Illumina Inc (ILMN) 2023 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the First Quarter 2023 Illumina Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Salli Schwartz, Vice President of Investor Relations.

女士們先生們，美好的一天，歡迎來到 Illumina 2023 年第一季度收益電話會議。 （操作員說明）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 Salli Schwartz。

Hello, everyone, and welcome to our earnings call for the first quarter of 2023. 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 have not had the chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.

大家好，歡迎來到我們 2023 年第一季度的財報電話會議。在今天的電話會議中，我們將回顧市場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- 和回答會話。如果您還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 Financial Officer and Chief Strategy and Corporate Development 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, GRAIL must be held and operated separately and independently from Illumina pursuant to the interim measures ordered by the European Commission, which prohibited our acquisition of GRAIL under the EU merger regulation.

今天參加 Illumina 會議的有總裁兼首席執行官 Francis deSouza；首席財務官兼首席戰略和企業發展官 Joydeep Goswami。 Francis 將提供有關 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，根據歐盟委員會命令的臨時措施，GRAIL 必須與 Illumina 分開持有和運營，該臨時措施禁止我們根據歐盟合併法規收購 GRAIL。

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.

此通話正在錄音中，音頻部分將存檔在我們網站的“投資者”部分。我們打算在今天的電話會議中就我們的財務業績和商業活動作出的所有前瞻性陳述將受到 1995 年私人證券訴訟改革法案的保護。前瞻性陳述受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事件或結果存在重大差異。

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

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。為了更好地理解可能導致實際結果不同的風險和不確定性，我們建議您參閱 Illumina 向美國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。有了這個，我現在將電話轉給弗朗西斯。

Thank you, Salli. Good afternoon, everyone. Illumina delivered revenue of approximately $1.09 billion and diluted non-GAAP EPS of $0.08 in Q1 both ahead of the guidance we provided at the beginning of the year, but down year-over-year as expected. Joydeep will take you through more detail later in the call. Our focus for the rest of the year is to deliver sequential growth primarily by scaling the production and distribution of NovaSeq X, driving elasticity on the back of its increased capabilities and improving margins. We will share more on each.

謝謝你，莎莉。大家下午好。 Illumina 在第一季度實現了約 10.9 億美元的收入和 0.08 美元的攤薄後非 GAAP 每股收益，均高於我們年初提供的指引，但同比下降如預期。 Joydeep 將在稍後的通話中為您介紹更多細節。我們今年剩餘時間的重點是主要通過擴大 NovaSeq X 的生產和分銷來實現連續增長，在其增加的能力和提高利潤率的支持下推動彈性。我們將在每個方面分享更多。

We achieved key product milestones in Q1, including shipping the first NovaSeq X systems. We also launched Illumina Complete Long-Read technology and Illumina Connected Insights, a cloud-based tertiary analysis tool that addresses a key barrier to adoption and will enable more labs to perform comprehensive genomic profiling for advanced tumors.

我們在第一季度實現了關鍵的產品里程碑，包括交付了第一台 NovaSeq X 系統。我們還推出了 Illumina Complete Long-Read 技術和 Illumina Connected Insights，這是一種基於雲的三級分析工具，可解決採用的主要障礙，並將使更多實驗室能夠對晚期腫瘤進行全面的基因組分析。

Turning to our performance across platforms, beginning with high throughput. The NovaSeq X launch further strengthened Illumina's competitive position in high-throughput sequencing. The strong global interest for the NovaSeq X Series continued in Q1, and we exited the quarter with over 200 orders received for more than 30 countries. Clinical demand continued to be stronger than expected, generating approximately 40% of orders with some customers planning to leverage the NovaSeq X to launch new clinical offerings.

轉向我們的跨平台性能，從高吞吐量開始。 NovaSeq X 的推出進一步鞏固了 Illumina 在高通量測序領域的競爭地位。全球對 NovaSeq X 系列的濃厚興趣在第一季度持續存在，我們在本季度結束時收到了來自 30 多個國家/地區的 200 多份訂單。臨床需求繼續強於預期，產生了約 40% 的訂單，一些客戶計劃利用 NovaSeq X 推出新的臨床產品。

About 15% of orders are from new to high-throughput customers, like the clinical genomics lab that is leveraging NovaSeq X's ease of use and cost benefits to perform high-throughput whole genome, single cell and RNA sequencing. Our manufacturing capabilities for NovaSeq X instruments and consumables are scaling nicely. We shipped 67 NovaSeq X instruments in Q1, above initial expectations of 40 to 50 and now expect to deliver more than 330 NovaSeq X instruments this year, up from 300.

大約 15% 的訂單來自新客戶和高通量客戶，例如利用 NovaSeq X 的易用性和成本優勢執行高通量全基因組、單細胞和 RNA 測序的臨床基因組學實驗室。我們的 NovaSeq X 儀器和耗材的製造能力正在很好地擴展。我們在第一季度交付了 67 台 NovaSeq X 儀器，高於最初預期的 40 到 50 台，現在預計今年將交付超過 330 台 NovaSeq X 儀器，高於 300 台。

Customers' initial runs are showing robust data output and sequencing quality with some customers reporting outputs greater than 7 terabases and more than 95% of bases above Q30, well ahead of public specifications. As customers take delivery of their NovaSeq Xs and plan their deployments, they're sharing examples of how NovaSeq X will unlock demand elasticity in the sequencing market. Customers are planning to leverage the Xs greater output and lower price per sample to sequence more samples, perform more analyses per sample and obtain more data per analysis.

客戶的初始運行顯示出穩健的數據輸出和測序質量，一些客戶報告輸出大於 7 terabases，超過 95% 的鹼基高於 Q30，遠遠超過公開規格。當客戶收到他們的 NovaSeq X 併計劃他們的部署時，他們正在分享 NovaSeq X 如何釋放測序市場需求彈性的例子。客戶計劃利用 X 更高的產量和更低的每個樣本價格來對更多樣本進行測序，對每個樣本執行更多分析，並在每次分析中獲得更多數據。

For example, a leading European life science research institute will use NovaSeq X to scale up its data-intensive research programs, specifically in multiomics, spatial and single cell, enabling them to deliver Atlas scale projects. Within our clinical base, customers are using the greater output and cost savings of NovaSeq X to launch new sequencing-intensive offerings. Some customers are planning to move from targeted panels to exomes and genomes to achieve higher diagnostic yield and health care efficiency and oncology customers planning to use the X to launch liquid biopsy testing, which requires 12 to 15x more sequencing than solid tumor testing.

例如，一家領先的歐洲生命科學研究機構將使用 NovaSeq X 擴大其數據密集型研究項目，特別是在多組學、空間和單細胞方面，使他們能夠交付 Atlas 規模的項目。在我們的臨床基地，客戶正在利用 NovaSeq X 的更高產出和成本節約來推出新的測序密集型產品。一些客戶正計劃從靶向 panel 轉移到外顯子組和基因組，以實現更高的診斷率和醫療保健效率，腫瘤客戶計劃使用 X 啟動液體活檢測試，這需要比實體瘤測試多 12 到 15 倍的測序。

Some customers are using the cost and turnaround time benefits to enter deeper sequencing applications like minimal residual disease, or MRD, to build data sets at scale. We also saw continued demand for NovaSeq 6000 primarily for fleet expansions of existing workflows, and we shipped 17 NovaSeq 6000 in Q1. More than 80% of NovaSeq 6000 shipments were to clinical customers and approximately 25% of shipments to oncology testing.

一些客戶正在利用成本和周轉時間優勢進入更深層次的測序應用程序，例如最小殘留病 (MRD)，以大規模構建數據集。我們還看到對 NovaSeq 6000 的持續需求主要是為了現有工作流程的車隊擴展，我們在第一季度交付了 17 台 NovaSeq 6000。超過 80% 的 NovaSeq 6000 出貨量用於臨床客戶，約 25% 的出貨量用於腫瘤測試。

In mid-throughput, NextSeq 1000, 2000 unit shipments increased 6% year-over-year as customers expand their existing fleets or continue to shift projects from the MiSeq and NextSeq 550. More than 20% of NextSeq 1000, 2000 units in Q1 were placed with new to Illumina customers. Our win rate in the mid-throughput segment remains strong, but we're seeing some sales cycles lengthen.

在中等通量方面，NextSeq 1000、2000 單位出貨量同比增長 6%，因為客戶擴大了現有機隊或繼續從 MiSeq 和 NextSeq 550 轉移項目。第一季度超過 20% 的 NextSeq 1000、2000 單位是放置在新的 Illumina 客戶中。我們在中等吞吐量領域的獲勝率仍然很高，但我們看到一些銷售週期延長了。

Our low-throughput platforms continue to provide an entry point to sequencing. Approximately 30% of these shipments in the first quarter were to new to Illumina customers, further increasing our installed base and enabling adoption of sequencing across a broad customer network. Looking now at our clinical markets. Q1 marked an important milestone for Illumina with clinical sequencing consumables revenue, representing 50% of our total sequencing consumables revenue for the first time. In Q1, oncology testing consumables declined 3% year-over-year, but increased 21% sequentially, driven by growing clinical testing volumes and increased product development in areas like liquid biopsy and MRD.

我們的低通量平台繼續為測序提供切入點。第一季度這些出貨量中約有 30% 是 Illumina 客戶的新客戶，進一步增加了我們的安裝基礎，並使測序能夠在廣泛的客戶網絡中得到採用。現在看看我們的臨床市場。第一季度標誌著 Illumina 臨床測序耗材收入的一個重要里程碑，首次占我們測序耗材總收入的 50%。第一季度，腫瘤檢測耗材同比下降 3%，但環比增長 21%，這是受臨床檢測量不斷增長以及液體活檢和 MRD 等領域產品開發增加的推動。

Some customers in this segment are facing pressures to improve profitability, which may in turn slow down their ability to develop new tests and scale. Revenue from our market-leading TruSight Oncology assay, TSO 500, was greater than $25 million in the quarter, up 26% year-over-year across more than 540 accounts, driven by increased utilization and pull-through, particularly in Europe.

