Illumina’s revenue was flat for the third quarter as the sequencing giant continues to deal with headwinds from a China sales ban.
The $1.08 billion it brought in for the third quarter was, however, something of a reprieve, as the company's sales sank 3% during the prior earnings period. On a call with investors Thursday, CEO Jacob Thaysen, Ph.D., said Illumina “returned to growth ex-China, up about 2% year over year," during the most recent quarter.
Illumina's shares were trading up about 7% before U.S. markets opened Friday.
The main issue hitting Illumina these past few quarters is that it has been barred from exporting its DNA sequencers to China, which closed its doors to the company in the spring in response to the Trump administration expanding its tariffs on products made in the country.
Illumina had been collecting about 7% of its revenue from China—good for about $300 million in 2024 sales. But its revenue in the country had been declining in recent years amid increased competition from China’s BGI Genomics and MGI Tech.
Greater China revenue was $52 million for the third quarter, Illumina Chief Financial Officer Ankur Dhingra said on the investor call.
Thaysen added that Illumina has "not yet reached a long-term resolution related to our operations in China, but we remain in dialogue with the relevant agencies.”
There were some positives in China, however, as Thaysen said Illumina has been given the green light for its manufacturing partners to sell Illumina’s instruments and consumables into specific customer segments.
“We have now received approval to serve those partners through the manufacturing of select instruments locally in China,” the CEO said, something he regarded as a “measured step forward.”