(ILMN) 2022 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the third quarter 2022 Illumina Earnings Conference Call.

女士們，先生們，美好的一天，歡迎參加 2022 年第三季度 Illumina 收益電話會議。

(Operator Instructions)

（操作員說明）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to Sally Schwartz, Vice President of Investor Relations.

請注意，今天的會議正在錄製中。我現在想將會議交給投資者關係副總裁 Sally Schwartz。

Hello, everyone, and welcome to our earnings call for the third quarter of 2022. During the call today, we will review the financial results released after the close of the market and offer commentary on our commercial activity, after which we will host a question-and-answer session. If you had not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.

大家好，歡迎參加我們 2022 年第三季度的財報電話會議。在今天的電話會議上，我們將回顧收盤後發布的財務業績，並對我們的商業活動發表評論，之後我們將主持一個問題-and-answer 會議。如果您沒有機會查看收益發布，可以在我們網站 illumina.com 的投資者關係部分找到它。

Participating for Illumina today will be Francis deSouza, President and Chief Executive Officer; and Joydeep Goswami, Chief Strategy and Corporate Development Officer as well as Interim Chief Financial Officer. Francis will provide an update on the state of Illumina's business, and Joydeep will review our financial results, which include GRAIL. As a reminder, pending the outcome of the European Commission's investigation into Illumina's acquisition of GRAIL, the commission has adopted an order requiring Illumina and GRAIL to be held and operated as distinct and separate entities for an interim period.

今天參加 Illumina 的將是總裁兼首席執行官 Francis deSouza； Joydeep Goswami，首席戰略和企業發展官以及臨時首席財務官。 Francis 將提供 Illumina 業務狀況的最新信息，Joydeep 將審查我們的財務業績，其中包括 GRAIL。提醒一下，在歐盟委員會對 Illumina 收購 GRAIL 的調查結果出來之前，該委員會已通過一項命令，要求 Illumina 和 GRAIL 在過渡期內作為獨立的實體持有和運營。

Compliance with the order is monitored by an independent monitoring trustee. During this period, Illumina and GRAIL are not permitted to share confidential business information unless legally required, and GRAIL must be run independently exclusively in the best interest of GRAIL. Commercial interactions between the 2 companies must be undertaken at arm's length.

該命令的遵守情況由獨立的監督受託人監督。在此期間，除非法律要求，否則 Illumina 和 GRAIL 不得共享機密商業信息，並且 GRAIL 必須獨立運行，完全符合 GRAIL 的最佳利益。兩家公司之間的商業往來必須保持公平。

This call is being recorded, and the audio portion will be archived in the Investors section of our website. It is our intent that all forward-looking statements regarding our financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current available information, and Illumina assumes no obligation to update these statements. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent Forms 10-Q and 10-K.

此電話正在錄音，音頻部分將存檔在我們網站的“投資者”部分。我們的意圖是，在今天的電話會議期間就我們的財務業績和商業活動做出的所有前瞻性陳述都將受到 1995 年《私人證券訴訟改革法案》的保護。前瞻性陳述受到風險和不確定性的影響。實際事件或結果可能與預測或討論的有重大差異。所有前瞻性陳述均基於當前可用信息，Illumina 不承擔更新這些陳述的義務。為了更好地了解可能導致實際結果不同的風險和不確定性，我們建議您參考 Illumina 向證券交易委員會提交的文件，包括 Illumina 最新的 10-Q 和 10-K 表格。

With that, I will now turn the call over to Francis.

有了這個，我現在將把電話轉給弗朗西斯。

Thank you, Sally. Good afternoon, everyone. Illumina delivered revenue of $1.1 billion in the third quarter, up 1% year-over-year and 3% on a constant currency basis, and in line with our expectations despite deepening macroeconomic challenges. Looking at our Q3 performance across platforms, in high throughput, we shipped 65 NovaSeq 6000 in Q3, down from the prior year, in line with our expectations. We had a fantastic customer response to the NovaSeq X Series launch at the Illumina Genomics Forum, where we reached more than 12,000 viewers in our innovation road map sessions.

謝謝你，莎莉。大家下午好。 Illumina 第三季度實現收入 11 億美元，同比增長 1%，按固定匯率計算增長 3%，儘管宏觀經濟挑戰不斷加深，但符合我們的預期。從第三季度跨平台的表現來看，在高通量方面，我們在第三季度出貨了 65 台 NovaSeq 6000，低於去年，符合我們的預期。在 Illumina 基因組學論壇上，我們對 NovaSeq X 系列的推出反應熱烈，我們的創新路線圖會議吸引了超過 12,000 名觀眾。

Labs are excited by NovaSeq X's industry-leading power, efficiency and cost effectiveness, and they love in their words, it's unexpected and revolutionary sustainability breakthroughs including ambient shipping and a 90% reduction in packaging weight and waste. Customer traction for NovaSeq X is exceeding our expectations. We already have an advanced pipeline of more than 170 instruments in addition to 50 orders that we have already received.

實驗室對 NovaSeq X 行業領先的功率、效率和成本效益感到興奮，用他們的話來說，這是出人意料的革命性可持續性突破，包括環境運輸和減少 90% 的包裝重量和浪費。 NovaSeq X 的客戶吸引力超出了我們的預期。除了我們已經收到的 50 個訂單外，我們還擁有 170 多種儀器的先進管道。

Our manufacturing scaling is proceeding well, and we expect to ship 40 to 50 NovaSeq X units in Q1 2023 and over 300 units in the year. At the Illumina Genomics Forum, we also launched the NovaSeq 6000 DX, the first-ever FDA registered and CE-marked IVD high-throughput sequencer. We're excited to now provide DX offerings across the throughput spectrum. In mid-throughput, we saw record NextSeq 1000, NextSeq 2000 shipments, which were up 40% year-over-year. This increase was driven by accelerated adoption of multiomics primarily in cancer research and cellular and molecular biology, both by new and existing customers. And as part of our ongoing innovation road map, our launch of XLEAP-SBS chemistry on NextSeq 1000, NextSeq 2000 remains on track for 2024. Finally, low throughput shipments were up 13% year-over-year. These instruments continue to provide a great entry point to sequencing.

我們的製造規模進展順利，我們預計在 2023 年第一季度出貨 40 至 50 台 NovaSeq X，全年出貨超過 300 台。在 Illumina 基因組學論壇上，我們還推出了 NovaSeq 6000 DX，這是第一台 FDA 註冊和 CE 標誌的 IVD 高通量測序儀。我們很高興現在能夠在整個吞吐量範圍內提供 DX 產品。在中吞吐量方面，我們看到了創紀錄的 NextSeq 1000、NextSeq 2000 出貨量，同比增長 40%。這一增長是由於新客戶和現有客戶主要在癌症研究以及細胞和分子生物學中加速採用多組學。作為我們正在進行的創新路線圖的一部分，我們在 NextSeq 1000、NextSeq 2000 上推出 XLEAP-SBS 化學試劑仍有望在 2024 年實現。最後，低吞吐量出貨量同比增長 13%。這些儀器繼續為測序提供一個很好的切入點。

This continued demand for our sequencing platforms across the throughput spectrum will contribute to a larger installed base and drive future consumables revenue. We're also receiving positive feedback from early access customers of Illumina complete long reads and complete long reads with enrichment and are expanding to additional customer sites. Customer appreciate Illumina's unique ability to deliver a high-quality, cost-effective and complete view of the genome on a single platform, enhancing utility across our installed base.

在整個通量範圍內對我們測序平台的持續需求將有助於擴大安裝基礎並推動未來的消耗品收入。我們還收到了來自 Illumina 的早期訪問客戶的積極反饋，該客戶完成了長讀取和富集完成長讀取，並且正在擴展到其他客戶站點。客戶讚賞 Illumina 在單一平台上提供高質量、經濟高效且完整的基因組視圖的獨特能力，從而增強了我們安裝基礎的實用性。

Shifting to our market segments. Clinical sequencing consumable shipments were up 5% year-over-year, driven by continued growth in oncology testing and genetic disease testing. Sequencing run activity by our clinical customers remains robust. As expected, though, lab expansion delays and consumables inventory deleveraging have persisted due to broader macro dynamics. Oncology testing consumables grew 9% year-over-year as our larger customers continue to shift towards high-throughput applications, our decentralized clinical testing customers ramped up business and new customers came online.

轉向我們的細分市場。受腫瘤學檢測和遺傳病檢測持續增長的推動，臨床測序耗材出貨量同比增長 5%。我們的臨床客戶的測序運行活動仍然強勁。不過，正如預期的那樣，由於更廣泛的宏觀動態，實驗室擴張延遲和消耗品庫存去槓桿化持續存在。隨著我們的大客戶繼續轉向高通量應用，我們的分散臨床測試客戶增加業務和新客戶上線，腫瘤測試耗材同比增長 9%。

Our market-leading TruSight Oncology assay, TSO 500, grew 17% year-over-year as large customers took advantage of the assays utility, reimbursement and proficiency. TSO 500 adoption continues to grow, with total accounts approaching $500 million. Also in oncology, GRAIL continued to make good progress in Q3, delivering clinical results and signing up a broad range of customers across the health care ecosystem, including health systems and life insurance providers. GRAIL announced a first-of-its-kind partnership with Karim Health, the first digital health company, connecting employers and employees to centers of excellence through a value-based care platform. The partnership provides Galleri as part of Karim's oncology offering to self-insured employers.

我們市場領先的 TruSight Oncology 檢測 TSO 500 同比增長 17%，因為大客戶利用了檢測實用性、報銷和熟練程度。 TSO 500 的採用率繼續增長，總賬戶接近 5 億美元。同樣在腫瘤學領域，GRAIL 在第三季度繼續取得良好進展，提供臨床結果並在醫療保健生態系統中與廣泛的客戶簽約，包括醫療系統和人壽保險提供商。 GRAIL 宣布與第一家數字健康公司 Karim Health 建立首創的合作夥伴關係，通過基於價值的護理平台將雇主和僱員與卓越中心聯繫起來。該合作夥伴關係將 Galleri 作為 Karim 向自保雇主提供的腫瘤學產品的一部分。

Also, John Hancock, the U.S. division of Manulife with over 1.5 million life insurance participants recently became the first life insurance carrier to offer Galleri. The GRAIL team expanded its clinical sales force in Q3 and has seen test orders increase. Evidence for Galleri's efficacy also continues to grow. In September at ESMO, GRAIL presented compelling final results from its PATHFINDER study. The study demonstrated that when added to standard of care screening, Galleri multi-cancer early detection testing more than doubled the number of cancers detected compared to standard screening alone. .