該細分市場中的一些客戶面臨著提高盈利能力的壓力，這可能反過來會減慢他們開發新測試和擴大規模的能力。我們市場領先的 TruSight 腫瘤學檢測 TSO 500 的收入在本季度超過 2500 萬美元，在 540 多個客戶中同比增長 26%，這主要得益於利用率和拉動性的提高，尤其是在歐洲。

In March, we announced the expansion of our partnership with Myriad Genetics to broaden access to homologous recombination deficiency, or HRD, testing. HRD is an important biomarker, identifying tumors with a specific type of DNA damage, like those in ovarian, breast, prostate and pancreatic cancers. Our TSO 500 HRD, a research use-only test, is now available in the U.S. with early customers like Florida Cancer Specialists & Research Institute, one of the largest independent medical oncology and hematological practices in the United States.

3 月，我們宣布擴大與 Myriad Genetics 的合作夥伴關係，以擴大對同源重組缺陷 (HRD) 檢測的訪問。 HRD 是一種重要的生物標誌物，可以識別具有特定類型 DNA 損傷的腫瘤，例如卵巢癌、乳腺癌、前列腺癌和胰腺癌。我們的 TSO 500 HRD 是一種僅供研究使用的測試，現已在美國上市，早期客戶包括美國最大的獨立醫學腫瘤學和血液學實踐之一佛羅里達癌症專家與研究所。

The expanded partnership also establishes a unique alliance to develop HRD as a companion diagnostic for novel agents targeting these tumors. There was significant progress for NGS-based oncology testing reimbursement this quarter in Europe, expanding the accessible market. 7 regions in Italy committed EUR 10 million for next-generation sequencing in lung cancer. In Germany, health insurers commenced reimbursement for whole genome sequencing in pediatric cancer patients with relapse. And in the Czech Republic, funding for comprehensive genomic profiling was added to the national fee schedule effective January 1.

擴大的合作夥伴關係還建立了一個獨特的聯盟，以開發 HRD 作為針對這些腫瘤的新型藥物的伴隨診斷。本季度歐洲基於 NGS 的腫瘤學檢測報銷取得了重大進展，擴大了可及市場。意大利的 7 個地區承諾投資 1000 萬歐元用於肺癌的下一代測序。在德國，健康保險公司開始對複發的兒童癌症患者進行全基因組測序報銷。在捷克共和國，從 1 月 1 日起，對全面基因組分析的資助被添加到國家收費表中。

Also in oncology, GRAIL saw accelerating demand in Q1 for its Galleri multi-cancer early detection blood test and delivered revenue of $20 million, exceeding plan and representing 100% growth year-over-year. GRAIL non-GAAP operating expenses increased to $173 million, driven primarily by investments in clinical trials and scaling GRAIL's commercial organization. Since launch, GRAIL has received more than 85,000 Galleri test orders, with about 20,000 delivered in Q1 alone.

同樣在腫瘤學領域，GRAIL 在第一季度看到對其 Galleri 多癌早期檢測血液檢測的需求加速增長，實現了 2000 萬美元的收入，超出計劃，同比增長 100%。 GRAIL 非 GAAP 運營費用增加至 1.73 億美元，主要受臨床試驗投資和擴大 GRAIL 商業組織的推動。自推出以來，GRAIL 已收到超過 85,000 個 Galleri 測試訂單，僅第一季度就交付了約 20,000 個。

The 140,000 participant NHS-Galleri trial, which completed enrollment in July 2022 in just over 10 months, is progressing well, with more than half of study participants having returned for their second annual blood draw. The trial recently achieved its halfway point and is currently on track to meet retention targets. GRAIL continued to expand its partner relationships. Following a successful pilot last year, John Hancock, one of the largest life insurance companies in the U.S. and a unit of Manulife, announced that it would expand access to Galleri to eligible life insurance customers.

140,000 名參與者參加的 NHS-Galleri 試驗僅用了 10 個多月就完成了 2022 年 7 月的招募，目前進展順利，超過一半的研究參與者已返回進行第二次年度抽血。該試驗最近達到了一半，目前有望實現保留目標。 GRAIL 繼續擴大其合作夥伴關係。繼去年的成功試點之後，美國最大的人壽保險公司之一、宏利旗下的約翰漢考克宣布，它將把 Galleri 的使用範圍擴大到符合條件的人壽保險客戶。

And Providence, a health system serving the Western U.S., expanded its partnership with GRAIL to offer Galleri to eligible individuals across its 52 hospitals and 900 clinics across 7 states. In reproductive health, consumable shipments declined 4% year-over-year, primarily due to FX, but increased 14% sequentially due to continued coverage progress. In the U.S., Virginia and Michigan initiated state Medicaid coverage for NIPT in all pregnancies, adding about 4.3 million additional covered lives and more than 70,000 pregnancies per year.

服務於美國西部的衛生系統普羅維登斯 (Providence) 擴大了與 GRAIL 的合作夥伴關係，為 7 個州的 52 家醫院和 900 家診所的合格個人提供 Galleri。在生殖健康方面，消耗品出貨量同比下降 4%，主要受匯率影響，但由於覆蓋範圍持續擴大，環比增長 14%。在美國，弗吉尼亞州和密歇根州啟動了針對所有妊娠 NIPT 的州醫療補助計劃，每年增加約 430 萬受保生命和超過 70,000 例妊娠。

Genetic disease testing, or GDT, had a record quarter. In Q1, GDT consumable shipments grew 7% year-over-year and 6% sequentially. Coverage continues to grow for whole genome sequencing in patients with rare and undiagnosed genetic diseases. During the quarter, one of the largest U.S. health insurance companies updated their policy to include managed Medicaid lives in 16 states, adding another approximately 3.8 million covered lives for whole genome sequencing. Also in GDT, earlier this month, we announced a partnership with Henry Ford Health, a health care organization in the Detroit metro area and a leading U.S. academic medical center, to assess how whole genome sequencing can improve cardiovascular disease management with a particular interest in diverse and underserved populations.

遺傳疾病檢測（GDT）創下了創紀錄的季度。第一季度，GDT 耗材出貨量同比增長 7%，環比增長 6%。對患有罕見和未確診遺傳病的患者進行全基因組測序的覆蓋範圍繼續擴大。在本季度，美國最大的健康保險公司之一更新了他們的政策，將 16 個州的託管醫療補助生命包括在內，另外增加了大約 380 萬生命的全基因組測序。同樣在本月早些時候，在 GDT，我們宣布與底特律都會區的一家醫療保健組織和美國領先的學術醫療中心 Henry Ford Health 建立合作夥伴關係，以評估全基因組測序如何改善心血管疾病管理，特別關注多樣化和服務不足的人群。

Turning to our research and applied markets. Sequencing consumables shipments were down 19% year-over-year, primarily due to the slowdown in COVID surveillance. Looking at the whole year, we are on track to deliver on our financial commitments for 2023 as well as some important releases in the coming quarters. Specifically, we will ship the ICLR-enrichment assay, an affordable high-throughput targeted Long-Reads solution in Q3, and SBS chemistry and NextSeq 1000, 2000 in the first half of 2024, delivering step change cost, speed and sustainability benefits on that platform.

轉向我們的研究和應用市場。測序耗材出貨量同比下降 19%，這主要是由於 COVID 監測放緩。縱觀全年，我們有望兌現 2023 年的財務承諾以及未來幾個季度的一些重要發布。具體來說，我們將在第三季度推出 ICLR 富集分析，這是一種經濟實惠的高通量靶向長讀長解決方案，並在 2024 年上半年推出 SBS 化學和 NextSeq 1000、2000，從而在成本、速度和可持續性方面帶來逐步改變的好處平台。

Finally, as we navigate through this dynamic environment, we are focused on delivering durable success for our shareholders through a balance of investing in breakthrough innovations for future growth, while delivering operating leverage through disciplined expense management across the organization. To that end, we announced earlier today our commitment to deliver Core Illumina non-GAAP operating margins of 25% in 2024 and 27% in 2025 while maintaining investment in the key elements of our innovation road map.

最後，當我們在這個充滿活力的環境中航行時，我們專注於通過平衡投資於突破性創新以實現未來增長，為我們的股東帶來持久的成功，同時通過整個組織的嚴格費用管理提供運營槓桿。為此，我們今天早些時候宣布，我們承諾在 2024 年和 2025 年實現 Core Illumina 非 GAAP 營業利潤率 25% 和 27%，同時保持對創新路線圖關鍵要素的投資。

Building on the cost reduction actions announced last November, we're taking additional steps to reduce our annualized run rate expenses by more than $100 million beginning later in 2023. This will accelerate progress towards higher margins as well as free up capital to increase investment in high-growth areas.

在去年 11 月宣布的成本削減行動的基礎上，我們正在採取額外措施，從 2023 年晚些時候開始將我們的年化運行費用減少超過 1 億美元。這將加快實現更高利潤率的進程，並釋放資本以增加對高增長領域。

I'll now turn the call over to Joydeep to discuss additional details on our results and outlook as well as provide more detail on the steps we are taking to deliver on the cost reduction I mentioned. Joydeep?

我現在將電話轉給 Joydeep，討論有關我們的結果和前景的更多細節，並提供更多關於我們為實現我提到的成本削減而採取的步驟的細節。歡樂谷？

Thank you, Francis. 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 2023. I will be discussing non-GAAP results, which includes stock-based compensation. I encourage you to review the GAAP reconciliation of these non-GAAP measures, which can be found in today's release and in supplementary data available on our website.

謝謝你，弗朗西斯。我將首先回顧我們的綜合財務業績，然後是 Core Illumina 和 GRAIL 的分部業績，然後對我們目前對 2023 年的展望進行補充評論。我將討論非 GAAP 業績，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 調節，這些可以在今天的新聞稿和我們網站上提供的補充數據中找到。

In the first quarter, consolidated revenue was $1.09 billion, up 1% from the fourth quarter of 2022, exceeding the high end of our guidance range on stronger-than-expected shipments of NovaSeq X. Consolidated revenue was down 11% year-over-year or down 9% on a constant currency basis, net of the effects of hedging. This was primarily driven by an expected year-over-year slowdown in COVID surveillance, COVID-related disruptions in China, the transition of some of our high-throughput customers to NovaSeq X and customers managing constrained capital markets globally.

