platform for monitoring and tracking patients’ mental wellbeing through advanced AI assessment technologies, engaging with the patient directly.

The LG NOVA startup showcase is located at Eureka Park (Venetian Expo, Hall G. Booth #60511) Featured startups in the LG NOVA program include:

Healthtech:

Continuum: A patient-controlled hub for all home health data for streamlining personal health decisions. MetaOptima: A leader in dermatology AI and skin cancer diagnostics, driven by its innovative DermEngine platform.

Cleantech:

Climative: AI-assisted digital energy assessments for homes and neighborhoods to accelerate the decarbonization and optimizing energy efficiencies through home improvements.Baleena: Next-gen filtration technology to eliminate microplastics from textile wash—redefining laundering for a cleaner future.

Artificial Intelligence:

Roll AI: An AI-powered platform for marketing teams to create production-grade videos for testimonials, webinars, and events, featuring effects like multicam and AI-simulated camera moves – all with just an iPhone.VersaWare: Creates Versa, a hands-free multi-modal AI system for cooking and nutrition. Versa is available as white-labeled SDK for appliance manufacturers and through the VersaWare mobile app and VersaBoard.

Open Innovation:

CareCam: Helps providers track patients’ recovery from neurological injuries and screen for frailty in minutes using digital biomarkers powered by patented movement analysis technology.Canary Speech: An AI-powered voice biomarker health tech company that uses real-time patented vocal analysis to screen for mental health and neurological disorders.

These startups exemplify LG NOVA’s pursuit to collaborate with innovative companies, pushing the boundaries of technology to create transformative solutions and a positive impact on the future.

For more information on LG NOVA’s at CES visit www.lgnova.com/ces-2025.

About LG NOVA
LG NOVA, the North American Innovation Center for global innovation leader LG Electronics, is a team focused on bringing innovation from the outside to LG. LG NOVA is based in Santa Clara, Calif. The center’s mission is to fuel innovation for LG and its partners by establishing a community to create, nurture and grow businesses. Learn more about LG NOVA at www.lgnova.com .

About LG Electronics USA
LG Electronics USA, Inc., based in Englewood Cliffs, N.J., is the North American subsidiary of LG Electronics, Inc., a $60-billion-plus global innovator in technology and manufacturing. In the United States, LG sells a wide range of innovative home appliances, home entertainment products, commercial displays, air conditioning systems, energy solutions and vehicle components. LG is an 11-time ENERGY STAR® Partner of the Year. www.LG.com.

Media Contact:

LG Electronics USA
Linda Quach
+1 408 903 3045
linda.quach@lge.com

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SOURCE LG Electronics USA