此外，擁有超過 150 萬人壽保險參與者的宏利美國分部 John Hancock 最近成為第一家提供 Galleri 的人壽保險公司。 GRAIL 團隊在第三季度擴大了臨床銷售隊伍，測試訂單有所增加。 Galleri 療效的證據也在繼續增長。 9 月，在 ESMO，GRAIL 展示了其 PATHFINDER 研究的令人信服的最終結果。該研究表明，當加入標準護理篩查時，與單獨的標準篩查相比，Galleri 多癌症早期檢測檢測使檢測到的癌症數量增加了一倍以上。 .

In fact, Galleri detected more cancers than all U.S. Preventative Services Task Force recommended single cancer screenings combined. And Galleri's positive predictive value of about 40% is significantly higher than commonly used screening tests like the annual screen for colorectal cancer, which has a PPV of 8.7%, or the biennial mammography screen with a PPV of 4.4%.

事實上，Galleri 檢測到的癌症比美國預防服務工作組推薦的單一癌症篩查加起來還要多。 Galleri 約 40% 的陽性預測值顯著高於常用的篩查測試，例如每年一次的結直腸癌篩查，PPV 為 8.7%，或兩年一次的乳房 X 線攝影篩查，PPV 為 4.4%。

Galleri is the only multi-cancer detection test available on the market. An analysis of the first 38,154 Galleri commercial test results in a real-world setting shows high concordance with the PATHFINDER study results. In addition, PATHFINDER study participants experienced with the Galleri test has also been positive with 97.1% of participants reporting a high level of satisfaction with the test.

Galleri 是市場上唯一可用的多種癌症檢測測試。對真實環境中的前 38,154 個 Galleri 商業測試結果的分析顯示與 PATHFINDER 研究結果高度一致。此外，經歷過 Galleri 測試的 PATHFINDER 研究參與者也呈陽性，97.1% 的參與者報告對測試高度滿意。

In genetic disease testing, sequencing consumable shipments grew 11% year-over-year. National health system funding for rare diseases is increasing in multiple geographies, including EMEA and China, and evidence generation continues to grow. For example, in September, Genetics in Medicine published a study from Karolinska Institute, indicating that genome sequencing is a sensitive first-line test for neurodevelopment disorders. We're also seeing customer excitement around the potential for NovaSeq X to create efficiencies for both whole genome and whole exome sequencing.

在遺傳疾病檢測方面，測序耗材出貨量同比增長 11%。在包括歐洲、中東和非洲和中國在內的多個地區，國家衛生系統對罕見病的資助正在增加，證據生成也在繼續增長。例如，9 月，《醫學遺傳學》發表了卡羅林斯卡研究所的一項研究，表明基因組測序是神經發育障礙的敏感一線測試。我們還看到客戶對 NovaSeq X 為全基因組和全外顯子組測序創造效率的潛力感到興奮。

Turning to our research and applied markets. Sequencing consumable shipments were down 8% year-over-year as customers continue to manage inventory and capital spend and due to expected headwinds from COVID surveillance and the completion of the UK Biobank project in Q3 2021. We continue to support our customers through these dynamics and at the same time, are making ongoing progress in facilitating genomic-based drug discovery. As this area continues to grow, we will partner with a range of pharmaceutical companies like our recent collaboration with AstraZeneca to help accelerate genomics and find promising drug targets based on omic insights.

轉向我們的研究和應用市場。由於客戶繼續管理庫存和資本支出，以及由於 COVID 監測和英國生物銀行項目於 2021 年第三季度完成的預期不利因素，測序耗材出貨量同比下降 8%。我們將繼續通過這些動態為客戶提供支持同時，在促進基於基因組的藥物發現方面取得了持續進展。隨著該領域的不斷發展，我們將與一系列製藥公司合作，例如我們最近與阿斯利康的合作，以幫助加速基因組學並根據組學見解尋找有前景的藥物靶點。

In our infectious disease and microbiology markets, we are broadening genomic opportunities across disease states. For example, we recently announced a partnership with GenoScreen to help countries impacted by tuberculosis to more effectively detect and combat multidrug resistant strains. TB claims more than 1.5 million lives each year, and for the first time in a decade, deaths are on the rise after the pandemic. We hope that with this work, we can help vulnerable populations and make progress towards eliminating TB worldwide.

在我們的傳染病和微生物學市場，我們正在擴大跨疾病狀態的基因組機會。例如，我們最近宣布與 GenoScreen 建立合作夥伴關係，以幫助受結核病影響的國家更有效地檢測和對抗多重耐藥菌株。結核病每年奪去超過 150 萬人的生命，而且在大流行之後，死亡人數十年來首次上升。我們希望通過這項工作，我們可以幫助弱勢群體，並在全球消除結核病方面取得進展。

Turning now towards the end of 2022 and entering 2023. We expect the macroeconomic challenges we have previously discussed to persist into 2023 and feel that it's prudent to adjust our near-term guidance accordingly. Joydeep will address our revised FY '22 guidance shortly. Despite the near-term challenging macroeconomic environment, we remain confident in our long-term growth trajectory. Customers around the world continue to share their excitement for our latest innovations. We're staying focused on supporting them and advancing our innovation road map to accelerate the genome era.

現在轉向 2022 年底並進入 2023 年。我們預計我們之前討論的宏觀經濟挑戰將持續到 2023 年，並認為相應地調整我們的近期指導是謹慎的。 Joydeep 將很快解決我們修訂的 '22 財年指南。儘管近期宏觀經濟環境充滿挑戰，但我們對我們的長期增長軌跡仍然充滿信心。世界各地的客戶繼續分享他們對我們最新創新的興奮。我們將繼續專注於支持他們並推進我們的創新路線圖以加速基因組時代。

I'll now turn the call over to Joydeep for more detail on the quarter and our year-end outlook.

我現在將把電話轉給 Joydeep，以獲取有關本季度和我們年終展望的更多詳細信息。

Thanks, Francis. As a reminder, our third quarter financial results include the consolidated financial results for GRAIL. I'll start by reviewing our consolidated financial results, followed by segment results for core Illumina and GRAIL and then conclude with additional remarks on our current outlook for 2022.

謝謝，弗朗西斯。提醒一下，我們第三季度的財務業績包括 GRAIL 的合併財務業績。我將首先回顧我們的綜合財務業績，然後是核心 Illumina 和 GRAIL 的分部業績，然後對我們目前的 2022 年展望進行補充說明。

I will be discussing non-GAAP results, which include stock-based compensation. I encourage you to view the GAAP reconciliation of these non-GAAP measures, which can be found in today's earnings release and in supplementary data available on our website. In the third quarter, consolidated revenue was $1.12 billion, up 1% year-over-year or 3% on a constant currency basis, net of the effects of hedging. As expected, our core business growth was impacted by anticipated headwinds from customer supply chain issues that delayed lab expansions as well as tighter customer inventory and capital management due to the challenging macroeconomic environment including inflation and the negative impact of FX. These dynamics have persisted and, in some cases, accelerated through the third quarter leading to our guidance reduction for the full year 2022, which I will address later in my remarks.

我將討論非公認會計原則的結果，其中包括基於股票的薪酬。我鼓勵您查看這些非 GAAP 措施的 GAAP 對賬，可以在今天的收益發布和我們網站上提供的補充數據中找到。第三季度，扣除對沖影響後，合併收入為 11.2 億美元，同比增長 1% 或按固定匯率計算增長 3%。正如預期的那樣，我們的核心業務增長受到來自客戶供應鏈問題的預期不利因素的影響，這些問題延遲了實驗室的擴張，以及由於包括通貨膨脹和外彙的負面影響在內的具有挑戰性的宏觀經濟環境導致客戶庫存和資本管理收緊。這些動態持續存在，並且在某些情況下加速到第三季度，導致我們降低了 2022 年全年的指導，我將在稍後的發言中談到這一點。

For the third quarter, GAAP net loss was $3.82 billion, or a net loss of $24.26 per diluted share, which includes goodwill impairment of $3.91 billion related to the GRAIL segment, primarily due to the negative impact of current capital market conditions and higher discount rates, including a stand-alone risk premium on the fair value calculation of the GRAIL segment. Non-GAAP earnings were $54 million or $0.34 per diluted share, including dilution from GRAIL's non-GAAP operating loss of $148 million for the quarter. Our non-GAAP tax rate was 43.2%, which increased from 25.8% last quarter and 13.2% in Q3 2021, primarily due to the increased impact of R&D expense capitalization requirements implemented by the Tax Cuts and Jobs Act of 2017. Our non-GAAP weighted average diluted share count for the quarter was approximately $159 million.

第三季度，GAAP 淨虧損為 38.2 億美元，或攤薄後每股淨虧損 24.26 美元，其中包括與 GRAIL 部門相關的商譽減值 39.1 億美元，主要是由於當前資本市場狀況和較高貼現率的負面影響，包括 GRAIL 部分公允價值計算的獨立風險溢價。非 GAAP 收益為 5400 萬美元或每股攤薄收益 0.34 美元，其中包括 GRAIL 本季度非 GAAP 運營虧損 1.48 億美元的稀釋。我們的非公認會計原則稅率為 43.2%，高於上一季度的 25.8% 和 2021 年第三季度的 13.2%，這主要是由於 2017 年減稅和就業法案實施的研發費用資本化要求的影響增加。我們的非公認會計原則本季度加權平均攤薄股份數約為 1.59 億美元。

Moving to segment results. I will start by discussing the financial results of Core Illumina. Core Illumina revenue of $1.11 billion was approximately flat year-over-year or up 3% on a constant currency basis, net of the effects of hedging. Core Illumina sequencing consumables revenue of $725 million was approximately flat year-over-year. As expected, growth driven by the increased installed base was muted by the year-over-year impact of customer inventory and cash management, headwinds from foreign exchange rates, the conclusion of the U.K. Biobank project in quarter 3 of 2021, and the anticipated decrease in COVID surveillance revenue.