第一季度，綜合收入為 10.9 億美元，比 2022 年第四季度增長 1%，超過了我們對 NovaSeq X 出貨量強於預期的指導範圍的上限。綜合收入同比下降 11%年或按固定匯率計算下降 9%，扣除對沖的影響。這主要是由於 COVID 監測的預期同比放緩、中國與 COVID 相關的中斷、我們的一些高通量客戶向 NovaSeq X 的過渡以及管理全球資本市場受限的客戶。

Non-GAAP net income was $13 million or $0.08 per diluted share, which included dilution from GRAIL's non-GAAP operating loss of $164 million for the quarter. Our non-GAAP tax rate was 27.3% for the quarter, which increased from 17.8% in Q1 2022, with both quarters reflecting the impact of R&D capitalization requirements. Although the non-GAAP tax expense impact of R&D capitalization requirements in dollar terms was the same in both periods, the impact to our effective tax rate in quarter 1 2023 was more significant due to our lower earnings.

非 GAAP 淨收入為 1300 萬美元或每股攤薄收益 0.08 美元，其中包括 GRAIL 本季度 1.64 億美元的非 GAAP 營業虧損的攤薄。我們本季度的非美國通用會計準則稅率為 27.3%，高於 2022 年第一季度的 17.8%，這兩個季度都反映了研發資本化要求的影響。儘管以美元計算的研發資本化要求對非 GAAP 稅收費用的影響在兩個時期是相同的，但由於我們的收益較低，對我們 2023 年第一季度有效稅率的影響更為顯著。

Our non-GAAP weighted average diluted share count for the quarter was approximately 158 million. Moving to segment results. Core Illumina revenue of $1.08 billion, was down 12% year-over-year, which included an anticipated headwind from COVID surveillance of approximately 400 basis points. COVID surveillance contributed approximately $11 million in total revenue in Q1 2023 compared to $60 million in Q1 2022, reflecting a $49 million headwind.

我們本季度的非 GAAP 加權平均攤薄股數約為 1.58 億股。移動到細分結果。 Core Illumina 的收入為 10.8 億美元，同比下降 12%，其中包括來自 COVID 監控的預期逆風約 400 個基點。 COVID 監控在 2023 年第一季度貢獻了約 1100 萬美元的總收入，而 2022 年第一季度為 6000 萬美元，反映出 4900 萬美元的逆風。

On a constant currency basis, Core Illumina revenue was down 10%, net of the effects of hedging. Core Illumina sequencing consumables revenue of $692 million, was up 1% sequentially, but down 12% year-over-year, which included an approximately 500 basis point headwind from COVID surveillance. In addition to the slowdown in COVID surveillance, the year-over-year decrease was primarily attributable to lower NovaSeq 6000 consumables pull-through due to headwinds I mentioned earlier.

在固定匯率基礎上，Core Illumina 的收入下降了 10%，扣除了對沖的影響。 Illumina 核心測序耗材收入為 6.92 億美元，環比增長 1%，但同比下降 12%，其中包括來自 COVID 監測的約 500 個基點逆風。除了 COVID 監測放緩外，同比下降主要是由於我之前提到的不利因素導致 NovaSeq 6000 耗材的通過率降低。

COVID-related disruptions in China, the transition of some of our high-throughput customers NovaSeq X and customers managing constrained capital markets globally. Total sequencing activity on our connected high- and mid-throughput instruments grew 6% from Q4 2022 and 3% year-over-year. Research and applied grew 7% from Q4 2022 and declined 4% year-over-year. Clinical sequencing activity growth remained robust, up 7% from Q4 2022 and 15% year-over-year.

中國與 COVID 相關的中斷、我們的一些高通量客戶 NovaSeq X 和管理全球受限資本市場的客戶的轉型。我們連接的高通量和中通量儀器的總測序活動比 2022 年第四季度增長了 6%，同比增長 3%。研究和應用比 2022 年第四季度增長 7%，同比下降 4%。臨床測序活動增長依然強勁，比 2022 年第四季度增長 7%，同比增長 15%。

As a reminder, we believe this data is a useful reference that shows the general activity trends across our installed base and is directionally correlated with revenue over time. Sequencing instruments revenue for Core Illumina of $154 million, declined 27% year-over-year, including a 300 basis point headwind from COVID surveillance. As expected, the year-over-year decrease was primarily driven by lower NovaSeq 6000 shipments compared to a record Q1 2022 and a decrease in mid-throughput shipments, due primarily to fewer NextSeq 550 placements in China.

提醒一下，我們認為這些數據是一個有用的參考，它顯示了我們安裝基礎的一般活動趨勢，並且隨著時間的推移與收入方向相關。 Core Illumina 的測序儀器收入為 1.54 億美元，同比下降 27%，其中包括來自 COVID 監控的 300 個基點逆風。正如預期的那樣，同比下降的主要原因是 NovaSeq 6000 出貨量低於創紀錄的 2022 年第一季度，以及中等通量出貨量下降，這主要是由於 NextSeq 550 在中國的投放量減少。

Stronger-than-expected shipments of NovaSeq X helped partially offset this impact, although we remain supply-constrained in the first year of launch. We continued to see strong demand for NextSeq 1K, 2K from new Illumina customers. Core Illumina sequencing service and other revenue of $119 million, was up 7% year-over-year, driven primarily by higher instrument service contract revenue on a growing installed base. Before moving to the regional results for Core Illumina, I'd like to highlight that we have implemented a new global commercial structure to improve operating efficiencies and better align with local markets.

NovaSeq X 強於預期的出貨量幫助部分抵消了這一影響，儘管我們在推出的第一年仍然受到供應限制。我們繼續看到新的 Illumina 客戶對 NextSeq 1K、2K 的強勁需求。核心 Illumina 測序服務和其他收入為 1.19 億美元，同比增長 7%，這主要是由於安裝基礎不斷增長導致儀器服務合同收入增加。在談到 Core Illumina 的地區業績之前，我想強調一下，我們已經實施了一個新的全球商業結構，以提高運營效率並更好地與當地市場保持一致。

We've integrated APJ with emerging markets across Middle East, Africa, Turkey and CIS. Going forward, we'll report regional results for the following regions: Americas, Europe, Greater China and EMEA or Asia Pacific, Middle East and Africa. Americas revenue of $605 million, grew 5% sequentially from Q4 2022 and exceeded our expectations due to stronger-than-anticipated NovaSeq X shipments. Revenue for the region was down 6% year-over-year, due to the expected decline in research driven by the slowdown in COVID surveillance and delayed recruitment for some large research projects.

我們已將 APJ 與中東、非洲、土耳其和獨聯體的新興市場整合在一起。展望未來，我們將報告以下地區的地區結果：美洲、歐洲、大中華區和 EMEA 或亞太地區、中東和非洲。美洲收入為 6.05 億美元，比 2022 年第四季度環比增長 5%，由於 NovaSeq X 出貨量強於預期，超出了我們的預期。該地區的收入同比下降 6%，這是由於 COVID 監測放緩和一些大型研究項目的招募延遲導致的研究預期下降。

We continue to see strong demand for NextSeq 1K, 2K in the Americas, with instrument shipments up over 20% year-over-year. Europe revenue of $261 million represented a 9% decrease year-over-year or a 4% decrease on a constant currency basis, net of the effects of hedges. Growth in clinical, led by oncology testing, was more than offset by the expected decline in COVID surveillance revenue as well as lower high-throughput instrument shipments due to supply constraints on NovaSeq X in the first quarter.

我們繼續看到美洲對 NextSeq 1K、2K 的強勁需求，儀器出貨量同比增長超過 20%。歐洲收入為 2.61 億美元，同比下降 9%，或按固定匯率計算下降 4%，扣除對沖的影響。由腫瘤學測試帶動的臨床增長被 COVID 監測收入的預期下降以及第一季度 NovaSeq X 供應限制導致的高通量儀器出貨量下降所抵消。

Greater China revenue of $91 million represented a 28% decrease year-over-year or a 23% decrease on a constant currency basis, net of the effect of hedges. The year-over-year decline was primarily driven by persistent COVID disruptions and liquidity and funding constraints at our customers. This resulted in lower sequencing consumables revenue and a decrease in mid-throughput shipments compared to last year. We will continue to closely monitor and mitigate market headwinds in China through the rest of the year.

大中華區收入為 9,100 萬美元，同比下降 28%，或按固定匯率計算下降 23%（扣除對沖影響）。同比下降的主要原因是持續的 COVID 中斷以及我們客戶的流動性和資金限制。與去年相比，這導致測序耗材收入減少，中等通量出貨量減少。在今年餘下的時間裡，我們將繼續密切監測和緩解中國市場的逆風。

Finally, EMEA revenue of $119 million, declined 27% year-over-year or 23% on a constant currency basis, net of the effects of hedges. As expected, the year-over-year decline was primarily caused by the completion of a large research project in Japan, lower COVID surveillance revenue and a decrease in NovaSeq 6000 instrument shipments, only partially offset by NovaSeq X shipments as demand in the region outpaced supply.

最後，EMEA 收入為 1.19 億美元，同比下降 27%，按固定匯率計算下降 23%，扣除對沖的影響。正如預期的那樣，同比下降的主要原因是日本的一個大型研究項目的完成、COVID 監測收入的減少以及 NovaSeq 6000 儀器出貨量的減少，但由於該地區的需求超過了 NovaSeq X 出貨量，只能部分抵消供應。

EMEA revenue was also impacted by sanctions affecting our ability to conduct business in Russia. We expect the impact of sanctions to persist through 2023 and have reflected approximately $60 million in lower sequencing consumables revenue expectations for the region and our outlook for 2023.

EMEA 收入也受到影響我們在俄羅斯開展業務的能力的製裁的影響。我們預計製裁的影響將持續到 2023 年，並反映出該地區測序耗材收入預期下降約 6000 萬美元，以及我們對 2023 年的展望。

Moving to the rest of Core Illumina P&L. Core Illumina non-GAAP gross margin of 65.2%, decreased 500 basis points year-over-year, primarily driven by a less fixed cost leverage in our lower manufacturing volumes and lower instrument margins due to NovaSeq X launch, which is typical with a new platform introduction. We expect gross margins to improve sequentially through the year as we scale NovaSeq X manufacturing and continue to drive operating efficiencies.

轉到 Core Illumina P&L 的其餘部分。 Core Illumina 非 GAAP 毛利率為 65.2%，同比下降 500 個基點，這主要是由於 NovaSeq X 的推出導致我們較低的製造量和較低的儀器利潤率導致固定成本槓桿減少，這是典型的新產品平台介紹。隨著我們擴大 NovaSeq X 的製造規模並繼續提高運營效率，我們預計毛利率將在今年連續提高。

Core Illumina non-GAAP operating expenses of $514 million were up $9 million year-over-year, primarily due to the full year impact of our headcount growth in 2022. Non-GAAP operating expenses were lower than expected as a result of cost containment initiatives. Transitioning to the financial results for GRAIL. GRAIL revenue of $20 million for the quarter, grew 100% year-over-year, driven primarily by accelerating adoption of Galleri.