轉向細分結果。我將首先討論 Core Illumina 的財務業績。扣除對沖影響後，核心 Illumina 收入為 11.1 億美元，同比基本持平，或按固定匯率計算增長 3%。 Core Illumina 測序耗材收入為 7.25 億美元，同比基本持平。正如預期的那樣，由於客戶庫存和現金管理的同比影響、外匯匯率的不利因素、英國生物銀行項目在 2021 年第三季度的結束以及預期的下降，由安裝基數增加推動的增長被抑制了在 COVID 監控收入中。

Sequencing activity on our connected instruments for clinical customers remains strong. While the pace of research with sequencing activity was tempered by various macroeconomic challenges, Francis mentioned. Sequencing instruments revenue for Core Illumina declined 10% year-over-year to $162 million driven by lower NovaSeq shipments due to expected customer lab expansion delays and capital management as well as purchasing delays in advance of next year's availability of NovaSeq X. This decline was partially offset by record NextSeq 1000, NextSeq 2000 shipments, which grew 40% year-over-year as we continue to see strong adoption by new to Illumina customers.

我們為臨床客戶提供的聯網儀器的測序活動依然強勁。弗朗西斯說，雖然測序活動的研究步伐受到各種宏觀經濟挑戰的影響。 Core Illumina 的測序儀器收入同比下降 10% 至 1.62 億美元，原因是由於預計客戶實驗室擴張延遲和資本管理以及在明年 NovaSeq X 上市前採購延遲導致 NovaSeq 出貨量下降。這一下降是部分被創紀錄的 NextSeq 1000、NextSeq 2000 出貨量所抵消，由於我們繼續看到 Illumina 新客戶的強勁採用，出貨量同比增長 40%。

During the third quarter, COVID surveillance contributed approximately $28 million in total revenue comprised of $23 million in sequencing consumables and $5 million in instruments. This was in line with our expectations and down nearly 50% year-over-year, driven by lower testing samples and a decline in instrument shipments as COVID surveillance capacity was largely established in 2021. Core Illumina sequencing service and other revenue of $123 million was up 12% year-over-year, driven primarily by higher instrument service contract revenue on a growing installed base and an increase in core licensing revenue.

在第三季度，COVID 監測貢獻了約 2800 萬美元的總收入，其中包括 2300 萬美元的測序耗材和 500 萬美元的儀器。這與我們的預期相符，同比下降近 50%，原因是測試樣本減少和儀器出貨量下降，因為 COVID 監測能力在 2021 年基本建立。Core Illumina 測序服務和其他收入為 1.23 億美元同比增長 12%，主要是由於安裝基數不斷增長導致儀器服務合同收入增加以及核心許可收入增加。

Moving to regional results for Core Illumina. Revenue for the Americas was $592 million, up 2% year-over-year primarily driven by NovaSeq consumables growth due to demand from genetic testing, oncology testing and cancer research customers. As expected, growth in the region was largely offset by customer lab expansion delays and inventory and capital management as well as a decline in COVID surveillance revenue. EMEA revenue of $290 million represented a 7% decrease year-over-year or a 2% decrease on a constant currency basis, net of the effect of hedges. Strong growth in mid-throughput instrument shipments driven by clinical demand was more than offset by the conclusion of the U.K. Biobank program and a decline in COVID surveillance revenue.

轉到 Core Illumina 的區域結果。美洲的收入為 5.92 億美元，同比增長 2%，主要是由於基因檢測、腫瘤學檢測和癌症研究客戶的需求導致 NovaSeq 耗材增長。正如預期的那樣，該地區的增長在很大程度上被客戶實驗室擴張延遲、庫存和資本管理以及 COVID 監控收入的下降所抵消。 EMEA 收入為 2.9 億美元，同比下降 7%，或按固定匯率計算下降 2%，扣除對沖影響。臨床需求推動的中通量儀器出貨量的強勁增長被英國生物銀行計劃的結束和 COVID 監測收入的下降所抵消。

Greater China revenue of $133 million represent a 9% increase year-over-year or a 14% increase on a constant currency basis. Record quarterly revenue in the region was driven by a growth in sequencing consumables for routine NGS-based research that resumed after the COVID restrictions that began in March this year were lifted as well as strong sales of NovaSeq 6000 primarily to clinical customers for oncology testing. We continue to expect base business growth to be impacted by headwinds from the 0 COVID-19 policy, exchange rates and slowing GDP growth in the region.

大中華區收入為 1.33 億美元，同比增長 9%，按固定匯率計算增長 14%。該地區創紀錄的季度收入是由用於常規 NGS 研究的測序耗材的增長推動的，該耗材在今年 3 月開始的 COVID 限制解除後恢復，以及 NovaSeq 6000 主要面向臨床客戶用於腫瘤學檢測的強勁銷售。我們繼續預計基礎業務增長將受到 0 COVID-19 政策、匯率和該地區 GDP 增長放緩的不利影響。

Finally, APG revenue of $95 million grew 6% year-over-year or 10% on a constant currency basis, net of the effects of hedges. Growth in the region was driven by strong demand in emerging markets, notably in India, Indonesia and Thailand and continued strength in NIPT and oncology testing.

最後，扣除對沖影響後，APG 收入為 9500 萬美元，同比增長 6%，或按固定匯率計算增長 10%。該地區的增長是由新興市場的強勁需求推動的，尤其是在印度、印度尼西亞和泰國，以及 NIPT 和腫瘤學檢測的持續強勁。

Moving to the rest of Core Illumina P&L. Core Illumina non-GAAP gross margin of 68.9% decreased 240 basis points year-over-year, primarily due to less fixed cost leverage on lower manufacturing volumes and higher freight costs, partially offset by favorable product mix. Core Illumina non-GAAP operating expenses of $514 million were up $36 million year-over-year due primarily to headcount growth in investments we are making in R&D to support the continued advancements of our innovation road map.

轉到 Core Illumina 損益表的其餘部分。 Core Illumina 非 GAAP 毛利率為 68.9%，同比下降 240 個基點，主要是由於較低的製造量和較高的貨運成本導致的固定成本槓桿減少，部分被有利的產品組合所抵消。核心 Illumina 非公認會計原則運營費用為 5.14 億美元，同比增長 3600 萬美元，這主要是由於我們在研發方面的投資增加了員工人數，以支持我們創新路線圖的持續進步。

Despite the year-over-year increase, non-GAAP Core Illumina operating expenses were approximately $25 million lower than we had originally planned. As a result of lower performance-based compensation expense given our lower revenue outlook as well as cost containment initiatives focused on prioritizing hiring and discretionary spend, including travel.

儘管同比增長，非 GAAP Core Illumina 運營費用比我們最初計劃的低約 2500 萬美元。由於我們較低的收入前景以及專注於優先招聘和可自由支配支出（包括差旅）的成本控制舉措，基於績效的薪酬費用較低。

Transitioning to the financial results for GRAIL. GRAIL revenue of $10 million for the quarter consisted primarily of Galleri test fees. GRAIL non-GAAP operating expenses totaled $149 million for the quarter and consisted primarily of expenses related to headcount and clinical trials.

過渡到 GRAIL 的財務結果。 GRAIL 本季度 1000 萬美元的收入主要包括 Galleri 測試費用。本季度 GRAIL 非公認會計原則的運營費用總計 1.49 億美元，主要包括與員工人數和臨床試驗相關的費用。

Moving to consolidated cash flow and balance sheet items. Cash flow used in operations was negative $52 million, a net outflow due to a onetime payment related to the litigation settlement with BGI mentioned to you last quarter. DSO was 51 days compared to 50 days last quarter due to revenue linearity. Third quarter 2022 capital expenditures were $67 million and free cash flow was negative $119 million. We did not repurchase any common stock in the quarter. We ended the quarter with approximately $1 billion in cash, cash equivalents and short-term investments.

轉向合併現金流和資產負債表項目。運營中使用的現金流為負 5200 萬美元，這是由於與上個季度向您提到的與華大基因的訴訟和解相關的一次性付款而導致的淨流出。由於收入線性，DSO 為 51 天，而上一季度為 50 天。 2022 年第三季度的資本支出為 6700 萬美元，自由現金流為負 1.19 億美元。我們在本季度沒有回購任何普通股。我們在本季度末擁有約 10 億美元的現金、現金等價物和短期投資。

Moving now to 2022 guidance. We now expect full year 2022 consolidated revenue to be flat to up 1% year-over-year, including approximately flat core Illumina revenue compared to 2021 and GRAIL revenue in the range of $55 million to $65 million. Our revised outlook for the full year reflects the more challenging expected macroeconomic headwinds we observed through October. For core Illumina, approximately 1/3 of the reduction in our 2022 guidance from our previous expectations is primarily driven by delayed recruitment for some large research projects in the Americas and Europe and the impact of inflation on research customers in Europe. The remaining 2/3 of this reduction is split approximately 70-30 across 2 higher-than-expected factors.

現在轉到 2022 年指導。我們現在預計 2022 年全年合併收入將同比持平至 1%，包括與 2021 年相比大致持平的核心 Illumina 收入和 GRAIL 收入在 5500 萬美元至 6500 萬美元之間。我們修訂後的全年展望反映了我們在 10 月份觀察到的更具挑戰性的預期宏觀經濟逆風。對於核心 Illumina，我們將 2022 年的指導意見比我們之前的預期減少了大約 1/3，這主要是由於美洲和歐洲一些大型研究項目的招聘延遲以及通貨膨脹對歐洲研究客戶的影響。剩餘的 2/3 減少在 2 個高於預期的因素中被分成大約 70-30。

One, delays in instruments and consumables purchases primarily due to the excitement around NovaSeq X; and two, negative FX impact and consumables inventory deleveraging. For the full year, we now expect core Illumina sequencing revenue to be approximately flat year-over-year. This continues to include intercompany sales to GRAIL of approximately $25 million which are eliminated in consolidation. Within core Illumina sequencing revenue, we now expect instrument revenue to be down slightly year-over-year and consumables revenue to be approximately flat, which reflects NovaSeq pull through slightly below our guidance range of $1.1 million to $1.2 million per system for 2022, primarily driven by recruitment challenges at some large research and PopGen customers.