核心 Illumina 非 GAAP 運營費用為 5.14 億美元，同比增長 900 萬美元，這主要是由於 2022 年員工人數增長對全年的影響。由於成本控制計劃，非 GAAP 運營費用低於預期.過渡到 GRAIL 的財務結果。 GRAIL 本季度的收入為 2000 萬美元，同比增長 100%，這主要是由於加速採用 Galleri。

As expected, GRAIL revenue decreased sequentially due to a milestone payment in Q4 2022 related to MRD pharma partnerships. GRAIL non-GAAP operating expenses totaled $173 million and increased $34 million year-over-year, driven primarily by continued investments in clinical trials and a scaled GRAIL's commercial organization.

正如預期的那樣，由於 2022 年第四季度與 MRD 製藥合作夥伴關係的里程碑付款，GRAIL 收入連續下降。 GRAIL 非 GAAP 運營費用總計 1.73 億美元，同比增加 3400 萬美元，這主要是由於對臨床試驗的持續投資和規模化的 GRAIL 商業組織。

Moving to consolidated cash flow and balance sheet items. Cash flow provided by operations was $10 million. First quarter 2023 capital expenditures were $52 million, and free cash flow was negative $42 million. We did not repurchase any common stock in the quarter. We ended the quarter with approximately $1.5 billion in cash, cash equivalents and short-term investments. During the first quarter, we used $500 million to repay the outstanding principal of our 2023 term notes that matured in March.

轉向合併現金流量和資產負債表項目。運營提供的現金流量為 1000 萬美元。 2023 年第一季度資本支出為 5200 萬美元，自由現金流為負 4200 萬美元。本季度我們沒有回購任何普通股。本季度結束時，我們擁有約 15 億美元的現金、現金等價物和短期投資。在第一季度，我們用 5 億美元償還了 3 月份到期的 2023 年定期票據的未償還本金。

Moving now to 2023 guidance. We still expect full year 2023 consolidated revenue to grow 7% to 10%, including Core Illumina revenue growth of 6% to 9%. As a reminder, these ranges included an anticipated headwind from COVID surveillance of approximately 200 basis points as well as a year-over-year headwind from foreign exchange rates.

現在轉到 2023 年指南。我們仍然預計 2023 年全年綜合收入將增長 7% 至 10%，其中 Core Illumina 收入增長 6% 至 9%。提醒一下，這些範圍包括來自 COVID 監測的預期逆風約 200 個基點以及來自外匯匯率的同比逆風。

GRAIL revenue is still expected to be in the range of $90 million to $110 million for 2023. Our revenue outlook for 2023 now reflects the following offsetting factors: One, lower revenue in EMEA due to the impact of sanctions affecting our ability to conduct business in Russia; two, an increase in our NovaSeq X shipment expectations to more than 330 instruments; and three, higher contributions from our strategic partnerships related to drug discovery.

預計 2023 年 GRAIL 收入仍將在 9000 萬至 1.1 億美元之間。我們對 2023 年的收入展望現在反映了以下抵消因素：一，由於製裁影響我們在俄羅斯;第二，將我們的 NovaSeq X 出貨量預期增加到 330 多台儀器；第三，我們與藥物發現相關的戰略合作夥伴關係的貢獻更大。

As we have previously stated, we expect quarterly Core Illumina revenue to ramp sequentially through 2023 with linearity trends similar to 2017 when we launched the NovaSeq 6000, where we delivered approximately 54% of our total revenue in the second half of the year, including approximately 26% in Q3 and the remainder in Q4. Our revenue ramp for 2023 reflects the following assumptions: One, a quarterly ramp in NovaSeq X shipments as the manufacturing capacity improves each quarter; two, sequencing consumables revenue increases as NovaSeq X customers kick off projects in the second half of 2023; and three, certain macroeconomic headwinds lessened in the second half of 2023, including a recovery from COVID disruptions in China.

正如我們之前所說，我們預計 Core Illumina 的季度收入將在 2023 年之前連續增長，其線性趨勢類似於我們推出 NovaSeq 6000 時的 2017 年，我們在下半年交付了約 54% 的總收入，包括約第三季度為 26%，其餘為第四季度。我們 2023 年的收入增長反映了以下假設：第一，隨著製造能力每個季度的提高，NovaSeq X 出貨量每季度增長；第二，隨著 NovaSeq X 客戶在 2023 年下半年啟動項目，測序耗材收入增加；第三，某些宏觀經濟逆風在 2023 年下半年減弱，包括中國從 COVID 破壞中復蘇。

For fiscal 2023 at the midpoint of our revenue guidance, we now expect Core Illumina sequencing instrument revenue growth of approximately 13% year-over-year, reflecting our higher NovaSeq X shipment expectations. We now expect Core Illumina sequencing consumables revenue growth of approximately 5.5% year-over-year, driven predominantly by our lower revenue outlook for EMEA due to the impact of sanctions affecting our ability to conduct business in Russia.

對於我們收入指引中點的 2023 財年，我們現在預計 Core Illumina 測序儀器收入同比增長約 13%，反映出我們更高的 NovaSeq X 出貨預期。我們現在預計 Core Illumina 測序耗材收入同比增長約 5.5%，這主要是由於製裁影響了我們在俄羅斯開展業務的影響，導致我們對 EMEA 的收入前景較低。

We continue to expect Core Illumina sequencing revenue to grow approximately 8% year-over-year. This now includes a higher contribution from sequencing service and other revenue, primarily due to higher contributions from strategic pharma partnerships. We continue to expect non-GAAP earnings per diluted share in the range of $1.25 to $1.50 for 2023, including a consolidated non-GAAP operating margin of approximately 8% and Core Illumina non-GAAP operating margin of approximately 22%.

我們繼續預計 Core Illumina 測序收入將同比增長約 8%。這現在包括來自測序服務和其他收入的更高貢獻，這主要是由於戰略製藥合作夥伴的貢獻更高。我們繼續預計 2023 年非 GAAP 每股攤薄收益在 1.25 美元至 1.50 美元之間，包括約 8% 的合併非 GAAP 營業利潤率和約 22% 的 Core Illumina 非 GAAP 營業利潤率。

We are reaffirming all other financial guidance for fiscal 2023 that we provided on February 7, 2023. Moving to the second quarter of 2023. We expect consolidated revenue in the range of $1.15 billion to $1.17 billion for Q2 2023, reflecting a sequential increase of approximately 670 basis points from Q1 2023 at the midpoint or approximately $70 million, primarily driven by a sequential increase in NovaSeq X instrument shipments as manufacturing capacity continues to ramp, continued sequential growth in sequencing consumables and service revenue as new instruments continue to come online, a sequential increase in GRAIL revenue driven by accelerating Galleri adoption, partially offset by a sequential decrease in microarrays revenue due to historical seasonality.

我們重申我們在 2023 年 2 月 7 日提供的 2023 財年的所有其他財務指導。轉到 2023 年第二季度。我們預計 2023 年第二季度的合併收入將在 11.5 億美元至 11.7 億美元之間，反映了大約連續增長從 2023 年第一季度的中點算起 670 個基點或約 7000 萬美元，這主要是由於隨著製造能力的不斷提高，NovaSeq X 儀器出貨量的連續增長，隨著新儀器不斷上線，測序耗材和服務收入的持續連續增長，a由於 Galleri 的加速採用，GRAIL 收入連續增長，部分被由於歷史季節性導致的微陣列收入連續減少所抵消。

For the second quarter, at the midpoint of our revenue guidance range, we expect non-GAAP diluted EPS of approximately $0.01, reflecting consolidated non-GAAP operating margin of approximately 1% and Core Illumina non-GAAP operating margin of approximately 17%. These margins reflect a sequential increase in Core Illumina operating expenses driven by an increase in compensation-related expense due to our typical annual equity grant and merit adjustment in March.

對於第二季度，在我們收入指導範圍的中點，我們預計非 GAAP 攤薄後每股收益約為 0.01 美元，反映出綜合非 GAAP 營業利潤率約為 1%，Core Illumina 非 GAAP 營業利潤率約為 17%。這些利潤率反映了 Core Illumina 運營費用的連續增加，這是由於我們在 3 月份典型的年度股權授予和績效調整導致與薪酬相關的費用增加所致。

We continue to expect operating margins to improve in the second half of 2023 as revenue ramps and we scale our production of NovaSeq X and leverage the fixed cost of the manufacturing base. Looking forward, we are committing to achieve Core Illumina non-GAAP operating margins of 25% in 2024 and 27% in 2025. Illumina will reduce its annualized run rate expenses by more than $100 million, beginning later in 2023. These cost savings will accelerate progress towards higher margins as well as free up capital to increase investment in high-growth areas.

我們繼續預計，隨著收入的增加以及我們擴大 NovaSeq X 的生產規模並利用製造基地的固定成本，2023 年下半年的營業利潤率將有所提高。展望未來，我們承諾在 2024 年和 2025 年實現核心 Illumina 非 GAAP 營業利潤率 25% 和 27%。Illumina 將從 2023 年晚些時候開始將其年化運行費用減少超過 1 億美元。這些成本節約將加速在提高利潤率方面取得進展，並釋放資本以增加對高增長領域的投資。

Illumina will achieve these savings through a combination of several actions. We will leverage the recent modularization of R&D innovation created as part of the NovaSeq X development, including XLEAP-SBS and new flow cell technology to lower the cost and accelerate time to market for future platforms. We will achieve additional savings through leveraging our global footprint, enabling activities at more cost-effective hubs.

Illumina 將通過多項行動的組合來實現這些節省。我們將利用最近作為 NovaSeq X 開發的一部分創建的研發創新模塊化，包括 XLEAP-SBS 和新的流動槽技術，以降低成本並加快未來平台的上市時間。我們將通過利用我們的全球足跡，在更具成本效益的樞紐開展活動，實現額外的節省。

We are also streamlining our organization and processes, including rationalization of the company's global real estate portfolio and third-party vendor spend as well as accelerating IT optimization efforts. The company will continue to prioritize innovations that generate highly differentiated products that are valued by Illumina's customers.

我們還在精簡我們的組織和流程，包括公司全球房地產投資組合和第三方供應商支出的合理化，以及加快 IT 優化工作。該公司將繼續優先考慮能夠產生高度差異化產品的創新，這些產品受到 Illumina 客戶的重視。

I will now invite the operator to open the line for Q&A. Thank you.

我現在請接線員開通Q&A線路。謝謝。

(Operator Instructions) And our first question will come from Puneet Souda with SVB Securities.

（操作員說明）我們的第一個問題將來自 SVB 證券公司的 Puneet Souda。

So first one on the order book. It's good to see the increase there, but just wanted to get your expectations in terms of the overall funnel you're seeing. Could that 330 number continue to increase as you go through the year? And could you just help us understand your ability to ramp the production deliver through the year? What sort of cadence should we be assuming per quarter in terms of installs?

所以第一個在訂單簿上。很高興看到那裡有所增加，但只是想了解您對所看到的整體漏斗的期望。隨著這一年的過去，這個 330 的數字會繼續增加嗎？您能否幫助我們了解您提高全年產量的能力？就安裝而言，我們應該假設每個季度採用哪種節奏？

And then if I may ask on sort of a GRAIL question, more operational and execution questions. I mean historically, the product cycle at Illumina has taken preference above everything, but there are just a number of distractions in terms of legal front with European Commission FTC and now you have an activist campaign as well.

然後，如果我可以問一些 GRAIL 問題，更多的操作和執行問題。我的意思是，從歷史上看，Illumina 的產品週期優先於一切，但在歐盟委員會 FTC 的法律前沿方面只有一些干擾，現在你也有激進的運動。

So wondering if any of that risks the product cycle and the execution that you have here? Or how separate are these efforts? I appreciate the responses on those.

所以想知道是否有任何風險會影響您在這裡的產品週期和執行？或者這些努力有多獨立？我感謝對這些的回應。

And then if I could ask also about biotech funding. There have been questions around that from a peer today. Just wondering if you're seeing impact from any of the emerging biotechs? And is that contemplated into your guide?

然後我是否還可以詢問有關生物技術資金的問題。今天有一位同行對此提出了疑問。只是想知道您是否看到任何新興生物技術的影響？您的指南中是否考慮到了這一點？

Great. Thanks, Puneet. You had a few questions there. So let me work our way through it. So first question was around the X and the order book of the X and the pipeline that we're seeing for the X. And your question was, well, 330, could it actually go up? And I think, here, the reality is that 330 is going to be more manufacturing bound than demand bound. I think it's the feeling we're getting right now that there's a huge amount of interest on in getting the customers' hands on the X across our customer base. As you know, we always expected research customers to be among the most aggressive early adopters, and we thought clinical would lag a little bit, but we're not seeing that this time. We're seeing strong demand from clinical customers too as they are looking to launch new offerings on the X and expand into more sequencing-intensive offerings.

偉大的。謝謝，普尼特。你在那裡有幾個問題。因此，讓我努力完成它。所以第一個問題是圍繞 X 和 X 的訂單簿以及我們為 X 看到的管道。你的問題是，330，它真的可以上升嗎？而且我認為，在這裡，現實是 330 將更多地受製造約束而不是需求約束。我認為這是我們現在的感覺，即我們的客戶群對讓客戶接觸 X 非常感興趣。如您所知，我們一直期望研究客戶成為最積極的早期採用者，我們認為臨床會有點滯後，但這次我們沒有看到。我們也看到臨床客戶的強烈需求，因為他們希望在 X 上推出新產品並擴展到更多的測序密集型產品。

And you heard also that we're seeing strong demand from new to Illumina, new to high-throughput customers. And so our expectation is that we'll continue to sort of build the demand and will be a little bit gated by how many Xs we can ship out the door over the course of this year. We were very encouraged by the scaling up of our manufacturing and operations teams in Q1.

你還聽說我們看到 Illumina 的新客戶、高通量客戶的強勁需求。因此，我們的期望是，我們將繼續建立需求，並且會受到今年我們可以出貨多少 X 的限制。我們對第一季度製造和運營團隊的擴大感到非常鼓舞。

And as you saw, we were able to ship 67 instruments, comfortably ahead of the guide we had of 40 to 50 instruments in Q1. So manufacturing is scaling, I see the teams are doing a terrific job. We are scaling that up to 80 in Q2. And so a nice little step up from Q1. And we'll take sort of gradual steps over the course of the year to get us to that 330. And so -- to the extent that we're able to scale manufacturing better than that, we'll certainly update -- keep you guys updated.

正如您所見，我們能夠出貨 67 台儀器，輕鬆領先於第一季度 40 到 50 台儀器的指南。所以製造業正在擴大規模，我看到團隊做得很好。我們將在第二季度將其擴展到 80 個。因此，從第一季度開始，這是一個不錯的小進步。我們將在這一年中採取一些漸進的步驟，使我們達到 330。因此——如果我們能夠比這更好地擴大製造規模，我們肯定會更新——讓你伙計們更新了。

In terms of -- there's a lot going on, as you said. Obviously, all eyes are on the X for us. The story of this year is the X, and this is Illumina doing what we love to do, what we do best, launching a high-throughput instrument. And so while it seems like there's a lot going on in terms of the regulatory process and so on, the reality is it's a very small part of the company that's actually involved in that. And the vast, vast, vast majority of our time and attention at Illumina is spent on and getting our products out and really most of the focus is on the X right now.

正如您所說，就 — 發生了很多事情。顯然，所有的目光都集中在我們的 X 上。今年的故事是 X，這是 Illumina 做我們喜歡做的事情，我們最擅長的事情，推出高通量儀器。因此，雖然在監管流程等方面似乎發生了很多事情，但實際上只有公司的一小部分真正參與其中。我們在 Illumina 的大部分時間和注意力都花在了推出我們的產品上，實際上大部分注意力現在都在 X 上。

The other question -- sorry, you had a question, one last piece. So I just remind you, do you have a question about biotech funding. From our perspective, our direct exposure to small- and mid-cap biotech funding companies is very small. And so we don't expect that to have any kind of material impact on our revenue over the course of this year.

另一個問題-- 抱歉，你有一個問題，最後一個問題。所以我只是提醒你，你對生物技術資金有疑問嗎？從我們的角度來看，我們對中小型生物技術投資公司的直接敞口非常小。因此，我們預計這不會對我們今年的收入產生任何實質性影響。

And our next question will come from Dan Brennan with TD Cowen.

我們的下一個問題將來自 Dan Brennan 和 TD Cowen。

Congrats on the strong start to the year. Maybe on the X., could you give a little color on the idea of the replacement ratio, just early on from the order book thus far? How is that shaping up in terms of existing NovaSeq customers in terms of ordering the X? Kind of related to that, another question we get frequently is the X dramatically expands capacity. So just wondering, early on, obviously, we're going to see what the volume looks like as we get through this year, next year, but kind of how are you viewing kind of customers as they look to buy the X and fill it? Are they having any -- is that a gating factor? It doesn't appear to be.

祝賀今年開局強勁。也許在 X. 上，您能否就更換率的想法給出一點顏色，就在到目前為止的訂單簿的早期？就訂購 X 而言，現有 NovaSeq 客戶的情況如何？與此相關的是，我們經常遇到的另一個問題是 X 顯著擴展了容量。所以只是想知道，在早期，很明顯，我們將看到我們今年、明年的銷量如何，但是當他們希望購買 X 並填充它時，你是如何看待這種客戶的？ ？他們有任何——這是一個門控因素嗎？它似乎不是。

And then the final one, just on GRAIL, Francis. How should we think -- you've got 3 different regulatory decisions pending and you're in the middle of those with the EU directive coming likely soon. What's the most likely outcome in your mind for GRAIL that investors should be anticipating and kind of when will we get clarity on that?

然後是最後一個，就在 GRAIL 上，Francis。我們應該怎麼想——你有 3 個不同的監管決定懸而未決，你正處於歐盟指令可能很快出台的中間。在您看來，對於 GRAIL，投資者應該預期的最有可能的結果是什麼？我們什麼時候才能弄清楚這一點？

Great. Thank you, Dan, for the question. So let's start with the X. Yes, a very strong start to the year. We're really excited about that. And we spent a lot of time modeling what to expect in terms of the number of Xs that could be absorbed by the market over the next few years. And there are a number of ways to think about it, right? One is to take the static view today and say, okay, if we just have a conversion from an upgrade cycle from the 6000 to Dx, what could that mean?

偉大的。謝謝你，丹，提出這個問題。那麼讓我們從 X 開始吧。是的，今年的開局非常強勁。我們對此感到非常興奮。我們花了很多時間根據未來幾年市場可能吸收的 X 數量對預期結果進行建模。有很多方法可以考慮它，對嗎？一是從今天的靜態觀點來看，好吧，如果我們只是從 6000 到 Dx 的升級週期進行轉換，那意味著什麼？

Now you have to add to that the number of customers that are coming into the X as new to Illumina and new to high-throughput. But let me start with that and just again, assuming, and I'll come to elasticity in a moment, but let's put elasticity side for a moment. And so you may remember, we went through this discussion also with the 6000 to say, well, how should you think about the upgrade cycle and how many units it would take to satisfy the upgrade cycle?

現在，您還必須加上作為 Illumina 新手和高通量新手進入 X 的客戶數量。但是讓我從那開始，再假設一下，我馬上就會談到彈性，但讓我們暫時把彈性放在一邊。所以你可能還記得，我們也對 6000 進行了討論，說，你應該如何考慮升級週期以及滿足升級週期需要多少個單元？

And there's a couple of ways you could do it. You could start with capacity back and think about what the ratio is for each X, how many 6000s are you replacing? But really, we think the better way to think about it is to go customer out. And what I mean by that is we have roughly maybe 1,000 customers that are high-throughput customers of ours, about 750 of them have only one 6000. And so for those 750, you [can] buy less than a single X.

有幾種方法可以做到。您可以從容量開始，考慮每個 X 的比率是多少，您要更換多少個 6000？但實際上，我們認為更好的思考方式是讓客戶退出。我的意思是，我們大約有 1,000 個客戶是我們的高吞吐量客戶，其中大約 750 個只有一個 6000。因此對於這 750 個，您 [可以] 購買不到一個 X。

And so you can think about those 750 needing to purchase an X. And so again, even if their demand for sequencing doesn't expand beyond today, which, of course, it will, and we will tap into elasticity, you can see that they'll require 750 right off the bat to serve that customer base. And then the 250 that have multiple 6000s will apply their own sort of conversion ratio.