一，儀器和耗材採購的延遲主要是由於圍繞 NovaSeq X 的興奮；二是負面外匯影響和消耗品庫存去槓桿。對於全年，我們現在預計核心 Illumina 測序收入將與去年同期大致持平。這繼續包括向 GRAIL 的公司間銷售額約 2500 萬美元，這些銷售額在合併中被消除。在核心 Illumina 測序收入中，我們現在預計儀器收入將同比略有下降，消耗品收入將大致持平，這反映 NovaSeq 的表現略低於我們 2022 年每個系統 110 萬美元至 120 萬美元的指導範圍，主要是受到一些大型研究和 PopGen 客戶的招聘挑戰的推動。

The remainder of our pull-through ranges are in line with the historical guidance ranges that we have previously provided. For full year 2022, we now expect consolidated non-GAAP operating margin in the range of 9.5% to 10% and core Illumina non-GAAP operating margin of approximately 23%, reflecting our lower revenue outlook. We expect a consolidated non-GAAP tax rate of approximately 7%, which continues to assume that the R&D expense capitalization requirements implemented by the Tax Cuts and Jobs Act of 2017 will be repealed in Q4. We now expect non-GAAP earnings per diluted share in the range of $2.35 to $2.50, which includes a lower than previously expected non-GAAP operating loss dilution from GRAIL of approximately $600 million.

我們其餘的拉動範圍與我們之前提供的歷史指導範圍一致。對於 2022 年全年，我們現在預計綜合非公認會計準則營業利潤率在 9.5% 至 10% 之間，而核心 Illumina 非公認會計準則營業利潤率約為 23%，這反映了我們較低的收入前景。我們預計合併的非公認會計原則稅率約為 7%，這繼續假設 2017 年減稅和就業法案實施的研發費用資本化要求將在第四季度廢除。我們現在預計非 GAAP 每股攤薄收益在 2.35 美元至 2.50 美元之間，其中包括低於先前預期的 GRAIL 的非 GAAP 經營虧損攤薄約 6 億美元。

Lastly, we continue to expect diluted shares outstanding of approximately 159 million shares for 2022. We expect the macroeconomic headwinds we are experiencing to persist into 2023. As we noted in our last earnings call, we are proactively and prudently managing operating expenses with a continued focus on sustainable long-term revenue growth. We are well positioned to seize opportunities to scale in key areas that align to customers' future needs and our innovation road map. At the same time, you'll see us gain additional scale and efficiencies from other areas. We will continue to adapt our investments and expenses to support our customers, drive further progress in the genomics industry and enable our long-term growth.

最後，我們繼續預計 2022 年稀釋後的流通股數量約為 1.59 億股。我們預計，我們正在經歷的宏觀經濟逆風將持續到 2023 年。正如我們在上次財報電話會議中指出的那樣，我們正在積極、審慎地管理運營費用，並持續保持專注於可持續的長期收入增長。我們有能力抓住機遇，在與客戶未來需求和我們的創新路線圖相一致的關鍵領域擴大規模。同時，您會看到我們從其他領域獲得了額外的規模和效率。我們將繼續調整我們的投資和開支以支持我們的客戶，推動基因組學行業的進一步發展，並實現我們的長期增長。

I will now hand the call back over to Francis for his final remarks.

我現在將把電話交還給弗朗西斯，讓他作最後的發言。

Thanks, Joydeep. As Joydeep shared, we will continue to identify opportunities to mitigate the near-term effects of the global economic environment. At the same time, we are prioritizing our innovation road map and remain confident in our long-term growth trajectory. As I shared earlier, we're hearing high praise for the innovations we announced at the Illumina Genomics Forum, from Illumina complete long reads to our most powerful and most sustainable sequencer yet, the NovaSeq X Series. These innovations will continue to evolve the genomics industry, and we look ahead with tremendous optimism over the long term. We will help our customers through the current challenges and seize the potential of the genome era together.

謝謝，喬伊迪普。正如 Joydeep 所說，我們將繼續尋找機會來減輕全球經濟環境的近期影響。與此同時，我們正在優先考慮我們的創新路線圖，並對我們的長期增長軌跡保持信心。正如我之前分享的那樣，我們在 Illumina 基因組學論壇上宣布的創新得到了高度評價，從 Illumina 的完整長讀到我們迄今為止最強大和最可持續的測序儀 NovaSeq X 系列。這些創新將繼續推動基因組學行業的發展，從長遠來看，我們對未來抱有極大的樂觀態度。我們將幫助我們的客戶度過當前的挑戰，共同抓住基因組時代的潛力。

I'll now invite the operator to open the line for Q&A.

我現在請接線員開通問答。

(Operator Instructions)

（操作員說明）

And our first question will come from Dan Brennan with Cowen.

我們的第一個問題將來自 Dan Brennan 和 Cowen。

I wanted to -- there's a lot to talk about, but I guess I'll focus on the NovaSeq X and the 300 shipment guide, including the 50 in 1Q which is ahead of our model. Maybe Francis and Joydeep, could you speak about some color regarding customer, early customer activity? Where are the orders coming from in terms of large research customers like genome centers versus more smaller customers on the clinical side? And then secondarily, with 50 orders in hand, and you mentioned 170 advanced order books, so you're north of 200 already, would you characterize the 300 shipments while very attractive as possibly conservative, given expected future order momentum that you would expect to get over the next 6 to 9 months?

我想 - 有很多話要說，但我想我會專注於 NovaSeq X 和 300 出貨指南，包括第一季度的 50，這比我們的模型領先。也許弗朗西斯和喬伊迪普，你能談談關於客戶的一些顏色，早期的客戶活動嗎？基因組中心等大型研究客戶與臨床方面的更多小客戶相比，訂單來自哪裡？其次，手頭有 50 個訂單，你提到了 170 個高級訂單，所以你已經超過了 200 個，你是否會描述這 300 個出貨量雖然非常有吸引力，但可能是保守的，考慮到你期望的預期未來訂單勢頭熬過接下來的 6 到 9 個月？

Great. Thanks for the question, Dan. So let me work through those questions. First of all, you're right, we are very, very pleased with the very strong response we've gotten from customers around the NovaSeq X. Frankly, it's been stronger than we expected, and we had high expectations going into the Illumina Genomics Forum. The customers are coming from a sort of broad swath of customer segments. We're seeing more of a mix from clinical in addition to the usual genome centers that you'd expect to be some of the early adopters. And we're seeing a mix both from U.S. customers as well as customers from outside the U.S. So sort of a nice broad brush of early adopter customers, and maybe even a little bit more on the clinical side than we saw when we first launched the NovaSeq 6000 a few years ago.

偉大的。謝謝你的問題，丹。所以讓我來解決這些問題。首先，您是對的，我們對 NovaSeq X 客戶的強烈反應感到非常非常滿意。坦率地說，它比我們預期的要強烈，我們對 Illumina Genomics 寄予厚望論壇。客戶來自廣泛的客戶群。除了您期望成為早期採用者的通常基因組中心之外，我們還看到更多來自臨床的混合體。我們看到了來自美國客戶和美國以外客戶的混合。所以有點像早期採用者客戶的廣泛刷子，甚至可能比我們第一次推出時看到的更多。幾年前的 NovaSeq 6000。

As you pointed, the initial orders we've got that you pointed out, 50 orders already in hand, that means that our Q1 shipments are already sold out. So we're really entering the year in a really strong position for NovaSeq X shipments. And move a very healthy pipeline of 170 customers that are down the pipeline already. So when you look at the shipment number for the year, the number that I called out, the 300 units, it's clear that the shipment number is going to be more constrained by supply availability next year than it is for demand. Because as you point out, we're entering the year with a very strong demand book. And the way we think about it is that over the first couple of quarters of the year, you can expect us to have more demand than we can ship just as we continue to ramp up the manufacturing capability for NovaSeq X, and we'll start to service that backlog as we get into the second half of the year.

正如您所指出的，我們已經收到您指出的初始訂單，已經有 50 個訂單在手，這意味著我們的第一季度出貨量已經售罄。因此，我們真的在 NovaSeq X 出貨量方面處於強勢地位。並轉移一個非常健康的 170 個客戶的管道，這些客戶已經在管道中。因此，當您查看今年的出貨量時，我提到的數量，即 300 台，很明顯，明年的出貨量將更多地受到供應可用性的限制，而不是需求。因為正如您所指出的，我們正以非常強勁的需求進入這一年。我們的想法是，在今年的前幾個季度，隨著我們繼續提高 NovaSeq X 的製造能力，您可以預期我們的需求將超過我們的出貨量，我們將開始為我們進入下半年的積壓工作提供服務。

Our next question comes from Vijay Kumar with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Vijay Kumar。

Francis, I had a 2-parter, if you will, just on the prior Nova X. The constraints here I like to mention. Can you give us some color on how this cycle compares to the prior NovaSeq X. I mean, we're like a month into a product announcement north of 200 orders. This looks like it could be a really big year for you guys from an order perspective next year. So maybe compare versus the prior cycle and the implied Q4 guidance here one for Joydeep. I think revenues are minus 13%. And if I think about first Q1 of next year being in the negative territory, maybe next year shaping out to be maybe a mid-singles to high-singles top line. So any color on how to think about fiscal '22 would be helpful. .

弗朗西斯，如果你願意的話，我有一個 2-parter，就在之前的 Nova X 上。這裡我想提一下限制。你能給我們一些關於這個週期與之前的 NovaSeq X 相比的顏色嗎？我的意思是，我們在一個月內發布了超過 200 個訂單的產品公告。從明年訂單的角度來看，這對你們來說可能是非常重要的一年。因此，也許可以與之前的周期和隱含的第四季度指導進行比較，這是針對 Joydeep 的。我認為收入是負13%。而且，如果我考慮明年第一季度處於負數區域，那麼明年可能會成為中單到高單曲的頂線。因此，關於如何思考 '22 財政年度的任何顏色都會有所幫助。 .

Yes, sure. Thanks for the question, Vijay. So as I said to the last question, you're right in the sense that the customer reaction to NovaSeq X is certainly even stronger than we anticipated. And we modeled the reaction based on our previous launches, which have been really strong. But if we look at the number of orders we have already, the 50 orders we have; the 170 in the advanced pipeline. If I were to compare it to where we were at a similar time with previous launches, I'd say we are better off than we've been with some of the other previous launches. So certainly in a very strong position going into next year.

是的，當然。謝謝你的問題，維杰。所以正如我對最後一個問題所說的那樣，你是對的，客戶對 NovaSeq X 的反應肯定比我們預期的還要強烈。我們根據我們之前的發布來模擬反應，這些發布非常強大。但是如果我們看一下我們已經擁有的訂單數量，我們有 50 個訂單； 170 處於高級管道中。如果我將它與之前發布的類似時間進行比較，我會說我們比之前發布的其他一些發布要好。因此，進入明年肯定處於非常有利的地位。

Again, the next year, NovaSeq shipments number is going to be supply constrained. And we ramped up an entirely new manufacturing line because we've redone every component of this instrument, right? So entirely new chemistry, new FFM, new flow cells, new manufacturing process for the flow cells. And so we're really happy with the way that scale-up is happening. So if I compare the number I gave you for the Q1 shipments that would be ahead. So the 40 to 50 shipments we expect in Q1, that would be more shipments than we did in the first quarter when we launched the NovaSeq 6000, so slightly ahead of where we were before. And then the 300 units that we're expecting to ship would be ahead of where we were with the first year of NovaSeq x 6000 as well. So that's how it compares with previous launches. Maybe I'll turn it over now to Joydeep.

同樣，明年 NovaSeq 的出貨量將受到供應限制。我們增加了一條全新的生產線，因為我們已經重做了這個儀器的每個組件，對吧？因此，全新的化學、新的 FFM、新的流通池、流通池的新製造工藝。因此，我們對擴大規模的方式感到非常滿意。因此，如果我比較我給你的第一季度出貨量的數字，那將是未來的出貨量。因此，我們預計第一季度的出貨量為 40 到 50 台，這將比我們第一季度推出 NovaSeq 6000 時的出貨量多，因此略高於我們之前的水平。然後，我們預計出貨的 300 台設備也將領先於第一年的 NovaSeq x 6000。這就是它與之前發布的比較。也許我現在會把它交給 Joydeep。

Yes. So maybe just 1 thing on the -- what's changed for NovaSeq, right? We are seeing, as Francis mentioned earlier, strong demand, early strong demand from clinical customers as well, right? And this we attribute to the trend of continued strong clinical research coming in, which is now shifting to NovaSeq X for some of these studies. So I think that's a positive trend. I think your next question was about the relationship with -- for Q4 and then into 2023.

是的。所以也許只有一件事——NovaSeq 發生了什麼變化，對吧？正如弗朗西斯之前提到的，我們看到了強勁的需求，臨床客戶的早期需求也很強勁，對吧？我們將此歸因於持續強勁的臨床研究的趨勢，現在正在轉向 NovaSeq X 進行其中一些研究。所以我認為這是一個積極的趨勢。我認為你的下一個問題是關於第四季度和 2023 年的關係。

So a few things on Q4, as we pointed out, right, towards the end of Q3 and early into October, we have seen a deepening of some of the macroeconomic conditions we talked about, including inflation and FX. And that caused us to be prudent for the reasons I mentioned earlier to take a more conservative approach into our call for Q4, but also we now see these conditions persist into 2023. So we're taking a look at some of those conditions. And as we know some of the factors that have changed to the negative. FX has definitely worsened and accelerated for us and we expect will be continued headwind into 2023.

因此，正如我們所指出的，第四季度的一些事情，對，在第三季度末和 10 月初，我們已經看到我們談到的一些宏觀經濟狀況的深化，包括通貨膨脹和外匯。由於我之前提到的對第四季度的呼籲採取更保守的方法，這使我們變得謹慎，但我們現在看到這些情況會持續到 2023 年。所以我們正在研究其中的一些情況。正如我們所知，一些因素已變為負面。外匯對我們來說肯定會惡化和加速，我們預計到 2023 年將繼續逆風。

I talked about the macroeconomic conditions. We've already mentioned that COVID surveillance is likely to decline further into 2023. So this kind of is some of the factors that moderate what we had expected earlier for -- and continue to see in terms of the interest in NovaSeq X, and of course, some of the other technologies that we mentioned during IGF, including the Illumina complete long reads.

我談到了宏觀經濟狀況。我們已經提到，到 2023 年，COVID 監測可能會進一步下降。因此，這種情況是緩和我們之前預期的一些因素 - 並且繼續看到對 NovaSeq X 的興趣，以及當然，我們在 IGF 期間提到的其他一些技術，包括 Illumina 完成長讀取。

Overall, Dan, I think we feel at this point, and we haven't gone to guidance and budgeting yet. But at this point, I feel like we probably expect revenue growth in 2023 to be closer to the 10% range rather than where we had guided before.

總的來說，丹，我認為我們在這一點上感覺，我們還沒有去指導和預算。但在這一點上，我覺得我們可能預計 2023 年的收入增長將接近 10% 的範圍，而不是我們之前指導的水平。

And our next question will come from Dan Arias with Stifel.

我們的下一個問題將來自與 Stifel 的 Dan Arias。

Francis, can you just touch on the lab delay issue a little bit. It sounded like last quarter, the delays were a 2Q to 3Q phenomenon more than they weren't. You were in line this quarter. So the fourth quarter assumption is obviously getting adjusted here which just seems a little bit more extended than we would think. So can you just sort of talk to what's going on there? And then when your expectations call for some of these labs actually getting going and being where they need to be?

弗朗西斯，你能不能稍微談談實驗室延遲問題。聽起來像上個季度，延遲是 2Q 到 3Q 的現象，而不是實際情況。你本季度排隊。因此，第四季度的假設顯然在這裡得到了調整，這似乎比我們想像的要擴展一些。所以你能談談那裡發生的事情嗎？然後當您的期望要求其中一些實驗室真正開始並成為他們需要的地方時？

Yes, sure. So when we talked about the results last time on the call, we talked about the fact that we'd seen some delays that we're looking to get ramped up later this year and some that were going into next year. And what we found is in both of those cases, ended up being a little later than those customers had expected. And so we're seeing a push out from what was expected to come this quarter being pushed out into next year. And then even the dates for next year opening have been pushed out somewhat too. So the pandemic-related effects around supply chain are definitely persisting and are impacting those lab delays.

是的，當然。因此，當我們上次在電話會議上談到結果時，我們談到了這樣一個事實，即我們已經看到一些延遲，我們希望在今年晚些時候增加一些延遲，而一些延遲將進入明年。我們發現在這兩種情況下，最終都比這些客戶的預期晚了一點。因此，我們看到本季度的預期被推遲到明年。然後甚至明年開幕的日期也被推遲了一些。因此，圍繞供應鏈的大流行相關影響肯定會持續存在，並正在影響那些實驗室延誤。

And our next question will come from Puneet Souda with SVB Securities.

我們的下一個問題將來自 Puneet Souda 和 SVB 證券。

So first one, I just want to clarify that 10% growth that you mentioned for 2023, that's on the entire top line. And then I just wanted to also get a little bit around the 10B and the 25B sort of flow cells. 10B is launching earlier, 25B is going to be later in next year. It appears to us that the 10 billion read flow cell could be most meaningful in your portfolio, just given that it can turn around samples in 24 hours and to still give the NovaSeq capacity that is delivered through NovaSeq 6000 today on an [S4]. So maybe just walk us through how do you see the ramp for that? And what does that all mean in terms of sort of pull-through into 2023.

所以第一個，我只想澄清你提到的 2023 年 10% 的增長，這是整個頂線。然後我只想了解一下 10B 和 25B 類型的流通池。 10B 較早推出，25B 將在明年晚些時候推出。在我們看來，100 億讀長的流動槽在您的產品組合中可能是最有意義的，因為它可以在 24 小時內周轉樣品，並且仍然提供今天通過 NovaSeq 6000 在 [S4] 上提供的 NovaSeq 容量。所以也許只是讓我們了解一下您如何看待坡道？而這一切對於進入 2023 年意味著什麼。

Thank you, Puneet. So let me talk about both. I'll start by saying that the answer we gave around the 10% wasn't intended guide for next year. It was intended to just talk about how we were thinking about some of the factors that are at play Q4 going into Q1, and we'll give a specific guide as we get into next year once we've done the bottoms of budget. In terms of the flow cells, I think you're absolutely right.in the sense that the first flow cell, we should 10 billion read flow cells is going to be very meaningful for customers that are looking to get familiar with NovaSeq 6000 that is comparing it to the existing instrument they have because it's very similar in terms of footprint, in terms of output, and we'll probably take on some of the same workloads. And so customers will feel, will feel a sense of familiarity as they move to the X with that flow cell.

謝謝你，普內特。所以讓我談談兩者。我首先要說的是，我們給出的 10% 左右的答案並不是明年的指南。它旨在討論我們如何考慮第四季度進入第一季度的一些因素，一旦我們完成預算的底部，我們將在明年進入具體指導。就流動槽而言，我認為你是絕對正確的。從某種意義上說，第一個流動槽，我們應該讀取 100 億個流動槽，對於希望熟悉 NovaSeq 6000 的客戶來說將是非常有意義的，即將它與他們現有的儀器進行比較，因為它在佔用空間和輸出方面非常相似，而且我們可能會承擔一些相同的工作負載。因此，當客戶使用該流通池遷移到 X 時，他們會感到、會感到熟悉。

And so you'll see customers that start with that. And then the $25 billion read flow cells is really intended to unlock the next generation of studies, the very large programs that customers have been talking to us about and have been waiting for the price points of the X that are fundamentally enabling to those studies. And so you can think about it as there will be the first flow cell that existing NovaSeq 6000 customers will view is very familiar to them in terms of output and the workloads that it does, and we'll start using it as sort of their entry point into the X series. And then it's the bigger flow cell that unlocks the next wave of elasticity in demand.

因此，您會看到以此為起點的客戶。然後，價值 250 億美元的讀取流動槽真正旨在解鎖下一代研究，客戶一直在與我們討論並一直在等待 X 的價格點從根本上支持這些研究的非常大的程序。因此，您可以考慮一下，現有 NovaSeq 6000 客戶將看到的第一個流動槽在輸出和工作負載方面對他們來說非常熟悉，我們將開始使用它作為他們的入口指向X系列。然後是更大的流通池釋放了下一波需求彈性。

Dan, maybe Puneet, to add, right? We expect the transition, obviously, to move forward on the consumables side much faster with research customers and clinical customers because their invalidated workflows will switch a little bit later into the cycle.