所以你可以考慮那些需要購買 X 的 750 人。再一次，即使他們對測序的需求不會擴展到今天之後，當然，它會，我們將利用彈性，你可以看到他們將立即需要 750 台來為該客戶群提供服務。然後具有多個 6000 的 250 將應用他們自己的轉換率。

And then, of course, the elasticity we're tapping into, right? And as we shared on the call, the majority of the customers that are purchasing the X, are purchasing the X because they want to tap into the elasticity associated with the lower price per sequencing. And so the clinical customers are talking about new applications that they want to get into that are fundamentally enabled by the lower price for sequencing. It's the solid tumor oncology testing customer that's now looking to get into liquid biopsy and knowing that they can access -- it takes 12 to 15x more sequencing, but they can access the price point of the X to enable to do that under the reimbursement limits they have.

然後，當然，我們正在利用彈性，對吧？正如我們在電話中分享的那樣，購買 X 的大多數客戶之所以購買 X，是因為他們希望利用與每次測序較低價格相關的彈性。因此，臨床客戶正在談論他們想要進入的新應用程序，這些應用程序從根本上是由較低的測序價格實現的。實體瘤腫瘤學測試客戶現在希望進入液體活檢，並且知道他們可以訪問——需要 12 到 15 倍的測序，但他們可以獲得 X 的價格點，以便在報銷限額內做到這一點他們有。

It's the customers that are looking to do the larger research experiments around single cell or spatial. And so that will be on top of the base case of the numbers I just talked about with people just straight up upgrading. In terms of the GRAIL regulatory process, so there -- the way we're thinking about it is that the whole process comes to a head towards the end of this year, the beginning of next year because we expect to get decisions around the 2 most important appeals in that time frame.

客戶希望圍繞單細胞或空間進行更大規模的研究實驗。因此，這將在我剛剛與直接升級的人們談論的數字的基本情況之上。就 GRAIL 監管流程而言，我們正在考慮的方式是，整個流程將在今年年底、明年年初達到頂峰，因為我們希望在 2那個時間段內最重要的呼籲。

In Europe, we expect to get a decision around the jurisdiction appeal in that time frame. And in the U.S., you might have seen that in the last week, we got granted expedited review by the U.S. Fifth Circuit Court of Appeals for our appeal against the FTC. And so that gives us even more confidence that the decision will come even maybe a little earlier than had been initially anticipated, but certainly in the time frame of later this year or early next year.

在歐洲，我們希望在那個時間範圍內就管轄權上訴做出決定。在美國，你可能已經看到，在上週，我們獲得了美國第五巡迴上訴法院對我們針對 FTC 的上訴的加速審查。因此，這讓我們更有信心做出決定，甚至可能比最初預期的要早一點，但肯定會在今年晚些時候或明年初的時間框架內做出。

And so our expectation is that the whole sort of legal process winds up in that time frame. Overall, at the same time, we are -- we've got a divestiture work stream that we started a while ago, that work stream is all set to continue marching down the divestiture path. We're waiting for the divestiture order from the European Commission, which we expect to come out shortly. And so that path will be run in parallel in the same time frame as the appeals are happening.

因此，我們的期望是整個法律程序在那個時間範圍內結束。總的來說，與此同時，我們 - 我們有一個我們前一段時間開始的剝離工作流，該工作流都準備繼續沿著剝離路徑前進。我們正在等待歐盟委員會的資產剝離令，我們預計很快就會出台。因此，該路徑將在上訴發生的同一時間範圍內並行運行。

Francis, I'll just add to your elasticity comment on clinical, right? So it's -- you're absolutely right. These are new applications. Typically, these are fairly complex signatures that require high levels of sequencing. And Illumina, because it's a supplier of tools and reagents, starts making money as those clinical trials kick off even before the tests are available in the public market, right? So our elasticity actually begins even before the test reaches the market.

弗朗西斯，我只是補充一下你對臨床的彈性評論，對吧？所以它 - 你是絕對正確的。這些是新的應用程序。通常，這些是需要高度排序的相當複雜的簽名。而 Illumina，因為它是工具和試劑的供應商，甚至在公開市場上提供測試之前就開始賺錢，因為這些臨床試驗已經開始了，對吧？所以我們的彈性實際上甚至在測試到達市場之前就開始了。

And our next question comes from Dan Arias with Stifel.

我們的下一個問題來自 Stifel 的 Dan Arias。

Can I just follow up on the comments there on elasticity? I mean, is that something you expect to materialize meaningfully in the back half of the year just in the sense that it can contribute to consumables growth for the year? I know in January, when you gave the outlook, one of the explicit drivers of the 8% consumables growth was elasticity. So just trying to understand where things sit when it comes time to think about installation timing and ramping on usage that allows you to actually see that in the second half of the year and that you can count on it contributing to the overall target for the year?

我可以跟進那里關於彈性的評論嗎？我的意思是，你是否希望在今年下半年有意義地實現這一點，因為它可以為今年的消費品增長做出貢獻？我知道在 1 月份，當你給出前景時，8% 消費品增長的一個明確驅動因素是彈性。因此，當需要考慮安裝時間和使用量的增加時，只需嘗試了解事情的進展情況，就可以讓您在下半年真正看到這一點，並且您可以指望它為今年的總體目標做出貢獻？

Yes, Dan, that's exactly right. As we had stated, right, we expect the installations and the initial work that customers do to bring up their workflows to happen as we get into Q2 and Q3. And in Q4, we started to see some of these projects ramp up and customers to build inventory and start earnestly moving to the excess their workflows platform.

是的，丹，完全正確。正如我們所說的那樣，我們希望客戶在進入第二季度和第三季度時進行安裝和初始工作以啟動他們的工作流程。在第 4 季度，我們開始看到其中一些項目開始增加，客戶開始建立庫存並開始認真地轉向過剩的工作流程平台。

And moving on to our next -- I'm sorry, go ahead.

繼續我們的下一個 -- 對不起，請繼續。

No, that's good. I think the question was about the excess, hopefully, that answers that.

不，那很好。我認為這個問題是關於過度的，希望能回答這個問題。

Our next question will come from Vijay Kumar with Evercore ISI.

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

I had a couple on the guidance here. Joydeep, where -- I guess, can you quantify this Russia headwind, which is incremental? And then related to guidance, gross margins were down sequentially. We're looking at sub-65. Can you talk about what changed sequentially from the Q4 number of 66 and change? It's down a couple of hundred basis points. And when you look at the operating margin guidance for 2Q with first half being at 17%, I think the back half, you need to hit 26%, 27% for Core Illumina to hit the annual guide, what drives that 17% step up to like 27% in the back half?

我在這裡有幾個指導。 Joydeep，我想，你能量化俄羅斯的逆風嗎，這是漸進的？然後與指導相關，毛利率連續下降。我們正在研究 65 歲以下的人群。能談談從Q4號碼66起依次變化和變化的是什麼嗎？它下降了幾百個基點。當你查看第二季度的營業利潤率指導時，上半年為 17%，我認為後半部分，你需要達到 26%，Core Illumina 需要達到 27% 才能達到年度指導，是什麼推動了 17% 的提升喜歡後半場的 27%？

Yes. So Vijay, thanks for the question, and good calculations, rapid calculation of the math. So let me first hit the simple question on the Russia headwind. So as we said in the call, it's about $60 million for the full year and approximately $18 million in headwind year-over-year in Q2. You're right, gross margins were down sequentially for us in Q1. Actually, we had signaled some of this as we gave our guide in February. There are 2 specific reasons.

是的。所以 Vijay，感謝您提出問題，並進行了良好的計算，快速計算數學。因此，讓我首先提出一個關於俄羅斯逆風的簡單問題。因此，正如我們在電話會議中所說，全年約為 6000 萬美元，第二季度同比逆風約為 1800 萬美元。你是對的，第一季度我們的毛利率連續下降。實際上，我們在 2 月份提供指南時就已經發出了其中的一些信號。具體原因有2個。

So one, of course, is the launch of the Xs. We told you, the X is just ramping up, so margins for the extent to be low. And of course, we sold more Xs than we anticipated in Q1. The other reason, as you go from Q1 to Q -- sorry, from Q4 to Q1, you typically have lower absorption in our factories, right? So that tends to lead to a sequential decline in gross margin as you move from Q1 -- Q4 to Q1.

因此，其中之一當然是 Xs 的發布。我們告訴過你，X 只是在增加，所以範圍的利潤率很低。當然，我們在第一季度售出了比預期更多的 X。另一個原因，當你從 Q1 到 Q 時——抱歉，從 Q4 到 Q1，你通常對我們工廠的吸收率較低，對吧？因此，當您從第一季度到第四季度移動到第一季度時，這往往會導致毛利率連續下降。

In terms of operating margin for Q2, there are a couple of factors there, right? So we -- as I mentioned in the call, there's -- we had our typical salary and promotional adjustments and equity adjustments. So from -- as you move from Q1 to Q2, there is a onetime jump in overall operating expense. But of course, that then stabilizes for the rest of the year.

就第二季度的營業利潤率而言，有幾個因素，對吧？所以我們——正如我在電話中提到的那樣——我們進行了典型的薪資和晉升調整以及股權調整。所以從 - 當你從第一季度移動到第二季度時，整體運營費用會一次性增加。但當然，在今年餘下的時間裡，這種情況會趨於穩定。

The second factor, of course, in Q2 in terms of margins is we have -- because of the Russia issue, we have a shift again in a higher amount of instruments being sold, which has an impact on gross margin. So those two combined offset some of the operating leverage that we are getting to keep margins at 17%. Now you're absolutely right. We had indicated in our call that we expect margins to improve in the second half of the year. The two biggest reasons for that are really as we scale up and start to improve margins on the X, and of course, then consumables ramp up. So we have a sequential step-up in each quarter.

當然，就利潤率而言，第二季度的第二個因素是——由於俄羅斯問題，我們再次轉向銷售更多的工具，這對毛利率產生了影響。因此，這兩者結合起來抵消了我們將利潤率保持在 17% 的一些運營槓桿。現在你是完全正確的。我們在電話會議中曾表示，我們預計下半年利潤率會有所提高。這兩個最大的原因實際上是我們擴大規模並開始提高 X 的利潤率，當然還有消耗品的增加。所以我們在每個季度都有一個連續的升級。

And because of that, absorption in our factories improves, leading to increased gross margin. And we do expect to exit the year with gross margins in the high 60s and operating margins close to the high 20 numbers that you indicated.