丹，也許是普內特，補充一下，對吧？很明顯，我們預計，研究客戶和臨床客戶在消耗品方面的過渡會更快，因為他們無效的工作流程將在周期稍晚一點切換。

And our next question will come from Julia Qin with JPMorgan.

我們的下一個問題將來自摩根大通的 Julia Qin。

Francis, I remember, you noted at the Analyst Day that enabled by NovaSeq, it could be a meaningful catalyst event for some of the POPSEQ initiatives around the world. But at the same time, I think you noted in 4Q, there will be some research project delays, including recruitment challenges for some of the POPSEQ program. So I guess, in light of that, how should we think about how meaningful the POPSEQ programs will be in terms of our revenue contribution next year?

弗朗西斯，我記得，你在 NovaSeq 啟用的分析師日上指出，它可能是全球一些 POPSEQ 計劃的有意義的催化劑事件。但同時，我想你在第 4 季度注意到，會有一些研究項目延遲，包括一些 POPSEQ 計劃的招聘挑戰。所以我想，鑑於此，我們應該如何考慮 POPSEQ 計劃對我們明年的收入貢獻有多大意義？

Yes. So let me address both parts of your question. One is around the effects we're seeing in Q4 around some of these POPSEQ programs. And then two, about the X being enabling to future POPSEQ programs and how important that will be. In Q4, what we said is that there are some -- a small number of very specific ongoing population sequencing programs that are experiencing some recruiting delays associated with those programs. It's a small handful, and they're experiencing delays in these existing projects. We have no doubt that these projects will continue on and complete and they will get the recruiting they did. But a little bit slower in Q4 than they were expecting to go.

是的。因此，讓我解決您問題的兩個部分。一個是我們在第四季度看到的一些 POPSEQ 程序的影響。然後是兩個，關於 X 對未來 POPSEQ 程序的支持以及這將是多麼重要。在第四季度，我們所說的是，有一些非常具體的正在進行的人口測序計劃正在經歷與這些計劃相關的一些招聘延遲。這是一小部分，他們在這些現有項目中遇到了延誤。我們毫不懷疑這些項目將繼續進行並完成，他們將獲得他們所做的招聘。但第四季度的速度比他們預期的要慢一些。

Now if we think about what X enables, that is the next generation, if you like. So what customers have been talking to us about for a while and then in earnest over the last 5 weeks since we announced the X is the very large projects that they want to do. Where the number of samples are measured are sometimes in the millions. And they're talking about very large exome projects, very large genome projects that, frankly, were just not economically viable until we brought out the X.

現在，如果我們考慮一下 X 支持的功能，那就是下一代，如果你願意的話。因此，自從我們宣布 X 以來，客戶在過去 5 週內一直在與我們談論的內容是他們想要做的非常大的項目。測量的樣本數量有時以數百萬計。他們談論的是非常大的外顯子組項目，非常大的基因組項目，坦率地說，在我們推出 X 之前，這些項目在經濟上是不可行的。

And one of the things we talked about on Investor Day that's relevant here is that our team, in some cases, plays an important role in making those projects. So not only a technology enabler role by putting out a scalable instrument at the price points that make these projects viable -- but in many cases, we are also helpful in bringing together the parties, whether it's pharma companies or biobanks or national health systems. We are responsible for helping to bring to convene those parties together to get those projects off the ground.

我們在投資者日談到的與這里相關的一件事是，我們的團隊在某些情況下在製作這些項目中發揮著重要作用。因此，通過以使這些項目可行的價格點推出可擴展的工具，這不僅是技術推動者的角色——而且在許多情況下，我們還有助於將各方聚集在一起，無論是製藥公司、生物銀行還是國家衛生系統。我們負責幫助召集這些各方，以啟動這些項目。

And I can tell you that over the last few weeks, Susan and our commercial team have been very busy in high demand around health systems around the world that are interested in leveraging the power of the X to put together programs to create, for example, cohorts that are vastly more diverse than we have today or much bigger than they are today. And so I think the X will be a very substantial needle mover on that front.

我可以告訴你，在過去的幾周里，Susan 和我們的商業團隊一直忙於應對世界各地衛生系統的高需求，這些系統有興趣利用 X 的力量來整合項目來創建，例如，比我們今天更多樣化或比今天更大的群體。所以我認為 X 在這方面將是一個非常重要的推動者。

And our next question will come from David Westenberg with Piper Sandler. Sorry on a continuation of the question I asked last quarter on consumable ordering behavior. I know there's usually an expiration date on some of these consumables I know there was a little bit -- you mentioned, Joydeep, I think some of that continued dynamics around burn down lasting into the fourth quarter. Maybe it's a little bit -- maybe it's right on your expectation, but it does look like compared to my model that, that is one of the culprits that continues to happen.

我們的下一個問題將來自 David Westenberg 和 Piper Sandler。對不起，我上個季度提出的關於消耗品訂購行為的問題的延續。我知道其中一些消耗品通常有一個到期日期，我知道有一點 - 你提到，Joydeep，我認為圍繞燒毀的一些持續動態持續到第四季度。也許有點——也許它符合您的期望，但與我的模型相比，它確實是繼續發生的罪魁禍首之一。

So how are we not interpreting this is a slowdown for sequencing or the market in general in context of a lot of your customers have budgets? They have NIH budgets flowing in. They have -- they have tests that they have to get ordered and what I'm getting into is, if it's not this, why still at 10% in 2023, given the fact that I would think that there would then be catch up from all these consumables missed in Q3 and Q4? And sorry if that was a really long question.

那麼，在您的許多客戶有預算的情況下，我們如何不解釋這是測序或市場總體上的放緩？他們有 NIH 的預算流入。他們有 - 他們有測試，他們必須得到命令，我正在進入的是，如果不是這個，為什麼到 2023 年仍然保持在 10%，因為我認為那麼第三季度和第四季度錯過的所有這些消耗品會被趕上嗎？對不起，如果這是一個很長的問題。

Yes. Let me try to address it and again, as Francis said, we are still in the process of budget. So the 10% wasn't meant as a guide. It's more of a -- from the macroeconomic conditions we see. So I think that maybe 2 parts, David. first, in terms of your question about, are we seeing inventory deleveraging that has it accelerated or decelerated, right? So we were actually quite on point with what we had expected in terms of inventory deleveraging with maybe a very small part of the additional guidance we provided on Q4, actually coming from incremental inventory deleveraging. So that's part one, right? Now in terms of whether things have slowed up -- slowed down rather from what we had communicated at the end of Q2. We did see 2 specific things that we mentioned, which had been slower than we had expected, right, in terms of demand or activity.

是的。讓我再次嘗試解決這個問題，正如弗朗西斯所說，我們仍在預算過程中。所以 10% 並不是作為指導。從我們看到的宏觀經濟狀況來看，這更像是一個。所以我認為這可能是兩部分，大衛。首先，就您的問題而言，我們是否看到庫存去槓桿化加速或減速，對嗎？因此，我們實際上與我們在庫存去槓桿方面的預期完全一致，我們在第四季度提供的額外指導可能只有很小一部分，實際上來自增量庫存去槓桿。所以這是第一部分，對吧？現在就事情是否已經放緩而言——放緩，而不是我們在第二季度末所傳達的信息。我們確實看到了我們提到的兩件具體的事情，就需求或活動而言，這比我們預期的要慢。

So one of them were the few key customers, a handful of customers that Francis mentioned, that had these large research and PopGen projects that had some issues with recruit, right? So those are things that we expect will cut -- will recover over time. This is not a budget issue. This is not mostly an inflation related -- not an inflation-related issue. The other thing that we did see was inflation and FX related, specifically related to research customers in Europe, right? So there, we did see a slowdown happening. We expect that some of this will continue into next year as some of these headwinds persist. But again, it's not a structural change. It's a temporary change that are caused by very specific macroeconomic factors.

所以其中一個是少數幾個關鍵客戶，弗朗西斯提到的少數幾個客戶，他們有這些大型研究和 PopGen 項目，但在招聘方面存在一些問題，對嗎？所以這些是我們預計會削減的東西——會隨著時間的推移而恢復。這不是預算問題。這主要不是與通貨膨脹有關 - 不是與通貨膨脹有關的問題。我們確實看到的另一件事是通貨膨脹和外匯相關，特別是與歐洲的研究客戶有關，對吧？所以在那裡，我們確實看到了放緩的發生。我們預計，由於其中一些不利因素持續存在，其中一些將持續到明年。但同樣，這不是結構性變化。這是由非常具體的宏觀經濟因素引起的暫時性變化。

And our next question will come from Michael Ryskin with Bank of America.

我們的下一個問題將來自美國銀行的 Michael Ryskin。

Great. I want to try to squeeze in a couple, but they're all on the same topic. One, for the GRAIL write-down, the $3.91 billion. Could you talk through the rationale, the underlying reason we've taken up this quarter? Does that have any impact on divestment discussions or sort of the puts and takes on what goes into that decision, especially if you sort of think back to a year ago, I think the deal goes right around a year ago for $8 billion? And then also, did you clarify like GRAIL was down sequentially, $12 million in the second quarter to $10 million in the third but the midpoint of the fiscal year about the same. So was it just some lumpy orders coming through? or just, what's going on there?

偉大的。我想嘗試擠入一對夫婦，但他們都在同一個話題上。一，對於 GRAIL 的減記，39.1 億美元。您能否談談我們本季度開展工作的基本原理和根本原因？這對撤資討論或看跌期權有什麼影響嗎？特別是如果你回想一年前，我認為這筆交易大約在一年前以 80 億美元的價格進行？然後，您是否澄清說 GRAIL 連續下降，第二季度為 1200 萬美元，第三季度為 1000 萬美元，但本財年的中點大致相同。那麼，只是收到了一些雜亂無章的訂單嗎？或者只是，那裡發生了什麼？

Yes. So let me take the first part of your question. So the reassessment of GRAIL's book value was really more of an accounting requirement triggered by some of the regulatory decisions coming out of Europe. Again, the primary driver of the valuation change was the higher discount rate used really as a result of the current capital and equity market conditions, right? The underlying -- the performance of GRAIL in terms of how it's progressing on its clinical results and signing up customers really has not changed, and in fact, has improved a little bit over the last few quarters. Impairment, again, is an accounting change, it has no impact on our pursuance of various options on the GRAIL front, and those are continuing as we had described earlier in our -- on our Investor Day. I'll turn it over to Francis.

是的。所以讓我來回答你問題的第一部分。因此，對 GRAIL 賬面價值的重新評估實際上更多是由來自歐洲的一些監管決策引發的會計要求。同樣，估值變化的主要驅動因素是由於當前的資本和股票市場狀況而使用的更高貼現率，對吧？潛在的——GRAIL 在臨床結果的進展和註冊客戶方面的表現確實沒有改變，事實上，在過去幾個季度中有所改善。同樣，減值是一種會計變更，它對我們在 GRAIL 方面追求各種選擇沒有影響，並且正如我們在投資者日早些時候所描述的那樣，這些選擇仍在繼續。我會把它交給弗朗西斯。

Yes, in terms of the GRAIL number. So the way the quarter played out, the first month of the quarter of July was slow in terms of test ordering. And then the pace really picked up in September, partially driven by the ramp-up in the sales force that GRAIL has brought on board and we talked about that on the Q2 call. And so that's paid off in the last month of last quarter and in the first few weeks of this quarter. And so that's what's driving the shape of the curve.

是的，就 GRAIL 編號而言。所以這個季度的結果是，7 月當季的第一個月在測試訂購方面很慢。然後速度在 9 月真正加快，部分原因是 GRAIL 引入的銷售隊伍增加，我們在第二季度電話會議上談到了這一點。因此，這在上個季度的最後一個月和本季度的前幾週得到了回報。這就是驅動曲線形狀的原因。

In terms of the expectations for the year, they're off to a strong start for Q4 and the midpoint of guide remains the same. And then the other factor that's playing out in Q4 is the revenue they're getting from their pharma partnerships associated with their MRD development.

就今年的預期而言，他們在第四季度開局良好，指導中點保持不變。然後在第四季度發揮作用的另一個因素是他們從與 MRD 開發相關的製藥合作夥伴關係中獲得的收入。

And our next question will come from Kyle Mikson with Canaccord .

我們的下一個問題將來自 Canaccord 的 Kyle Mikson。

Just a quick mortgage part question for me. On NovaSeq X, I was wondering what your expectations are for trade-ins and bundles in the near term, just given the X is basically like the equivalent of multiple 6000. So maybe you could talk about that in the context of the '23 shipment numbers that you provided today maybe kind of spoke to earlier? And then on kind of separately Francis, just wondering if you can share your thoughts on the complete offering in the long-read space, just given the updates from Pac Bio or others recently?

對我來說只是一個快速的抵押部分問題。在 NovaSeq X 上，我想知道您對短期內以舊換新和捆綁包的期望是什麼，因為 X 基本上相當於 6000 倍。所以也許您可以在 23 年發貨的背景下談論這個你今天提供的數字可能在早些時候談過？然後在另一種情況下，弗朗西斯，只是想知道您是否可以在長篇閱讀空間中分享您對完整產品的想法，剛剛獲得了 Pac Bio 或其他人最近的更新？

Yes. So let me take the first part first, which was around our expectation of trade-ins. So our customers, based on their experience with us know that we have always helped to keep customers (inaudible) when we launch a new platform. And so as we've always done when we've launched a new platform, we have trade-in programs for customers that have recently purchased 6,000. And we actually have programmed even now that if you want to buy a 6,000 now to get going, you can trade it in, so you can buy now and trade it in once we launch the X next year. And certainly, there have been customers that appreciated that very much and have taken us on that one. And we expect some more to take us up on that through this quarter and going into next year. So that's a standard part of our launching a new product.

是的。所以讓我先談談第一部分，這是圍繞我們對以舊換新的期望。因此，我們的客戶根據他們與我們的經驗知道，當我們推出新平台時，我們一直在幫助留住客戶（聽不清）。正如我們在推出新平台時一直做的那樣，我們為最近購買了 6,000 台的客戶提供了以舊換新計劃。事實上，即使現在我們已經編程，如果你想現在購買 6,000 美元，你可以交易它，所以你可以現在購買並在我們明年推出 X 後交易它。當然，有些客戶非常欣賞這一點，並讓我們接受了這一點。我們預計會有更多人在本季度和明年繼續關注這一點。所以這是我們推出新產品的標準部分。

In terms of our complete long reads, we've seen a really enthusiastic response from our customers around being able to use their existing installed base across the throughput sizes. So whether you're a MiSeq, all the way to NovaSeq 6000 or the X to do both long-read and short-read workloads and to do that in a way that allows them to take advantage of low sample inputs lower than they can perhaps on other platforms. And so we expect that to be fundamentally enabling to that space. And if you -- especially if you combine the existing platforms you have with the complete long read with enrichment, you end up with the ability to do long reads much, much more cost effectively than you could do on other platforms without compromising accuracy in any way. So you still get the gold standard of accuracy and you can do it much more cost effectively. So that's really exciting. What it does is it opens up that last bit of the genome, the last few percentage genome that historically was hard to read with short read technology.

就我們完整的長讀而言，我們已經看到我們的客戶對能夠在吞吐量大小上使用他們現有的安裝基礎非常熱情。因此，無論您是 MiSeq，一直到 NovaSeq 6000 還是 X，都可以同時處理長讀長和短讀長工作負載，並以一種允許他們利用低於他們可能的低樣本輸入的方式來做到這一點在其他平台上。因此，我們希望這將從根本上為該領域提供支持。如果你——尤其是如果你將現有的平台與完整的長讀結合起來，你最終能夠在不影響任何準確性的情況下，比在其他平台上進行長讀更有效地進行長讀。方法。因此，您仍然可以獲得準確度的黃金標準，並且您可以更經濟高效地進行操作。所以這真的很令人興奮。它的作用是打開基因組的最後一點，即歷史上很難用短讀技術讀取的最後幾個百分比的基因組。

And our next question will come from Tejas Savant with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Tejas Savant。

Francis, a 2-parter for you here. So I want to talk about the metered ramp down for the NovaSeq 6000 consumables you alluded to at the Analyst Day because of a higher proportion of clinical users. But then today, you guys called out a higher clinical mix for the X. So I'm just trying to juxtapose those 2 dynamics as we think about how the NovaSeq 6000 consumables tail off over the next couple of years here? And my second question is really around some of the PopGen recruitment delays that you called out over here. If I remember right, in the last product cycle, essentially, POPSEQ had to be removed from the guide because it became so unpredictable in terms of timing. Can you just call out sort of what you see is different this time around that drives your confidence that at least as far as POPSEQ goes, you will continue to get that sort of elasticity of demand?

弗朗西斯，這裡是你的 2-parter。因此，我想談談您在分析師日提到的 NovaSeq 6000 耗材的計量下降，因為臨床用戶比例更高。但是今天，你們為 X 提出了更高的臨床組合。所以我只是想把這兩種動態並列在一起，因為我們考慮 NovaSeq 6000 耗材在接下來的幾年裡會如何下降？我的第二個問題實際上是關於你在這裡提到的一些 PopGen 招聘延遲。如果我沒記錯的話，在最後一個產品週期中，基本上必須從指南中刪除 POPSEQ，因為它在時間方面變得如此不可預測。您能否說出這次您看到的不同之處，這會激發您的信心，即至少就 POPSEQ 而言，您將繼續獲得這種需求彈性？

Yes, great question. So let me take the first one first. So you're absolutely right in the sense that if you are running production clinical workloads today, you are going to continue to run them on the NovaSeq 6000 for a while. And then it will be a -- there'll be a metered transition that will be measured in quarters and years before you move that entire production workload on to the X. So that continues to be what we believe that continues to be the feedback we're getting from our customers. What's really exciting, though, is that clinical customers are talking to us about and their purchases are really about new workloads. And so it's areas that they want to expand into that they're saying instead of starting on the 6,000, they'd like to start that development on the X with an idea then, of course, to ramp it up into production on the X.

是的，很好的問題。所以讓我先拿第一個。因此，如果您現在正在運行生產臨床工作負載，那麼您將在 NovaSeq 6000 上繼續運行一段時間，這是絕對正確的。然後這將是一個 - 在您將整個生產工作負載轉移到 X 之前，將有一個計量轉換，將在季度和年中測量。所以這仍然是我們認為的，這仍然是我們的反饋'從我們的客戶那裡得到。然而，真正令人興奮的是，臨床客戶正在與我們討論，他們的購買實際上是關於新的工作負載。所以他們想要擴展的領域是他們說而不是從 6,000 開始，他們想在 X 上開始開發，然後當然是在 X 上將其投入生產.

And so that has been more substantial than we expected. So that means that there are a bunch of our large clinical customers that are expanding into new clinical areas. And so it's an exciting development for the field. It's also an exciting development for X as well. In terms of POPSEQ, the -- what we have talked about is that when we are bringing on new POPSEQ deals, new big POPSEQ deals, we'll tend to binary them out of our guide, if they are big and we're still trying to figure out when they land. And as you know, that's a learning we had in terms of how these deals develop. But once they're in production, they are in the guide, right? And so there, the variability isn't quite as big as whether a big deal will come on or not.

所以這比我們預期的要大得多。這意味著我們有很多大型臨床客戶正在擴展到新的臨床領域。因此，這對該領域來說是一個令人興奮的發展。對於 X 來說，這也是一個令人興奮的發展。就 POPSEQ 而言，我們所討論的是，當我們帶來新的 POPSEQ 交易、新的大型 POPSEQ 交易時，我們傾向於將它們從我們的指南中剔除，如果它們很大並且我們仍然試圖弄清楚他們什麼時候著陸。如您所知，這是我們在這些交易如何發展方面學到的知識。但是一旦它們投入生產，它們就在指南中，對嗎？因此，可變性並不像是否會發生大事那麼大。

It may ramp up or down in a quarter and then certainly, we'll call it out for you if that happens or if we see that starting to happen, which is what we're doing for Q4. So that's more -- that's less variability rather than entirely new deal coming on, which again, we'll tend to be more conservative in terms of building that into our guide.