正因為如此，我們工廠的吸收能力提高了，導致毛利率增加。我們確實希望以 60 多歲的高毛利率和接近您指出的 20 高位的營業利潤率結束這一年。

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。

So Francis and Joydeep, maybe a couple on the Core and then a couple on GRAIL. So on the Core business, your nice upside on the X shipments, obviously versus what you indicated earlier in the year. But instrument revenues were essentially in line with our forecast. So Joydeep, just on the math there, was the offset essentially the EMEA weakness with the NextSeq 550 shipments in China? Or was there some sort of like greater than expected discounting or some such elsewhere in the portfolio?

所以 Francis 和 Joydeep，可能是 Core 上的一對，然後是 GRAIL 上的一對。因此，在核心業務上，您在 X 出貨量方面的優勢明顯高於今年早些時候的表現。但儀器收入基本符合我們的預測。那麼 Joydeep，就那裡的數學而言，NextSeq 550 在中國的出貨量是否基本上抵消了 EMEA 的疲軟？或者在投資組合的其他地方是否有某種大於預期的折扣或類似的東西？

Second, for you, Francis, on the NextSeq, any updated thoughts on where you need to land on the per GB price point once you bring XLEAP to that platform next year? The competition is roughly at $2 a gig. So do you think [4 to 5] is sort of a fair assumption? Or could it even be higher than that given the inertia to switching here?

其次，對於你，Francis，關於 NextSeq，明年你將 XLEAP 引入該平台後，你是否有任何關於你需要在每 GB 價格點上著陸的最新想法？比賽大約是每場演出 2 美元。那麼您認為 [4 到 5] 是一種合理的假設嗎？或者它甚至可以比這里切換的慣性更高？

And then on GRAIL really, the question that we get a lot is how committed are you to divesting the asset? Should you win that jurisdictional appeal and claw back the European Commission fine? So put another way, I mean, what color could you share on the scenarios under which you could decide to keep GRAIL instead? I mean, is it essentially premised on what you'd get for the asset via an IPO or a sale or some such? Or just walk us through that thought process?

然後在 GRAIL 上，我們經常遇到的問題是您對剝離資產的承諾有多大？您應該贏得管轄權上訴並收回歐盟委員會的罰款嗎？所以換句話說，我的意思是，在您可以決定保留 GRAIL 的情況下，您可以分享什麼顏色？我的意思是，它是否基本上以您通過 IPO 或出售等方式獲得的資產為前提？或者只是引導我們完成這個思考過程？

Yes. So let me answer the instrument question first. So yes, we were happy with our increased supply of NovaSeq X. And as we mentioned on the call, the primary offset was in terms of instruments, the offset in the mid-throughput instrument cycle. And that was again mostly due to the reduced 550 shipments, and that was primarily in China.

是的。所以讓我先回答儀器問題。所以是的，我們對增加 NovaSeq X 的供應感到滿意。正如我們在電話會議上提到的，主要抵消是在儀器方面，即中通量儀器週期中的抵消。這又主要是由於 550 台出貨量減少，這主要是在中國。

In terms of pricing, I want to be very clear, we track pricing pretty carefully. We're not seeing any differential with the expected prices nor a decrease in the prices that we track, both for instruments and our consumables. So they are exactly at where we had expected them to be. And I think the next question was, was it out to GRAIL and or...

在定價方面，我想非常清楚，我們非常仔細地跟踪定價。我們沒有看到與預期價格有任何差異，也沒有看到我們跟踪的儀器和消耗品價格下降。所以它們正好在我們預期的位置。我認為下一個問題是，它是針對 GRAIL 還是...

The next question was about -- maybe I'll jump in, talk about NextSeq and the -- what the impact of XLEAP-SBS could be on NextSeq? And so Tejas, as you know, when we put XLEAP-SBS on NextSeq, you'll see a number of pretty dramatic improvements. One, you'll see an improvement in the price points associated with NextSeq, and I'll come back to that because that's where your question was. But you'll also see improvements in other capabilities, right?

下一個問題是——也許我會插話，談談 NextSeq 以及——XLEAP-SBS 對 NextSeq 的影響是什麼？所以 Tejas，正如你所知，當我們將 XLEAP-SBS 放在 NextSeq 上時，你會看到許多非常顯著的改進。第一，您會看到與 NextSeq 相關的價格點有所改善，我會回到這一點，因為這就是您的問題所在。但是您還會看到其他功能的改進，對嗎？

So the actual performance of the chemistry in terms of quality and so on. And then you'll obviously see the sustainability benefits, and that's a big draw for our customers because with XLEAP-SBS chemistry, you don't need a cold chain when you are shipping the consumables. And that's a really big savings for our customers in terms of the sustainability value proposition of the product.

因此，化學在質量等方面的實際表現。然後你會明顯地看到可持續發展的好處，這對我們的客戶來說是一個很大的吸引力，因為使用 XLEAP-SBS 化學，你在運輸耗材時不需要冷鏈。就產品的可持續性價值主張而言，這對我們的客戶來說確實是一筆巨大的節省。

Now in terms of how we think about the price, our perspective is -- and we're not enhancing the price right now, but our perspective is we want to price it such that we can maximize the market opportunity. And so clearly, we're going to bring prices down. But our products also have uniquely in the market, additional capabilities, not only the sustainability features that I just talked about, but we have the onboard compute associated with having the FPGAs built into the NextSeq. We also have the onboard storage optimization, which is also unique to Illumina's NextSeq compared to any other mid-throughput instrument in the market.

現在就我們如何看待價格而言，我們的觀點是——我們現在並沒有提高價格，但我們的觀點是我們希望對其定價，以便我們能夠最大化市場機會。很明顯，我們要降低價格。但我們的產品在市場上也具有獨特的附加功能，不僅是我剛才談到的可持續性功能，而且我們擁有與將 FPGA 內置到 NextSeq 相關的板載計算。我們還有板載存儲優化，與市場上任何其他中等通量儀器相比，這也是 Illumina 的 NextSeq 所獨有的。

And so we're going to bring the prices down, but we're also going to recognize the additional value that we provide in our instruments. And that will be part of the calculus that determines what the ultimate pricing is, and it will be around what opens up the market the most in the mid-throughput segment. In terms of GRAIL, so the pass-through divestiture is -- answer your question around what's about the divestiture and then in what scenario do you keep GRAIL? So the path to divestiture is, obviously, the divestiture order will come out shortly, that will lay out the process and the structure of the divestiture, we have a divestiture team, that's already engaged with the team in the European Commission, and we'll move forward with that process.

因此，我們將降低價格，但我們也將認識到我們在儀器中提供的附加價值。這將是決定最終定價的演算的一部分，它將圍繞中等吞吐量細分市場最開放的市場展開。就 GRAIL 而言，直通資產剝離是——回答您關於資產剝離的問題，然後在什麼情況下您會保留 GRAIL？因此，資產剝離的路徑顯然是，資產剝離命令將很快出台，它將列出資產剝離的流程和結構，我們有一個資產剝離團隊，已經與歐盟委員會的團隊進行了接觸，我們'將繼續推進該過程。

In parallel, we have the 2 appeals going. If we lose either of the appeals, we'll divest promptly in the best interest of our shareholders. And we expect that to play out again in the late this year, early next year kind of time frame in parallel with the appeals that are happening. Under what scenario would we keep it? If we win both the appeals and at that time, we have a chance to sort of look at the asset and sort of make sure that the assumptions in the business case that we did hold in terms of us keeping it compared towards divesting it. And so that would be the scenario under which we would keep the asset and integrate.

與此同時，我們正在進行 2 次上訴。如果我們敗訴，我們會為了股東的最大利益迅速撤資。我們預計這將在今年年底、明年年初與正在發生的上訴同時發生的時間框架內再次發揮作用。在什麼情況下我們會保留它？如果我們在那時贏得了上訴，我們就有機會審視資產，並確保我們確實持有的商業案例中的假設與剝離資產相比保持不變。因此，這就是我們保留資產並進行整合的情況。

And shortly, I'll be turning the call back over to Francis for closing remarks. (Operator Instructions) The next question comes from Julia Qin with JPMorgan.

很快，我會將電話轉回給弗朗西斯，讓他發表結束語。 （操作員說明）下一個問題來自摩根大通的 Julia Qin。

First off, regarding your operating margin targets, can you help us think about the upside downside scenario? And in those numbers, do you assume that your in-house NovaSeq X manufacturing reaches full efficiency by the end of '24 or by the end of '25? And for the R&D efficiency, I wonder if you could elaborate and help us to think about the magnitude of improvement in new product achievement before and after you implement that new R&D structure?

首先，關於您的營業利潤率目標，您能否幫助我們考慮下行情況？在這些數字中，您是否假設您的內部 NovaSeq X 製造在 24 年底或 25 年底之前達到全效率？而對於研發效率，我想知道你是否可以詳細說明並幫助我們思考你實施新研發結構前後新產品成果的提升幅度？

And then lastly, I wonder if you can comment more on China. Are you seeing any offset from the government stimulus? And are you seeing any signs of COVID disturbance or recovery here?

最後，我想知道你是否可以對中國發表更多評論。您是否看到政府刺激措施有任何抵消？你在這裡看到任何 COVID 干擾或恢復的跡象嗎？

Okay. So let me -- Julia, let me take the operating margin target question. So I think there are probably 2 steps there. For 2022, I want to reaffirm that we are still at our operating margin guidance of 22% for the year for Core. We see a couple of offsets there. So of course, we are seeing more instruments in the number for the year, again, due to some of the offset from Russia about $60 million for the year. So for that, we do expect a slight gross margin hit, which will be offset by further productivity efforts on our manufacturing. And of course, some of the impact from the further cost reductions that we have introduced.