它可能會在一個季度內上升或下降，然後當然，如果發生這種情況或者如果我們看到這種情況開始發生，我們會為你呼籲，這就是我們為第四季度所做的事情。所以這更多 - 這是更少的可變性，而不是全新的交易，同樣，我們在將其構建到我們的指南中時往往會更加保守。

And Francis, I'd just add, I think here this is a great question about the clinical side, right? I think we are seeing some of these newer tests that Francis called out going more towards NovaSeq X because these are also the higher intensity tests, which have much higher throughput requirements which is consistent with what we mentioned regarding elasticity of demand continuing to go up with the introduction of new technologies.

弗朗西斯，我想補充一下，我認為這是一個關於臨床方面的好問題，對吧？我認為我們正在看到 Francis 呼籲的一些更新的測試更傾向於 NovaSeq X，因為這些也是更高強度的測試，它們具有更高的吞吐量要求，這與我們提到的關於需求彈性持續上升的內容一致新技術的引進。

And moving on to Dan Leonard with Credit Suisse.

並與瑞士信貸一起轉向丹倫納德。

I just want to make sure I understand the change in the 2022 guide for Core Illumina. It seems like you attributed half of the guidance reduction to delays associated with the X, if I'm doing the math right, 70% of the 2/3, you knew you were launching the X. So what evolved differently from your expectations?

我只是想確保我了解 2022 年 Core Illumina 指南中的變化。似乎您將指導減少的一半歸因於與 X 相關的延遲，如果我做對了，2/3 的 70%，您知道您正在啟動 X。那麼與您的預期有何不同？

Yes, you're absolutely right. We knew we were launching the X, and we sort of modeled the customer interest based on the previous launches we've done. Frankly, we've been really surprised in a positive way around how much interest there has been from our customers in getting to the X. And again, as I said, we fully expected our clinical customers to be a little bit slower in terms of coming on board for the X.

是的，你完全正確。我們知道我們正在推出 X，並且我們根據我們之前所做的發布來模擬客戶的興趣。坦率地說，我們的客戶對使用 X 的興趣如此之大，這讓我們感到非常驚訝。而且，正如我所說，我們完全期望我們的臨床客戶在加入 X。

And what we're finding is that they're not the reasons we talked about that while they're keeping production workflows on the 6,000, they are excited about using the X for their new applications, which, as Joydeep said, tend to be more sequencing-intensive applications. And so that has been an upside surprise in terms of the enthusiasm for the X, but has a knock-on effect and the people are saying, look, I'm going to hold on the 6,000 in Q4 and wait for the X as it starts to ship in Q1.

我們發現，他們不是我們談論的原因，雖然他們將生產工作流程保持在 6,000，但他們對將 X 用於他們的新應用程序感到興奮，正如 Joydeep 所說，這往往是更多的測序密集型應用。因此，就對 X 的熱情而言，這是一個意外的驚喜，但會產生連鎖反應，人們說，看，我將在第四季度守住 6,000 點，等待 X 的到來第一季度開始發貨。

And our next question will come from Patrick Donnelly with Citi.

我們的下一個問題將來自花旗銀行的帕特里克·唐納利。

Francis, maybe one just on the customer base, more on the kind of clinical diagnostics side. I know in the past quarter, you kind of called out they're being a little more conservative with cash, particularly kind of speaking to the inventory question. Are you still seeing that piece? What are the conversations like and kind of the outlook for that market in '23?

弗朗西斯，也許只是在客戶群中，更多的是在臨床診斷方面。我知道在上個季度，你有點說他們在現金方面更加保守，特別是在談到庫存問題時。你還在看那個片段嗎？ 23 年該市場的對話和前景如何？

Yes. Thanks, Patrick. So we're definitely seeing that continue to play out. We think 2 things play out. One, activity levels in terms of runs on the instruments that they have continue to be robust, and generally in line with the commentary we shared in Q2. At the same time, we are seeing concern around their cash position and our desire to want to manage their inventory levels more conservatively perhaps than they have historically. That's also enabled by the fact that they've seen that our supply has been very consistent and robust and stable even through the pandemic. And we have confidence in saying, look, we can run at a lower inventory level for a while and still maintain the integrity of their operations capability. And so we're definitely seeing that dynamic continue to play.

是的。謝謝，帕特里克。因此，我們肯定會看到這種情況繼續發揮作用。我們認為有兩件事發生了。第一，就他們所擁有的工具的運行而言，活動水平繼續保持強勁，並且通常與我們在第二季度分享的評論一致。與此同時，我們看到了對他們現金狀況的擔憂，以及我們希望比以往更保守地管理他們的庫存水平的願望。這也是因為他們已經看到我們的供應即使在大流行期間也非常一致、強勁和穩定。而且我們有信心說，看，我們可以在較低的庫存水平上運行一段時間，並且仍然保持其運營能力的完整性。所以我們肯定會看到這種動態繼續發揮作用。

And our next question will come from Luke Sergott with Barclays.

我們的下一個問題將來自巴克萊的 Luke Sergott。

Can you give us a sense of the margin profile of what XLEAP is going to come through? I think it's important to think about as you ramp on the NovaSeq X next year and as that continues to come up and you're having the higher pull-through, we need to kind of figure out where the operating margin is going to come through?

您能否讓我們了解 XLEAP 將要通過的利潤概況？我認為重要的是要考慮明年你在 NovaSeq X 上的使用，隨著這種情況繼續出現並且你有更高的拉動率，我們需要弄清楚營業利潤率將在哪裡出現?

Yes, sure, Luke. The expectation and the design point is to maintain similar margins with the instruments that use the new XLEAP chemistry as the instruments that they're replacing. So if you look at the X, for example, you should think about it over time as it scales to have a similar margin profile to the NovaSeq 6000, both generally on the instrument side and certainly on the consumable side. And so that's the design criteria we use.

是的，當然，盧克。期望和設計點是與使用新 XLEAP 化學的儀器作為他們要替換的儀器保持相似的利潤。因此，例如，如果您查看 X，您應該隨著時間的推移考慮它，因為它可以擴展以具有與 NovaSeq 6000 相似的邊距分佈，通常在儀器端，當然在消耗品端。這就是我們使用的設計標準。

The idea is to invest in technology that fundamentally lowers the cost to make the product and then pass on those savings to our customers. So maintain the same margins and pass on the savings to our customers associated with the innovations that we're bringing like X, like the new optics, like the new flow cells and so on.

這個想法是投資於從根本上降低產品製造成本的技術，然後將這些節省轉嫁給我們的客戶。因此，保持相同的利潤並將節省的成本轉嫁給與我們帶來的創新相關的客戶，例如 X、新光學器件、新流通池等。

And our next question comes from Jack Meehan with Nephron Research.

我們的下一個問題來自 Nephron Research 的 Jack Meehan。

I wanted to talk a little bit about the guide here for the fourth quarter. So I think for the year, the new consumables guide is flat by my math, and you can check me on this on earnings slide. I think that implies down 16% in the fourth quarter. Can you just talk us through what's going on there maybe between price and volume? And it just seems like given you're talking about it's kind of concentrate in 1 part of the customer base, it just feels like a big move.

我想在這裡談談第四季度的指南。因此，我認為今年的新消耗品指南與我的數學持平，您可以在收益幻燈片上查看我的信息。我認為這意味著第四季度下降了 16%。你能告訴我們價格和數量之間可能發生的事情嗎？就好像你在談論它集中在一部分客戶群中一樣，感覺就像一個大動作。

Yes. So overall, Jack, the -- for the full year, you're right, it's sequencing consumables tends to be -- is tending to be flat. Pricing actually is not impacted, right? This is mostly volume, although we track the price piece pretty carefully, and it is in line with what we have seen in previous quarters. I think the reasons for the volume reduction is what we have stated earlier, right? So there is a component of it. By the way, if you look at the revenues, there is a component of FX that has come through.

是的。所以總的來說，傑克，你是對的，全年，它的測序消耗品往往是 - 趨於持平。定價實際上沒有受到影響，對吧？這主要是數量，儘管我們非常仔細地跟踪價格，這與我們在前幾個季度看到的一致。我認為減少音量的原因是我們前面所說的，對吧？所以它有一個組成部分。順便說一句，如果你看一下收入，就會發現外彙的一部分已經通過。

And then in terms of the volumes, there is -- there are 2 components, right? So primarily on the -- there's an inventory deleveraging part, which we had, some of which most of it which called out earlier, and then there's some additional piece. And then the 2 specific pieces around large research customers and the recruitment delays and some slow down inflation-related and FX related that we have seen in Europe. So those continue to be the largest sources of a slowdown.

然後就數量而言，有 - 有兩個組件，對嗎？所以主要是 - 有一個庫存去槓桿化部分，我們有，其中一些大部分是早些時候調用的，然後還有一些額外的部分。然後是關於大型研究客戶和招聘延遲的兩個具體部分，以及我們在歐洲看到的與通脹相關和外匯相關的一些放緩。因此，這些仍然是經濟放緩的最大來源。

And then one of the things that Francis had mentioned as well is on the NovaSeq X side, right? The increased interest in NovaSeq has delayed some of the consumables purchases on NovaSeq X as well, right? So that is a component there.

然後弗朗西斯也提到的一件事是在 NovaSeq X 方面，對吧？對 NovaSeq 興趣的增加也推遲了 NovaSeq X 上的一些耗材購買，對吧？所以這是一個組件。

Thank you. And that does conclude our question-and-answer session. I will now hand the call back over to Sally Schwartz.

謝謝你。這確實結束了我們的問答環節。我現在將電話轉回給 Sally Schwartz。

Thank you for joining us today. As a reminder, a replay of this call will be available in the Investors section of our website. This concludes our call, and we look forward to our next update with you at the JPMorgan Healthcare Conference in January.

感謝您今天加入我們。提醒一下，本次電話會議的重播將在我們網站的“投資者”部分提供。我們的電話會議到此結束，我們期待在 1 月份的摩根大通醫療保健會議上與您進行下一次更新。

Thank you. And that does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝你。這確實結束了今天的會議。我們非常感謝您的參與。有一個美好的一天。