好的。所以讓我 - 朱莉婭，讓我回答營業利潤率目標問題。所以我認為那裡可能有 2 個步驟。對於 2022 年，我想重申，我們的 Core 全年營業利潤率指引仍為 22%。我們在那裡看到了幾個偏移量。因此，當然，由於俄羅斯當年抵消了約 6000 萬美元，我們再次看到今年數量更多的工具。因此，為此，我們確實預計毛利率會受到輕微影響，這將被我們製造業的進一步生產力努力所抵消。當然，還有一些來自我們引入的進一步降低成本的影響。

In terms of your instrument or X manufacturing efficiencies, we do expect that by the end of the year, we will have achieved the efficiencies that we had initially outlined. We don't think the efficiencies will stop there. As we have done with all of our instruments, we continue to have further efficiencies as we go into subsequent years.

就您的儀器或 X 製造效率而言，我們確實希望到今年年底，我們將實現我們最初概述的效率。我們認為效率不會止步於此。正如我們對所有儀器所做的那樣，在接下來的幾年中，我們將繼續提高效率。

So you will see that those efficiencies continue to progress as we get into year 2, 3 of manufacture. In terms of the R&D efficiencies that we talked about, so this is really coming from a couple of areas, and it's R&D and beyond, right? So from the R&D side, we have spent a lot of effort in modularizing our innovations as part of the X, and of course, even part of the NextSeq 1K, 2K. And innovations like the new flow cell technology and XLEAP-SBS really allow us to radically reduce the spend per platform and for subsequent platforms and accelerate their time to market.

因此，隨著我們進入製造的第 2 年和第 3 年，您會看到這些效率繼續提高。就我們談到的研發效率而言，這真的來自幾個領域，它是研發和其他領域，對吧？因此，從研發方面來說，我們花了很多精力將我們的創新模塊化，作為 X 的一部分，當然，甚至是 NextSeq 1K、2K 的一部分。新的流動槽技術和 XLEAP-SBS 等創新確實讓我們能夠從根本上減少每個平台和後續平台的支出，並加快它們的上市時間。

So you won't see this in 2023, but you'll see this in '24 and beyond. And then we're also streamlining where we are doing some of our R&D, so leveraging our global footprint in more cost-effective hubs. So this is for R&D, but also for other functions. And then that -- those kinds of activities also lead to further streamlining our organization and our processes allow us to rationalize our global real estate portfolio, spend and our IT infrastructure as well.

所以你不會在 2023 年看到這一點，但你會在 24 年及以後看到這一點。然後我們還精簡了我們進行一些研發的地方，從而利用我們在更具成本效益的中心的全球足跡。所以這是為了研發，也為了其他功能。然後——這些活動還導致進一步精簡我們的組織，我們的流程使我們能夠合理化我們的全球房地產投資組合、支出和我們的 IT 基礎設施。

So again, you'll see that coming through starting towards the end of this year, but really kicking into place, as we go into 2024 and beyond. And finally, in China, we are not seeing the benefits of any stimulus in China, at least for our business. We are monitoring China closely in terms of looking at some of the funding challenges our customers are facing and taking steps to mitigate some of these challenges.

所以，你會再次看到，從今年年底開始，但隨著我們進入 2024 年及以後，它會真正發揮作用。最後，在中國，我們沒有看到任何刺激措施在中國帶來好處，至少對我們的業務而言是這樣。我們正在密切關注中國，了解我們的客戶面臨的一些融資挑戰，並採取措施緩解其中一些挑戰。

And we have a question from David Westenberg with Piper Sandler.

David Westenberg 和 Piper Sandler 提出了一個問題。

Congrats on the big NovaSeq X placements. So I want to stick on those 67 placements. Have any of those customers started decommissioning any of their 6000? Traditionally, you had customers kind of can finish their old projects before starting on the X. Now you have really good consistency between platforms. Has any of that behavior might have changed? Have you seen any maybe subsequent orders on 6000 even though they've already switched to X.? Just trying to really get a sense on kind of this dynamic.

祝賀 NovaSeq X 的大位置。所以我想堅持那 67 個展示位置。這些客戶中的任何一個是否開始停用他們的 6000 中的任何一個？傳統上，您的客戶可以在開始使用 X 之前完成他們的舊項目。現在平台之間的一致性非常好。這些行為中的任何一個可能已經改變了嗎？你有沒有看到 6000 上的任何後續訂單，即使它們已經切換到 X.？只是想真正了解這種動態。

Yes. So Dave, thanks for the question. I think on the NovaSeq Xs, right, so you're right, a majority of our customers, they are -- they will transition their projects over time, and they are not intending, especially on the clinical side, not intending to decommission their NovaSeq 6000s. For the initial set of customers that we are tracking into from Q1 into Q2, we expect just about 10 to 12 decommissions as those Xs come online.

是的。戴夫，謝謝你的提問。我認為在 NovaSeq Xs 上，對，所以你是對的，我們的大多數客戶，他們是——他們將隨著時間的推移過渡他們的項目，他們不打算，特別是在臨床方面，不打算停用他們的NovaSeq 6000s。對於我們從第一季度到第二季度跟踪的第一批客戶，我們預計隨著這些 X 的上線，只有大約 10 到 12 家退役。

But again, decommissions and replacements will be a smaller fraction. And as we get into the year, we'll provide more updates in terms of how the 6000 inventory -- or, 6000, not inventory, but set of installed base continues to evolve.

但同樣，退役和更換將是一個較小的部分。隨著我們進入這一年，我們將提供更多關於 6000 庫存的更新 - 或者，6000，不是庫存，而是一組安裝基礎如何繼續發展。

And we will take our next question from Kyle Mikson with Canaccord.

我們將與 Canaccord 一起接受 Kyle Mikson 的下一個問題。

Congrats on the launch of the X here. Just one question for me. Historically, the company's revenue growth has been kind of elevated in the year or 2 following one of the meaningful sequential launches. '17, '18 those were strong with 6000. '19 was a setback, and '14, '15 were solid with the HiSeq X. But in '16, growth was single digit. So is there anything about the NovaSeq X launch that would lead to a different outcome? Or could Illumina be stuck in this kind of perennial cycle and dependence on new products driving near-term growth? Because now you have kind of more headwinds than you had in the past. So just -- I think it would be helpful to understand.

祝賀 X 的發布。只問我一個問題。從歷史上看，該公司的收入增長在其中一個有意義的連續發布後的一年或兩年內有所提高。 17 年、18 年 6000 年表現強勁。19 年是一個挫折，14 年、15 年 HiSeq X 表現穩定。但 16 年增長是個位數。那麼，NovaSeq X 的發布是否會導致不同的結果呢？或者 Illumina 是否會陷入這種長期循環並依賴新產品推動近期增長？因為現在你遇到的逆風比過去更多。所以，我認為這會有助於理解。

Yes. Thanks for that question, Kyle. I'll say maybe a couple of points I'll make. One, product cycles are important in our market from a couple of perspectives. One, obviously, there's an upgrade cycle that they catalyze and that's typically more quick in the research market. And so historically, it's been very important in terms of driving near-term revenue growth because our market was primarily a research market.

是的。謝謝你提出這個問題，凱爾。我可能會說幾點。第一，從幾個角度來看，產品週期在我們的市場中很重要。其一，很明顯，他們有一個升級週期，而且在研究市場上通常更快。所以從歷史上看，它在推動近期收入增長方面非常重要，因為我們的市場主要是研究市場。

But now as we pointed out last quarter, 50% of our consumables are coming from the clinical market, I'd say that's one of the drivers of growth, but a big driver of growth is just going to be the growth in the clinical use cases. And so we talked about the fact that we're seeing in the clinical markets from our proactive runs that we monitor, continued strong growth of our clinical customers just because we're seeing more uptake of tests like the genetic disease testing segment that's continuing to grow or more coverage associated with oncology therapy selection or increased NIPT coverage.

但現在正如我們上個季度指出的那樣，我們 50% 的耗材來自臨床市場，我想說這是增長的驅動力之一，但增長的一大驅動力將是臨床使用的增長個案。因此，我們談到了這樣一個事實，即我們在臨床市場上看到我們監測的主動運行，我們的臨床客戶持續強勁增長，只是因為我們看到越來越多的測試，比如遺傳疾病測試部分正在繼續增加或增加與腫瘤治療選擇或增加 NIPT 覆蓋率相關的覆蓋率。

And so as you look forward, a significant driver of growth is going to come more from adoption of sequencing in the clinical market more so necessary than just a straight upgrade cycle.

因此，正如您所期待的那樣，增長的一個重要驅動力將更多地來自臨床市場對測序的採用，而不僅僅是一個直接的升級週期。

I think just one more thing to add, right, Kyle, you will see a little bit of what we traditionally see as customers cut over from one system to the other, right? There will be a little bit of a transition from consumables from one system to the other. So I don't think that can totally be avoided. But Francis is right. You see that much more with research customers than clinical customers, right? So that will tend to mitigate.

我想再補充一件事，對吧，凱爾，你會看到一些我們傳統上看到的客戶從一個系統切換到另一個系統的情況，對吧？從一個系統到另一個系統的消耗品將會有一些轉變。所以我認為這不能完全避免。但弗朗西斯是對的。與臨床客戶相比，您在研究客戶中看到的更多，對嗎？所以這往往會減輕。

And that concludes our Q&A session. I will now hand the call back over to Francis deSouza.

我們的問答環節到此結束。我現在將把電話轉回給 Francis deSouza。

Thank you for joining us. As we close the call, today is DNA Day, celebrating the 70th anniversary of the discovery of the double helix structure of DNA. This month is also Illumina's 25th anniversary. Over our history, our team has played an important role in the genomic revolution by delivering breakthrough innovations that dramatically reduce sequencing costs and broaden access to genomics, unlocking new frontiers in biology and health care.

感謝您加入我們。當我們結束電話會議時，今天是 DNA 日，慶祝發現 DNA 雙螺旋結構 70 週年。這個月也是 Illumina 成立 25 週年。縱觀我們的歷史，我們的團隊通過提供突破性創新在基因組革命中發揮了重要作用，這些創新顯著降低了測序成本並拓寬了基因組學的可及性，開闢了生物學和醫療保健的新領域。

And yet today, with only 4 million genomes ever sequenced, representing only 0.07% of the population, we are still at the beginning of the genome era. That concludes our call today. We look forward to seeing you at upcoming conferences and other events.

然而今天，只有 400 萬個基因組被測序，僅佔人口的 0.07%，我們仍處於基因組時代的開端。我們今天的電話會議到此結束。我們期待在即將舉行的會議和其他活動中見到您。

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

謝謝。今天的會議到此結束。我們非常感謝您的參與。祝你有美好的一天。